Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

As far as I am aware, the intention of the amendment is to oblige the council to review the compensation ceiling by which the ombudsman must abide and, in particular, report on instances where a complainant experienced a greater loss than the maximum compensation payable. The proposed amendment might be based on a misunderstanding. The existing legislation provides for a number of redress tools, including rectification and compensation. Rectification makes good the loss to the consumer and there is no ceiling in respect of it. Compensation, which can be additional to rectification, can be high or low depending on the specific facts of the case. As far as I understand it from the ombudsman, the ceiling of €250,000 has not caused problems in direct compensation. Compensation, which can be additional to the rectification, can depend on the impact on the individual, for example the inconvenience caused to the consumer by the misconduct of the provider. This is usually determined by the specific facts of the case.

Rectification in excess of €250,000 has been given out in certain cases where the ombudsman has made good a complaint by putting a person back in the position in which he or she previously was before the complaint arose. Furthermore, there is provisions in the Government Bill in relation to the compensation ceiling. For example, the Minister for Finance may make regulations under section 4 of the Bill on his or her own initiative or at the request of the Ombudsman. Section 4(h) of the Bill which deals with complaints and redress regarding financial service providers states that such regulation may, "specify a maximum amount of compensation that the Ombudsman may award to a complainant under section 60".

There are also other provisions in the Government Bill that may interest Senator Horkan, in particular, provisions on the carrying out of reviews. Section 25(3) of my Bill on the publication of other reports provides that the ombudsman may, from time to time, prepare and submit to the Minister such other reports in relation to the performance of the functions under the Act as he or she considers appropriate. Section 25(4) also enables the ombudsman to publish reports on other matters if he or she considers that it would be in the public interest to do so. For these reasons I must re-state the Government’s position that we cannot accept this amendment.