Brian Cowen (Laois-Offaly, Fianna Fail)

The Deputy may have a few personal observations, but the point I am making is in regard to some of the recommendations. I made the point about IFSRA having a strong statutory consumer mandate under the 2003 Act. The existing legislative provisions relating to fees and non-interest bank charges were introduced in the context of concern about the effectiveness of competition between banks and are aimed at consumer protection. They facilitate IFSRA to verify that notified charges are being applied to customer transactions and to require restitution in the event of overcharging. The requirement to seek approval for such bank charges does not pose any substantive barrier to competition.

There is also a suggestion to amend the Bills of Exchange Act to allow for electronic presentation of cheques and initiating legislation to support cheque truncation. We are always open to legislative adjustments to facilitate adoption of new technology or more efficient processes. Before endorsing that recommendation I would need to be satisfied the measures being proposed would bring about an overall improvement in the efficiency of the payment system.

The authority also invited the Department to bring forward a position paper setting out the implementation for a national payment strategy. That recommendation relates presumably to the report by Accenture Consultants entitled National e-Payments Strategy that the Information Society published in 2003. It raised complex issues for a range of stakeholders, both the State sector and private sector, and requires a more considered evaluation than this recommendation by the consultants would suggest.

A significant issue in responding to the suggestion of a national strategy and to what extent the State should take a role in it revolves around the very exercise the Competition Authority is undertaking, in that, any consideration of the strategy would have to take account of the outcome and impact of that exercise. We look forward to the report of the authority in respect of that.

The recommendation to bring forward legislation to facilitate mortgage switching has implications outside my Department's role in regard to the financial services sector. It would seem to raise issues in regard to conveyancing, contract law and possibly bankruptcy and insolvency law. The outcome of the current consultative process being conducted by the authority may clarify those issues and when its specific proposals for reform in this area are put to my Department they will be seriously considered.

Our reaction to the recommendation that the money laundering steering committee should consider amending its guidance notes to allow for accounts to be opened and funds to be deposited but not withdrawn prior to customer identification is that this is primarily a criminal law enforcement matter. It is not clear how this suggested change would increase competition while at the same time it would seem to interfere with the clear requirement for a bank to know its customers. We will review the position in the light of the authority's final report later this year.

There are a number of recommendations that clearly have been put forward. This process of response will allow the authority, in the first instance, to make its final recommendations. They are more likely to be amenable to ultimate implementation on the basis that all these complex issues will have been considered before final recommendations are made.

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