Deal to see banks pay for army escorts

Banks will have to pay for military escorts for cash transits it emerged last night.

Banks will have to pay for military escorts for cash transits it emerged last night.

Under the deal between Minister for Defence Willie O'Dea and the Irish Bankers' Federation, the main banks will have to pay for every cash escort provided by the army.

The new deal is valued at around €3 million more to the Government and will come into force in October.

Speaking on radio this morning, Mr O'Dea said: "When deciding the overall strength of the army we had to take into account the fact that this [cash escorts] was one of the duties they'd be performing.

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"We might be able to get by theoretically at least with a somewhat smaller army If we didn't have the responsibility of having troops available for this sort of duties. . . . The banks have accepted that."

An Post and the Central Bank will be exempt from the new charges.

Mr O'Dea said the agreement will be formally signed tomorrow.