The Credit Union Comes to Maturity - The 1980s

Fruitless negotiations about amalgamation with the Mid North Coast Credit Union heralded this decade, and this competitor was to provide a source of concern for some years to come.

Promotional activities for our Credit Union began to escalate to include radio advertising, as well as an increased budget for branch signage and leaflets. Community support continued with increased donations to the Hoof and Hook competition, Disabled Children, the Red Shield Appeal, the Bananacoast Tourist Association, and the Hunter Valley Steam Railway and Museum.

The interest rates set at the start of the financial year for term deposits had needed constant revision, and by May 11% was being paid on. N O W [Notice Of Withdrawal.] accounts with a minimum balance of $200.

For the 12 months to 30th June 1981 the Credit Union made loans to the value of $2,560,627, and a profit of $37,137. Membership stood at 3864, assets at $4,308,388, and outstanding loans $3,622,071.

The advertising budget for 1981-1982 was set at $9,500, of which $5,500 was due under contract to radio 2MC. Allocation of the remainder was left to the discretion of Management.

The most effective way to overcome a possible lack of available cash in the Coffs Harbour office was to invest $50,000 with the National Bank. The interest rate payable on the deposit at the time was 13.75%.

In an effort to lessen the overhead costs of computerisation, negotiations took place in August with two Credit Unions whose bond areas adjoined that of Bananacoast Credit Union [Macleay and Hastings] with a view to developing a shared system. These negotiations failed.

When retiring directors Brian Pilgrim and Arthur Nelson did not seek re-election at the Eleventh Annual General Meeting on 28th September 1981, the Chairman, Bruce King thanked them earnestly for their contributions to the progress of the Credit Union. Mr. J. R. Robinson and Mr. M Scarr were elected to the vacancies on the Board. The guest speaker at the dinner was Mr. W. Howe, Chairman of the Credit Union Association of N.S.W. and Chairman of the Australian League of Credit Unions. (The charge to Members for the Annual Dinner was $4.00.)

In a wider context, the Credit Union Movement was facing great change with the Campbell Report deregulating much of the financial industry and making competition for deposits much fiercer.

After renovations to both the ground floor and the flat upstairs, the Dorrigo office began operations on a full-time basis from 1st October 1981.

In November 1981 the first agency was established at Urunga in Roy Peake's Real Estate Agency. The Credit Union's Credit Control Manager, Ken Butler, attended the agency each Friday to give investment advice and take loan applications.

The Credit Union became fully computerised on 1st April 1982, thus allowing it to extend its range of services. New services like bill-paying, periodic payments and insurance became a permanent feature of the Credit Union's product range. At this time it was approaching $5 million in assets and a $200 term deposit for three months attracted an interest of 14% per annum.

For the 12 months to 30th June 1982 the Credit Union made a profit of $67,538. Membership stood at 4551, assets at $6,435,016, and outstanding loans $5,275,890.

At the Twelfth Annual General Meeting on 27th September 1982, Mr. R. H. Palmer was elected to the Board in place of Mr. J. R. Pullen. (The charge to Members for the Annual Dinner was $5.00.)

As a consequence of the Board setting a long-term objective of being unencumbered by rent, contracts were exchanged on 7th October 1982 for the purchase of premises at 6 Park Avenue, Coffs Harbour. The branch was eventually moved to that address in July 1984, after an arrangement being made with the remaining tenant to vacate earlier in that year.

At the January 1983 board meeting, the decision was made to make Redicards available to approved Members. Citing personal reasons, Mr. R. A. Stone had tendered a letter of resignation, which the Board accepted with much regret. A formal letter was compiled to thank him for his 10 years of service to the Credit Union, and in particular the valuable service he had given to the Members in the Bellinger Valley. Subsequent to receiving the letter, and before the board meeting of 14th March, Mr. Stone's personal reasons had been resolved, and he was invited to re-join the Board. His new appointment took effect from 11th April 1983.

