Written answers

Wednesday, 6 June 2012

Department of Finance

Electronic Payments System

10:00 pm

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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Question 84: To ask the Minister for Finance if it is intended that Government Departments will pay suppliers electronically in the near future; and if he will make a statement on the matter. [26766/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The funding of payments made by line Departments and Offices is organised through the Paymaster General's Office, which is part of my Department. Virtually all payments by Government Departments from their annual Votes are now made electronically. Since 2001 Departments have reduced the number of payable orders issued annually from 4.2 million to an expected 190,000 in 2012, which is a reduction of over 95%. These paper payments have been replaced by electronic funds transfers to the bank accounts of payees. The Croke Park Agreement commits to the use of electronic payments, which will achieve greater efficiency. The Public Service Reform Plan envisages the abolition of payable orders as a payment method for Government Departments with effect from mid 2013.

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