The Tánaiste and Minister for Justice, Equality and Law Reform, Michael McDowell, today signed a Memorandum of Understanding with the banking industry concerning the costs to An Garda Síochána of providing cash escorts.
The agreement, which will see close to full recovery of the costs of escorts, was signed by the Tanaiste, the Garda Commissioner Noel Conroy, and Mr Paul O'Connor of the Irish Banking Federation in Garda HQ, Phoenix Park.
The previous arrangement saw the annual contribution by the banks of a flat payment towards Garda cash escort costs, regardless of expenditure. In the light of rising costs and the profitability of the banking industry, it was decided that a formal agreement linking the contribution of the banks to the total costs incurred in a given year was required.
The Memorandum of Understanding defines the relationship between the signatories in relation to the operation of cash escorts, and details the precise costing methodology to be employed by the Garda Síochána in calculating the cost of providing escorts. It also sets out the banking industry's obligations in relation to making payment for escorts.
Speaking at the signing, the Tánaiste said that it was "only right and proper that in these days of sustained economic success the right balance be struck between public interest and private profit."
The Tánaiste praised the banking industry's readiness to address the question of cash escort costs and acknowledged "the co-operative approach of the banking industry and its representatives in the Irish Banking Federation, and their willingness to recognise the imperative for reform."
The Memorandum of Understanding, which will enter into force for five years initially, also sets out the precise obligations of the signatories in relation to escorts. The Tánaiste described it as "a modern and appropriate arrangement which reflects the goodwill and willingness of both sides to strike an agreement in everyone's interest."
10 May 2007
Note for editors
Following a robbery of about 430,000 pounds from a security van in Co. Limerick in June 1978 the Government, in an informal decision, directed that a Garda/Army escort should accompany major cash consignments. The Government has historically recognised that it is both in its interest and the interest of the public that cash can be transited securely around the country.
In addition to these Garda/Army escorts, the Special Detective Unit of An Garda Siochana also escorts numerous other cash movements, particularly in the Dublin area.
The decision as to whether a particular cash consignment will receive a Garda or Garda/Army escort is made on an operational basis by the Garda Síochána.
The banks have been contributing a proportion of the costs of cash escorts since 1992. From 1995 until 2002 the contribution was 952,000 Euro. In 2003 this rose to 3m Euro and in 2006 the contribution rose again to 4.25m Euro.
The MoU signed today provides for the calculation of the costs of escorts on the basis of a number of factors, including pay and allowances, subsistence, overtime, fuel and transport costs.
From the point of view of the banking industry, the MoU provides for greater cost transparency and facilitates consideration of issues relating to operational efficiency.