Richard Bruton (Dublin North Central, Fine Gael)

I welcome the additional amendments the Minister is taking the opportunity to add here. It is important that non-deposit taking lenders would be subject to regulation. There is no doubt problems exist in regard to such institutions, not least in terms of whether they look properly at the suitability of the clients to whom they are lending. Will the Minister indicate the scale of regulation he envisages for these non-deposit taking lenders?

Some non-deposit lenders are in the business of securitising loans and selling them on to others. There has been a concern that this business may lead to something of a moral hazard in that lenders may take on debt where it does not really suit a particular individual but this is of little enough concern to such lenders once they can sell on the debt to someone else. This has been at the core of the sub-prime lending problem and how it became contagious right across the system.

When we get to Committee Stage it is important we ensure there is authorisation in terms of the fitness of persons to do the work, that they have proper liquidity and so on, but also that there are real tests about the suitability of the product when they are lending. This is equally true of home reversion schemes where there can be over-selling of products to persons who perhaps do not really understand what they are getting involved in or the suitability of the products for their needs. I hope the Minister will introduce a regulation that goes beyond simple authorisation but will also provide some obligations in terms of consumer protection, which is important.

Regarding the changes to the Freedom of Information Act, I cannot recall the report of the Oireachtas Joint Committee on Finance and the Public Service to which the Minister referred. I must have nodded off while that report was going through.

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