Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I welcome the opportunity to respond. I thank Deputies for their contributions to the debate and their constructive engagement on this legislation. First, I acknowledge the final point made by Deputy Alan Farrell in respect of what many would see as double taxation. People are taxed on the income that helped to contribute to their pension and then they are taxed again when they receive the pension. I will ask the Minister to clarify that matter on Report Stage and to provide a comprehensive note on it. There is a widespread view that there is an inherent unfairness in the system in that regard and it is important the situation is corrected.

There will be a detailed debate on Committee Stage in relation to this legislation. The Bill will be examined by the Select Committee on Finance, Public Expenditure and Reform, and Taoiseach in the coming weeks. The Minister for Finance, Deputy Michael McGrath, looks forward to a more detailed consideration of the provisions of the Bill and will engage with Deputies on any proposed amendments. In the meantime, officials in the Department of Finance will reflect on the points raised today and will give them further consideration in consultation with the Financial Services and Pensions Ombudsman and the office of the Attorney General, where appropriate.

In the context of the points made today, Deputy Troy said he is in possession of an extensive document. I ask him to pass it on to me in order that I can give it to the Minister directly or pass it on to his office. In this way, he will be made aware of the contents of the paper to which the Deputy referred.

This Bill is important to ensure that the office of the Financial Services and Pensions Ombudsman can continue to carry out its statutory functions in line with the Constitution. It will significantly improve the consumer protection framework in Ireland. The importance of the role of the Financial Services and Pensions Ombudsman for consumers of financial services in Ireland is highlighted by the fact that, as the ombudsman's annual report indicates, more than 6,000 complaints were received in 2023, with more than 5,000 complaints closed in that period. The number of complaints the ombudsman's office receives each year continues to grow. There was, for example, a 30% increase in the number of complaints received in 2023 compared to 2022. The Financial Services and Pensions Ombudsman also reports an increase in more complex cases which can take longer to resolve.

Reference was made to delays, which is why the Minister will be providing for additional staff. I will deal with that matter later. It is possible that there are particular reasons for delays in some cases. For example, a complainant may be impacted by the outcome of an ongoing statutory appeal or judicial review related to a similar matter. It could also be the case that no action is appropriate, pending the outcome of an independent tracker mortgage examination appeal panel process. If the outcome of external legal proceedings is awaited, that can also delay the process of dealing with complaints. Sometimes a hold on a decision could be at the complainant's request for personal reasons. There can be a delay at the complainant's end. The final point in this regard is that the volume of ongoing submissions from the parties addressing the evidence under consideration during the complaint investigation can add to the processing times.

These can all add time, but that is not to suggest that there are not some delays. That has been well highlighted in the context of the Financial Services and Pensions Ombudsman's office. That is why the Minister for Finance was pleased to sanction the Financial Services and Pensions Ombudsman workforce plan for 2024 to 2026 recently which increased the sanctioned number of staff from 90.2 whole-time equivalents to 128, an increase of 42% in staffing. This includes increasing the investigation service team from 17.6 whole time equivalents to 36 reflecting the current gap in capacity, which is acknowledged by the Financial Services and Pensions Ombudsman and the Minister, and the increasing demand on services. That is why he has approved that workforce plan to provide additional staff.

Other key roles include the additional deputy ombudsmen and ICT chief information officer at principal officer level and other roles in areas such as legal services, registration and assessment, dispute resolution services, finance, HR and consumer services. The implementation of this workforce plan will increase the office's resources and the capacity of the financial services ombudsman's office to resolve cases more promptly.

The Financial Services and Pensions Ombudsman (Amendment) Bill 2023 will update the principal Act of 2017 and take account of the ruling in the Zalewski case by making targeted amendments: to provide that the ombudsman is required to take a decision on whether to hold oral in hearings in public; to clarify the process for oath taking and affirmations in oral hearings; and to provide that mediation shall be conducted in private. This is complemented by a number of improvements to the wider Act through various other amendments. These measures will strengthen the functions and robustness of the office of the ombudsman to improve the consumer protection framework for customers of financial services and pension providers, an aim that I am sure everybody in this House will share.

The Minister looks forward to further debate on the Bill as it progresses through the House.

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