Brian Lenihan Jnr (Dublin West, Fianna Fail)

The idea of an ombudsman council arose from the public consultation process on the Bill. The existing voluntary ombudsman schemes both have such councils and there has been no objection to the principle of such a council. The council will play an important role in setting out detailed regulations governing the ombudsman scheme and appointing the ombudsman. The Minister's intention is that there should be a broad balance between representatives of the financial services industry and consumer representatives and that the chairperson should have knowledge and experience of consumer issues. Given its central role, the Minister believes it is important the council should have the confidence of consumers and the financial services industry and the provisions for appointment are drafted accordingly.

The amendment seeks to introduce an additional requirement that a majority of the council members should be persons independent of ties to business engaged in the provision of financial services. The Bill provides that the Minister must consult his colleague, the Minister for Enterprise, Trade and Employment. In addition, he would expect to consult widely among consumer and industry bodies before making appointments to the council. It is, therefore, likely that the council, in its composition, will be broadly acceptable to industry and consumer interests and that is certainly the Minister's intention.

It could be difficult for representatives of consumer interests to meet the test that they be independent of ties to business engaged in financial services. After all, in the vindication of the consumer interest the poacher can often be the best gamekeeper. A person with knowledge, experience and connections to financial services who is independent and detached from particular interests can be the best person to vindicate the consumers' point of view. This matter occasioned considerable debate but that is the Minister's view of the amendment.