Arthur Morgan (Louth, Sinn Fein)
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Question 177: To ask the Minister for Finance the way he is monitoring and the action he is taking to ensure that section 44 of the Credit Institutions (Financial Support) Scheme SI 411 of 2008, which states that a covered institution shall not pass on the costs of the guarantee to its customers in an unwarranted manner, is being adhered to by financial institutions; and if he will make a statement on the matter. [44933/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Scheme is a major benefit not only to the banks but also to their customers and, of course, the economy as a whole. Of course, the Scheme includes the application of strict terms and conditions on covered institutions to ensure that the public interest, which includes the taxpayer, the general consumer and small business sector, is paramount.

As I have stated previously, the cost of the charge to institutions should not be passed on to ordinary customers under the Scheme and that is the meaning and purpose to paragraph 44.

Of course the Scheme itself is only about two months old and I will be monitoring its effects over time. My Department and the Financial Regulator are setting up mechanisms for monitoring the financial institutions in relation to the Guarantee and this issue will form part of the work programme.

The Deputy will also be aware that the Financial Regulator has the power to monitor, review, and approve bank charges pursuant to section 149 of the Consumer Credit Act.