Three more agencies were opened during 1983 - Bellingen and Nambucca Heads in May, and Sawtell in July. Gordon and Betty Weick operated the agency at the Bellingen Property Agency Office. Mr. John Bradley and Mr. Bill Ussher operated the Nambucca Heads agency at Bradleys Real Estate Office. The agency in Sawtell was operated by Ted Samuel's Real Estate.

For the 12 months to 30th June 1983 the Credit Union made a profit of $70,794. Membership stood at 6072, assets at $8,325,567, and outstanding loans $6,647,953.

At the Thirteenth Annual General Meeting, held on 19th September 1983, Mr. H. G. De Satge was elected in place of Mr. M. Scarr.

The Mid Coast Cooperative Meat Society went into receivership on 11th November, putting $182,983 in employee loans at risk. The associated loss of income to the Nambucca district was of great concern to the Credit Union at the time, but thanks to community support and good management, it had no significant impact on the growth of the Credit Union.

Minor donations and sponsorships were now at the discretion of the General Manager, but an additional allocation of $500 was sought from the Board for a donation to Autumn Lodge.

Interest rates continued to fall, and from December 1983, the cost of deposits was 8% on savings - ranging to 11.5% on a three-month term for $1,000 or more. By February the former figure was down to 7.5%, but investment rates fluctuated between 12% and 12.5% between April and July.

After protracted negotiations through the early months of the financial year, a contract was signed for the purchase of premises at 68 Beach Street, Woolgoolga in December. Further problems emanating from the vendor delayed the commencement of operations at the Woolgoolga Branch until 7th May 1984. In the interim, the Credit Union's computer system was upgraded to accommodate the rapid expansion, and Ken Palmer, the Coffs Harbour Area Manager, was promoted to the position of Marketing Manager (a position he filled with enthusiasm until his retirement in 1999). By the end of the financial year, the Credit Union had a permanent staff of seventeen.

At their January meeting, the Board accepted Mr. J. R. Robinson's resignation as a director with regret, thanking him for his valuable service to the Credit Union. Mr. K. F. King was elected to fill the casual vacancy at the April board meeting.

For the 12 months to 30th June 1984 the Credit Union made loans to the value of $7,935,186, and a profit of $182,919. Membership stood at 8208, assets at $13,319,982, outstanding loans $10,219,906, and deposits $12,600,000.

In August, the Credit Union became a major supporter of Youth Radio 2CHY with a $2,000 sponsorship for twelve months. Other donations were made for prizes and promotions to diverse community groups such as Rotary, and the tourist committees serving the bond area. The Woolgoolga Art Group Exhibition was sponsored to the value of $500.

Mr Keith Mannix, Assistant Executive Director of the Credit Union Savings Reserve Board, was the guest speaker at the Fourteenth Annual General Meeting held on 24th September 1984. (The charge to Members for the Annual Dinner was $6.00.)

At the annual meeting of directors in October, Norm Kelsey replaced Bruce King as Chairman. The latter had been an inaugural Coffs Harbour director and the second Chairman of the Credit Union, holding that position for eight years. He was highly regarded as being very astute and hard working.

From December 1984, the cost of deposits was down to 7% on savings - still ranging to 11.5% on investments, but by April, investment rates had risen to 13.5%.

Further to the introduction to this chapter, the Mid North Coast Credit Union, was in some difficulty, and there was a fear that the Members of our Credit Union might be financially disadvantaged if a merger was requested by the regulatory authorities because of its weakened state.

As a result of negotiations during March and April at the behest of the regulatory authorities, our Credit Union agreed to merge with the Mid North Coast Credit Union and absorb its staff. The name and board of the Bananacoast Community Credit Union would be retained.

Visa Cards became available to approved Members by the end of the year, putting them in touch with retail outlets in over 4 million locations throughout the world. Most Members could also write their own personalised cheques - some even from an overdraft.

