Joan Burton (Dublin West, Labour)

I take it as given that the staff of the Commission for Energy Regulation work from morning until night, but they got the pricing of energy products seriously wrong, with a consequent economic impact.

We discussed the ESB previously. The effect of regulating the ESB and allowing competition under the guidance of a regulator was such that electricity prices were pushed to the top of the EU scale. The Taoiseach stated less than an hour ago that electricity prices had been historically low theretofore. The price increase imposed great burdens on consumers and particularly on industry which at the beginning of the process appeared as if it would gain. The gain did not last.

What is the point in having an oversight system for regulation if the core economic effect of regulation has been to drive up prices and inflation, a key indicator of our economic competitiveness? How quickly do regulators who permit price increases row back and reduce them when they get them wrong? It has taken almost one year for some of the energy price reductions to materialise.

My point on financial services regulation is that credit unions are correctly subjected to much regulation, as the Taoiseach stated. However, there was nothing to advise them not to invest in structured investment vehicles. Very wealthy high rollers in Irish society, and others, invested tens of millions in such vehicles. It is essentially a form of gambling and the only difference between it and Nick Leeson's on-line spread-betting operation for Paddy Power is that the average punter with Paddy Power probably restricts his bets to sums between €2,000 and €5,000. Those investing in structured investment vehicles through the Irish Stock Exchange, on the other hand, are investing tens of millions of euro. Will the Financial Regulator address this issue sooner rather than later? There is a huge hole in our financial regulatory system whereby the regulator has made decisions that certain types of financial activity are outside the remit of regulation. I am sure the Taoiseach is aware that this also includes the prices charged for the purchase of financial investment products sold by insurance companies. Again, we have some of the highest prices in Europe. When somebody goes to buy a PRSA or some other kind of financial insurance investment product, the cost of the purchase of those services is extraordinarily high in this country and seems to be entirely outside the regulation remit. Does the Taoiseach have a view on this because we all want to bring down prices and costs and these are significant cost areas?

See this speech in context