Brian Lenihan Jnr (Dublin West, Fianna Fail)

The amendment suggests that a review of the operation of the Act should take place, the results of which would be presented to the Oireachtas within two years of the Act coming into operation. The Minister for Finance has stated that any review of the legislation should wait until we see how the legislation has operated over a few years.

The Bill provides for the re-organisation of the Central Bank and the establishment of a regulatory authority. It will be necessary to allow sufficient time for the new structures to come into operation before a realistic assessment of their impact can be made. This will allow the regulator sufficient time to make a judgment on whether the legislation needs further amendment. Both the Central Bank and the regulatory authority will produce annual reports which will be laid before each House of the Oireachtas. The annual strategic plan of the regulatory authority will also be laid before the Houses of the Oireachtas, following which the authority must publish the plan.

Coupled with the provisions of section 33AM to the principal Act, which provide for certain officers of the bank to attend before the appropriate Oireachtas committee, this will allow the Oireachtas ample opportunity to assess the operations and activities of the Central Bank and the regulatory authority. The consumer director and the registrar of credit unions will also produce both strategic plans and annual reports for submission to the regulatory authority. Under the circumstances, an effective ongoing review and assessment process will be facilitated by the existing provision, therefore I am not disposed to accepting the amendment.

As previously announced by the Minister for Finance, it is intended to publish a second Bill to implement other recommendations contained in the McDowell report. The Bill will include provisions establishing consultative panels of consumers and the financial services industry. Among the functions planned for the consumer panel will be review of the discharge by the regulatory authority of its functions, including those of the consumer director and the registrar of credit unions.

Senator Higgins raised a number of points of general principle in consideration of his amendment. With his leave, I might postpone the question of consumer protection to a further amendment in his name and deal with the question of the credit union movement, which does not appear to be covered in any further amendment raised by the Senator. Senator McDowell also referred to credit unions. I acknowledge the broad welcome he has given the measure.