Vol. 416 No. 6
83 Mr. O'Shea asked the Minister for Finance if he has satisfied himself that the Irish banks and other financial institutions such as building societies are sufficiently competitive to withstand European Community competition and maintain their current levels of employment, and if he will make a statement on the matter.
131 Mr. O'Shea asked the Minister for Finance whether he intends to convene a meeting of the building societies with a view to ensuring that, in addition to market forces, he would explore ways in which his Department can positively intervene to protect Irish interests in the context of European Union and European Monetary Union, and if he will make a statement on the matter.
I propose to take Questions Nos. 83 and 131 together. I am satisfied that the banks, building societies and other financial institutions will be in a position to compete effectively in the completed internal market in the Community. To this end, the Government have been committed to a programme of liberalising financial markets, promoting more effective financial supervision and opening up the opportunities for providers of financial services to compete effectively with each other. I would refer the Deputy in this regard to the major programme of legislation in the form of the Central Bank Act, 1989, the Building Societies Act, 1989, the Insurance Act 1989, the Trustee Savings Bank Act, 1990 and the Finance Acts dealing with the establishment and operation of the International Financial Services Centre.
I am anxious that the financial services sector should maintain and expand employment as it has done in recent years. The ability of the sector to compete is supported by the success of the IFSC and by the positive expectations of the financial services institutions in Ireland regarding the long term impact of 1992 on employment which were revealed in the 1990 EUROPEN report on 1992 and the financial services sector.
It is up to each financial service sector, however, to put in place the necessary measures to enhance competitiveness and to do so urgently. We have seen, for example, the main building societies in recent times extend the range of their financial products, form new business relationships with the providers of other financial services and strengthen their managerial resources. These are the appropriate and encouraging moves by the societies to respond to 1992.
