Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

From 19 September 2014, e-day, public sector bodies such as Departments, State agencies and local authorities will no longer issue cheques to or accept cheques from businesses. This is being implemented as part of the national payments plan for Ireland to help reduce cheque usage generally in an effort to tackle late payments, improve cashflow and reduce costs for Irish businesses. E-day only applies to businesses and not to the public at large. For example, it will not impact on social welfare cheques. It applies to all public bodies, including local authorities.

The majority of affected public bodies already offer alternatives to cheques and by e-day they should all be offering some or all of the following payment options: electronic funds transfer, EFT, direct debit, whether single payment or recurring, credit card payments and debit card payments.

On 22 May 2014 my Department issued a reminder to all Departments, Government offices, local authorities and State agencies that  e-day comes into effect on 19 September 2014. A press release was issued on 23 May 2014 and related documents are available on the Department's website.

E-day was launched in September last year to give businesses and public sector bodies 12 months to prepare for the smooth transition to electronic payments. Cheque usage has halved in Ireland since 2005 but Irish businesses still write 33 million cheques every year. The particular focus of e-day is to encourage SMEs to migrate from cheque usage.

The Department's reminder letter to Accounting Officers attached a guide produced by the programme office of the national payments plan setting out several payment options with pros and cons as they relate to the operations of State agencies. Accounting Officers were reminded that any exceptional cases should be kept to an absolute minimum, a timetable should be established for the elimination of exceptional cases and any residual exceptions for which a timetable cannot be established should be identified and reported to the Department of Finance. Accounting Officers were also encouraged to consider the needs of people with disabilities when deciding on what payment options are to be offered.

Additional information not given on the floor of the House

The national payments plan notes that businesses and consumers will benefit when Ireland reduces its dependence on cheque and cash payments in favour of safer and more efficient electronic payments. Cheques are an expensive means of payment for businesses because of bank charges, stamp duty, postage, time spent making lodgements, unpaid cheques and the cheque-is-in-the-post culture of late payments. Businesses in most other EU countries have stopped using cheques. Businesses are advised to prepare for e-day by discussing payment solutions with the relevant contracting Government bodies and banks.

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