Jim Daly (Cork South West, Fine Gael)

Fáiltím roimh an deis labhairt ar an ábhar seo. I welcome the opportunity to speak on this Bill, which proposes that the Office of the Financial Services Ombudsman be given certain additional powers to enable it to name firms in certain circumstances. I commend Deputy Michael McGrath for introducing this legislation. I echo the sentiments that were expressed by the previous speaker. When an ombudsman looks for supports of this nature and this House is called on to assist the offices of independent ombudsmen, which are doing such excellent work for the people of this State, it is important for this House to be seen to be proactive and strong in its response. I commend the Deputy for bringing this matter into sharp focus and drawing the attention of the House to it at this timely juncture.

In my role as a public representative, I have referred constituents to the Office of the Financial Services Ombudsman on a number of occasions in recent years. The satisfaction levels of those who have had to go to the ombudsman have been extremely high. I commend the ombudsman on the exemplary service he offered to customers of financial services in the past. There is no doubt that the actions and the presence of the Financial Services Ombudsman have been of significant assistance in ensuring higher and better standards for the customers of these institutions over the years. It is unthinkable that regular customers of such institutions could have managed to pursue such issues through the expensive and difficult courts process, as they would have been forced to do if they had no option other than the usual legal process. The substantial legal departments and budgets of the financial institutions would have led to significant inequity, resulting in a David and Goliath experience for those customers who would have been brave enough to take on the institutions in the normal legal process.

I understand that the necessary consultations between the industry and the Financial Services Ombudsman have taken place with a view to making progress to a stage that will allow institutions to be named in certain cases, where this action will prove beneficial and act as an added deterrent to the industry not to err in its dealings with clients. I welcome the enthusiasm shown by my colleagues in Fianna Fáil for this legislation. I am particularly pleased with the reaction of the Minister, who has welcomed the proposal. He is most anxious to work constructively with Fianna Fáil in bringing about a resolution to this important matter.

The ombudsman has expressed his wish to have the power to name financial institutions where he deems it appropriate and helpful. He will judge it on a case-by-case basis. The ombudsman has made his approach clear in his biannual reviews. The Oireachtas must focus its efforts to assist in this process. I welcome the renewed focus on this legislation. I trust that our combined efforts will ensure that effective and robust legislation, which will stand up to the likely legal challenges, is passed. I am aware that consultation between the Office of the Financial Services Ombudsman and the various service providers in the industry is ongoing. These negotiations will not conclude until all stakeholders have had their say. It would be premature for us to enact legislation in advance of that.

The financial services industry has gone through enormous changes. It will continue to face an immense challenge in the coming years. As legislators, it is imperative that we ensure every step is taken to support and encourage consumer confidence in these institutions as they work to regain the trust of the people. It is reassuring for the people of this country to have the highest levels of service available to them to deal with any complaints relating to their treatment by the financial services industry. Combined with the support of the people, it is also necessary to have the trust and co-operation of the industry in ensuring the continued good work of the Office of the Financial Services Ombudsman. Limited companies with turnovers of less than €3 million, along with charities, club trusts and partnerships and personal customers of financial services, are able to avail of the services of the Financial Services Ombudsman. All of them rely on the security offered by this office so they can access an independent and reputable means of investigating any complaints they have about their dealings with financial service providers. This security is of enormous benefit to customers and is free of charge to anyone who has a grievance following interaction with the industry. The ability of the ombudsman to name institutions referred to in his judgments will not only act as a deterrent to other institutions, but will also enhance the role and regard of the office. I am happy to support and welcome the Bill. It is good to see both sides of the House working together progressively and constructively, notwithstanding the challenges that we will face prior to enacting the legislation and the conclusion of the consultation between the various stakeholders in the industry. I welcome the timely introduction of this Bill.

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