Dáil Éireann Debate, Monday - 11 September 2023
460. Deputy Alan Dillon asked the Minister for Finance to provide clarity on recent policy decisions regarding the acceptance of cash payments by State agencies and bodies; if there is a co-ordinated approach across all Departments in this regard; and if he will make a statement on the matter. [38464/23]
View answer461. Deputy Alan Dillon asked the Minister for Finance if, in light of the decisions by agencies like the NCTS and National Driver Licence Service centres to phase-out cash payments, he can ensure that the rights and preferences of the public are adequately taken into consideration; and if he will make a statement on the matter. [38465/23]
View answer462. Deputy Alan Dillon asked the Minister for Finance if he will commit to pausing any further decisions by State agencies or bodies to discontinue the acceptance of cash payments until the national payments strategy, specifically concerning cash acceptance, is published; and if he will make a statement on the matter. [38466/23]
View answer463. Deputy Alan Dillon asked the Minister for Finance what provisions are being made in the national payments strategy to ensure that sectors and sub-sectors, including Government and public bodies, will continue to accept cash, especially considering its importance to many in Irish society; and if he will make a statement on the matter. [38467/23]
View answer464. Deputy Alan Dillon asked the Minister for Finance if he will confirm if the decision by agencies, like the NCT service, to phase-out cash payments, will be reconsidered or reversed in light of public feedback and the forthcoming national payments strategy; and if he will make a statement on the matter. [38468/23]
View answerI propose to take Questions Nos. 460 to 464, inclusive, together.
The issue of cash acceptance in financial transactions with both public and private service providers is an important issue that is currently being considered at domestic level by Government and, now, at European level led by the European Commission.
The Deputy will be aware that the Retail Banking Review, which was published in November 2022, contained a key recommendation for the Department to lead the development of a National Payments Strategy (NPS) to be completed in 2024.
Acceptance of cash is one of several areas of focus for the NPS. The Terms of Reference for the NPS set out that the Strategy should examine whether a legislative requirement should be put in place domestically in relation to the acceptance of payment methods by certain classes of firms, sectors or sub-sectors. The Terms also include a consideration of whether it should be Government policy that public bodies should accept, or facilitate the acceptance, of cash for the payment of goods, services, taxes, levies, fees or charges.
Work on the NPS by a team in my Department is underway and it is in the initial stages of consulting with key stakeholders to ensure a coordinated approach across Government Departments, State Agencies and other Public Bodies. In this regard, my officials are in the process of advising relevant Public Bodies not make any changes to their acceptance of cash as a payment method until the NPS considers public policy on the acceptance of cash by public bodies.
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.
This proposal is largely in line with emerging expectations on the acceptance of cash by aiming to ensure that everyone within the Euro Area has sufficient access to cash. It proposes that a Competent Authority in each Member State would be required to monitor the access to cash on an annual basis against a set of common indicators to be formulated by the European Commission, taking remedial measures where sufficient and effective access to cash is not ensured. The draft Regulation specifically draws attention to the need to monitor the level of 'ex ante unilateral exclusions of payments in cash' and it defines such exclusions as including a 'no cash' sign.
The recitals to the proposed Regulation state that a Member State should, if it concludes the level of unilateral exclusions of cash undermine the mandatory acceptance of euro banknotes and coin, take effective and proportionate measures including requiring specific sectors, such as healthcare, supermarkets, post offices and pharmacies, to accept cash.
In general terms, the European Commission’s proposals on access to cash are entirely compatible with the Heads of a Bill on the reasonable access to cash that is already being prepared by my Department in line with the recommendation of the Retail Banking Review. I understand that 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 to a transaction regarding payment method, or if the refusal is made in good faith. In Ireland, the exceptions to mandatory acceptance are currently common practice across a number of sectors of the economy.
At domestic level, the work on the acceptance of cash is being undertaken through the NPS which is complementary to the work of the European Commission.
