Louise O'Reilly (Dublin Fingal, Sinn Fein)
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188. To ask the Minister for Finance the way that the State protects the consumers' right to use cash as a means of payment; and if he will make a statement on the matter. [60097/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Over the last decade, we have seen a shift in the way consumers and businesses are paying and banking. While historically Ireland has been a relatively cash-intensive economy, significant changes have occurred with a rapid increase in the take-up of electronic payments is evident. The Covid-19 pandemic has acted as a potential catalyst for the move towards digital payments and the move away from cash.

Notwithstanding a significant increase in the take-up of electronic payments, cash remains a vital part of the Irish payment system. In accordance with Article 128 of the Treaty on the Functioning of the European Union and with Council Regulation no 974/98 of 3 May 1998 on the introduction of the euro, euro notes and coins have the status of legal tender in euro area Member States, including Ireland.

The consumer’s right to use cash as a means of payment is based in contract law in Ireland. In context of this, where a business places no restrictions on the means of payment it is prepared to accept, it must accept cash as legal tender when offered by a customer to settle a debt that has arisen.

However, if a business specifies 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. 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 recently undertook a broad-ranging review of the retail banking sector.

A key part of the review was to examine the use and availability of cash in Ireland and determine whether any legislative proposal is needed in this regard. The public consultation undertaken as part of the review contained a number of questions relating to access to cash. One of these questions noted the concerns which are being raised around access to cash and asked for submissions on what should be done to protect access to cash.

The Retail Banking Review report, published on 29 November, contains a number of recommendations to preserve access to cash for consumers including the development of a National Payments Strategy and access to cash legislation to provide for reasonable access to cash. My Department will lead on the implementation of these and other recommendations of the report. The report is available here www.gov.ie/en/publication/28cf9-retail-banking-review-november-2022/.