Seán Canney (Galway East, Independent) | Oireachtas source

I thank Senator O’Reilly. On the question on why a 15% drop in cash demand has been used, the legislation contains provision for the access to cash criteria to be reviewed in tandem with the updating of census figures and if cash demand drops by more than 15% in a calendar year by comparison with the preceding calendar year, or on the request of the Minister. The Central Bank of Ireland may also undertake a review on its own initiative at any time. Data published by the Central Bank show that cash withdrawals in Ireland declined by 9.69% between June 2023 and June 2024. This year-on-year change is less than 15% and, based on the proposed legislation, not sufficient to result in a review of the access to cash criteria by the bank. However, Eurostat data indicate that a drop in demand of 17% was observed between 2018 and 2019. Cash use in Ireland has been declining gradually. A decline in cash demand of 15% may occur as a result of an external shock to the economy or rapid change in cash demand. This may be driven by technological developments or demographic shifts. The inclusion of the 15% decline criterion for a review allows the Central Bank to undertake a review in the event of an external shock or rapid change in demand. The other criteria allow for a review following changes of a more incremental and responsive nature.

The Department of Finance 2022 retail banking review highlighted that cash still has an important place in the economy, and it is important to consumers in all walks of life. Cash is important because it is a private, secure and instant form of payment. It is also a budgeting tool for many people. It allows individuals such as the elderly or those with special needs to maintain their financial independence. Cash is also necessary for the day-to-day revenue and expenses of many SMEs. The Bill ensures payments in cash remain a sustainable and attainable option for Irish society as a whole. In doing so, it ensures certain vulnerable groups are not excluded from participating in society due to the shift to digital payment options. There is still very strong support for cash and the need for access to cash infrastructure in Ireland.

On Government bodies accepting cash, it is important to state the national payment strategy, NPS, recommends cash acceptance or facilitation in the public sector where a public body levies fines or fees, or where it provides goods and services for a charge. The NPS proposes that all Departments and bodies under their aegis accept a range of electronic and non-electronic payments, including cash. If a body cannot accept cash directly, it must arrange immediately for the facilitation of cash payments via a third party. In November 2024, the Secretary General of the Department of Finance wrote to all other Secretaries General notifying them of this recommendation.