Banks will pay almost the entire cost of Garda escorts for the transportation of cash under the terms of a new deal signed today.
Previously a flat fee was paid annually, but the Irish Banking Federation (IBF) and the Department of Justice agreed that a new charging system will be established that takes account of pay-related and other transport costs.
Garda and Army escorts for cash-in-transit were established in 1978 following the theft of IR£430,000 (€545,000) from a security van in Co Limerick.
Banks have been contributing towards the cost since 1992 and last year paid €4.25 million up from €3 million in 2003.
An agreement signed today outlines banks' obligations and establishes a costing methodology for the Garda to use for charging the banks.
The memorandum of understanding, which will last for five years, was signed by Minister for Justice Michael McDowell, Garda Commissioner Noel Conroy, and Paul O'Connor of the IBF.