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November 16, 2006 REMOVING BARRIERS: WINNIPEG PARTNERSHIP AGREEMENT INVESTS IN COMMUNITY FINANCIAL SERVICE CENTRE PROJECTWINNIPEG, Manitoba – Low-income households with limited access to traditional banking services will benefit from a $300,000 investment by the Winnipeg Partnership Agreement (WPA) in the Community Financial Services Centre (CFSC) project. This two-year pilot project, co-ordinated by the North End Community Renewal Corporation, will help bridge the banking services gap for Winnipeggers currently relying on high-cost fringe financial services.
Steve Ashton, Manitoba Minister of Intergovernmental Affairs, Joy Smith, MP for Kildonan – St. Paul, on behalf of Carol Skelton, Minister of National Revenue and Minister of Western Economic Diversification, and Mike Pagtakhan, Councillor for Point Douglas, on behalf of Sam Katz, Mayor of Winnipeg, made the announcement today at the CFSC launch.
“The closure of traditional bank branches and proliferation of payday lenders are causing people with limited resources to pay exorbitant fees as they seek to cash cheques and pay bills,” said Ashton. “Instead of using expensive lenders, people will be able to establish accounts and a credit history that will help them better manage their personal resources.”
“Canada’s New Government recently introduced legislation to crack down on the questionable business practices of some lenders,” said Ms. Smith. “Building on our proposed payday loan legislation and our work to protect Canadian consumers, our investment in Winnipeg’s Community Financial Services Centre provides fair and equitable access to financial services.”
“Every citizen in Winnipeg deserves the option of accessing financial services that are fair and equitable,” said Pagtakhan. “This project will provide a much needed service to those in this area of the city who may not have had many options to choose from in the past and we welcome it.”
The Community Financial Services Centre (CFSC) is temporarily located at Mount Carmel Clinic, 886 Main Street. Mount Carmel is expanding into a former bank branch located at 888 Main Street and CFSC will be moving there once renovations are complete, expected to be Spring 2007. The Winnipeg Partnership Agreement is also providing $150,000 towards the capital costs of that project.
CFSC will respond to the needs of low-income families who traditionally can’t access mainstream banking services and as a result rely on pawnshops or over-pay for financial services offered by payday lenders.
Clients will be offered different options depending on their needs. The intent is to establish a financial track record so clients can tap into conventional banking institutions. Clients will receive: photo identification that will assist with cashing government cheques; access to financial education and counseling services; and will be encouraged to open bank accounts. These steps will help ensure clients are eligible for micro-loans that help to build a credit history thereby reducing the access gap to regular financial service providers.
The funds announced today are under Component II – Building Sustainable Neighbourhoods of the Winnipeg Partnership Agreement. This program supports the revitalization of communities in need through broadly based community economic development (CED) and social economy strategies and initiatives.
The Winnipeg Partnership Agreement was signed in May 2004. WPA represents a five-year, $75-million commitment by the governments of Canada, Manitoba and Winnipeg to strengthen our neighbourhoods, promote economic development and enable Aboriginal citizens to fully enjoy Winnipeg’s economic and social opportunities. Interested parties are encouraged to consult the website http://www.winnipegpartnership.mb.ca for program details.
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