Vol. 512 No. 7
2 Mr. J. Bruton asked the Taoiseach if he will report on progress made by his Department in implementing the strategy document on the IFSC which he launched in March 1999; the role his Department is playing in implementing and monitoring the strategy; and if he will make a statement on the matter. [25074/99]
I launched the Government's strategy for the development of the international financial services industry in Ireland last March. The strategy sets out a vision for the development of the international financial services industry in Ireland, building on the success of the IFSC. It also provides a comprehensive implementation plan based around 19 priorities. Following the strategy's publication, I spoke at a seminar in Dublin Castle on 18 June for industry members and the public sector.
While the implementation of individual commitments remains a matter for each responsible Department or agency, a public sector group chaired by my Department is co-ordinating and monitoring progress. In addition, the IFSC clearing house group and working groups bring together industry representatives with the different Departments and agencies to implement the strategy and address other relevant issues.
A progress report on the implementation of the strategy is being prepared by the IFSC clearing house group. I expect that this will be completed by the end of this year and submitted to Government early in the new year. This will show good progress with the priority actions outlined in the strategy and this is reflected in the continued growth and development of the centre.
Will the Taoiseach agree that the financial services industry is steadily moving away from the less well off? Will he also agree that, increasingly, it is only those with computers who can avail of Internet banking and those who are adept at using the new financial instruments created by the financial services sector who will be able to get the full benefit from the banking system? Is the Taoiseach aware that Allied Irish Banks is closing its Ballyfermot branch which serves a large suburb of Dublin that will no longer have a branch of the largest bank in the State? Does the Taoiseach agree that social division is being sown by the priorities espoused by the financial services industry and the manner in which it does its business?
Much as I would like to talk about the AIB Ballyfermot branch which is in my constituency, this question relates to the IFSC and I do not wish to comment on domestic banks. The IFSC has continued to be a tremendous success with 2,000 new jobs being created this year. The centre has continued to devise and implement new strategies. Domestic users do not avail of the IFSC, and its mechanisms and systems are not easily understood by the public. However, the centre is doing a good job as an international centre competing against European and other markets. The IFSC's success can be seen from its rapid development, and excellent initiatives have been created. This has been another very successful year and a remarkably successful decade for the IFSC.
Will the Taoiseach agree there is a need for intervention at international level to ensure that there is a public service element in banking just as in transport and other essential services? If our banking sector is solely driven by the needs of the biggest customers with the largest amounts of money, banking will become an instrument of social division and exclusion as other services have become? Does the Taoiseach agree that the Government, the EU or some other institution needs to devise some method of ensuring that minimum services are provided for the least well off by the financial services sector, whether international or local?
The IFSC is an international services industry and must compete internationally in a global market with new devices and mechanisms. It is doing so very well and there are 8,500 jobs which would not exist otherwise. I have no difficulty agreeing with the Deputy's comments on domestic banks. They should provide a service and be conscious of the local nature of their business. Banks would argue that an enormous amount of their resources are designed to make that relevant but this does not relate to the question. However, banks are vitally important to local communities.
Will the Taoiseach agree that in many parts of the country credit unions have become the community banking service and, through the new credit union legislation, they provide a range of services which they could not offer previously? However, the outstanding matter of taxation of deposits and dividends is at issue and, if this matter was resolved, credit unions would be able to fill the gaps that AIB and others are creating. Is the Taoiseach aware that the Minister for Finance has refused to meet the credit unions on more than six occasions in the past year and that they have brought forward proposals—
The Deputy is widening the scope of the question.
I am, and I am offering the Taoiseach helpful information in asking him if he is aware of this fact which would counter the forces referred to by Deputy Bruton.
There is no doubt that the credit union movement is an excellent organisation.
The one person it cannot meet is the Minister for Finance.
The credit union movement operates in a spectacularly favourable regime.
Which it wants to change.
The Deputy and I can take credit for this as we both introduced Finance Bills, but I often wonder if it is in the best interests of credit unions.
