Thursday, 15 August 2019

In reply to  Mr DAVIS (Southern Metropolitan—Leader of the Opposition) (20 June 2019)

Mr MERLINO (Monbulk—Minister for Education):

A Central Banking System (CBS) has been established to enable the government to manage its capital more efficiently. This model is in line with recommendations made by an external specialist review and with best practice adopted by other state governments and large corporate entities. The CBS provides better value for money for Victorians - lower fees better rates of interest and over $100 million per annum of savings across government.

Under the CBS, agencies have the flexibility to maintain transactional banking relationships with a community bank of their choice. This recognises the need for entities such as hospitals and schools to be able to access a local branch for transactional banking activities. This supports those banks that offer these services to local communities.

I support the Treasurer’s engagement and actions to date on this matter.