For the 12 months to 30th June 1985 the Credit Union made loans to the value of $10,888,952, and a profit of $181,128. Assets stood at $17,263,427, and outstanding loans $14,618,248.

After negotiations with the staff of the Mid North Coast Credit Union, the Bananacoast Community Credit Union agreed to accept a transfer to it of the Mid North Coast Credit Union's engagements. The merger was completed and became effective on and from 1st September 1985. While it took the Members of that group a little time to feel at home with Bananacoast, the merger went quite well. As Mid North Coast had a branch in Vernon Street, there were now two offices of the Credit Union in Coffs Harbour to serve its Members.

Community support in the way of donations and sponsorships continued with a $500 donation to Autumn Lodge, $250 for Touch Football at the Macksville Gift, and other amounts for prizes to diverse community groups like Rotary and the Surf Life Saving Clubs serving the bond area.

Early in September, Members' services were further expanded with an agency being opened in the Nambucca River Cooperative at Bowraville. Travellers' cheques also became available to Members later in the month.

The Hon. Fred Daly, a well-known former Member of the Federal Parliament and a senior Minister in the Whitlam Government, was the guest speaker at the Fifteenth Annual General Meeting held on 23rd September 1985. (The charge to Members for the Annual Dinner remained at $6.00.)

Scotts Head agency opened in October, operating out of the offices of the real estate agent AB Boyton & Co. At the October board meeting it was decided that the Credit Union would join the Edvest Retirement Service, and appoint Bridges Personal Investment Services as its independent Investment Adviser. Mr. Bruce Graham, who had previously worked for the Association of NSW Credit Unions, was appointed as Assistant General Manager. Investment rates were set at 14% - only to be increased to 15% from December to February. Further frequent adjustments became necessary, as balancing liquidity became a greater priority for the growing financial institution.

Much of the initial support provided to the community in the way of donations and sponsorships continued at the discretion of the General Manager, with many functions like the Woolgoolga Art Show and Macksville Polocrosse becoming annual events. The McDonalds - Bananacoast Community Credit Union Birthday Club on Radio 2CS proved to be another winning promotion.

Following the resignation of Ted Samuels Real Estate from its agency position in Sawtell effective from 31st March, Bonville Travel was appointed as an agent from 1st May.

The lease on the offices of Mid Coast Credit Union in Vernon Street, Coffs Harbour expired on 31st March, and the affected staff were transferred to the Park Avenue branch. As a result of these transfers, it became necessary to enlarge the branch and the new facility opened on 12th May, with the rest of the renovations being completed in July 1986.

On 8th May, the Credit Union's computer was upgraded to an 'Ultimate 6600' - once again the Board optimistically hoped this one would be able to keep pace with the organisation's growth.

For the 12 months to 30th June 1986 the Credit Union made loans to the value of $9,417,064, and a profit of $164,300. Membership stood at 11,910, assets at $22,670,617, and outstanding loans $17,943,797.

For the months leading up to this time, interest rates had been slowly coming down, and the Board approved a header investment rate at 13.5% from 20th July, only to put it back up to 14.5% again in December. Pressure to increase rates persisted until the end of the financial year, when it was found prudent to reduce the header rate to 12.5% from 12th August 1987.

When retiring directors Bruce King and Bruce Addison did not seek re-election at the Sixteenth Annual General Meeting on 29th September 1986, the Chairman, Norm Kelsey thanked them earnestly for their contributions to the progress of the Credit Union. Director Mr. K. F. King had resigned on 24th February, which left three vacancies on the Board. These were filled by Mr. W. D. Page, Mr. S. N. Grewal and Mr. D. B. Guinness.

Late in the financial year the interior of the Woolgoolga Branch was expanded and redesigned to give greater service and comfort to Members and staff.

During the year, Credit Union commenced a long-term relationship with the Bananacoast Life Education Centre ($1,000).

