Banks to face full costs of security escorts

Banks will soon be expected to pay the full costs of State security for cash escorts.

The Minister for Defence, Mr O'Dea, has said he plans to eliminate the costs to the Army of providing a security escort for banks moving large amounts of cash.

According to the latest figures, cash escorts cost the Army and Garda €9.92 million, with the financial institutions contributing €5.86 million of this.

The banks were now making huge profits, said Mr O'Dea, who will today discuss the issue with Department officials who have been reviewing the costs.

Up to now the Department of Justice has negotiated with the banks about payments and further discussions are under way on the banks' contribution for this and future years.

The vice-chairman of the Public Accounts Committee, Mr John McGuinness, said however "that it's not a big deal to review these things. We've had the reviews, we've had the reports, we know the costs and the only acceptable solution is for the banks to pay the full cost of security.

"If the banks bought the security service from the private sector, notwithstanding the issue of arms, they would pay for it.

"If you get a service in the bank you will pay every cent for it, so there is no reason why the banks should be any exception, when their profits are surging ahead."

Mr McGuinness, a Fianna Fáil TD for Carlow-Kilkenny, also called on the Minister for Finance to get involved in the issue.

"The Department of Finance has an overview of different Departments on value for money and accountability, and in this case there is neither value for money nor proper accountability for taxpayers' money."

The Ministers for Defence and Justice released details of the costs to Mr McGuinness in Dáil replies.

Providing security escorts cost the Army €6.64 million last year, of which the financial institutions paid just €2.86 million.

The cost to the Garda for the same period was €3,283,348 and the banks paid €3 million of that, according to Department of Justice figures.

Mr O'Dea said the Garda insisted on recovering most of their costs and he wanted to eliminate the costs for the Defence Forces. There were logistical considerations, but he aimed to have the banks pay the full costs "as quickly as possible".

The original decision to provide armed security was made by the government in 1978, following a large robbery on a security van in Co Limerick, but Mr O'Dea pointed out that there was a much reduced security threat since the development of the peace process.