asked the Minister for Finance whether the Government will support the European Commission's proposals on the freedom of establishment and the free supply of services in the field of mortgage credit; and if he will make a statement on the proposals in that document.
Written Answers. - Mortgage Credit Market.
54.
A proposal for a Council Directive on the freedom of establishment and the free supply of services in the field of mortgage credit, (COM (84) 730 Final) was transmitted to the Council by the Commission on 1 February 1985. I understand that it has been referred to the European Parliament and the Economic and Social Committee in accordance with normal procedure. It will be considered in Council when the views of those bodies are received.
The proposal would liberalise the market in mortgage credit by enabling mortgage credit institutions of individual member states to operate throughout the Community under a system of mutual recognition of the relevant nationally authorised financial techniques (rather than through the harmonisation of the relevant legal provision). Responsibility for supervision of foreign branches would rest primarily with the home country authorities, in consultation with those of the host country. If implemented, the directive would allow mortgage credit institutions from other member states to provide here those services which they are permitted to offer in their home country. It would also enable Irish building societies to extend their activities to other member states.
The system of mutual recognition proposed by the Commission in this instance will require careful consideration by the Council in the light of the views of the Parliament and the Economic and Social Committee. I am not in a position to say what our attitude will be in Council but we will have full regard to the Treaty establishing the European Economic Community, the interests of savers and house purchasers and the longer term development of the mortgage credit sector.