Shane McEntee (Meath East, Fine Gael)

I thank Deputies for their contributions and for their constructive engagement with this legislation. The Minister for Finance is looking forward to a more detailed consideration of the provisions on Committee Stage. I wish to respond to some of the issues raised by Deputies in the course of this debate. We will have an opportunity to deal with the other matters on Committee Stage.

Deputy Michael McGrath raised the issue of consultation. The Department of Finance has consulted with a broad range of sectoral interests and further consultations are planned. Any body or group wishing to be involved in that should contact the Department and it will be accommodated.

The role of the Financial Services Ombudsman was raised and it was suggested that there should be a mechanism to allow for the valuable information gathered by the ombudsman to be shared with the Central Bank to assist it in carrying out its regulatory functions. I am advised that a memorandum of understanding was signed between the Central Bank, the Financial Services Ombudsman and the Pensions Ombudsman in April 2006 to facilitate the exchange of information of systemic importance between those bodies. Section 57CQ of the Central Bank Act 1942 sets out the duty of the Financial Services Ombudsman to co-operate with the Central Bank and his or her power to make recommendations to improve financial regulation. This is an important feedback loop in the system which allows real-world experience to inform the ongoing improvement of financial regulation.

In regard to skilled persons reports, Deputy McGrath suggested that it would be more appropriate for the Central Bank, rather than the financial service provider concerned, to appoint the reviewer. The Central Bank already has the power to appoint persons to carry out investigations on its behalf, through, for example, the authorised officer powers set out in Part 3. I agree with the Deputy, however, that those appointed as authorised officers should be people of the utmost integrity.

Deputy McGrath also raised served points regarding the whistleblower provisions in the Bill, with particular reference to the use of internal processes and the interaction with the mandatory disclosure provisions in criminal justice legislation. The Bill does not require the use of internal processes in the first instance, as the matters protected relate to legal and compliance issues, which are enforceable by the Central Bank rather than in-house management. It is also difficult to protect the identity of a whistleblower where the person is first required to exhaust an internal process. The Criminal Justice Act 2011 provides that it is an offence for any person to fail to provide relevant information in regard to the commission of a serious offence under Irish financial services law. However, the provisions of this Bill relate to a different context under the Central Bank's fitness and probity regime.

Deputy Mary Lou McDonald suggested that the Central Bank should be under a duty to act on disclosures made to it by whistleblowers and others. I agree that we should not put measures such as these in place without an expectation that they will be used to full effect. The Deputy has indicated that her party intends putting forward amendments related to this point on Committee Stage and I expect that will provide an opportunity to deal with the matter at greater length.

Deputy Boyd Barrett mentioned the role of markets and competition in the financial crisis. That is a wider issue than can be dealt with in this Bill. I would make the point, however, that the responses to the financial crisis, both in Ireland and internationally, have been framed on the basis that markets do not always know best and that regulation is necessary to check unsustainable risks both within firms and affecting the wider financial and economic system.

I hope there will be an opportunity to discuss the other matters raised by Deputies as the Bill continues its progress through the House. I thank Deputies for their contributions and assure them that the Minister for Finance will give careful consideration to all the issues raised. I commend the Bill to the House.

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