The banking industry will pay 90 per cent of the estimated €6 million annual costs associated with providing Garda cash in transit escorts. John Downes reports.
This is set to happen under a new five-year memorandum of understanding between the State and the banking industry with the remainder coming from Government funds.
The memorandum contrasts with a separate agreement signed by Minister for Defence Willie O'Dea in May 2005, but under which the banks pay 100 per cent of the costs associated with the provision of such escorts by Defence Forces personnel.
Banks have to date made a controversial annual "flat payment" towards Garda cash escorts, regardless of the expenditure involved. From 1995 to 2002, this amounted to €952,000 per annum.
In 2003, this rose to €3 million, while last year it stood at €4.25 million.
Speaking at the signing of the new memorandum at Garda Headquarters in the Phoenix Park yesterday, Tánaiste Michael McDowell said it was considered "sensible" that the level of remuneration should reflect the "residual and overriding function" which gardaí have in deciding where and what to do in relation to cash in transit escort operations.
"People may say why shouldn't it be 100 per cent? Well, it's a Garda operation, the gardaí have their own discretion in this matter, this isn't privatising Garda functions," he said.
He said it was considered sensible "in those circumstances that the remuneration should reflect . . . that it wasn't the sole prerogative of the banks to say what was and what was not escorted."
He said the impetus for the involvement of the gardaí and the defence forces was the "persistent threat" of robbery.
Speaking to The Irish Times, Paul O'Connor of the Irish Banking Federation said he was satisfied with the new agreement. The provision of cash in transit escorts "hasn't been that cheap" for the banking industry, he added.
"Over the last 10 years the banks have paid €48 million to the State for escorts - for Garda and defence escorts," he said.
Meanwhile, Mr McDowell said that there was agreement within the prison service regarding the need for drug-free prisons.
"If anybody at any level in the prison service has a difficulty with that, I suggest they get a job elsewhere," he said.
"No prison officer and no management in the prison service at any level has any nod-and-wink authorisation from me or from anybody else to take a different view in relation to the drugs issues in prisons."