Dáil Éireann Debate, Tuesday - 9 November 2021
76. Deputy John McGuinness asked the Minister for Finance if he will report on recent engagement he or his Department have had with a trade union (details supplied) in relation to the future of banking in Ireland; and if he will make a statement on the matter. [54338/21]
View answerThe banking landscape in this country is changing dramatically. The departure of Ulster Bank will impact seriously on the Border region in particular. KBC is also leaving the country. The decision by Bank of Ireland to close one third of its branch network has also caused great disquiet in many communities throughout the country. At the same time as these bank closures are happening, households and businesses still need traditional banking services as much as ever. I hope that the Minister can give some good news about a banking forum.
Is this the question tabled by Deputy McGuinness?
Yes.
I thank Deputy Smith. The Minister of State, Deputy Fleming, my officials and I have had regular contact with the Financial Services Union, FSU. Over the past year in particular, in light of the rate of change in the sector, this has included increased engagement in relation to the future of banking. The issues that the Deputy has referred to are serious. I am well aware of the different developments he has detailed and the concern they have caused in the community that he represents. I will finalise a memorandum to bring to Government in the coming weeks on the terms of reference for a review of our banking sector. Once they have been presented to Government, I intend to publish the terms of reference shortly afterwards. This process will involve ongoing engagement with a wide range of stakeholders, including the Financial Services Union.
I thank the Minister. I note that the Financial Services Union appreciates the direct engagement that the Minister and his Department officials have had with it. I have raised this on a number of occasions in the House, during Topical Issue debates, especially when Ulster Bank announced its departure from this country and when there was a dramatic reduction in the number of Bank of Ireland branches. I asked the Minister to ensure that there was good engagement with the Financial Services Union. We all had representations from members and employees of the banks who were concerned about their future. A forum, or whatever body the Minister establishes, needs to include all stakeholders. I hope that along with the banks, customers, staff, management, trade unions, business, employers and employers' groups, that community interests can also be represented on that forum. It is important that the views of communities throughout the country are represented, as we reflect them in this forum daily. It is important that communities have a mechanism to deliver their views on the banking sector and how we go forward.
I thank the Deputy for that point. I anticipate that the review we will bring forward will have a provision within it for submissions to be made and for communities to make their views known about development or the absence of banking services in their local communities. In the interests of complete transparency, I envisage a review which will be conducted by the Department of Finance with Government approval. As part of that review, there will be ample opportunity for important stakeholders in the Irish banking sector, those who work in it and those who depend on it for lending and investment to engage in this process to make their views clear.
I thank the Minister. As a society, we want to be more conscious of the people who do not have good literacy skills and who have not had the opportunity to adopt IT skills. Those people find it difficult to transact business today, especially when they cannot call into a local branch. It behoves all of us to ensure that there is an opportunity for people to transact their business in a practical way, especially people who may not have had the opportunity to acquire IT skills or who may not have access to broadband etc. It is important that those views are represented.
As the Minister is aware, the central banks of Britain and in New Zealand are conducting reviews on the subject matter of access to cash. We often think of ATMs as a mechanism to withdraw cash, but they are an important lodgement facility as well. In public banking meetings throughout the country, local communities expressed concern about hospitality and other retail businesses having to carry large amounts of cash and not having the opportunity to lodge that cash in a timely manner locally. We need to address the issue of access to cash.
There has been a decline in the use of cash for transactions, but for many it is still the preferred method of making payments and performing transactions. I take the Deputy's point and the issue he raised about financial literacy is tied to the need for financial inclusion. To ensure that all citizens have the ability to participate in our financial system, there must be a place where they can make deposits and a way in which they can make payments in shops. This is the kind of issue that can be covered in the review of our banking sector and policy, which I expect that the Government will agree to shortly.
