Mary Harney (Dublin Mid West, Progressive Democrats)

I did not tell the Deputy that. I do know who set the level and I have known for years. It was set by the independent Financial Regulator.

I wish to clarify this issue. The record of the proceedings on Committee Stage will show that this is an independent function of the regulator, who is not subject to any political influence. I have said on the record here and at committees that I regard the figure as extremely conservative and I wish it were lower. However, that is what the regulator, who is responsible for regulating financial services companies, has decided. In recent times we have, if anything, been critical of a liberal approach to regulation, but that is the approach the regulator adopted. There is no political function. The regulator reports to the Minister for Finance, as it happens, but he has no function with regard to this issue, as is the case around Europe. The solvency II directive from Europe will change this, but it will not be enacted for another couple of years.

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