Written Answers Nos. 28-48
28. Deputy Verona Murphy asked the Minister for Transport if the Dublin orbital C road remains part of national road transport policy; if so, when it will be constructed; if it will be a toll road; and if he will make a statement on the matter. [16141/21]
View answerAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. The "Dublin orbital C road" is not part of the new national roads programme in the current NDP.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
29. Deputy Verona Murphy asked the Minister for Transport the national road projects he expects to see proceed through to planning over the next 24 months; and if he will make a statement on the matter. [16142/21]
View answerAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the planning, design and construction of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
30. Deputy Sean Sherlock asked the Minister for Transport the engagement he has had on the policy of progressing disability services; and if he has contacted other Ministers regarding the policy. [16181/21]
View answerI understand that the Deputy's question refers to the Progressing Disability Services for Children and Young People Programme which is run by the Health Service Executive (HSE).
As the Deputy will appreciate this policy comes under the remit of the Minister for Heath. I have not had direct engagement with the HSE, the Minister for Health or with the Minister for Children, Equality, Disability, Integration and Youth with regard to this programme.
More generally, my Department continues to fulfill its role in relation to people with disabilities in so far as it relates to transport and will respond to any engagement from the Department of Health with regard to this programme.
31. Deputy Catherine Murphy asked the Minister for Transport the number of light poles on the M50, including the on and off roads; and the annual cost of maintaining same. [16202/21]
View answerAs Minister for Transport I have responsibility for overall policy and securing exchequer funding in relation to the National Roads Programme. Under the Roads Acts 1993-2015 and in line with the National Development Plan (NDP), the operation and management of individual national roads is a matter for Transport Infrastructure Ireland (TII), in conjunction with the local authorities concerned. This is also subject to the Public Spending Code Guidelines and the necessary statutory approvals. In this context, TII is best placed to advise you.
Noting the above position, I have referred your question to TII for a direct reply. Please advise my private office if you do not receive a reply within 10 working days.
32. Deputy Brendan Smith asked the Minister for Transport if additional funding will be made available for the non-national road network in 2021; if there is a slower-than-expected drawdown in capital funding in other subheadings of the Estimate of his Department; if his attention has been drawn to the fact that there is an urgent need to provide a greater level of investment in the non-national road network in counties such as Cavan and Monaghan; and if he will make a statement on the matter. [16207/21]
View answerThe improvement and maintenance of regional and local roads is the statutory responsibility of each local authority in accordance with the provisions of Section 13 of the Roads Act 1993. Works on those roads are funded from Council's own resources supplemented by State road grants.
The National Development Plan (NDP), as it stands, provides for a gradual increase in funding for regional and local roads and there has been a significant increase in Exchequer funding particularly in the last four years. Funding is not yet at the level needed for the adequate maintenance and renewal of regional and local roads and so for this reason, the primary focus for capital investment continues to be the maintenance and renewal of the network with some limited investment in road improvement projects.
On 15th February I announced the details of a €555 million investment programme for 2021 for regional and local roads and all but €15 million of this amount has now been allocated. Cavan County Council received a total allocation of €15,484,815 for 2021 and Monaghan County Council received a total allocation of €16,006,398, including funding for a number of pilot schemes relating to road materials.
Applications have been sought from local authorities (including Cavan and Monaghan) for climate adaptation works on regional and local roads which will make the network more resilient. The €15 million which is unallocated to date will be used to make a further round of allocations in the near future once applications have been received and assessed.
As regards the Department's budgets more generally, drawdown on capital spending varies from month to month and it is too soon to determine whether any slower than expected drawdowns at the start of the year will lead to a gross capital underspend for the entire year. In addition, as capital is allocated to support specific investment programmes and projects, in the first instance it will need to be determined whether the capital should be ‘carried’ into the next fiscal year to continue to support the programmes and projects in question.
33. Deputy Fergus O'Dowd asked the Minister for Transport if matters raised in correspondence by a person (details supplied) will receive a response; and if he will make a statement on the matter. [16218/21]
View answerThe regulation of the small public service vehicle (SPSV) sector, including age limits for vehicles and SPSV testing, is a matter for the independent regulator, the National Transport Authority (NTA), under the provisions of the Taxi Regulation Act 2013.
Given the role of the NTA as regulator, I have referred your question to the Authority for direct reply to you. Please advise my private office if you do not receive a response within 10 working days.
