Dáil Éireann Debate, Tuesday - 3 February 2015
284. Deputy Michael McGrath asked the Minister for Finance if he is satisfied with the implementation of the national payments plan launched in April 2013; the progress in rolling out of basic bank accounts; the number of such accounts now in existence; and if he will make a statement on the matter. [5000/15]
View answerThe National Payments Plan, published in April 2013, targets improving consumer payments systems, modernising business payments, promoting electronic payment methods, reducing costly cheque usage and increasing the efficiency of the use of cash. The National Payments Plan outlines that if Ireland were to match best practice in Europe, savings of up to €1 billion per annum could be made to the economy.
Good progress has been made in a number of areas. Data published by IPSO (now BPFI) shows a 41% reduction in the volume of cheques and other debit paper instruments used in Ireland from 2008 to 2013, a 29% reduction in the aggregate value of cash withdrawn from ATMs, while debit card usage has increased 88% over the same period. This migration has been supported by the implementation of a number of recommendations in the NPP, such as the implementation of 'e-Day' by Government on 19 September last year, the date from which Government Departments, Local Authorities and State Agencies will no longer use cheques in their dealings with businesses.
On the specific queries that the Deputy has raised regarding basic bank accounts, the Strategy for Financial Inclusion called for the nationwide launch of a Standard Bank Account as a first step in promoting Financial Inclusion. A pilot project for a Basic Bank Account was run, which finished on 31 March 2013 after a 9-month pilot period. A total of 205 accounts were opened during the Pilot, which the Financial Inclusion Working Group (FIWG) felt was disappointing.
The Report of the Working Group on the Pilot project noted a number of reasons for this, including the view of stakeholders that one of the key elements required as part of the preparations for a successful national roll-out of a Standard Bank Account is greater involvement by An Post and the credit unions. My Department is currently exploring with the relevant stakeholders how to make progress on this issue.
