Dáil Éireann Debate, Tuesday - 25 July 2023
281. Deputy Duncan Smith asked the Minister for Finance in view of the decision of a number of music festivals in Ireland to go cashless for their events in 2023, if he is satisfied these events and organisers are in compliance with legal tender rules; and if he will make a statement on the matter. [35744/23]
View answer282. Deputy Duncan Smith asked the Minister for Finance if businesses are required to accept cash as payment from consumers; and if he will make a statement on the matter. [35745/23]
View answer283. Deputy Duncan Smith asked the Minister for Finance the oversight that is in operation to ensure businesses are complying with legal tender rules in terms of accepting cash as payment; and if he will make a statement on the matter. [35746/23]
View answer288. Deputy Mick Barry asked the Minister for Finance if he will support the right of attendees and vendors at music festivals to use cash at events; if he will consider legislation to ensure cash remains an option for people in general throughout the economy; and if he will make a statement on the matter. [35808/23]
View answerI propose to take Questions Nos. 281, 282, 283 and 288 together.
The issue of acceptance to cash is an important issue that is already being considered at domestic level and, now, at European level.
The consumer’s right to use cash as a means of payment is based in contract law in Ireland. In this context, where a business places no restrictions on the means of payment it is prepared to accept, it must accept cash as legal tender when offered by a customer to settle a debt that has arisen.
If a business specifies payment must be in a form other than cash, the customer cannot subsequently claim a legal right to pay in cash. This can be achieved by, for example, placing a sign stating, “cash not accepted” or “card payment only” at the store entrance or check out area.
A music festival is a business run event meaning the same rules apply in the case of the music festivals the Deputy is referring to. If the festivals have stated clearly ahead of time or at the venue that they do not accept cash as a method of payment, this is not in breach of contract law.
The Deputies will be aware that the Retail Banking Review, which was published in November 2022, contained a number of recommendations regarding access to and acceptance of cash. A key recommendation was for the Department to lead the development of a National Payments Strategy to be completed in 2024.
The terms of reference for the National Payments Strategy, which I published on 27 June 2023 www.gov.ie/en/press-release/1a910-minister-mcgrath-publishes-national-payments-strategy-terms-of-reference/), require it to set out a roadmap for the future evolution of the entire payments system, taking account of developments in digital payments, cash usage and how future changes should be made to the legislative criteria relating to Access to Cash. The terms of reference also require the National Payments Strategy to consider if legislation should be introduced to require certain firms or sectors to accept or facilitate the acceptance of cash; and if it should be policy to require the public service to accept cash.
Finally, on 28 June, the European Commission published a proposal for a Regulation on Legal Tender, which looks at both access to and acceptance of cash.
The proposal is largely in line with expectations which aims to ensure everyone within the Euro Area has sufficient access to cash. It proposes that the competent authorities in each Member State will be required to monitor access to cash on an annual basis against a set of common indicators to be formulated by the European Commission and to take remedial measures where sufficient and effective access to cash is not ensured. Separately, my Department is already preparing heads of a bill to ensure reasonable access to cash. The heads will be ready by the end of 2023.
As regards the acceptance of cash, the European Commission's draft regulation proposes that cash acceptance should be mandatory across the Euro Area. However, it also provides flexibility around mandatory acceptance in circumstances where there is a prior agreement in place between both parties regarding payment method, or if the refusal is made in good faith. The exceptions to mandatory acceptance are largely common practice in Ireland currently.
The proposal also suggests that provide Member States with responsibility to designate specific sectors to accept cash such as healthcare, supermarkets, post offices and pharmacies.
As with access to cash, the draft regulation proposes that the competent authorities in each Member State will be required to monitor the acceptance of payments in cash on an annual basis against a set of common indicators to be formulated by the European Commission and to take remedial measures if this monitoring shows that the mandatory acceptance of cash is being undermined. The draft regulation specifically draws attention to the need to monitor the level of 'ex ante unilateral exclusions of payments in cash'. It defines such exclusions as including a 'no cash' sign.
The work being undertaken at domestic level, through the National Payments Strategy, and at European level is complementary.
