Pearse Doherty (Donegal, Sinn Fein)
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157. To ask the Minister for Finance his and his Department’s position on the call for a five-year moratorium on branch closures by an organisation (details supplied); the way this call can be accommodated with the Access to Cash Bill 2024. [23470/24]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware, drafting of the Access to Cash Bill 2024 is proceeding on a priority basis. The purpose of the General Scheme of the Bill, which I published with Government approval on the 23rd of January, is to establish a framework to provide that any future evolution of the cash infrastructure will be managed in a fair, orderly, transparent, and equitable manner.

The Bill will allow the Minister for Finance to prescribe criteria, on a regional basis, to require that: a specified percentage of the population must be within a distance of no more than 10 kilometres from an ATM; there must be a minimum number of ATMs per 100,000 people; and a specified percentage of the population must be within a distance of no more than 10 kilometres from “cash service points.” These are defined as locations where cash can be lodged and withdrawn, where there is in-person assistance available, during normal business hours. Bank branches, with cash services, and post offices satisfy this definition.

The initial benchmark for sufficient and effective access to cash will be based on December 2022 levels, adjusted for the subsequent exits of Ulster Bank and KBC. However, there will be a requirement for reviews of the criteria by the Central Bank following the publication of new Census data on population, or if cash demand drops by more than 15% in a calendar year compared to the previous calendar year. A review must also be carried out at the request of the Minister for Finance, and the Central Bank may also carry out a review on its own initiative. A provision to address local deficiencies in the ability to access cash, notwithstanding compliance with the criteria applying to the wider NUTS3 region, will be included in the legislation.

The Access to Cash Bill 2024 has been carefully drafted to ensure that it is constitutionally robust. Accordingly, the framework that the Bill will put in place has been calibrated to ensure the needs of the common good are met, while also ensuring that the provisions of the Bill are objective and proportionate. I would have significant concerns about whether a complete prohibition such as that described by the Deputy would be reasonable or proportionate and, as such would be concerned that such a measure would not stand up to constitutional scrutiny.

The Deputy should also be aware that the matter of branch closures is being considered by the Central Bank of Ireland under its revised Consumer Protection Code, informed by the Department of Finance’s Retail Banking Review 2022. The revised Code will feature changes such as: an increase in the minimum notice period for banks to six months where they intend to close, merge or move a branch; a requirement that banks must prepare and publish board-approved assessments of the impact of the changes on customers; and a requirement that banks must conduct an ex-post assessment to include a survey of impacted customers and the suitability of any arrangements made nine months after the change, which must be completed before 15 months has elapsed since the change with a requirement to rectify material issues that may have arisen. More information on the revised consumer protection code can be found on the Central Bank of Ireland’s website.