Written answers

Wednesday, 11 January 2012

Department of Finance

Electronic Payments

8:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 128: To ask the Minister for Finance his views on the way further progress can be made on reducing cash usage and increasing electronic payments; when the National Payments Implementation Plan will be launched; and if he will make a statement on the matter. [1512/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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In June 2009 the National Payments Implementation Plan Advisory Group presented my predecessor with recommendations for a proposed new Payments Task Force to develop a strong, shared commitment to implementing a modern, efficient payments environment, driven by the requisite leadership and investment from key stakeholders. The Advisory Group also recommended that a national payments plan should be designed to secure a decisive shift to electronic payments resulting in a reduced usage of cash and cheques as well as a significant reduction in the level of financial exclusion. As the Deputy will be aware, Ireland has lagged significantly behind our European peers in the use of cheaper, more efficient electronic payment instruments. This is not only a competitiveness issue for Ireland, but our dependence on paper-based payments has social costs and also has implications for consumer choice and for financial inclusion. In addition, it has the potential to significantly impede Ireland's ability to take advantage of the foreign direct investment and indigenous growth opportunities that are likely to materialise from the advent of new technologies and from recent changes in the EU regulatory framework for payments.

Arising from the report of the Advisory Group, in June of last year, I asked the Central Bank to take a lead role in preparing a National Payments Plan for Government consideration and approval. I consider that the Central Bank is well placed for such a role given its existing role as overseer of Irish payment systems, including in this capacity its general obligation to promote the efficiency of the Irish payment system. I understand the Bank has appointed a project manager to drive the preparation of the Plan and has convened a high level steering group to oversee this work, comprising representatives of consumers, businesses, the banking sector and the public sector. The Bank has also, over the last number of months, been engaged in a process of consultation with a broad range of stakeholders as well as undertaking the research that will be required to underpin a National Payments Plan. I am informed by the Bank that it expects to submit a draft National Payments Plan to me before the end of this year.

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