34. Deputy John Brady asked the Minister for Transport if an aircraft (details supplied) landed at Shannon Airport on 15 January 2021; and if he will make a statement on the matter. [16245/21]
View answer36. Deputy John Brady asked the Minister for Transport the number of crew of an aircraft (details supplied) which landed at Shannon Airport on 15 January 2021 who stayed in local hotels; and if he will make a statement on the matter. [16247/21]
View answer37. Deputy John Brady asked the Minister for Transport if the crew of an aircraft (details supplied) which landed at Shannon Airport on 15 January 2021 were fully compliant with Covid-19 regulations during their stay in Ireland; and if he will make a statement on the matter. [16248/21]
View answer38. Deputy John Brady asked the Minister for Transport if an aircraft (details supplied) which landed at Shannon Airport on 15 January 2021 arrived from Savannah, Georgia, USA, and travelled on to the Israeli air force base at Nevatim in the Negev desert; and if he will make a statement on the matter. [16249/21]
View answerI propose to take Questions Nos. 34 and 36 to 38, inclusive, together.
Shannon Group plc. has confirmed to my Department that the aircraft detailed in the Deputy's Question did not operate into Shannon Airport on 15 January 2021.
35. Deputy John Brady asked the Minister for Transport if an aircraft (details supplied) which landed at Shannon Airport on 15 January 2021 was granted an exemption to carry military equipment; and if he will make a statement on the matter. [16246/21]
View answerNo exemption, pursuant to Article 5 of the Air Navigation (Carriage of Munitions of War, Weapons and Dangerous Goods) Orders, 1973 and 1989, was granted for the flight in question.
39. Deputy Paul Donnelly asked the Minister for Finance if insurance companies that cover dance schools, variety clubs and stage schools will be lobbied for a reduction in premiums while teaching online. [15981/21]
View answerI am aware that concerns have been expressed about how the insurance industry is responding to the needs of its business policyholders in these difficult times, particularly those like, variety clubs, dance and stage schools who are unable to use their premises and have to teach online. However, it is important to alert the Deputy to the fact that neither I, nor the Central Bank, have any influence over the pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide refunds to their customers, as this is a commercial matter. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from adopting rules, which require insurance companies to obtain prior approval of the pricing or terms and conditions of their products.
Nevertheless, working to protect insurance policyholders during and after the COVID-19 crisis is a priority issue for Government. As such, it is included within the Programme for Government and the Action Plan for Insurance Reform, launched in December. Since the onset of the COVID-19 pandemic, I have consistently called on insurers to treat their customers honestly, fairly and professionally, and in line with the Central Bank’s Consumer Protection Code.
As the Deputy will recall, both I and Minister of State Fleming have had extensive engagement with the insurance industry regarding insurers offering supports and reliefs to businesses. We highlighted the need for the sector to respond to both the Government’s ongoing reforms and COVID-19 pandemic by lowering premiums, to continue to offer forbearance measures, and to expand their risk horizon in the market. Last year, most of the main insurers agreed to offer a range of common forbearance measures, including a reduction in premiums for business customers to reflect reduced level of exposure as a result of COVID-19 restrictions for Employer /Public Liability and Commercial Motor. Insurers also announced that they would maintain cover for unoccupied commercial buildings/premises not in use due to these restrictions, for a maximum of 90 days (appropriate supervision and security of the premises is required).
I note Insurance Ireland announced a continuance of forbearance measures on behalf of a number of its members in late January. In the coming weeks Minister of State Fleming will again meet with the main insurers to discuss their response to the recently published Personal Injuries Guidelines. The insurance industry’s ongoing response to the COVID-19 pandemic will also be included on the agenda for these meetings. Both Minister of State Fleming and I will continue to monitor developments in this area and to engage with insurers and other relevant stakeholders.
40. Deputy Eoin Ó Broin asked the Minister for Finance the number of 2020 pandemic unemployment payment recipients who were liable for taxation in each week from the week ending 15 January 2021 to date in tabular form. [15997/21]
View answerThe Pandemic Unemployment Payment (PUP) is a social welfare payment for workers who have become unemployed due to the COVID-19 pandemic. PUP payments are classified in legislation as income supports and are subject to income tax. The taxation arrangements for the PUP were legislated for in Finance Act 2020 which reflects the standard approach to taxation of social welfare type payments, which means they are liable to income tax but exempt from the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI).
