Article: NIB call for reform of 'highly inefficient' system

Slice

http://www.irishexaminer.com/irishexaminer/pages/story.aspx-qqqg=business-qqqm=business-qqqa=business-qqqid=47333-qqqx=1.asp

From Today's Examiner, by Geoff Percival;

NATIONAL Irish Bank (NIB) has called on the Government to phase out the use of cheques as a form of legal tender as part of an overall reform of the current payment system in Ireland.


In its pre-Budget submission to the Department of Finance, NIB called for the Government to promote the greater use of electronic forms of payment — including credit and debit cards (Laser and Switch cards, for instance) and direct debit payments.

According to NIB deputy chief executive, Kevin Gallen, Ireland is currently operating a “highly inefficient” payments system, which is costing the economy around €750 million per year and “unnecessarily adding to the cost of doing business in Ireland”.

“The use of cash in Ireland is very extensive and, unlike many countries, we show little signs of moving to more efficient payment mechanisms. According to the European Central Bank, annual cash withdrawals per consumer at Irish ATMs are well above the European average.

“There is no reason why Ireland cannot become a world leader in the area of e-payment systems,” he said.

NIB’s specific wish list includes the phasing out of cheques by the end of next year; an ‘E-Day’ highlighting to consumers their alternative options; an investigation by the Law Reform Commission into the issues involved in making e-money a form of legal tender by 2010; and the Commission for Taxi Regulation to make it compulsory for cab drivers to accept payment by debit or credit cards by the end of next year. The bank said the Government should levy tax on the inefficient forms of payment “instead of on the efficient forms”.

It still astonishes me the fact that while Government talks about encouraging non cash transactions they continue to charge consumers various annual taxes on credit cards, ATM cards, Laser cards...

machiavellianme

I can see it now. All the farmers rushing out to get Credit Card machines so they can charge for selling their cattle to other farmers.
Eh no. The cheque will survive a long while yet here as we havent gone as Industry/Services based as the banks would like to think.
Also, many of our population dont trust electronics

Cabaal

The problem with so called "e-payment" option is because people don't have the money in there hands, older people and farmers generally prefer to have cash because they know and feel what they are spending.

Slice

Cheques are inefficient, costly and, in most cases outside Ireland, they're outdated. If the government stamp duty on cheques reflected I'm sure farmers and old people would be making e-payments in no time.

jimmycrackcorm

Why get rid of cheques? They're handy for large purchaces and basically it only save the banks money. I'd only agree with them if they could organize money transfers between banks that are as fast as sending emails instead of taking three days.