John Bruton
Ceist:45 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will ban all charges by banks for conversion from the euro into the punt and from the punt into the euro. [9544/98]
Written Answers. - Bank Charges.
I am informed by the Director of Consumer Affairs, who is independent in the performance of his statutory duties, that he has met with the Irish Bankers Federation and the Irish Mortgage and Savings Association concerning the changeover to the euro. These associations have made the point to him that there will be residual costs in their foreign exchange departments despite the elimination of the exchange rate risk as a result of the introduction of the euro. From January 1999, European currencies will have to be exchanged at the official exchange rate, which means that no spread will be allowed. Individual institutions will have to make a case justifying any residual costs which remain and these will be considered by the director. To date he has received no such applications.
The director is anxious to ensure that the benefits of the euro will be passed on to consumers by way of reduced costs in terms of foreign exchange transactions within those states who will have joined the euro club. In this connection, there will be some savings and these will be passed on. The extent of these savings will be somewhat curtailed by the lack of harmonisation in the clearing systems throughout the Community.
Any proposals submitted by the financial institutions will be dealt with by the director in accordance with his independent statutory functions under the Consumer Credit Act, 1995.