Vol. 502 No. 1
41 Mr. Higgins (Mayo) asked the Minister for Justice, Equality and Law Reform the cost to his Department in 1998 of providing Garda security escorts for cash movements to and from banks and other financial institutions; and if he will make a statement on the matter. [7297/99]
I am informed by the Garda authorities that the cost involved in providing all such escorts for movement of cash for 1998 was in the order of £5.3 million.
The Garda provide escorts for movement of large sums of cash throughout the country as a crime prevention measure in order to prevent such cash falling into the hands of subversive or criminal organisations. Large sums of cash are escorted for the associated banks, An Post and some private security companies.
The cost involved in escorting movements of cash to and from the associated banks was in the order of £2.1 million. The associated banks are required to make a contribution to the State in respect of Garda and Army escorts and the amount of their contribution towards the Garda Vote in 1998 was £750,000. The amount of their contribution towards the Defence Vote was £2.25 million. The level of contribution made by the banks is subject to ongoing review by the Minister for Finance and a further review will be conducted in the current year. I very much regret that substantial Garda manpower and financial resources have to be devoted to escorts of this nature.
Will the Minister accept that at a time when the banks are not only returning record profits but are boasting about them – Allied Irish Banks had a profit of £833 million and a pretax profit of £2 billion – it is wrong that the taxpayer should be asked to foot most of this bill of £5.3 million with the banks' contributing only a mere £750,000? Will he also accept that this service is a key component in the running of its operations and that the banks should be charged in full for the service provided and should be grateful that the State provides such an efficient escort service to enable them to carry out their transactions?
The issue is primarily one for the Minister for Finance but the Deputy deserves a reply to a legitimate question. It is important to emphasise that what the banks pay is a contribution to the cost of cash escorts. The additional security provided by the Garda or the Army is not determined by the banks or the security companies but is insisted upon by the State because of the consequences of large sums of money falling into the hands of paramilitary organisations or criminal gangs.
The cost involved in providing Garda escorts for the movement of cash to and from the associated banks for 1998 was £2.1 million. The banks made a contribution of £3 million for costs for security provided by the Army and Garda in 1998, of which £750,000 was paid towards costs incurred by the Garda. The contribution made by the banks is meant to cover the additional costs to the State, non-paid costs such as overtime and planning costs, for providing security escorts. The current level of their contributions is subject to ongoing review by the Minister for Finance and a further review will be conducted in the current year. I have no doubt that the views expressed by Deputy Higgins will be taken into account.
Does the Minister accept the thrust of my argument that the costs involved are essential components, the same as electricity, postal and computer costs? It should be factored in as a cost and, therefore, as an obligation.
In terms of the personnel involved, we are talking about two Army land rovers with three soldi ers in each and a Garda patrol car containing two gardaí. That is a minimum of eight personnel being paid for by the Irish taxpayer. The same reply has been given by the Minister and his predecessors concerning this review every year. The banks should be charged forthwith in respect of every penny this costs. The post office, building societies and any other institution for which the State provides such a top class escort service so their cash can travel in safety should be charged in full for it.
Of course a contribution should be sought but, as I have outlined to the Deputy, a contribution is made. I accept that it is not the full cost but this matter is subject to review by the Minister for Finance and there is to be a review this year. The obligation to secure the funds in transit is imposed by the State following a decision by the Garda Síochána. I accept, however, that there is a strong case for paying for what you get.
