Vol. 526 No. 4
73 Mr. Creed asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the establishment of a single financial regulator; and the manner in which she envisages this office will protect the interests of the consumer. [26825/00]
I am in favour of the establishment of a single regulatory authority for the financial sector, with a strong consumer protection focus. The report of the implementation advisory group on the single regulatory authority envisages a strong consumer protection role for the new authority. The report recommends the appointment of a statutory consumer protection director, the creation of a statutory ombudsman scheme and the establishment of a special consumer panel. I hope the Government will approve the establishment of such an authority in the near future, based on a submission by the Minister for Finance and me. The submission will be made to Government when outstanding issues regarding the structure and organisation of the authority have been settled. Following the Government's decision, I expect that any legislation required for the establishment of the authority will be promoted by the Minister for Finance.
Can I take it from the Minister's last sentence that she has conceded the battle on this issue between herself and the Minister for Finance, given that she indicated the legislation will be sponsored by the Department of Finance and that the memorandum to go to Government, which has not yet issued, will indicate that the single regulatory authority will be established under the remit of the Central Bank?
The Deputy cannot make any such conclusion. I was instrumental in having the advisory group set up in the first place. From my point of view there is no point making change unless it is real change and it is better to get it right for the sake of the country than to have – I cannot really describe it as a speedy decision – any decision. The Minister for Finance and I will jointly bring a memorandum to Government—
When? Will it be this year?
Whenever we can agree, if that is possible.
Not since Jeanette MacDonald and Nelson Eddy has there been such a partnership.
Does the Minister accept, as does the McDowell report, that a single regulatory authority is long overdue? We now have an unacceptable situation where consumers are directed to a variety of offices, from the Registrar of Friendly Societies to the Office of the Director of Consumer Affairs to the Central Bank. If there is to be a strong consumer focus, will she not accept the Central Bank is the last place in which this new agency should be established?
At any time ordinary individuals find it intimidating to bring complaints to a bank. To be obliged to go to an authority under the aegis of the Central Bank is certain to scare away many consumers who have complaints. There are numerous instances of credit card charges being excessive and bank charges being imposed without due process being followed. The ethos of a consumer friendly authority requires that it be independent and stand alone from the Central Bank. Will the Minister continue the battle in the interest of consumers to ensure this agency is not established under the remit of the Central Bank?
Clearly, we need a change, not more of the same. I welcome Deputy Creed's remarks. There was a massive lobby campaign when the report was published. The Fine Gael spokesman for finance took the view that it should all go to the Central Bank and so did most—
As did the Minister for Finance—
I know.
The Tánaiste did not agree with him.
I believe it would not give consumers the type of protection they require. We need change. I am not hung up on how that change is brought about but I am certain that fundamental change is needed in this area. In addition to bringing things together, the regulation of the financial services sector is more complex now than ever. Effectively, everybody can be their own financial centre with developments in e-business and the Internet. In that type of environment consumer protection is important but also complex. To get the range of expertise and so forth—
All the more need for a swift decision.
Yes, I wish we could have made the decision but it has not been possible.
The Minister should not give in.