For the 12 months to 30th June 1987 the Credit Union made a profit of $234,617. Membership stood at 13,081, assets at $26,061,116, and outstanding loans $21,621,905.

Mr. and Mrs. Roy Peake, who had conducted the Urunga Agency since it was established, decided to retire. As a consequence of this, Urunga became the first agency to convert to a full-time branch. The new branch became operational on the 1st September 1987. In his Annual Report, the Chairman recorded the appreciation of the Credit Union Members for the service Mr. and Mrs. Peake had provided during the six years that they had operated the agency.

Director Bill Ussher decided not to nominate for re-election at the Seventeenth Annual General Meeting on 21st September 1987, and was replaced by Mr. F. M. Matthews. In his Annual Report, the Chairman paid tribute to Mr. Ussher's persistent service to the Credit Union. From its genesis through to fruition, Bill gave the Credit Union Movement his wholehearted support: holding Membership #1, he served as the Credit Union's first Chairman for seven years, and a Director for a further ten. Mr. Ussher was urged into further service at the meeting to speak to the Members about the history of the Credit Union. (The charge to Members for the Annual Dinner was $8.00.)

Interest rates continued to fall, with the header investment rate being set at 11.5% from 27th September, only to be reduced to 10.5% from 15th December. The limit for unsecured loans was set at $20,000.

Up until February 1988 Administration and the Macksville branch were intermingled, both working out of the same building, creating a confusing cross-pollination of positions. The Department of Agriculture complied with the notice given in October 1986 to vacate their portion of the premises, and after the completion of internal renovations the Macksville Branch and Administration were separated.

In October 1987 Mr. Ray Battle was asked to relieve the General Manager while he was overseas. (Mr. Battle was formerly the General Manager of the Hastings Credit Union for 14 years.) On Mr. Spear's return, Mr. Battle was asked to continue his assistance on a part time basis. Mr. Battle commenced full time employment as Assistant General Manager on 15th February 1988.

With the appointment of a new, experienced Assistant General Manager, the Board recognised the need for better tools for management to work with, and approved the purchase of 'Lotus 123' software ($10,500) and the installation of the 'CAPS' auditing program ($10,900) at their meeting in March 1988.

The Bellingen agency became a fully staffed branch in May 1988, with the agents Mr and Ms Weick being replaced by a full-time Manager, Mr. Neville Rogers (formerly Branch Manager for the Hastings Credit Union at Laurieton)

For the 12 months to 30th June 1988 the Credit Union made loans to the value of $13,975,000, and a profit of $504,167. Membership stood at 14,798, assetsat $31,627,596, and outstanding loans $25,302,247.

The Credit Union Arcade in Bowra Street, Nambucca Heads was purchased at auction on 2nd June 1988, and the Nambucca Heads agency [operated by the management and staff of Bradley's Real Estate] was subsequently upgraded to a branch under the management of Mr. John McIlveen. The new branch was officially opened on 14th November 1988.

In August the header investment rate was increased to 12% and the Board approved the purchase of a Data Products 600 line/minute printer. The following month a $55,000 computer upgrade was approved.

The guest speaker at the Eighteenth Annual General Meeting on 19th September 1988 was Mr. John Raper (of Rugby League fame). The Chairman announced the retirement of Director Frank Tatton at the meeting and thanked him for the years of service he had given the Credit Union Movement. He also thanked Mr. and Ms. Weick for the great service they had given the Credit Union as agents from 1983 to 1988. Mr. G. J. Regan was elected to fill the position vacated by Mr. Tatton.

The search for accommodation in Toormina that started in September 1985 culminated in a new branch opening there on 12th December 1988. The branch was opened with a view to taking some of the pressure off the Coffs Harbour (Park Avenue) branch that had grown significantly in its popularity. The area served by the Toormina branch was the fastest growing section of the Coffs Harbour district. Barry Martin, who was appointed Manager, had been the General Manager of Macleay Mutual Credit Union for a period of time.

