Madam, - A number of important points of fact did not come through in your report (Oct 26th) concerning suggestions from the Minister for Defence that banks should contribute more towards the cost of security escorts for cash transits.
With regard to the banks' current contribution of €5.9 million towards the estimated total annual cost of €9.9 million that is incurred by the Army and Garda in providing these escorts, it should be noted that the banks are just one of a number of beneficiaries of the cash escort system. The State itself, through various agencies such as An Post, is one of the principal generators of cash in the economy and a high proportion of the cash transported around the country is required to meet its needs.
The banks' current contribution arises from an agreement reached with the Government under the auspices of the Irish Bankers' Federation.
Security escorts for cash transits were introduced in the early 1980s at the behest of the State, acting on the advice of the Garda authorities in the face of the increasing level of subversive crime.
While the nature of the crime may have changed since the 1980s, the reality is that the incidence of cash robberies is again showing an upward trend.
Notwithstanding the €1.4 billion in taxes that the banking sector contributes annually to the Government's coffers, banks currently pay €100 million per year to the State in the form of a "bank levy" - a payment that no other sector in Ireland makes and that is unique by European standards.
Of course, the need for cash transits and related escorts would be greatly reduced if, as a nation, we were to reduce the amount of cash in circulation.
Ireland has the second-highest level of cash usage in the EU after Greece. Banks are fully committed to reducing cash circulation in the economy and are fully supportive of the Government's own National Payments Strategy.
However, progress in this regard has been greatly undermined by the Government's own imposition of penal stamp duties on credit, Laser and ATM cards, the effect of which has been to discourage a move away from cash usage. - Yours, etc.,
FELIX O'REGAN, Head of PR and Communications, Irish Bankers' Federation, Nassau Street, Dublin 2.