Dáil Éireann Debate, Thursday - 8 May 2014
46. Deputy Michael McGrath asked the Minister for Finance if his attention has been drawn to difficulties with bank transfers including salaries and direct debit payments on 1 May 2014 which coincided with a public holiday in a number of European countries; if the Central Bank of Ireland will discuss with banks the action that can be taken to prevent a similar occurrence in the future; and if he will make a statement on the matter. [20707/14]
Amharc ar fhreagraI am informed by the Central Bank that this issue arose because 1 May 2014 was a normal business day in Ireland but the euro settlement and payment systems (TARGET2 and STEP 2) were closed due to the fact that 1 May is a bank holiday in most EU member states. While this situation has occurred in previous years, the Irish banks were able to process payments between themselves as the domestic payment system continued to operate. However, the full implementation of the Single Euro Payments Area (SEPA) has resulted in this option no longer being available. Notwithstanding this, most of the Irish banks made every effort to process payments for their customers on 1 May and the level of disruption was not as significant as might have been expected.
The Central Bank of Ireland worked with the Irish Payments Services Organisation (IPSO) and the banks to minimise any inconvenience to customers. Business representative bodies and businesses that make large numbers of direct debit and credit transfer payments were contacted and advised that where possible they should bring payments forward to 30 April; in addition, a notice advising consumers about the closure and its consequences was inserted in all of the major national newspapers on Friday 25 April and also placed on the Central Bank of Ireland and IPSO websites.
The full implementation of SEPA means that at least for the time being this situation will recur on 1 May in each year that the Irish May bank holiday does not coincide with the European one. The Central Bank of Ireland, IPSO and the Irish banks will make every effort to minimise disruption to customers via an ongoing communications programme aimed at raising awareness of the 1 May payments issue.
