Darragh O'Brien (Dublin North, Fianna Fail)

I welcome this very important legislation. Malahide in my constituency has the highest proportion of individuals in the State working in the financial services sector. My background, before I had the honour of being elected to this House, involved 13 or 14 years in financial services so I am very familiar with the importance of regulation in the market. I do not believe any party in this House does not recognise the importance of the financial services industry, namely, banking, insurance and stockbroking, to the economy. Some thousands of people in Ireland have well paid jobs within the industry. Many companies have expanded and set up their European and global bases in Ireland not only because of the positive corporation tax policy pursued by Government and, in particular, Fianna Fáil, but because of our well educated workforce.

I was quite surprised to hear Deputy Burton state on Tuesday that very few people understand investment or insurance products. Thousands of professionals in the industry are engaged on a day-to-day basis in ensuring the best deal is secured for consumers. The Bill, with which I will deal in a few moments, contains important provisions which further protect the consumer and should assist in driving down charges for those transacting financial business across the EU.

As I mentioned earlier, Ireland is a centre for world financial markets. An example of this is the Irish Financial Services Centre which provides high end jobs for our workforce. Many people with whom I have had the pleasure to work are making a good living from the insurance industry. We must ensure we protect companies and consumers in the investment market. Deputy Burton also stated on Tuesday that regulation in Ireland was "regulation with a very light hand under the financial regulator". Those involved in this market would disagree with that statement. The insurance and investment sectors have welcomed with open arms the introduction of strenuous, independent regulation which permits the financial regulator to conduct on-the-spot audits and ensures companies make annual returns and, in many instances, biannual returns, to the financial regulator. These returns are then subject to independent review. The financial regulator also has the power to impose heavy penalties, such as the withdrawal of a licence to trade within Ireland, in this regard. The financial regulator has, unfortunately, had to use this power from time to time. I disagree with Deputy Burton's statement that regulation in Ireland is regulation with a light hand.

Concern has been expressed in respect of sub-prime lending with its higher rates of approximately 9% to 9.5%. We must get to grips with the issue. Comments by Labour Party Members last Tuesday such as that clients are encouraged to lie or are misled when being sold mortgages will come as a great surprise to the Irish Brokers' Association and Professional Insurance Brokers' Association, both of which have long-standing records within the market and are consumer driven in terms of what is best for their customers. Comments like this do not help the industry or the public's view of it.

The regulations and enactment of this legislation will ensure people can safely trade across Europe. The penalties being transposed through MiFID will ensure the Irish regulator has strong powers, namely, ten years' imprisonment or a €10 million fine, as mentioned by Deputy Chris Andrews. Irish consumers are increasingly seeking more sophisticated means of investment through diversified investment policies. Many Irish companies now meet these needs. However, MiFID will provide clients with more access to other investment services in EU countries. This has to be good in terms of competition and driving down prices and costs to the consumer. With greater access comes the need for greater protection. As I mentioned earlier, I am delighted that MiFID will harmonise investor protection across the EU and makes provision for the imposition of new maximum penalties.

I welcome section 13 which will enable the financial regulator to disclose confidential information to the National Consumer Agency in terms of that agency's performance of its functions. It is important the financial regulator can deal directly with the National Consumer Agency in ensuring the customer is king. The advantages of this legislation must be clearly visible to the customer on the ground.

The Bill also allows the National Treasury Management Agency to provide foreign exchange services to Departments and State bodies, resulting in sizeable savings to the Exchequer. I am glad this provision is being introduced. Savings to the Department of Foreign Affairs alone could be of the order of €700,000 per annum, a sizeable saving. I look forward to the passing of this Bill which shows Ireland is to the forefront in introducing legislation which protects the consumer in the financial services area. We will be well ahead of the posse in having this legislation enacted by 1 November.

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