Dáil Éireann Debate, Tuesday - 23 June 2015
248. Deputy Michael McGrath asked the Minister for Finance his views on correspondence received by his Department (details supplied) regarding freedom of information; and if he will make a statement on the matter. [24860/15]
View answer249. Deputy Michael McGrath asked the Minister for Finance the actions that have been taken following concerns expressed by his Department (details supplied); and if he will make a statement on the matter. [24861/15]
View answer251. Deputy Michael McGrath asked the Minister for Finance his views on correspondence received by his Department (details supplied) regarding freedom of information; and if he will make a statement on the matter. [24863/15]
View answerI propose to take Questions Nos. 248, 249 and 251 together.
The exchange of correspondence, to which the Deputy refers, arose as a response to views attributed in the press to the Central Bank of Ireland regarding the overall position of the insurance industry and regarding named companies. As some of these important issues had not previously been raised with my Department, senior officials sought a report from the Central Bank.
As Minister for Finance I take very seriously any financial stability issues arising in the insurance industry. These could have serious implications for the Exchequer, policyholders and the wider financial system.
The Department continues to engage with senior Central Bank officials on the insurance sector issues raised. To date the Central Bank has not indicated to the Department that it has cause for concern about the stability of the industry or of the named companies.
I intend to regularly review developments in the insurance sector as part of my continuing engagement with the Governor.
In the correspondence, a number of broader issues were also raised. The Department has reiterated that it is important to ensure that appropriate connectivity between the regulatory and policy systems is maintained while at the same time respecting the distinct statutory remits held by the Minister and Governor, thus allowing the Department to be kept informed of emerging regulatory concerns.
Extensive work has been undertaken over a number of years as part of the Central Bank (Supervision and Enforcement) Act 2013 to provide the Central Bank with a generic - that is, not sector-specific - consolidated power of direction, subject to the necessary constitutional safeguards regarding its grounds, scope and extent. Section 45 of that Act includes a balanced power to issue directions to related undertakings, including parents. This clearly strengthens the ability of the Central Bank to impose and supervise compliance with regulatory requirements and to undertake timely regulatory interventions. These issues continue to be the subject of discussions and briefings between my senior officials and the Central Bank.
The issue of human resource management is an internal matter for the Central Bank Commission.
