Noel Grealish (Galway West, Independent)
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374. To ask the Minister for Finance the amount of interest that his Department has been charged by financial institutions since negative interest rates were introduced by year; and if he will make a statement on the matter. [29202/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Department of Finance manages all the transactions on the Central Fund, which is the ‘Government’s bank account’, ensuring the smooth operation of Government business. In 2021, the value of transactions processed by the Department was in excess of €100 billion. Negative interest charges, when applicable, are therefore paid by the Department despite these being related to Government cash flows. Furthermore, the vast majority of such charges are paid to the Central Bank of Ireland (CBI) and not to any private financial institution. Some 80 per cent of any surplus income made by the CBI is reverted back to the Exchequer. Over recent years and in performance of this core function of Government negative interest charges have been paid by the Department of Finance as set out below.

Noel Grealish (Galway West, Independent)
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375. To ask the Minister for Finance the State agencies, organisations or boards under the responsibility of his Department or that receive funding from his Department that have been charged negative interest by financial institutions since negative interest rates were introduced; the amount of interest that has been charged to each State agency, organisation or board in 2021 in each of the preceding years in which such charges were applied; and if he will make a statement on the matter. [29220/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by a number of bodies under the aegis of my Department that they have been charged negative interest by financial institutions. Details provided by those bodies can be found below:

*With respect to the Financial Services and Pensions Ombudsman’s (FSPO) current and demand deposit accounts, the FSPO has taken all possible actions to reduce/avoid negative interest and is monitoring rates charged on an ongoing basis. For this reason, the FSPO issues levy invoices on a staggered basis throughout the year, in order to reduce moneys held on deposit at any one time and thereby reduce negative interest charged. The FSPO continues to monitor announcements by credit institutions regarding any changes to negative interest rates and consults with the Office of Government Procurement on its banking services framework to explore suitable alternative options, as appropriate.

For completeness, superannuation contributions pertaining to two Model Schemes operating in the FSPO are being held by the FSPO in a Pension Account, which is included in the sum above, pending a decision by the Department of Finance on the proposed funding arrangements of the FSPO’s Staff and FSPO’s Ombudsman and Deputy Ombudsman superannuation schemes. Superannuation contributions relating to the FSPO’s Model Pension Schemes are held on deposit, and therefore attract negative interest charges.

**I am advised by the Office of the Revenue Commissioners that the negative interest costs they incurred have risen significantly over the period due to two factors. Firstly, as the number of banks imposing these charges has increased it is no longer possible to minimise the charges by holding larger balances in banks that do not do so. Secondly, there was a particular increase in 2020 and 2021 due to Revenue of necessity holding significant amounts needed to fund Covid-19 related subsidy scheme payments.