Dara Calleary (Mayo, Fianna Fail)

I welcome the Bill and congratulate my colleague, Deputy Michael McGrath, on introducing it. I commend the Minister for Finance, Deputy Noonan, and the Government on their acceptance of the Bill. Deputy Michael McGrath is not a recent convert. He has campaigned on this issue for some time. If we return to debating the Bill's contents, it might be helpful.

Last year, €2.25 million was repaid or awarded in compensation to customers of financial institutions at the direction of the Financial Services Ombudsman. This amount reflected 7,300 complaints made to the ombudsman against financial institutions, representing a 67% increase. Of these complaints, 75% were not upheld, which is an interesting fact, but the sum involved is considerable. One gets the impression that, although there may only be a few offenders, they are getting away with it. Until we implement the Bill's provisions, they will continue to get away with it.

The 75% figure is interesting because the ombudsman is no pushover, in that he directed that those complainants had no cases. Given the fact that the level of proof required is high, one assumes that the misdemeanours involved in the 25% of upheld cases were serious, yet the institutions involved will get away with their actions until we can name and shame them. They should not be named and shamed out of a misplaced justice, but to warn future consumers that they are dealing with companies that have missold policies, not adhered to agreements with other customers in similar situations, etc. This is the least that we can expect.

For many years, I was intrigued by the minute-long spiel about being regulated and registered at the end of financial institutions' advertisements. This did not stand for much, given the condition of our banking industry. Deputies on all sides have referred to what we need to do next, that is, build a system of confidence in a sensible way. We must not over-egg it or create a situation in which small businesses and bank account holders are crucified with red tape, which we tend to do. In a sensible, managed way, we must restore discipline to our financial institutions. In turn, this will restore consumer confidence.

Mr. Joe Meade, the previous ombudsman, was strong on this point. After he wrote in 2009 to our late colleague, Brian Lenihan, Brian intended to pursue the matter. Mr. Meade deserves particular credit for the way he took on the job and championed the rights of the consumer. At a difficult time for the financial services industry, he stood tall as a representative of the consumer. People could have confidence in him. That people are increasingly using the office to seek recourse is a tribute to him and his staff. I know of Bill Prasifka from his previous incumbency in the Competition Authority and other agencies. I have not doubt that he will bring the same sense to the ombudsman's office.

On the eve of the Easter recess, I hope that it is not too much to ask that the Bill be passed by the summer recess. In this way, the current ombudsman could start using these new powers to name transgressors in public by the end of this year. The sooner it happens, the sooner clarity will be brought to the system.

Any public representative who has worked on the ground in the past two or three years has dealt with cases of financial institutions mis-selling policies, directing people's attention away from the small print that is included in every policy and not drawing customers' attention to various clauses. I am referring to insurance policies, loans backed by security products and, in particular, pension products. I have dealt with cases of pension products that were inappropriately sold to older people who invested their entire life savings in unsuitable products because they trusted institutions and individual sellers. Unfortunately, the trust that generations placed in financial institutions right up until recent years was abused. Many of the people who worked hard for their entire lives and were mis-sold products have been left in serious financial situations because their trust was abused.

This Bill aims to shine a light on abuse. It will send a signal from the Oireachtas to financial institutions to the effect that such conduct is not good enough and will not be allowed again. If they act that way, they will be named. The penalties on sellers may need to be examined and strengthened during the Bill's consultation period.

It would be remiss of Deputies to speak of the financial services industry while ignoring the fact that Ireland still does not have a properly functioning banking system. We are at the end of another Dáil term, yet we still do not have a loan guarantee scheme. I do not doubt that, although the Minister of State, Deputy Perry's Department has done its bit in this regard, progress is being blocked by the Department of Finance again. Functioning small to medium-sized enterprises, SMEs, are not getting money. We do not want basket cases to get money, as that is the reason we are where we are. Well-resourced, long-standing SMEs are being starved of capital. Even the Governor of the Central Bank has admitted that it is a serious problem.

Although considerable progress has been made this evening thanks to Deputy Michael McGrath, restructuring the banking system must be a priority during the Dáil's next term. Otherwise, the country will haemorrhage jobs and investment. The retail figures were published today. Our SME, manufacturing and retail service sectors are still struggling and will continue to struggle until we have a proper, functioning banking system that recognises them for what they are.

Tonight is significant. I compliment my colleague, Deputy Michael McGrath. The Bill is straightforward. To echo Deputy Harris, all of our many ombudsman offices should be examined in terms of what powers they need to be more effective. They should have the ability to name and shame, be it in respect of Departments, companies or others. Without this power, they are slightly neutered. With it, those they seek to serve would be far more serious in the way they handled issues.

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