Dundee City Council to extend RBS contract – despite outrage over local branch closures

A contract between Dundee City Council and RBS will be extended for two years, despite calls to scrap it due to local branch closures.

The council banks with RBS but calls had been made to change providers after the banking giant closed its Broughty Ferry branch last year.

The contract is due to end this summer and a council report suggested extending this for two years, saying it would save £11,000 and bring “community benefits” such as work experience opportunities for local school or college students.

But Broughty Ferry councillor Craig Duncan, who led the fight against the Brook Street branch closure, slammed the banking giant during a city governance committee on Monday.

He said: “We are talking about RBS here and community benefits.

“I find it somewhat galling and a tad ironic to hear that phrase coming from an institution which has good form on closing down branches – most recently in Broughty Ferry.

“When we talk about community benefits, closing branches is surely not high on the list of anyone in the community.

“I would just ask that officers to be particularly mindful that when we are dealing with RBS, or indeed anybody, to impress upon them that not everybody in this world has the capability to do online (banking).”

Last year councillors unanimously agreed to write to the chief executive for RBS – formally objecting to the closure of its Broughty Ferry bank.

RBS bosses claimed just six personal customers were using the bank regularly.

The branch shut its doors for good in November.

RBS banks in the Perth Road and Stobswell area have also closed in the last decade.

Branches in Lochee and Ninewells Hospital shut in 2011.

Council could consider banking alternatives

However, despite the frustration aimed towards RBS, officers stressed extending the contract best meets the council’s banking needs.

It’s said the contract would bring in savings on tariffs of £11,000 for each year.

Head of corporate finance, Paul Thomson said: “The current service contract meets the council’s requirements in terms of how we do bank.

“And there is an opportunity to extend that for two years and create a saving.”

But officers suggested that the authority could in the future “consider alternative providers”.