MISSISSAUGA, Ont. - Federal Finance Minister Jim Flaherty says he's "encouraged'' by what he's hearing from Canada's chartered banks on the issue of bank machine fees and that Canadians should expect to hear more on the matter within days.
"I am encouraged by what I am hearing and stay tuned,'' he said Wednesday following a visit to an international medical aid distribution centre west of Toronto.
Canada's banks have come under fire for fees they charge for bank machine services, but many don't want to eliminate the fees entirely and are looking at other ways to appease customers.
Flaherty said Wednesday that he was particularly encouraged by TD Bank's (TSX:TD) announcement in March that it will look into expanding its network of automated banking machines on or near Canadian campuses.
"I understand there's more to come from a couple of other chartered banks in Canada,'' he said. "I look forward to hearing more from them on the subject.''
When pressed about when Canadians can expect an answer, Flaherty answered, "I think some announcements will be coming quite soon. We're talking about days, not months.''
TD's move is aimed at providing students with access to a choice of machines on campus. The bank already offers reduced fees to students and free service to seniors.
However, TD CEO and president Ed Clark has said that government intervention on ABM fees would damage the non-bank industry and thousands of small businesses who earn rents from the machines.
The Bank of Nova Scotia (TSX:BNS) has also said it will not get rid of automated banking machine fees despite political calls for their elimination.
NDP Leader Jack Layton has been blasting the banks for fees he says are "nickel and diming'' people who can least afford to pay and shouldn't be charged for simply accessing their own money.
Layton estimates the big banks rake in $420 million per year in ABM fees and is calling for a change to the Bank Act that will reduce or eliminate the charges.
Critics of Layton's proposal have suggested that cutting ABM fees would only cause the banks to build the fees into other service charges.
However, Flaherty has expressed concern about how the fees affect poor Canadians, students, seniors and people with disabilities.
He has cited the example of university campuses which have only one bank machine on the premises, forcing students from other banks to pay the so-called convenience fees.
The minister met with officials from the country's six top banks in March to urge them to address the issue, and came away from the meeting hinting that changes could be on the way without committing the federal government to take action.
On Wednesday, Flaherty toured the Health Partners International of Canada warehouse and delivered a speech about tax incentives in the recent federal budget for drug manufacturers to donate medicines to the developing world.
Foreign aid will likely come up for discussion among the Group of Seven countries when they meet in Washington later this week, he said.
Flaherty said he's spoken with his British counterpart, Chancellor of the Exchequer Gordon Brown, about education funding -- and school building, in particular -- in some of the world's poorest countries.
"I expect that both he and I will raise that issue Friday and Saturday in Washington,'' he said.
Flaherty said he will also raise the issue of mutual recognition and free trade in securities, as well as "getting our house in order nationally'' in Canada by moving towards a common securities regulator.
