Joan Burton (Dublin West, Labour)

Does the Minister agree that this type of company should be fully regulated by IFSRA and, therefore, the remit of the authority should be extended to cover this type of company? I do not know if the Minister shares the shock of most people who heard reference to a company, Chesterton Finance, in media reports concerning Garda investigations into money laundering and the Provisional IRA and other paramilitaries. I received the same reply as the Minister from the Director of Consumer Affairs in regard to Part IX of the Consumer Credit Act 1995. Does the Minister think this sufficient? For example, a prominent partner in one of the largest accountancy practices was offering potential investors in this company 10% returns, well above ordinary interest rates and, therefore, attractive in the context of the potential for money lending.

Does the Minister know how many such entities are unregulated? Does he know the amount of lending which may be undertaken by such companies? Such companies have had dubious reputations in the past, particularly where they have lent money on the security of land, generally lending about half the value of the land which they hold as a mortgage. The Minister may be aware that these companies also apply stringent terms and conditions and high interest rates on the loans they provide. Does the Minister share the view of the McDowell committee in 1999 that such entities should be regulated? While the original plan was that regulation of IFSRA was to operate through the Department of Enterprise, Trade and Employment, once it came into the ambit of the Central Bank and the Department of Finance, this appears to have been blocked. Will the Minister comment on this matter?

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