Terence Flanagan (Dublin North East, Fine Gael)
Link to this: Individually | In context

Question 335: To ask the Minister for Justice, Equality and Law Reform the cost to the Exchequer of cash in transit escorts for security companies over the past five years; the changes he has recently made; and if he will make a statement on the matter. [6299/10]

Dermot Ahern (Louth, Fianna Fail)
Link to this: Individually | In context

The situation with regard to cash escorts and the recovery of costs from the banking industry has developed over the last few years from a situation whereby the banks made a flat contribution, regardless of costs, to the situation that currently obtains, whereby an agreed formula is used to calculate the costs incurred by the State and a mechanism employed which secures close to full recovery of these costs from the banking industry. In 2005 the costs incurred by the Garda Síochána in respect of cash escorts were in the order of €6.1 million. The flat contribution made by the banking industry to these costs was €4.25 million (this amount was paid in 2006 - the banks' contribution to the costs of one year is paid in arrears the following year). The net cost to the exchequer in respect of cash escorts in 2005 was therefore in the order of €1.85 million.

In respect of the costs of cash escorts incurred in 2006 onwards, these are dealt with by the Memorandum of Understanding (MoU) signed by the then Minister for Justice, Equality and Law Reform in May 2007. This MoU allows for the recovery of the costs of cash escorts from the banks. The costs are calculated using a formula which takes into account a number of factors including pay and allowances, subsistence, overtime, fuel and transport costs. The total arrived at is then discounted by 10%. This discount was agreed on the basis that the Government has always taken the view that there is a public interest issue in relation to the secure movement of cash. In addition, the decision to provide an escort is made by the Gardaí on an operational basis, not at the request of the banks and the discount acknowledges this.

The amounts received from the banking industry since the MoU was signed, in respect of the banks' contribution to the costs of Garda cash escorts, as calculated using the formula described above, are listed below. 2006 - €4,997,126 2007 - €4,881,265 2008 - €4,823,000 Please note that, as with the 2005 figure of €4.25 million, these payments were all received in the following year to that in which the costs were incurred. The figure for 2009 is not yet available.