Bertie Ahern (Dublin Central, Fianna Fail)

Deputy Kenny has outlined a number of facts. There is no point in my talking about the facts because I have already done so. The Deputy is correct that we have had a series of announcements from Allied Irish Banks and the Irish Financial Services Regulatory Authority, IFSRA, which cover a range of matters from foreign exchange charges to the transactions of AIBIM in the early 1990s. Lapses of control and improper practices of this kind are clearly unacceptable. Every bank has a duty to ensure that regulations are complied with and that its clients' money is handled appropriately.

IFSRA is involved in substantial investigation of Faldor and the foreign exchange overcharging matters. While we should await the investigation before drawing final conclusions, many of the issues raised by Deputy Kenny in this regard are facts. I have already stated that I believe customers must be recompensed, systems must be fixed and all the regulatory authorities informed, and that I want disciplinary matters pursued in regard to any offences committed. It is essential this happens.

IFSRA is determined that the highest standards must apply in financial institutions. If issues of general culture or compliance practice need to be investigated and corrected in any other institution, this will also have to be done.

Last year in this House the Central Bank and Financial Services Authority of Ireland Act radically changed the structure of financial supervision in the State. It established IFSRA, bringing together a range of supervisory functions that were previously spread over four separate institutions. It also made for better arrangements for co-operation between regulatory bodies such as IFSRA and the Revenue Commissioners and we are seeing the fruits of this in recent events. Report Stage of a further Bill will resume in this House today to make available to IFSRA a more comprehensive set of penalties which can be applied in appropriate cases as well as giving the regulator considerable powers to require compliance statements from financial institutions. These statements are required in addition to those following recent changes to company law. The Director of Corporate Enforcement will also carry out investigations.

The Central Bank and Financial Services Authority of Ireland Bill before the House today will add to consumer protection, establishing for the first time a statutory financial services ombudsman scheme and consultative panels to allow IFSRA to consult consumer as well as industry interests more easily. New offence provisions have been added to the Bill for bank charges.

IFSRA and the Government have been active in carrying out their respective roles in the financial system. It has been necessary to do that, although it is a pity that is the case. It is also important that we continue to be progressive in ensuring that regulations in other financial sectors are properly monitored.

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