Vol. 395 No. 8
21 Mr. McCartan asked the Minister for Industry and Commerce if his attention has been drawn to the increase of up to 21 per cent recently announced by the Bank of Ireland in respect of banking charges; if, in light of the substantial profits made by the banks and the level of the increases in banking charges, he will consider the possibility of introducing legislation to subject such charges to price control; and if he will make a statement on the matter.
I do not propose to introduce legislation to subject banking charges to price control. I understand that section 28 of the Central Bank Act, 1989, provides adequate powers for the control of banking charges by the Central Bank.
Does the Minister not agree that for the average consumer and bank client it is incomprehensible in the context of profit returns for this bank and each of the four associated banks that they should be subjected to charges of up to 21 per cent? Does the Minister agree that there is no conceivable excuse for that and will he take some action to bring it under control?
The charges are not 21 per cent. The increase suggested in the charges by one bank is alleged to be 21 per cent. I regard bank charges as unduly high and that has been my view for some time. I do not have statutory powers in regard to this aspect of the banks' activities. The Oireachtas decided last year to give that power of control to the Central Bank in section 28 of the Central Bank Act, 1989. I would give every encouragement to the Central Bank to avail fully of their powers under section 28.
Would the Minister agree that if the Oireachtas gives powers to another body the Oireachtas can also take back those powers if it is not satisfied that the body is carrying out its duties? In the light of the Minister's statement that bank charges are in many cases far too high and an additional cost to Irish industry, which perhaps affects the creation of employment, would he consider, if there is not a proper response from the Central Bank, that these Houses should take back the power given last year?
The Deputy is right in saying that any powers which the House gives it can take back. February 1990 is a bit soon to take back powers given in autumn 1989. I am sure the Central Bank will read the Deputy's words with fear and trepidation and that there will be all kinds of activity in Dame Street as a result. Let us hope so.