I am advised by Revenue that the PUP was not taxed in ‘real-time’ in the normal manner in 2020, meaning the collection of any tax due was deferred until year end. This approach was based on both a requirement to get payments to people as quickly as possible and an expectation at the time that the emergency supports would be short-term in nature, which turned out not to be the case due to the continued prevalence of COVID-19. Tax liabilities on PUP received in 2020 will be collected, interest free, by reducing the employees’ tax credits over 4 years, starting in January 2022.
I am further advised by Revenue that Statements of Liability in respect of 2020 issued to over 465,000 taxpayers from 15 January 2021 to 19 March 2021. Of these, 156,342 were related to taxpayers who received Pandemic Unemployment Payments (PUP) during 2020. The breakdown of these cases includes 100,680 (64%) that overpaid tax and received a refund, 6,968 (4%) that paid the correct amount of tax and 48,694 (32%) that underpaid tax.
The table below sets out the weekly numbers balanced, overpaid, and underpaid from 22 January 2021. The numbers received prior to 22 January are included in that date.
|
Week ending |
Balanced |
Overpayment |
Underpayment |
Total |
|
22-Jan-21 |
2,317 |
54,344 |
26,450 |
83,111 |
|
29-Jan-21 |
1,128 |
12,121 |
5,107 |
18,356 |
|
05-Feb-21 |
688 |
7,889 |
3,619 |
12,196 |
|
12-Feb-21 |
473 |
6,643 |
3,192 |
10,308 |
|
19-Feb-21 |
468 |
4,802 |
2,302 |
7,572 |
|
26-Feb-21 |
535 |
4,299 |
2,595 |
7,429 |
|
05-Mar-21 |
356 |
3,436 |
1,560 |
5,352 |
|
12-Mar-21 |
529 |
3,852 |
2,006 |
6,387 |
|
19-Mar-21 |
474 |
3,294 |
1,863 |
5,631 |
|
Total |
6,968 |
100,680 |
48,694 |
156,342 |
41. Deputy Eoin Ó Broin asked the Minister for Finance the dedicated email addresses for Members of the Houses of the Oireachtas to contact his Department and bodies under its aegis as outlined in circular 25/2016. [16004/21]
View answerMembers of the Oireachtas can contact my Department by emailing minister@finance.gov.ie.
There are 17 bodies under the aegis of my Department; Circular 25/2016 applies to 14 of these bodies. It does not apply to the Credit Union Advisory Committee (CUAC), the Disabled Drivers Medical Board of Appeal (DDMBA) and the Credit Union Restructuring Board (ReBo). CUAC is a committee set up to advise the Minister for Finance on credit union issues. The DDMBA is a board of medical practitioners appointed by the Minister of Finance from a body of interested registered medical practitioners, on the recommendation of the Minister of Health and is contactable through the National Rehabilitation Hospital. ReBo concluded its restructuring work on 31st March 2017, was operationally wound down on 31st July 2017 and is awaiting final dissolution.
The 14 bodies that operate a dedicated email service for members of the Oireachtas are set out in the following table:
|
Body under aegis of the Department of Finance |
Email address |
|
Central Bank |
pqs@centralbank.ie |
|
Credit Review Office |
info@creditreview.ie |
|
Financial Services and Pensions Ombudsman |
oireachtas@fspo.ie |
|
Home Building Finance Ireland |
oireachtas@hbfi.ie |
|
Investor Compensation Company DAC |
pqs@centralbank.ie |
|
Irish Bank Resolution Corporation |
pqs@ibrc.ie |
|
Irish Financial Services Appeals Tribunal |
registrar@ifsat.ie |
|
Irish Fiscal Advisory Council |
oireachtas.queries@fiscalcouncil.ie |
|
National Asset Management Agency |
oir@nama.ie |
|
National Treasury Management Agency |
OireachtasQuery@ntma.ie |
|
Office of the Revenue Commissioners |
chairmansoffice@revenue.ie |
|
Office of the Comptroller & Auditor General |
pq@audit.gov.ie |
|
Strategic Banking Corporation of Ireland |
oireachtas@sbci.gov.ie |
|
Tax Appeals Commission |
oireachtas@taxappeals.ie |
42. Deputy Catherine Murphy asked the Minister for Finance the number of protected disclosures received by his Department in each of the years 2017 to 2020 and to date in 2021; the number that were accepted as a protected disclosure; the number that were in part or fully examined by a third party or consultancy; the number of protected disclosures under investigation over this period; and the number that were finalised and the contents accepted and acted on. [16030/21]
View answer43. Deputy Catherine Murphy asked the Minister for Finance the number of protected disclosures received by his Department in each of the years 2017 to 2020 and to date in 2021 from officials within his Department; the number of officials who made protected disclosures over the period and who are now not working in his Department; and the number of protected disclosures received from retired officials of his Department over the period. [16048/21]
View answerI propose to take Questions Nos. 42 and 43 together.
