Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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68. To ask the Minister for Finance if he will provide an update on the implementation of the recommendations of the retail banking review; and if he will make a statement on the matter. [11380/23]

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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I congratulate the Minister and Minister of State on their new positions. This is my first opportunity to ask them questions. I wish them the best of luck.

Will the Minister provide an update on the implementation of the recommendations of the retail banking review and make a statement on the matter?

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Deputy for her good wishes. I also thank her for submitting this question.

The Government approved the publication of the retail banking review and the implementation of its recommendations on 29 November. Each recommendation identifies the body or bodies responsible for delivery of that recommendation and, in some cases, contains timelines for delivery of the recommendation, where appropriate. It is for the relevant bodies to consider and implement the recommendations addressed to them.

Implementation of the recommendations requires both the Department of Finance and the Central Bank to deploy resources to deliver them. Many of the recommendations will also require close collaboration between the Department and the Central Bank. The implementation of the recommendations that are directed at the Department are mainly being carried out as part of normal policy and legislative work. However, a key issue identified by the review was access to banking services, particularly the ability to withdraw and deposit cash. A number of recommendations address this issue. A dedicated team has commenced its work on this issue and is currently in its research phase to develop legislation and prepare the heads of a Bill. These heads will include requiring banks to provide reasonable access to cash, which will be defined following consultation with the Central Bank and other stakeholders.

The Central Bank informs me that it is working on the implementation of recommendations addressed to it. The bank is undertaking a major review of the consumer protection code, and the outcome of this significant piece of work is likely to address several of the recommendations. Other recommendations will require implementation by other State agencies, such as the Competition and Consumer Protection Commission, Departments and all relevant stakeholders.

It is crucial that the retail banking sector ensure the interests of consumers are a priority in their organisations and seek to work together, where possible, to deliver the best outcomes for the economy and citizens. The retail banking sector has been contacted regarding its role in carrying out those recommendations that fall to it.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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I thank the Minister. I am delighted to hear that a team is in place to examine this matter more closely.

The retail banking review pointed out that, primarily due to technological developments, the main way that consumers and SMEs engaged with and accessed banking services had changed rapidly in recent years. Covid accelerated this trend. While the use of cash and visits to bank branches have been in decline in Ireland and elsewhere for some time, the review team noted that the ECB survey found that a majority of people wanted to have the option to pay in cash – this is the important point – even if some had a preference for digital payments. We cannot ignore the consternation around the country when AIB suggested that it might only have machines in its banks, which would have had a detrimental impact on businesses. Rural Ireland would decline further if banks were allowed to do this, which is why I feel so strongly about ensuring that cash always remain legal tender for people.

Michael McGrath (Cork South Central, Fianna Fail)
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I assure the Deputy that work is under way in my Department on these specific recommendations and the heads of a Bill on access to cash are currently being prepared. We will need to decide what level of access to cash it is appropriate to protect. I recognise it is an important issue for communities and small businesses and for ordinary citizens. We also intend to ensure automatic teller machine, ATM, operators are authorised and supervised by the Central Bank and to provide it with the responsibility and powers to protect the resilience of the cash system. The area of ATMs is in need of further regulation. Often we find many of them are out of order for prolonged periods and it can be difficult for people to access cash. Many towns have only one or two machines and they could both be out of order at the same time, for days on end. Such issues affect people on the ground and should be dealt with. It is my intention that this will be a practical Bill. I will consult widely with Members across the House to hear what they have to say and to ensure access to cash is protected for people who choose that option. Not everyone does, but many people still do.

Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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I welcome the Minister's reply. One thing that struck me is that many of the GAA grounds have moved to digitalisation in allowing people into the grounds. There has been huge kickback. Again, I maintain it is particularly from rural parts of the country. It is important we do that. I acknowledge the high cost of providing cash services and the move to a more digitalised banking model have incentivised banks to move away from the direct provision of cash services. I am someone who comes from a rural area and businesses need access to cash. The Minister spoke a little about the regulation of ATMs. That would also be welcome. Many small businesses need ATM services, not only for withdrawals but also for lodgements at weekends. We must ensure our banks are providing that service for the SME sector.

Michael McGrath (Cork South Central, Fianna Fail)
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We are seeing an evolution in the significant move towards digital payments. The Covid-19 pandemic accelerated that. However, cash still has an important role to play in our society and economy. Insofar as is practicable, people have a right to use cash. Having said that, I am conscious that not every public body is in a position to accept cash in the provision of every public service. We must examine all of this and that is why I am committing to new legislation, the heads of which will be prepared this year. It will benefit from pre-legislative scrutiny and from the input of Members across this House, who will give feedback about the experiences of their constituents and of businesses in their areas in the frustrations they sometimes have at their inability to access and use cash for goods and services. It is an issue we will talk much more about this year.

Seán Sherlock (Cork East, Labour)
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With the agreement of the House, I will go back to Deputy Dillon or I can take the questions in order. I thank colleagues for their forbearance on this. I understand Deputy Dillon will take Question No. 64 in place of Deputy Griffin.