Southern business leaders and politicians have delivered mixed views on the imminent closure of NZCU South credit union branches in mainly small towns throughout the South Island.
Branches in Lawrence, Hokitika and Westport will close, and Invercargill and Christchurch will each have two branches amalgamated into one site, resulting in a total loss of 17 jobs.
Labour's Dunedin North MP David Clark rounded on National, saying since National came to power, Otago's unemployment rate had increased from 3.1% to 5.2% in March this year.
"In the year to June, almost 2000 people left Otago looking for better incomes and a new life in Australia," Mr Clark said.
Dunedin National list MP Michael Woodhouse said most banks struggled to maintain branches in smaller towns and the announcement brought NZCU South into line with what major banks did several years ago.
"Of course, this is small comfort to the staff and communities affected, but does reflect the trend in modern banking services," Mr Woodhouse said.
Otago Chamber of Commerce chief executive John Christie said Lawrence's loss, leaving it with no banking facilities, would have a "significant effect" on residential and business customers alike.
"There will now be increased costs with people having to travel to another town," he said.
While Lawrence's jobs losses were "the worst immediate effect", Mr Christie said NZCU South was in a position of having to respond "prudently" to the declining marketplace in which it found itself operating.
There would be "short-term pain to create a sustainable future", for the 24,000-member credit union, he said.
"We have got to maximise any new opportunities when they present themselves because that is what will bring these type of services back to the communities," he said.
Mr Clark claimed National was taking regional New Zealand for granted.
"The lack of opportunity for Kiwis choosing to live in our small cities and towns is hurting heartland New Zealand.
"We can't afford to lose 1030 of our best and brightest people from Dunedin, 409 from Queenstown, 206 from Central Otago and 180 from the Waitaki district," Mr Clark said.
Mr Clark said since June 2009, four jobs were cut from the Department of Conservation in Dunedin and IRD had cut 42 positions.
He highlighted Dunedin's contribution to New Zealand: tertiary institutions, health and social service innovation and ICT and technology success.
