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Dáil Éireann debate -
Wednesday, 10 Nov 1999

Vol. 510 No. 4

Priority Questions. - Financial Services Report.

Derek McDowell

Question:

5 Mr. McDowell asked the Minister for Finance if the examination of the report of the McDowell group regarding a single financial regulator has been completed; the plans, if any, he has to implement the recommendations of the group; and if he will make a statement on the matter. [22756/99]

The House will be aware that on 20 October 1998 the Government agreed in principle to the establishment of a single regulatory authority for the financial services sector at the earliest date possible and agreed to the immediate establishment of an implementation advisory group to progress the necessary work. The group's report was finalised on 19 May 1999 and submitted to the Tánaiste and me the following day. The report, which contains a consider able number of recommendations, was published on 23 June 1999 at which time I asked interested parties to make their views known so that as much public debate as possible can take place. Decisions have not yet been taken on any aspect of the group's proposals. The Tánaiste and I hope to be in a position to bring joint proposals to Government in the near future in relation to the report.

I am not surprised by the Minister's response. However, it is a little strange that he is looking for further proposals as he set up the group in the first place to advise on the implementation of a decision which he rightly points out was taken a year ago. Does the Minister agree with the Tánaiste's comments when answering questions in the House last week when she said that she was concerned about whether the culture of the Central Bank could change in order to "do the job required"?

I am aware of the Tánaiste's comments last week in the Dáil and on previous occasions. However, the position is as I have just outlined. At some point in the near future we will bring a joint memorandum to Government on foot of the McDowell implementation advisory group proposals. The nine eminent people on the group came up with three separate proposals. Since the group reported, I have received at least another 100 proposals from a wide variety of sources as to the possible location of a single regulatory authority. I welcome the Fine Gael proposals I received from Deputy Noonan and I would like to receive the Labour Party's proposals. I will take these views into account when considering this issue.

I am happy to have a reversal of roles and to answer the Minister's questions. I support the recommendations of the McDowell report.

We must have questions.

Which recommendation does the Deputy support?

The main report – the main recommendation.

Deputy McDowell is becoming like a PD.

We will have to keep an eye on the Deputy.

The Minister is very good at giving us facts we already know without expressing his own view. I will put this question to him in a different way. Does he support the views of his officials as articulated during the committee's hearings and at the finance committee's meeting last week, when they argued in favour of the recommendations in the appendix to the report?

As is known, the officials of the Department on the implementation group together with the Central Bank official came up with one recommendation. The majority of the group came up with the recommendation supported by the Deputy. A minority report by the representative of the Department of the Taoiseach put forward a kind of twin pillar idea. There were different opinions in the nine person group. I have Deputy Noonan's suggestion which is different to that of Deputy McDowell. I am the most open person who could hold office in the Department of Finance and I will take all of these opinions into account in coming forward with the joint memorandum for Government.

Can I take it the Minister's officials were acting without his prior authority or agreement in expressing the views they did?

The McDowell implementation group was set up on foot of the principal decision to have a single regulatory authority. The group put forward a number of recommendations on a wide variety of areas. Most of the group agreed with almost all the recommendations. However, the issue of the location of the single regulatory authority has received all the attention. I read the ‘blacks' of the finance committee meeting with interest and took on board the views of Deputy Noonan's friends in County Limerick who used to speak through the ‘Black Cat', which is a good story.

I am with the Minister, the Labour Party is with the Tánaiste.

The Minister's officials were not representing him.

Since the report was published I have received a wide variety of opinions. It would be very foolish to take a short-term view of this in the interest of expediency as it is proper that we take some time to make the right decision about the single regulatory authority and its location. Having built up a good image for Irish financial regulation over a period it would be extremely foolish to do anything to damage that internationally-won reputation.

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