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> There's jo wat a council can legally require you to enter into an agreement with a bank to use council run facilities, it's likely nobody's challenged them on it though.
Is there some law saying they can’t?
This is a carpark. If you own a car, you are legally required to hold a CTP insurance policy as a condition of registration-so to be able to use the facility, you legally need to be customer of one type of private financial institution; given that, is it really problematic if council requires you to be a customer of a second kind as well, when close to 100% of the population are?