Dara Calleary (Mayo, Fianna Fail)

The Bill reflects the events of the past two years, which have highlighted grave shortcomings on the part of the current system of financial regulation in Ireland and globally. Coupled with the establishment of the banking inquiry and with reforms that are ongoing at European Union level and elsewhere, this Bill is designed to ensure we have learnt from the experience and from the events of the recent years and, most importantly, to ensure they will not happen again. I am pleased to note that there is general international approval of the overall approach being taken by the Government in respect of banking. The Bill ensures greater fitness, probity and accountability across our financial and insurance sectors. It is intended to safeguard the stability of our financial system, the prudential regulation of financial institutions and most importantly and in particular, the protection of consumers and depositors.

In addition to its importance to economic growth, the financial and insurance sectors are key providers of many high-quality jobs. The total number employed in financial, insurance and real estate activities has remained remarkably resilient during the current downturn and more than 100,000 people are employed in this sector at present. Effective regulation of the sector is designed to enhance the sector from both an economic and an employment perspective. Our recent experience has shown a need for serious monitoring and that operational deficiencies have been evident in recent years. Accordingly, this experience has underlined the need for a more robust system of financial regulation. The role of the Central Bank and the Financial Regulator is vital to ensure full compliance with regulatory requirements within which competition takes place.

As for the insurance sector, the actions of the Financial Regulator in recent weeks in seeking the appointment of provisional administrators to Quinn Insurance Limited are an example of this robust approach. The Regulator has the full confidence and support of the Government in the steps he has taken to protect the wider interests of policyholders and the wider economy. I am conscious of the importance of the Quinn Group to employment in the Cavan region.

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