Enda Kenny
Ceist:9 Mr. Kenny asked the Taoiseach the role, remit and composition of the IFSC clearing house group; and if he will make a statement on the matter. [17234/04]
Amharc ar fhreagraWednesday, 6 October 2004
Ceisteanna (9)
Freagraí ó Béal (5 píosaí cainte)
The IFSC clearing house group facilitates high level communication between different Departments and agencies and prominent members of the financial services industry on matters regarding the development of policy in relation to the International Financial Services Centre. The group, which is chaired by the Secretary General of my Department and includes senior representatives from the public and private sectors, identifies and considers issues of major concern to the long-term development of the centre and the industry, including the strategic development of new business areas, the progress of relevant legislation and the physical development of the docks area.
The group seeks to increase the level and quality of employment in the industry and to ensure that all opportunities are identified and developed. Industry members include representatives of industry associations and prominent figures from the financial services industry. There are also representatives from my Department, the Department of Finance, the Department of Enterprise, Trade and Employment, IFSRA, IDA Ireland, the Revenue Commissioners and the Dublin Docklands Development Authority.
A number of dedicated working groups, dealing separately with funds, insurance and banking and treasury, report to the clearing house group on a regular basis.
Everyone recognises the importance to the economy of the financial services sector. Does the Taoiseach agree that national scandals in the banking sector influence international banking perception on how we do business in Ireland? I understand the Deloitte report on the IDA is currently in the hands of the IFSC clearing house group. When does the Taoiseach expect to receive that report, and what is his view of the recommended tax changes? The implosion of the Italian group, Parmalat, was partially effected, though to what extent we do not yet know, by Eurofood, a company in the IFSC. The recommended tax changes may have a detrimental effect. Has the Taoiseach a view on that matter?
The tabled question refers specifically to the role, remit and composition of the IFSC clearing house group.
That is the role which is dealt with in the Deloitte report.
Regarding the banking scandals and the question of damage to Ireland's reputation, the IFSC has for many years been a highly professional financial services centre, served by firms and institutions of the highest calibre. The industry is well managed and regulated. It was difficult to build up a reputation in the early years but that reputation will remain intact. Clearly, however, damage is done by malpractice because news of such malpractice spreads very quickly in the international markets.
While the AIB matters are not connected with IFSC activities, they are serious, and I am on record as saying we must do all we can to protect the integrity of the Irish domestic banking system. We should not however be too alarmist. IFSRA is involved in a substantial investigation of the Faldor issue and the foreign exchange overcharging issue. We must await the results of the investigation before drawing any conclusions. I am confident that IFSRA will carry out a thorough investigation and I am told it will be completed as quickly as possible. It is urgent the industry does this. However, IFSRA is determined to ensure that high standards must apply in financial institutions. The industry has more to lose in this regard than others. If issues of general culture of compliance practice need to be investigated and corrected in any institution, it will be done.
On Deputy Kenny's question on the status of the report on the future of the International Financial Services Centre carried out by Deloitte & Touche, I am told the report will shortly be completed and will be made available to IDA Ireland, which commissioned the report, and it will then be up to IDA Ireland to follow up on its recommendations. Where my Department and the various IFSC working groups can assist in developing the strategies articulated in the report, they will be happy to do so because that is precisely the function of the clearing house group. However, there have been unfortunate leaks regarding the report — from working papers that were being examined — and I do not want to comment on the recommendations until it is finalised.