Ireland: Central Bank May Stop Printing Euro Banknotes

[Bimat]

Central Bank bosses want to cease printing Euro banknotes

   
Cormac McQuinn
March 9 2018 10:05 PM

Central Bank management is seeking approval to cease printing Euro Bank notes in Ireland and outsource production to another Eurozone country.

The move - which sources said would result in "significant cost savings" - would  impact on 45 jobs at the bank's south Dublin mint.

Production of coins would continue at the facility in Sandyford.

Savings would be made in annual production costs as well as in avoiding investment costs that would be incurred it banknotes continue to be printed here.

Sources said it is not a reflection of the work carried out by staff at the facility, rather developments in the cost of printing banknotes across Eurozone countries.

The savings from outsourcing would be returned to the exchequer.

The Central Bank last night confirmed that the move is being considered, but did not provide a figure for savings that would be made.

It said it does not intend to seek compulsory redundancies but did not say how many voluntary redundancies would be sought.

The management proposal comes after a review of its strategy for banknote production.

The purpose of the review was to determine how the Central Bank meets its Eurosystem obligations for its annual Euro banknote production.

In a statement last night a Central Bank spokesperson said the review is complete but no decision has yet been taken by the Central Bank Commission.


The matter is scheduled to come before the Commission at the end of March.

A statement said: "The proposal from management involves sourcing the banknotes from within the Eurozone, and ceasing the printing of banknotes at the Central Bank's Currency Centre.

"This proposal is in line with the approach taken in many other national central banks in the Eurozone."

It added: "This proposed change will have no impact on the supply of banknotes in Ireland, the majority of which are produced elsewhere."

And it said: "All other currency related operation at Sandyford Currency Centre would continue as normal."

The Central Bank confirmed that if the decision is taken to cease printing, 45 of the mint's 170 staff will be impacted.

The statement added: "The staff and their representatives are fully aware of the proposal."

It said that the bank "does not intend to seek compulsory redundancies" and is committed to redeployment and retraining opportunities for impacted staff.

It said that a voluntary severance package will also be made available to staff.

The statement said: "If a decision is taken to cease printing, the Central Bank is committed to engagement with staff representative bodies through the normal industrial relations channels on the implications for impacted staff."

Source: The Independent

[chrisild]

Was about to post this, but you were faster. Interestingly, the story that I saw (RTE) said that paper money is produced by a "mint".   "The board of the Central Bank is to consider a recommendation from management to cease printing euro notes at its mint in Sandyford, Co Dublin." https://www.rte.ie/news/business/2018/0309/946337-central-bank-considering-ceasing-printing-euro-notes/

Christian

[Bimat]

Do they (Irish Central Bank) need to take permission from ECB before shutting down its banknote printing facility?

Aditya

[eurocoin]

Was about to post this, but you were faster. Interestingly, the story that I saw (RTE) said that paper money is produced by a "mint".   "The board of the Central Bank is to consider a recommendation from management to cease printing euro notes at its mint in Sandyford, Co Dublin." https://www.rte.ie/news/business/2018/0309/946337-central-bank-considering-ceasing-printing-euro-notes/

Christian

The Irish Mint also produces euronotes, same for for example the Spanish mint which also produces both eurocoins and notes.

[eurocoin]

Do they (Irish Central Bank) need to take permission from ECB before shutting down its banknote printing facility?

Aditya

I do not think so.

[chrisild]

The Irish Mint also produces euronotes, same for for example the Spanish mint which also produces both eurocoins and notes.

Terminology wise I find it strange that a mint would produce paper money, but if that is how they do it in Ireland, fine.   The situation in Spain is a little different: The notes are manufactured by Imbisa, a joint venture of Banco de España (80%) and the Fabrica Nacional de Moneda y Timbre (20%).

And no, an ECB "permission" is not required in such a case. After all, each national central bank is responsible for the production of its share of the total issue volume. The only limitation that I am aware of is that the printer needs to be "euro certified" so to say.

Christian