What are the penalties?
SECTION 14.
Question proposed: "That section 14 stand part of the Bill."
Section 14(b)(i), (ii) and (iii) deal with penalties. Section 14(b)(i) states: "on summary conviction, to a fine not exceeding £1,500 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, . . . . . . . . .". Section 14(b)(ii) states: "on conviction on indictment, to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding five years, or to both,". Section 14(b)(i) states: "if the contravention, breach or failure in respect of which such person, payment system or member . . . . ..be liable on summary conviction to a fine not exceeding £100 or on conviction on indictment to a fine not exceeding £5,000".
This section sets out the penalties to be imposed on any group involved in a payment system which is not approved at all or is in existence and is not approved within three months of the passing of this Bill. I presume that the existing payment system must be approved by the Central Bank within three months of this Bill being passed. How many payment systems are there?
There is one payment system which is being reorganised through the Irish payments system.
People made the case over the years that it was difficult to get into the system. Will the existing payment system continue to operate as it is?
It is being restructured. The industry and the bank are involved in the restructuring process and both had an input into the legislation.
The objections were made by other institutions. That will be covered in the negotiations between the institutions, which currently operate the payment system, the Central Bank and the Department of Finance. The restructuring will take place and the new payment system will then be licensed under this Bill.
That is correct. The two will run concurrently.
Will the people who protested about this in the past be allowed into the payment system?
I am advised that the Department has received no complaints. Section 5 states that ""rules", in relation to a payment system or a proposed payment system, means the rules governing or proposed to govern the membership and operation of the payment system". Section 6 deals with membership of the payment system and section 9 deals with the approval of the rules.
I do not think the Department of Finance received objections, but cases were made to politicians from different parties.
If industry is seriously concerned, it usually moves a step beyond politicians on all sides and discusses its concerns with the officials from the promoting Department who drafted the legislation. However, it did not get to that stage, so I am wondering at what level the concern was expressed. I am advised that the rules of the new restructuring system have been agreed by industry and the Department and have been certified by the Competition Authority.
I accept that procedure because it is open, fair and above board and no one can complain about it.
Everyone has had an opportunity to make an input at the different levels.
Question put and agreed to.