JERSEY can draw on the experience of the Covid “Spend Local” scheme, and the provision of debit cards for people unable to open bank accounts, to help vulnerable Islanders who may be disadvantaged by a reliance on cash, a Scrutiny panel has heard.
As part of its review of methods of payment, the Economic and International Affairs Scrutiny Panel questioned Sir Mark Boleat, chair of the Link scheme, which works to maintain a network of cash machines across the UK.
Sir Mark told the hearing, chaired by Deputy Montfort Tadier, that Link wanted to look beyond the use of cash to ensure people, especially those with a preference for using cash, had access to the financial services they needed.
“Jersey had the £100 Spend Local cards during the pandemic, and there is also the scheme run by Community Savings that allows people to obtain a debit card,” he said.
“These are exactly the sort of initiatives that can address the risk to some who might be disadvantaged.”
The concept of “reverse ATMs” was also mentioned during the hearing, whereby people could go to a machine and pay in cash, with the funds transferred to a card which could then be used for shopping or paying for other services.
Using such a method was likely to be more effective than the government seeking to force businesses to accept cash, Sir Mark added.
“Governments need to think carefully before they intervene,” he said.
Research by Link was highlighted, with the number of cash machines in Jersey reported to have fallen by 15% between 2019 and 2023 to an estimated 69 machines, with the amount of cash withdrawn falling by 60% during the same period.
Deputy Tadier and panel colleague Deputy Max Andrews were told that Link had monitored the experience of other jurisdictions in moving to different methods of payment, including Sweden, where he said the move had been carried out too quickly.
“We want to preserve access to cash for as long as it’s needed,” Sir Mark said.
“I’m certain that cash will remain important for many years to come.”
As part of the panel’s review, which will culminate in a report and recommendations, hearings have also taken place with Digital Jersey, the Jersey Hospitality Association and the Jersey Consumer Council.
