Vol. 428 No. 6
9 Mr. Yates asked the Minister for Enterprise and Employment his views on the Culliton report which suggests that regulatory functions should not be the direct responsibility of his Department; and if he will make a statement on the matter.
The Culliton Group considered that my Department should "define its role as being predominately one of policy determination for development, the supervision of its implementation and in terms of the importance of the business-related environment".
I agree with the general approach recommended by the Culliton Group as regards regulatory functions and am considering the precise recommendations, with all the other recommendations of the group. The organisational arrangements for particular regulatory functions need to take account of how those functions can be performed most efficiently, most effectively and most economically.
As I have said in response to other questions, a Cabinet sub-committee is proceeding to ensure the implementation of the Culliton report.
I am glad that the Minister accepts the divesting of his Department of the regulatory functions as they have used up a considerable amount of energy which would be better devoted to policy-making. Would the Minister consider that the best regulation of the insurance industry would be through the Central Bank rather than the Department?
This is a fairly complex matter. There is a traditional view that banking and insurance do not mix. We had a rather painful experience of that recently. I would hesistate to give a definitive answer. I would like to take advice and hear the views of the insurance industry in relation to that.
