John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Is the current legislation sufficient to allow the Central Bank to probe cartel-like activities by banks or insurance companies? The committee is dealing with insurance companies in the context of public liability and car insurance and so on. It is very difficult to deal with them because they continue to obstruct the work of the committee through the non-delivery of key information, for example. The obstruction is not obvious but it is present. I would like the role of the Central Bank to be such that the first phone call to the offending bank or insurance company will make it shake in its boots. The day for us to be afraid of the banks is long passed. They have had a clear run, blackguarded their customers and clients and so on, and caused much damage to the economy and society. People doing business in Ireland with the banks want far greater transparency, far heftier sanctions and a Central Bank that shows no fear in dealing with insurance companies or banks.

At a recent meeting of the Irish Banking Culture Board chaired by Mr. Justice Hedigan, at which its members were giving their opinions on various approaches, I stated that what is missing in much of the conversation is the customer and the protection of the customer and his or her rights. I believe the Central Bank is weak on consumer protection, but that forms part of holding banks to account under this new regime. I am sure the witnesses are aware of complaints raised with the Central Bank and at its in-house meetings. The manner in which banks and vulture funds treat customers is unacceptable. It would be unacceptable in any society. It is difficult when one sees them being called out for this behaviour or conduct but nothing being done about it. The banking sector has been out of control for many years. It had no controls on it and got away with murder. Customers of the banks have lost trust completely and believe the law is heavily weighted on the side of the banks rather than that of the customer. It will be up to the Central Bank to prove through its actions that that is not the case. I hope it is up to the task. I am not saying that it is not. The banks have appeared before the committee and totally stonewalled and ignored us. There are all sorts of plámásing when the banks are before the committee, but when they leave the room they go back to the same game of turning their customers over for an extra euro. That is not acceptable anymore.