John Perry (Sligo-North Leitrim, Fine Gael)

I compliment Deputy McGrath on bringing forward this Private Members' Bill to empower the Financial Services Ombudsman to name firms against which he has made findings. I thank Members for what has been a most worthwhile debate on the question of extending the powers of the Financial Services Ombudsman to name in certain circumstances individual firms against which he has made findings.

I welcome the consensus among Members that has arisen during the debate. It is natural that much of the debate focused on consumer protection issues. Many points were raised in which Members highlighted their concerns and they proposed suggestions to enhance the consumer protection measures in the financial services regulatory framework. I emphasise that Ireland has strong consumer protection legislation in place. I concur with the point made by various Deputies that Ireland remains an attractive place to set up a financial services business.

The financial crisis has highlighted the importance of the financial regulatory framework to the economy and the links between financial regulation and central banking. Measures have been taken to restore confidence in our system of financial regulation. The provisions proposed in the Central Bank (Supervision and Enforcement) Bill 2011 are expected to enhance these further.

Consumer confidence is vital in a financial services industry that is strong, internationally respected and that can generate wealth for our economy. Deputy Kelleher proposed that all health insurance providers should fall under the scrutiny of the Financial Services Ombudsman. I recognise that there is an ageing population and that there is a demand for health insurance. All regulated health insurance companies fall under the remit of the Financial Services Ombudsman. In 2005 the Minister for Finance extended the remit of the Financial Services Ombudsman to the Voluntary Health Insurance, VHI, through regulation SI 191/2005.

In the course of the debate the high interest rate charged by some moneylenders was raised. While I do not support the imposition of high interest rates I acknowledge that moneylenders often lend small value loans for short periods. This is the reason such loans can be more expensive than other forms of credit. Moneylenders must apply to the Central Bank annually to have their licences renewed. The Central Bank has in place a code of conduct for licensed moneylenders. All moneylenders licensed by the Central Bank must comply with the provisions of the code and prior to entering into an agreement with a consumer they must prominently indicate the high-cost nature of a loan on all related documentation in cases where the annual percentage rate, APR, is 23% or higher. Consumers who consider borrowing from moneylenders should shop around and consider the various sources of loans available. I encourage consumers to avail of the personal finance information available from the National Consumer Agency.

The Money Advice and Budgeting Service, MABS, was mentioned during the debate. MABS works with people to assist them with financial planning and budgeting for the future. It is a national, free, confidential and independent service. The Financial Services Ombudsman has advised that he proposes further consultation with industry. The Minister has asked his officials to engage with the Financial Services Ombudsman in the coming weeks with a view to formulating more detailed proposals for legislation in this area.

As stated yesterday, I confirm that the Bill is consistent with Government policy. However, more work is required on its scope and detailed applications. Much work has already taken place to develop proposals for legislation. The Minister for Finance has stated that he intends to bring proposals for legislation in this area to Government shortly.

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