Dáil Éireann díospóireacht -
Thursday, 6 May 1999

Vol. 504 No. 3

Written Answers. - Company Investigations.

Pat Carey

Ceist:

40 Mr. P. Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will appoint a High Court inspector to investigate the operations of a company (details supplied) in view of the fact correspondence received would indicate cause for concern; and if she will make a statement on the matter. [11867/99]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The Wise Finance Company Limited was incorporated in the United Kingdom and registered as a branch in this State on 10 November 1995 under the European Communities (Branch Disclosures) Regulations, 1993. Its directors are Ronald Weisz and Fiona Weisz. The Registrar of Companies advises me that The Wise Finance Company Limited is up to date with its filing requirements.

Certain allegations regarding breaches of the Companies Acts by The Wise Finance Company Limited were made to my Department. The allegations were examined by officials and a comprehensive reply issued from the Department in the matter on 1 February 1999.

Part Two of the Companies Act, 1990, sets out the limited circumstances in which an investigation of the affairs of a company may take place. Section 8 provides for the appointment by the High Court of an inspector on the application of the Minister where the Court is satisfied that there are circumstances suggesting,inter alia, fraud or unlawful activity. Before contemplating an inquiry using public funds, a wide range of issues need to be taken into account, not least of which is the evidential quality of the allegations. The information available to the Department at the present time does not suggest that the present circumstances meet the requirements for an investigation as laid down in section 8 of the 1990 Act.

I am conscious that as the law currently stands, it is possible for individuals or companies to act as mortgage lenders without a licence or authorisation from any authority and without any restrictions as to the interest rates they may charge. Both I and the Director of Consumer Affairs are concerned about this situation and the Department has recently begun a review of the Consumer Credit Act, 1995, with a view to identifying any gaps in the protection afforded to consumers, including the issue of unregulated mortgage lending.