Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

We hear more and more talk about moving to a cashless society but cash remains a critical pillar of the financial system and access to it is crucial for citizens and businesses. Despite widespread commentary regarding the transition to a cashless society, most consumers value having cash. Its importance is even more critical for certain cohorts, including the elderly and those on low incomes, for whom the use of cash is not just a choice but a necessity. There is no doubt but that cash is in decline, and we acknowledge that. However, Ireland is not prepared to become cashless. Digital payments do not work for everybody.

As some have already said, sleepwalking into a cashless society is not an option and action is needed to stop it. According to a recent survey conducted by the Department of Finance, cash remains the preferred method of in-store payment for 20% of people, with older and lower income groups exhibiting a higher preference for cash. The risk of electronic systems failure, insecurity arising from the increased threat of cybercrime and concerns regarding identity and digital connectivity further underline the importance of access to cash for citizens. However, in recent years there has been a decline in public access to cash driven by the digitalisation and downsizing of branch and ATM services by retail banks. As we heard from previous speakers, AIB's attempts to remove cash from its branches with the full knowledge of the Department of Finance and the then Minister for Finance was deplorable.

While the use of cash and access to cash services have been on a downward trend and are expected to reduce further in the coming years, the predicted transition to a cashless society is neither inevitable nor desirable. Research has shown that reduced access to cash presents risks to rural communities and personal independence and creates risks of financial abuse, increased debt, the poorest paying more and catastrophic failures through cybercrime and IT failures. For many people, using cash is not a matter of choice but a necessity. Digital payment options do not work for everybody. While there is a perception that reliance on cash is restricted to older citizens, this is simply not the case. Poverty is the biggest indicator of cash dependency and not age. There are many reasons for this, including the degree of control over spending that cash offers. It allows households to budget their spending, manage their money and stay on top of their budget. Those who cannot provide proof of identity to open a bank account have few options but to use cash.

Cash serves several important functions that cannot be disregarded. As legal tender, retailers are required to accept cash as a form of payment. Cash is an inclusive form of money that serves citizens with limited access to digital services. This makes its availability and access to it crucial, especially for vulnerable customer groups such as the elderly and those with low financial resilience. Cash safeguards the privacy, data rights and identity of citizens in their financial activities and remains an important tool in budgeting for many citizens, households and businesses. Cash is secure, especially at a time when citizens are at greater risk of being victims of financial fraud and payment system failures.

Access to cash remains and will remain crucial in the economy and society and the same can and must be said with regard to access to banking services through the branch and ATM network. A recent survey commissioned by the Department of Finance found that 37% of customers visit their branch every month. That number is greater in rural areas. The Deputies, whom I commend on bringing forward this motion, note that retailers should be required to accept cash as a form of payment. I am aware of a number of retailers close to Leinster House that refuse to accept cash. Having the option to use cash is key and should not be closed down.

It is critical that Government, industry and regulators understand the importance of access to cash for social and financial inclusion. Its use and access to it must be protected in legislation, and I have been calling for such legislation for more than a year now. In both Britain and Sweden, legislation has been introduced to protect access to cash. Such legislation requires banks to provide a minimum level of cash withdrawal and deposit facilities, including ATMs, within set geographic baselines. To stop the drive towards ATM closures, which has damaging effects on rural communities, elderly citizens and low-income groups, we need similar reforms here in Ireland. We need legislative protections. We cannot allow the banks to take cash away from citizens in rural communities. We cannot allow ourselves to sleepwalk into a cashless society. It is simply not an option. It would leave citizens and rural communities poorer and excluded. I therefore support the motion. We need the legislation I have been calling for over the past year.

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