Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I note that section 5 of the Bill seeks to put greater pressure on the financial service provider to engage in the mediation process. The Government Bill published yesterday seeks to strengthen the role of the Financial Services Ombudsman in promoting engagement in the mediation process and continues to provide for mediation as a tool for the ombudsman in cases where he sees fit. In addition to this, I note that the Deputy’s Bill was published at a time when mediation in the Financial Services Ombudsman was at a low base. Deputy Doherty acknowledged that in his contribution and indicated that he is well aware of a change of practice in the ombudsman's office, where recourse to mediation is a more normal option than it was in the past.

As members are aware, the Financial Services Ombudsman last year introduced a dedicated dispute resolution service to resolve disputes through mediation at an early stage and with the minimum formality necessary. The recent annual report of the FSO highlights that mediation is now the first and preferred option for resolving complaints. A total of 2,378 complaints were resolved through mediation between 1 February 2016 and the end of 2016. There has been a very big change of practice since we considered this initially and since Deputy Doherty drafted his Bill. There is far greater recourse to mediation, and it is the norm rather than the exception to have recourse to mediation in the first instance. We have reflected that practice in the new legislation sponsored by the Government and it should be reflected in Deputy Doherty's Bill as well.

I wish to notify the committee that I will bring forward amendments covering the issues set out in my Bill and discussed here now, as well as other related matters including technical drafting changes, on Report Stage. However, that is not to subtract from anything proposed by Deputy Doherty in section 5. It is to add to it and to take account of current practice at the Office of the Financial Services Ombudsman.Again, we can engage in advance on the detail of the provision.