Róisín Shortall (Dublin North West, Social Democrats) | Oireachtas source

I start by thanking the Rural Independent Group for tabling this motion, which the Social Democrats is happy to support.

There is no doubt that cash usage declined rapidly in the last decade, particularly during Covid. We now live in a country that has a very sophisticated electronic payments system and, therefore, a declining need for cash.

This rapid change is born out in the Central Bank data. Since 2015, the use of debit cards has almost tripled, increasing by 284%, while the number of ATM transactions has almost halved, dropping by 46%. However, despite this significant change to the cash cycle, there is still an appetite and, indeed, a need for physical money.

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Most people may have moved to electronic payment methods by choice, but many others have been forced or, worse, left behind. Branch closures, the removal of cash services and a reduced ATM network has left many people with few options. According to the retail banking review, once all Ulster Bank branches close, the entire branch network will have reduced from 617 branches to 438. Of those remaining, 21% will have no staffed cash counter.

In terms of our ATM network, Ireland had the third largest decrease in ATMs in the EU between 2017 and 2020 after the Netherlands and Belgium. However, it is worth nothing that the reduction in ATMs in the Netherlands and Belgium happened under a structured framework from their respective states. The same cannot be said of Ireland, of course, where the rapid decrease was as a result of decisions taken by the banks themselves. This is yet another example of successive governments' hands-off approach to banking policy.

Of particular concern should be the management of the ATM network, which has changed dramatically in recent years. In 2015, all ATMs were operated by traditional banks, but by the end of 2021, independent ATM deployers, or IADs, controlled 75% of ATM locations. These IADs are now significant players in the cash cycle, yet they remain unregulated by the Central Bank. Aside from the glaringly obvious issues with outsourcing this service to unregulated providers, this model is particularly bad for rural communities and SMEs. The IAD business model depends on having ATMs in areas of high footfall. This means rural Ireland, which has already been hardest hit by branch closures, is most likely to lose ATMs. This is just another reason on an already long list of reasons for the Government to rethink its position on public banking. The pillar banks cannot be relied upon to protect consumers' and SMEs' access to cash, especially in rural areas. Cash services, even those that are loss making, are vital for local communities, and this consideration must trump commercial concerns.

While I accept the increased use of cashless payments has made life easier for most people, without a clear strategy to manage this transformation, too many people are being left behind. It has been ten years since the last national payments strategy was published and changes to the cash cycle have far outpaced that plan. We now find ourselves at a crossroads and pre-emptive action is required to ensure a cashless society does not become a runaway train. The retail banking review recommended a new national payments strategy by 2024. I would appreciate it if the Minister of State outlined her plans in that regard.

Ultimately, this is about inclusivity. If we continue blindly down the path towards a cashless society, some of the most vulnerable will be excluded. This includes some older people, some on low incomes and those who lack the digital or financial literacy needed to manage electronic payments. Organisations like Age Action have been warning the Government about the threat of an increasingly cashless society for years, long before the number of bank branches receded or Covid accelerated the use of electronic payment methods. In 2018, Age Action said an entire generation of older people were being left behind, with 50% of people aged between 65 and 74 never having been online. This level of exclusion did not improve in the proceeding years. As of 2021, 65% of over-65s experienced digital exclusion, meaning they could not access online or contactless financial services.

We must not lose sight of the fact that cash is still an essential part of everyday life for many. It is not a choice or a habit but a need. While I do not believe the Government is trying to move us towards a totally cashless society by design, I do fear that, without a plan, it is stumbling into one. You cannot attend a GAA match, renew a driver's licence or, increasingly, even buy a coffee without a debit card. This requires immediate attention.

I accept that the Government has committed to drafting legislation on access to cash, but when is it going to publish the heads of that Bill? There has been little discussion on it at Oireachtas level. This should be priority legislation for the Department of Finance, but it is nowhere to be found on the spring legislative programme. Will the Minister of State commit to publishing the draft legislation before the summer recess? A clear and structured legislative framework is needed to manage this evolution before our cash infrastructure deteriorates any further and before large numbers in our population are excluded from financial services.

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