Paschal Donohoe (Dublin Central, Fine Gael)
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While historically Ireland has been a relatively cash-intensive economy, advances in technology and changing customer demands have prompted a rapid increase in the take-up of electronic payments in recent years. Notwithstanding this, cash remains a vital part of the Irish payment system.

Euro notes and coins have the status of legal tender in Ireland. Retail transactions here are governed by contract law and in the context of this, where a business places no restrictions on the means of payment it is prepared to accept, it must accept legal tender when offered by a customer to settle a debt that has arisen.

However, if a business specifies in advance of a transaction that payment must be in a form other than cash, the customer cannot subsequently claim a legal right to pay in cash, even if that cash is legal tender. This can be achieved, for example, by displaying signs at the till and at the store entrance. Therefore, under certain circumstances, retail businesses or service providers can refuse to accept payment in cash.

Banks have a key role in maintaining the flow of cash through the economy and ensuring appropriate access to retail banking services for all in society. The changes currently underway in the Irish retail banking sector are a reflection of the wider challenges the banking sector is facing, not only in Ireland but also abroad. It is because of these changes that my Department is currently undertaking a broad-ranging review of the retail banking sector.

A key part of the review is to examine the use and availability of cash in Ireland and determine whether any legislative proposal is needed in this regard. Officials are due to present their draft report to me in November.