[This memorandum is not part of the Act and does not purport to be a legal interpretation]

General

The purpose of this Act is, in necessary cases, to replace Irish pound (IR£) amounts that are set down in law with convenient amounts in euro with effect from 1 January 2002. The amounts being replaced relate to certain fees, charges etc., levied by Government Departments or bodies, and to certain thresholds, where the amounts are or may be paid in cash or need to be easily remembered. The Act provides that the fee etc. amounts involved will from 1 January 2002 be reduced to the nearest convenient euro amount below the exact equivalent of the current IR£ amounts, so as to favour the citizen, and that the threshold amounts will be increased to the nearest convenient euro amount above the exact equivalent, again so as to favour the citizen.

The background to the Act is that under Regulation (EC) No. 974/98 of 3 May 1998, IR£ money amounts in law at end-2001 are from then on to be read as money amounts in euro at the conversion rate (1 euro = £0.787564). Clearly, money amounts so produced will not be smooth amounts in euro (e.g. £100 will convert, with rounding, to 126.97 euro). In many cases this will not matter, but in others it will, for example in some cases where amounts are paid in cash. The Act deals only with cases where a convenient euro amount has been identified as necessary. It does not deal with money amounts in the tax or social welfare codes, which are dealt with in the Finance Act, 2001 and the Social Welfare Act, 2001 respectively. Nor does it deal with amounts in certain other areas of law, e.g. road tax: these are dealt with separately.

The Act also provides for amendments to the Economic and Monetary Union Act, 1998, the Central Bank Act, 1989, the Credit Union Act, 1997, the Bankruptcy Act, 1988 and the Heritage Act, 1995.

Provisions
Section 1 provides for the replacement of certain IR£ amounts in specified legislation with convenient amounts in euro, with effect from 1 January 2002. Where the amounts involved relate to fees, charges etc., the IR£ amounts in question and the replacement amounts in euro are listed in Schedule 1 and the statutory references are listed in Schedule 2. The replacement amounts in euro are all less than the exact euro equivalent of the IR£ amounts. Where the amounts relate to thresholds, they are listed in Schedule 3 and the statutory references are listed in Schedule 4: in these cases the replacement amounts are all greater than the exact euro equivalent of the IR£ amounts. The section also provides that the term "monetary amount" used in the section includes an amount specified in words or in a combination of numerals and words.

Section 2 dispenses with any consents or consultations normally required for the making of any statutory instrument listed in Schedules 2 or 4, for the purposes of the changes to be effected by Section 1. It is intended to preclude any doubt as to whether such consents or consultations might be required.

Section 3 provides that nothing in the Act is to be construed as restricting any existing power of an appropriate authority to set or alter amounts in the enactments listed in Schedules 2 or 4.

Section 4 amends certain sections in the Economic and Monetary Union Act, 1998, in order first, to update the definition of "participating Member State" in that Act so as to include Greece, which adopted the euro with effect from 1 January 2001, and to allow for the fact that further Member States may do so in the future; and secondly to enable the exact time of the withdrawal of legal tender status from IR£ notes and coins (intended for midnight on Saturday 9 February 2002) to be aligned with the timing of the repeal of certain sections in earlier law under which IR£ notes and coins are issued or under which limits are placed on the number of coins that may be tendered.

Section 5 amends the Central Bank Act, 1989 by substituting a new section 135 for the existing section 135. The new section defers, until the next business day, the giving of value by banks in respect of transactions that fall due for processing by them on a public holiday or on a day when the TARGET interbank settlement system is closed by decision of the European Central Bank (ECB). Such deferral already happens in respect of public holidays; and indeed, most of the TARGET closed days already correspond with our public holidays. The main exceptions are 1 May - Ireland's public holiday is on the first Monday in May - and 31 December 2001, on which the ECB has decided that TARGET should be closed in order to safeguard the smooth conversion of retail payment systems and internal bank systems to the euro.

Section 6 amends the Credit Union Act, 1997 with effect from 1 January 2002 so as to redefine a share in a credit union as one euro standing to the credit of a member of that credit union in respect of shares in the register of members. It also provides for a number of consequential changes to amounts dependent on the definition of a share, and for the substitution of convenient amounts in euro for certain minimum and maximum amounts in the Act.

Section 7 amends the Bankruptcy Act, 1988, with effect from 1 January 2002, to replace five references to "pound in the pound" and "50 pence in the pound" with appropriate references to euro amounts. These amounts represent thresholds or targets in relation to the settlement of the debts of a bankrupt and govern such matters as the discharge of the bankruptcy or the return of property etc. when all debts and costs are settled. 

Section 8 substitutes in section 19(6)(a) of the Heritage Act, 1995, a convenient euro threshold for the declaration of interest by employees of the Heritage Council. While the principles set out in section 1 have been followed, it is considered advisable for drafting reasons to provide for a specific amendment for the amount in question rather than to include it under section 1 and Schedules 3 and 4.

Section 9 is a standard provision, providing for the citation of the Act and for the citation of the amendments provided for in sections 4, 5, 6 and 7 with the principal Acts.

The Schedules
There are four Schedules to the Act (see section 1). Schedule 1 relates to fees, charges etc. and sets out the IR£ amounts that are being replaced, and the euro amounts that will replace them from 1 January 2002, in the places in law where replacement has been identified as necessary. Schedule 2 lists the places in law. Schedule 3 relates to thresholds and sets out the IR£ amounts that are being replaced, and the euro amounts that will replace them from 1 January 2002, in the places in law where replacement has been identified as necessary. Schedule 4 lists the places in law.

Table I attached draws together the information in Schedules 1 and 2, with a brief description of each fee, charge etc. item being changed. Table II attached draws together the information in Schedules 3 and 4, with a brief description of each threshold item being changed.

Ministry of Finance,
July, 2001.

The full text of the Act can be viewed at: 

www.gov.ie/oireachtas/frame.htm