asked the Minister for Industry and Commerce if his Department have carried out any survey to establish the extent of share pushing in this country; if he has any plans to take further action to prevent this activity; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Share Pushing.
12.
The Director of Consumer Affairs has, at my request, carried out, over the last 12 months, extensive investigations into the operations of share pushers in this country. The director's efforts have closed down one large operator and resulted in the successful prosecution of another in the courts.
Some of those involved in share pushing have, as a result of these attentions, left this country. The director is continuing his investigations into the operations of share pushers and is keeping me fully informed of developments.
My Department are in consultation with the Department of Finance and others with a view to identifying the best way of strengthening our domestic regulatory structures to ensure that share pushers and similar operators can no longer operate here. The problem of share pushing is recognised now as an international scourge which is getting the attention of Governments throughout the world. On an EC level, draft proposals are being considered which, when adopted, will provide member states with laws and regulations to tackle the problems of share pushing in a harmonised manner.
Would the Minister not accept that the Director of Consumer Affairs, while he is trying desperately well to do the job, is completely ill-equipped to tackle the growing number of instances of this type of illegal trading? Would the Minister indicate whether he has any plans to consider the establishment, for example, of an investment and securities board with the full regulatory and policing authorities that such boards in countries like England, America and elsewhere have?
I accept the Deputy's point that the director, using the legislation that is there, is not the best way for tackling this new problem. However, I assure the Deputy that larger states with more facilities, such as the US with its securites and exchange commission, have been trying to come to grips with the problem. Despite all the resources available to that body, they have described the policing of share pushers to be like hitting mercury with a hammer. That phrase was recently used. The chairman of the SEC recently stated that share pushing has reached epidemic proportions in that country. As far as the present legislative structure is concerned, I accept that is not the way it should be handled. The proper road to follow is the EC directive, so that we can have a Community-wide attack on the abuse of share pushing. I admit this is somewhat down the road. In the short term the Government, throught the Department of Finance, the Revenue Commissioners, my Department and the Garda, are trying to bring forward legislation to close the loopholes and strengthen the legal position. I am sure the Deputy will understand that it would be imprudent of me to forewarn share pushers by announcing here the type of action being considered. It is a problem we recognise and we have had some successes. We have succeeded in driving a number of them out of the country. The problem needs to be tackled at Community level but that will be in the medium to long term. In the short term we are trying to come to grips with it.