Dáil Éireann Debate, Wednesday - 11 July 2018
94. Deputy Pearse Doherty asked the Minister for Finance the role his Department played in the recent publication of the report on the role of Sparkasse; and if he will make a statement on the matter. [30970/18]
Amharc ar fhreagraAs the Deputy will be aware, my Department and the Department of Rural and Community Development were jointly responsible for fulfilling the Programme for Government commitment to “thoroughly investigate the German Sparkassen model for the development of local public banks that operate in well-defined regions”.
My colleague, Minister Ring and I, brought the completed Report on Local Public Banking in Ireland, to Government for approval after circulating it to all Government Departments for observations. The Report was approved by Government and has now been published on the website of both Departments.
The Report involved a public consultation process with stakeholders and interested parties who were invited to submit responses on the issue of public banking. These were summarised and included in the Report. The Report outlines the current banking environment in Ireland and describes how the German Sparkassen model of local public banking currently operates in Germany. Sparkassen are publically owned and are only permitted to operate in specific geographic regions. Their aim is to support local and rural economic development. An important part of this business model involves building relationships with SMEs in the geographic area they operate. A proposal for how this model could potentially work in Ireland was put forward by Irish Rural Link and the Savings Bank Foundation for International Cooperation, the international development wing of the Sparkassen Group. Detailed analysis of the proposal was carried out, which is included in the Report.
While the findings of the Report are that there is not a compelling case to establish a local public banking system in Ireland, my Department will commission an independent external evaluation of other possible ways in which the objectives of local public banking in Ireland could possibly be promoted in Ireland. It will also continue to engage in a dialogue with stakeholders and other interested parties, such as Irish Rural Link.
Avoiding the replication of existing Government supports and the work already being done by the post offices and credit unions in terms of the provision of financial and banking services, particularly in rural and regional areas, is a key priority.
Promoting the economic growth and development of rural economies and supporting regional small businesses, enabling them to create employment and contribute to economic growth remains a Government priority.