Section 22 of the Protected Disclosures Act requires the publication of a report in respect of protected disclosures received in the preceding year setting out certain information in respect of protected disclosures received. For the purposes of complying with section 22, the Department publishes information regarding Protected Disclosures formally identified as such, without identifying the person making the disclosure. Previous reports indicate that one protected disclosure was received in 2017, one in 2018, one in 2019, and no protected disclosure received during 2020 with a report of this due to be published by June of this year. There is no protected disclosure to date in 2021. None of these protected disclosures were made by an official (current, former or retired) of the Department. One protected disclosure was examined by a third party, the services of which was procured under the Office of Government Procurement's 'Receipt and Investigation of Protected Disclosures Act 2014' Procurement Framework.
Tabular summary:
|
2017 |
1 |
|
2018 |
1 |
|
2019 |
1 |
|
2020 |
nil |
|
2021 |
nil to date |
44. Deputy Rose Conway-Walsh asked the Minister for Finance if a bank (details supplied) has sold mortgages to a US investment group with another company contracted to service the loans; the number of mortgages that were sold; the number that were in arrears at the time of sale; if there is an obligation on the bank to inform customers of the names of the purchasers of their mortgages as well as the company contracted to service the loans; and if he will make a statement on the matter. [16111/21]
View answerAs the Deputy is aware, as Minister for Finance I have no role in the day to day operations of any bank operating within the State including banks in which the State has a shareholding. I'm precluded from intervening on behalf of any individual customer in any particular bank. Decisions in relation to commercial matters are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis. The independence of banks in which the state has a shareholding is protected by Relationship Frameworks which are legally binding documents that cannot be changed unilaterally. These frameworks, which are publicly available, were insisted upon by the European Commission to protect competition in the Irish market
Non-performing exposures (NPE's) remain at an elevated level across the European banking system and addressing this issue is one of the key priorities for the European banking supervisor. In Ireland significant progress has been made across the banking sector in reducing the level of NPEs since the financial crisis mainly through loan by loan restructuring in addition to a number of loan disposals.
Despite this progress, the level of NPEs in the Irish system remains well above the European average and some time ago the supervisory authority tasked the management and board of each institution with developing and implementing a strategy to address this challenge. The banks have no choice but to respond.
You will recall that in 2018 my Department brought forward legislation to ensure that the contractual rights and obligations of a customer are not altered by the sale of a loan and customers will continue to benefit from, and fall under the scope of applicable regulations, whether with their bank or a third party servicing entity. In this regard - the Consumer Protection (Regulation of Credit Servicing Firms) Act ensures that relevant borrowers whose loans are sold are afforded the regulatory protections they had prior to the sale. All of the customer's rights under their existing terms and conditions will remain in place post transfer.
45. Deputy Réada Cronin asked the Minister for Finance if he will address with mortgage providers their individual discretion on mortgage protection requirements pre-drawdown for persons with an underlying health condition (details supplied); and if he will make a statement on the matter. [16120/21]
View answerUnder section 126 of the Consumer Credit Act 1995 a mortgage lender is obliged to make sure that a mortgage applicant has mortgage protection insurance in place before granting a housing loan. However, the Act also provides for a number of limited exemptions to this statutory obligation where:
1. the house in respect of which the loan is made is, in the mortgage lender's opinion, not intended for use as the principal residence of the borrower or of his or her dependants;
2. loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally;
3. loans to persons who are over 50 years of age at the time the loan is approved;
4. loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, of not less than the amount of the estimated outstanding principal amount.
The Central Bank indicates that it expects all lenders to adhere to their statutory obligations in relation to the offering of mortgage credit to prospective borrowers, including their obligations under section 126 of the Consumer Protection Act 1995.
