Brian Lenihan Jnr (Dublin West, Fianna Fail)

I do not accept that the legislation is inadequate. It is important we continue with the progress made in recent years on regulation. Following the enactment of the Central Bank and Irish Financial Services Regulatory Authority Act 2003, a second, complementary Bill is before the House. Last year's legislation radically changed the structure of financial supervision in Ireland, establishing IFSRA and bringing together a range of supervisory functions which had been spread over four separate institutions. It also made much better arrangements for co-operation between the regulatory bodies and the Revenue Commissioners, and we are seeing the fruit of that in recent events. Far from the initial measure being defective, as canvassed by Deputy Boyle, the measure we have already adopted was one of the reasons we have made progress and the reason these events have come to light.

The second Bill, Report Stage of which will be dealt with in the House this afternoon or this evening, will make available to the authority a more comprehensive set of penalties. I accept the Deputy's point that the penalties will be stiffened in this legislation, and that is a welcome development, which can be applied in appropriate cases. It will also give the regulator considerable powers to require compliance statements from financial institutions and these statements will be in addition to those required under recent changes to company law. Moreover, the current Bill will add to consumer protection, in particular by establishing for the first time a statutory financial services ombudsman scheme and consultative panels to allow the authority more easily consult consumer as well as industry interests. New offence provisions are also being added on Report Stage in respect of bank charges. The regulator and the Government have been very active in carrying out their respective roles in regard to the financial system.

The second issue raised by Deputy Boyle related to the question of remuneration and fringe benefits, which are often accorded to senior bank employees and staff on their retirement. I take it that was the point raised by the Deputy.

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