To establish a branch in Bowraville at the least possible cost, space was initially rented (December 1988) in the Bowraville Shire Chambers. In February, land was purchased ($14,500) in High Street, and a new building ($155,000) quickly followed. The Bowraville agency became a full-time branch on 4th December 1989, and was managed by newly retired director Frank Matthews for the first few months.

The rate for short-term investments had moved upwards by small increments to 13.5% in December, but leapt to 14.5% for all term deposits in March and 15.5% in April.

For the 12 months to 30th June 1989 the Credit Union made loans to the value of $20,540,734, and a profit of $686,223. Membership stood at 17,273, assets at $41,438,687, and outstanding loans $33,747,748. Deposits and investments had reached $39.3 million.

As mentioned earlier, Director Frank Matthews did not seek re-election at the Nineteenth Annual General Meeting on 25th September 1989 after serving two years on the Board, and the Chairman expressed appreciation for the service he had given as a director in the Annual Report. Mr. M. J. Spear was elected to fill the vacancy. Doug Walters (of Cricket & Commentary fame) was the guest speaker at the Annual Dinner, which cost $10 per person.

Continuing with an unwritten policy of supporting aged care, our Credit Union donated $600 to Autumn Lodge, and $1000 to the Woolgoolga & District Retirement Village. In a slightly different vein, the Coffs Harbour Rugby League Football Club was granted a $10,000 interest free loan for five years to assist them in the development of their new home ground.

By October the investment rate was 17.5% and then slipped in three stages to14.5% by April. April also heralded a $63,000 upgrade to the Credit Union computer.

Two more agencies were appointed in 1989. The Stuarts Point Agency was established in September at the Stuarts Point Newsagency, and the Coramba Agency was conducted from the Coramba Real Estate Office from 23rd November.

The NSW Credit Union Association and its kindred associations interstate had embarked on a revision for the Movement that it titled Project Renewal. It quickly became apparent that this push was meant to give the Second Tier Association tight control over the primary Credit Unions in the Movement. Our Credit Union's delegates to the Special Meeting of the Association on 7th April 1990 were given unequivocal and irrevocable instructions to vote against all the proposed resolutions to pursue Project Renewal.

From the point of view of our Credit Union it was imperative that the autonomy of the individual Credit Unions be maintained if they were to continue to serve the interests of their Members, as envisaged by the founders of the Credit Union. Our Credit Union strongly resisted the push by both the national and state associations to exercise such a high level of control over Credit Unions, and quickly investigated all possible options to retain control.

For the 12 months to 30th June 1990 the Credit Union made loans to the value of $23,800,000, and a profit of $718,211. Membership stood at 18,938, assets at $51,871,046, and outstanding loans $43,468,772.

By August the investment rate had slipped further to 14%.

It was decided not to have a dinner in conjunction with the Twentieth Annual General Meeting on 17th September 1990, but to provide a light supper. After 18 years as the Credit Union's Auditor, Arthur Kerr & Co. did not re-nominate, and Greg Hardy their former employee was appointed. When retiring director Mr. W. D. Page did not seek re-election after four years on the Board, the Chairman thanked him publicly in the Annual Report for his considerable contribution to the Credit Union Movement. Mr. G. W. McPherson was elected to fill the vacancy on the Board.

From the time of converting the Bellingen agency to a full branch in May 1988, the Credit Union had been negotiating the purchase of a block of land on the corner of Church and William Streets. The purchase ($127,500) was finalised in January 1990, and by October the new building ($275,587) that had been erected on the site was ready for use. The official opening was conducted jointly by the Premier of NSW the Hon. Nick Greiner, and the Minister for Credit Unions and Cooperatives the Hon. G. B. Peacocke on 22nd October. Although both of these gentlemen were sympathetic to our cause against Project Renewal, the rough-and-tumble of state politics saw them removed from power before they had any chance to be of much help - in what proved to be a very tough battle over the next few years.