However, it may also be the case that, in circumstances where there is no specific statutory obligation on a mortgage lender to arrange for mortgage protection insurance in association with a housing loan, an individual mortgage lender may as a matter of its own commercial policy require a mortgage borrower to put in place such an insurance policy as a condition for obtaining mortgage credit. That would be a commercial decision for an individual mortgage lender and it is not possible for me to instruct mortgage lenders on their lending policies and individual lending decisions. In the same way it is not possible for me interfere with the decisions insurance companies may make on applications for life insurance cover or direct such companies to provide cover to specific individuals. That is also a commercial matter and decision for individual insurers to make in line with their own risk policies and analysis. However, if a mortgage lender requires a consumer to hold a policy of insurance related to a housing loan, the lender is obliged to accept a policy selected by the consumer provided that such a policy has a level of guarantee equivalent to the amount that would be required to repay the outstanding credit or to insure the value of the security.
If a person is not satisfied with the way a regulated mortgage provider or insurance provider has dealt with them in relation to an application for a mortgage or for life insurance, or they believe that the regulated entity is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated entity. If they are still not satisfied with the response from the regulated entity, the response to their complaint from the regulated entity is required to include details for the borrower on how to refer their complaint to the statutory Financial Services and Pensions Ombudsman.
46. Deputy Sean Sherlock asked the Minister for Finance the engagement he has had on the policy of progressing disability services; and if he has contacted other Ministers regarding the policy. [16170/21]
View answerPrimary responsibility for this matter and the National Disability Inclusion Strategy, rests with my colleague Anne Rabbitte, Minister of State for Disability in the Department of Children, Disability, Equality and Integration.
47. Deputy Michael Moynihan asked the Minister for Finance the measures he proposes to take to strengthen the banking sector following recent announcements of branch closures nationally. [16250/21]
View answer48. Deputy Michael Moynihan asked the Minister for Finance the role he sees for credit unions in filling the gap left by bank closures in rural areas. [16251/21]
View answerI propose to take Questions Nos. 47 and 48 together.
NatWest's decision to withdraw Ulster Bank from the Irish market and the decision by Bank of Ireland to close 88 branches in the Republic of Ireland are regrettable and they represent unfavourable developments for the Irish banking market.
However, I welcome that NatWest confirmed that it is negotiations with Permanent TSB and other strategic banking partners in relation to certain retail and SME assets, liabilities and operations and that it also announced that it has signed a Memorandum of Understanding with AIB in relation to the sale of a c. €4bn portfolio of performing commercial loans, and that encompasses the transfer of staff wholly or mainly assigned to this loan book.
These announcements signal a potentially important development for the Irish banking sector. However, NatWest highlighted that, at this stage, these discussions have some way to go before final transactions are agreed. NatWest, Permanent TSB and AIB have confirmed that they will provide further updates to the market as negotiations progress in this regard.
As part of its announcement about branch closures, the news that Bank of Ireland has agreed a new partnership with An Post which will allow personal and business customers use their local post office for a range of banking services , including to withdraw cash and make cash and cheque lodgements, at no additional cost, is welcome.
A range of other initiatives are underway that will enhance the sustainability, culture and accountability of the banking sector and improve customer outcomes. These include
1. The Senior Executive Accountability Regime (SEAR)
The Government intends to further enhance the Central Bank’s existing powers through new legislation to be introduced in the Central Bank (Amendment) Bill.
The centrepiece of the new legislation is the Senior Executive Accountability Regime (SEAR), a commitment of the Programme for Government, which seeks to improve the culture of the financial sector and restore public trust in the sector. SEAR is expected to drive positive changes in terms of culture in the financial services industry and enhanced accountability while simplifying the taking of sanctions against individuals who fail in their financial sector roles.
The proposed legislation will seek to address proposals put forward by the Central Bank arising from the recommendations in its Culture Report which was requested by me on foot of the Tracker Mortgage Examination.
The legislation is intended to drive greater accountability in the financial sector, raising the standards of expected behaviour for individuals and firms, in order to achieve better outcomes for consumers and improve the sustainability of the financial system.
