John Paul Phelan (Fine Gael)

I echo what the Minister said in his conclusion. It is appropriate that we should be discussing this Bill today, a number of weeks following further serious revelations in the financial services sector. I agree wholeheartedly with the comment he made in his final remarks there. I broadly welcome the Bill, which is a step in the right direction. I note from the Minister's comments that we are to have a consolidation Bill as part of the Government's legislative programme. I welcome that because there is certainly a need for it.

The Bill contains a number of key provisions, outlined by the Minister, which are welcome. The creation of a financial services ombudsman is certainly a move in the right direction. Such a facility will represent consumers in complaints against banks, building societies and other financial institutions. In light of recent events, the establishment of the consumer and industry consultative panels is also a key component of this Bill. The Minister referred to the new reporting and auditing obligations and the new powers which will be given to the Irish Financial Services Regulatory Authority to impose sanctions for breaches of regulations and codes of conduct. These four key elements of the Bill are to be wholeheartedly welcomed.

It is time a financial services ombudsman was appointed. For too long consumers have appeared unimportant in the context of financial services. Fine Gael recognises at first hand the level of frustration that exists among consumers dealing with financial institutions. Last November we launched the website ripoff.ie. Since its launch the website has had many thousands of visitors. They have listed several examples in different parts of the economy but certainly in the financial services sector of how they have been ripped off. One Irish man was charged €4 by one of the major banks here for every ATM transaction he made while in Britain; another bank charged one of its customers €12.70 for the renewal of an existing overdraft facility upon which the bank would make money. We are all familiar with the ridiculously high costs of credit card interest rates which can be anything up to 18% when the current ECB rate is less than 4%. It is important that customers are represented. I am, therefore, glad that a financial ombudsman is to be appointed to look after the interests of customers.

The Irish banking sector has serious questions to answer. The AIB scandals which emerged about a month ago have the capacity to endanger the Irish financial services sector. If I were not here, I would probably be in that sector. There are many people like me who currently earn their living from that sector. Over the past ten years that sector has seen major increases in employment and in the services it provides. It is vital that we act now to ensure the reputation that has been established in this country is reaffirmed. The establishment of a consumer ombudsman will go a long way towards re-establishing and reaffirming the reputation we have built up over the past number of years. For a long time people have felt that there is no one there to fight their corner. The big financial institutions are very large corporate bodies and it can be often difficult for a consumer who has a grievance with an institution to get that grievance heard and to get fair play. The new provision is to be welcomed in that sense.

There are other issues that need to be addressed such as the costs in this country of changing bank accounts. There is a need for proper scrutiny of companies involved in debt consolidation and for banks to pass on interest rates cuts as soon as they receive them from the ECB and not a week later as they currently do, thus pocketing millions of euro of consumers' money in the process. These issues need to be tackled. The ombudsman should develop a role in that area in the next few years.

In view of what we have seen in the past few months the role of the consumer and consultative panels in the Bill has taken on an even greater significance. In his remarks, the Minister referred to these panels providing a reality check. That is welcome. The Opposition wants to be reassured that they will not be made up of people who are appointed on the basis of party politics. These people should be leaders in their field and should provide impartial practical authority on important areas. In other sectors, we have seen where boards and panels have been set up and packed with party political appointments. It is important that the brightest and best people in the financial services sector would be encouraged to take part in these panels.

This is a good Bill and Fine Gael agrees with it. It contains some flaws but these can be addressed. There is a sense of frustration among consumers with the rip-off Ireland that has developed over the past few years. We need to ensure the consumer becomes central to the financial services system. The Bill is a step in the right direction and I have no problem in supporting it.