Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 262: To ask the Minister for Finance if he will investigate the clearing time of five working days being operated by banks for cheques lodged; if there is irregularity involved with regard to customers credit; the person who allowed this change in regulation; and the action he will take in relation to same. [33264/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am not aware of any irregularities regarding the clearing time for cheques in Ireland. I should explain that the clearing system in Ireland is governed by private arrangements between the participating institutions, operating under the aegis of the Irish Payment Services Organisation (IPSO). The clearing cycle for a cheque should in normal circumstances take no more than three business days, with cheques that are unpaid generally being returned within 5 working days. This might occur where there are insufficient funds in the payer's bank account. Presentation of a cheque by a payee to his or her bank occurs on Day 1 of the clearing cycle. The payee will commence receiving interest from Day 2, which is the same day settlement takes place between the payee's bank and the drawer's bank at the Central Bank. The drawer's bank account is debited on Day 2 or Day 3 of the cycle. The clearing cycle may be quicker (in some cases instantaneous) if a cheque is both drawn on and collected on the same bank.

There is also provision for special presentation of a cheque for immediate payment, which is only available in the Dublin area for cheques up to a value of €625,000 and where the payee presents the cheque before 3 p.m. in the nominated branch of the bank.

This timeframe is also dependent on the bank or financial institution being a member of the Irish Paper Clearing Company (IPCC) Ltd. The IPCC is responsible for the clearing and settlement of all paper payment instruments in Ireland. Any bank or financial institution outside of this framework may have a longer cheque clearance cycle. A list of members is available directly from IPSO at www.ipso.ie.

As to when any particular bank will permit a customer to draw against lodged cheques, this is an individual bank decision based on its own risk management and credit control arrangements. I would expect that all banks would inform their customers of the relevant terms and conditions. If the Deputy wishes to provide me with further information on this matter, I can arrange for enquiries to be made.

I think it is also important to point out that this question also highlights the disadvantages of the continued high usage of cheques as a method of payment within the commercial sector in Ireland.

It might be noted that electronic payment transactions have the potential to achieve significant savings for individual businesses; in particular electronic payments processing and invoice presentation can realise significant administrative cost savings, improved efficiency and improvements in the quality of customer service. This has the potential to benefit not just businesses but also their customers.

Government policy is to promote the increased use of electronic payments throughout our economy. In promoting this policy objective, I have reduced stamp duty on combined ATM cards from €10 to €5 in Budget 2009, building upon changes in the previous year's Budget. I also increased stamp duty on cheques, from 30 cent to 50 cent per cheque, to further disincentivise cheque usage.

I have recently made regulations (S.I. 383 of 2009) to transpose the EU Payment Services Directive (Directive 2007/64/EC), which, inter alia, establishes rules on the maximum time for the execution of both paper-initiated and electronic payments. These regulations will take effect from 1 November 2009.

I have also previously indicated the need to establish new governance arrangements to further promote the development of electronic payments in our economy, and I am currently making preparations for the establishment of a task force comprising key representatives of the main stakeholders to direct the preparation and implementation of a national payments implementation plan over a two year period.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 263: To ask the Minister for Finance the members of the committee monitoring lending to business; the new requirements imposed on banks to report on lending trends in a way that will facilitate evaluation of the credit squeeze; if the commitments made by each financial institution to date in 2009 have been delivered; and if he will publish in each case a tabular statement of the lending variables which are being monitored and identify the ones in respect of which commitments have been made. [33308/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In the context of the recapitalisation, AIB and Bank of Ireland made specific commitments on lending. I am pleased to say that the measures taken to date by the recapitalised banks, including those relating to lending, are outlined in the supplementary booklet on NAMA. I would direct the Deputy to Section 4 of that booklet.

The Credit Supply Clearing Group under the aegis of the Minister for Enterprise, Trade & Employment has responsibility for identifying specific patterns of events or cases where the flow of credit to viable businesses appears to be blocked and to seek to identify credit supply solutions. This group includes members from the following organisations; Department of Finance, Department of Enterprise, Trade & Employment, Department of Arts, Sport & Tourism, ISME, SFA, IFA, Chambers Ireland, IBF, AIB, Anglo Irish Bank, Bank of Ireland, Bank of Scotland (Ireland), National Irish Bank, Ulster Bank, Forfás, Enterprise Ireland, IDA, Irish Hoteliers Federation and Fáilte Ireland.

I published the independent review of credit availability conducted by Mazars on 10 July 2009. A follow on report to look at the situation since then is in the process of being undertaken by my Department and other stakeholders. As with the original report, both the supply and demand sides will be covered. I expect that the demand side survey will commence this week.