RBC reviews plans to close the only bank in Iron Bridge

NEWS RELEASE

CAROL HUGHES, MP

************************* Hughes asks RBC to reconsider decision to close only financial institution in Iron Bridge

OTTAWA, ON - (December 30) - Carol Hughes, New Democrat MP for Algoma-Manitoulin-Kapuskasing, participated in a public meeting on Tuesday, December 29 in Iron Bridge regarding the Royal Bank of Canada (RBC)'s plans to close the small rural branch in Iron Bridge on March 26, 2010.

Close to 100 concerned citizens in attendance voiced their concerns at the meeting that the Financial Consumer Agency of Canada (FCAC) mandated RBC to convene after receiving several complaints from residents and the Municipality of Huron Shores about the closure.

The RBC branch in Iron Bridge is the only financial institution for the 1,000 residents of the Township of Huron Shores.

Business owners and many individuals raised several concerns regarding the impact that such a closure would have on their community. "Having been an employee of the Elliot Lake RBC when ATMs were first installed, I can see that the fears employees had at that time about job security and the impact on smaller communities were well founded. Once again we see the decisions being made in bigger cities for small communities by those who are oblivious to challenges rural Northern communities face" Hughes said. "Our ability to grow our community will be severely hampered should the RBC branch in Iron Bridge close. I've estimated the costs to our small business owners to be approximately $25 for each trip they would have to make to Blind River - 27 kilometres away. For the municipality this will mean an anticipated annual cost of $10,000 which will impact on taxpayer" said Mayor Ted Linley Hughes and Linley asked Rob Johnston, regional president for RBC for Manitoba, Saskatchewan and NW Ontario, to reconsider his decision to close the Iron Bridge branch, as it was evident during the meeting that he did not have all the facts pertaining to the usage of services at this particular branch.

Johnston acknowledged that he was not aware businesses had not been notified.

It was also confirmed that RBC did not factor businesses as being regular clients of the Iron Bridge branch and confirmed that clients who moved to Iron Bridge are also not factored in the statistics he used, given that RBC no longer transfers accounts from the original home branch the account was originally opened at. Johnston said he would gather and review the additional information that was not considered and would revisit the decision to close the branch.

Johnston also agreed to notify the clients, the municipality and the businesses as soon as possible about the outcome of the review. Hughes said: "It was obvious that the residents are still quite concerned and upset about the lack of answers received and questioned whether Johnston would seriously reconsider keeping the RBC branch in Iron Bridge open." *************************