2. Banking Union
Development of the European Banking Union began in response to the 2008 financial crisis. The European Commission pursued a number of initiatives to create a safer financial sector for the Single Market, consisting of a set of legislative texts that are applied to all financial institutions and all financial products across the EU which are designed to ensure that Europe has a safer banking sector which can support the financing needs of the economy. Specifically, its rules include capital requirements for banks, rules for managing failing banks and improved deposit guarantee schemes. Departmental Officials attend EU working groups to ensure Irish opinions and the specificities of the Irish Financial Sector are considered in the development of new regulations.
The completion and improvement of the Banking Union is a priority and recently, the Department completed the transposition of the “Risk Reduction Measures” Package of reforms which updated existing rules to keep them in line with standards agreed by the Basel Committee on Banking Supervision. These reforms included new supports for investments in infrastructure and increased supports for lending to SMEs, revised regulations regarding remuneration practices and a new moratorium power to suspend an institution’s payment obligations during a resolution process.
3. Digital Finance Package
The European Commission published the Digital Finance Package in September 2020 containing measures developed to further enable and support the potential of digital finance in terms of innovation and competition while mitigating risks.
The Package contained a number of components – both legislative proposals and Commission Communications – including a proposal for a Regulation and Directive on Digital Operational Resilience (DORA), a proposal for a Regulation on Markets in Crypto-Assets (MiCA) and a Commission Communication on a Retail Payments Strategy.
The suite of measures proposed promotes and enables a more digitalised financial services sector across Europe by regulating emerging technologies such as crypto-assets, evaluating existing legislation such as the Payment Services Directive 2 and the Electronic Money Directive and setting out a framework for a more resilient and stable financial services sector. At the same time, the proposals help to protect consumers in this changing environment.
The Digital Finance Package allows for a more digitalised financial services sector in Europe which could in future be less reliant on physical bank branches and traditional payment methods such as banknotes and coins. However, financial inclusion remains a priority and the Commission’s proposals include measures minimise financial exclusion such as ensuring cash usage and acceptance across Europe.
4. COVID-19 Credit Guarantee Scheme
The extension of the COVID-19 Credit Guarantee Scheme is a welcome development that will ensure ongoing availability of credit throughout the remainder of this year to our vitally important SME sector who are facing the significant challenges of not only COVID-19 but also adjusting to Brexit. It demonstrates the Government’s broader commitment to ensure that SMEs have the right tools and supports to secure their viability.
In particular, I welcome the recent expansion in the on-lenders to beyond the retail banks, including 19 credit unions spread between three groups and non-bank lenders. This extension means that more SMEs will be able to access credit from an increased diversity of sources in both bank and non-bank credit.
With regard to the provision of financial services in rural areas, the Department of Finance published a paper in 2019 by Indecon Consulting on an Evaluation of the Concept of Community Banking in Ireland (https://www.gov.ie/en/press-release/3f7624-minister-donohoe-publishes-independent-external-evaluation-on-local-/). The report highlighted the large number of post offices and credit unions that are spread right across the country in addition to the bank networks. This was a follow on to a previous paper on Local Public Banking published by the Department of Finance in 2018. The Indecon report concluded that there is no business case for the State to establish a public banking system in Ireland, supporting the outcome of the previous report on Local Public Banking.
Credit Unions
The Credit Union Act, 1997 (the 1997 Act) and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 set out the services that credit unions may provide to their members. These include loans and savings under the 1997 Act and a further suite of services under the 2016 Regulations such as third party payments; ATM services; bureau de change and certain insurance services on an agency basis. I understand that a number of credit unions provide some of the services provided for under the 2016 Regulations. Where a credit union wishes to provide other services to its members, an application may be made to the Central Bank for approval to provide such services in accordance with the provisions set out in sections 48-51 of the 1997 Act.
One such additional service includes the Member Personal Current Account Service (MPCAS). In 2016, the Central Bank defined and described a suite of additional services known as MPCAS, under which approved credit unions may offer personal current accounts with debit cards, overdrafts and a wide range of payment services within an appropriate risk framework.
An Post Services
There is a significant network of post offices in areas where there is no bank branch within five kilometres. In addition, An Post offers financial services including a payment account, personal loans, credit cards, a range of insurances, money transmission and foreign exchange services. An Post offers counter services for AIB, allowing customers to lodge and withdraw cash at An Post branches.
As noted above, Bank of Ireland’s new partnership with An Post to provide a range of banking services means that there will be a post office within, on average, less than 500 metres of the branches that are being closed. The Bank confirmed that the new partnership with An Post will be available to all Bank of Ireland customers before any branch closes.
