Paul Gavan (Sinn Fein) | Oireachtas source

I move amendment No. 3:

In page 10, line 14, after “customers” to insert “, society”.

I welcome the Minister of State. I am moving this amendment on behalf of my colleagues from the Civil Engagement Group. I note that some other amendments relating to this section were unfortunately ruled out of order. Senator Higgins would say that the ruling in this regard is unfortunate because the amendments were about how collective goals we have signed up to might be reflected in regulation. These amendments relate to a concern Senator Higgins has about some of the overall framings for the new accountability framework.

Throughout the Bill, there are lots of references to compliance with financial legislation and protecting market integrity. While this is welcome, we need to reflect that this legislation is coming from a time in our recent history when reckless actions not only harmed the integrity of the market but devastated our society and the welfare of the people of this country for years following the banking crisis. We also know that the financial sector is playing a key role in the climate crisis. There needs to be accountability for that. The recent Banking on Climate Chaos report states that 60 prominent international banks hold fossil fuel assets worth in the region of $1.35 trillion. Of that overall amount, $239 billion is held by EU banks. These are credits the banks have paid out in respect of existing fossil fuel activities. I invite the Minister of State to read the report. A number of case studies are available which show the real-life human rights and environmental impact of fossil fuel financing. For example, Citi is the top bank providing financing to and underwriting the activities of companies active in the oil and gas industry in the Amazon region, with an estimated total of $42 billion in open or recently matured deals. We need to be serious about climate action in the context of all aspects of our society. When individuals are making financial decisions that threaten the collective well-being of all of us, there needs to be accountability.

Amendment No. 3 is relatively simple. It proposes that when making regulations, the Central Bank should ensure that financial service providers act not only in the best interests of the customer but also those of society. This is a minor change, but one which would reflect the fact that the needs of society should be reflected in the regulations. All of us here know what can happen to a country when the collective public interest is forgotten about when it comes to financial services. None of us wants to see a repeat of the harms in the recession we are still reckoning with today.