Jimmy Deenihan (Kerry North, Fine Gael)

The comments I wish to make relate to section 6 but I am sure the Ceann Comhairle will allow me to proceed. Auditors should report more frequently to the Financial Regulator than is currently the case. In addition, the Minister must ensure that auditors of banks are rotated more often. It is a mistake to have the same auditors working with a particular bank for a long period. The Minister should also ensure, in setting down the terms and conditions for this scheme, that banks should be obliged to report any negative news to the auditor, with penalties payable where there is a failure to do so.

In regard to the financial institutions not included in the legislation, including foreign banks operating here, the difficulty is that they are not regulated by our Financial Regulator but by the corresponding entity in their country of origin. I am not sure how this difficulty can be overcome. In an ongoing court case regarding overcharging by one particular bank, the person concerned had to go to the regulator in Holland to make the case. It is important that the Minister examines this issue.

It is my understanding that a business person with a turnover of more than €3 million is not covered by the regulator. The Minister must extend some protection in those types of cases. I hope the Minister will consider these issues when setting the conditions for the proposal. International commentators have described this proposal as a smart move by the Government. We have taken the lead in this crisis and others will follow. I acknowledge the importance of this initiative but reiterate that we must get it right.

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