Joan Burton (Dublin West, Labour)
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Question 422: To ask the Minister for Finance if he has completed consideration of the report from the advisory group convened to develop plans for a national payments implementation programme; if the advisory group addressed issues surrounding provision of a basic bank account; if so, the conclusion of the advisory group in this regard; when the report will be published; and if he will make a statement on the matter. [31897/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will be aware that the Government's policy is to promote the increased use of electronic payments throughout the economy, with the longer-term objective of significant reductions, over a number of years, in the volume of paper-based payments in use throughout the economy. This policy is fully aligned and is developing in tandem with market and regulatory developments at EU level, including the Single Euro Payments Area (SEPA), the introduction of the Payment Services Directive from November 2009 and the introduction of the revised Electronic Money Directive from April 2011. In promoting this policy objective, the Government has reduced stamp duty on combined ATM cards from €10 to €5 in Budget 2009, building upon changes in the previous year's Budget. Stamp duty on cheques was also increased from 30 cent to 50 cent per cheque, to act as a further disincentive to cheque usage.

I indicated the need to establish new governance arrangements to further promote the development of electronic payments in our economy in Budget 2009. As part of this process, the National Payments Implementation Programme Advisory Group provided recommendations in a report submitted to me in July 2009 on the possible mechanisms and mandate to further promote the development of electronic payments.

The report presents a clear analysis of the current situation in Ireland concerning the use of different payments instruments. Part of the report addresses the continuing problem of the non-participation of a sizeable portion of the population in mainstream financial services. It found that approximately 10% of people still do not have access to an account that can make or receive payments and this situation has to be addressed to support financial inclusion. The report therefore recommends that a key part of a new National Payments Plan should be the implementation of a specific strategy to deal with all those who currently do not have any facility to make and receive electronic payments. I agree with this conclusion of the report.

By way of updating the Deputy on progress on the report of the National Payments Implementation Programme Advisory Group, there are ongoing discussions within my Department and with external stakeholders such as the Irish Payment Services Organisation (IPSO) on how the recommendations of the report can be successfully brought to fruition. Following the conclusion of these discussions, I would intend to bring proposals to Government on the priorities for a new national payments plan. At that point, I would also propose to publish the report.

In addition, discussions between my Department and the European Commission on a package of horizontal or sector measures to support the maintenance of competition in the banking market in Ireland will also impact on how this recommendation of the report will be implemented. One of the commitments agreed with the European Commission as part of the bank restructuring process is that the domestic banking sector will be required to support and promote the availability of a basic bank account.