Joan Burton (Dublin West, Labour)
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Question 44: To ask the Minister for Finance the time-line for the transposition of the Payments Services Directive into law here; the person who is the competent authority for the management of this process; if the process of drafting the relevant legislation has commenced; if his attention has been drawn to the fact that private sector operators based here who might be put at a competitive disadvantage should the transposition of the directive be delayed, that such operators would be in a position to move their operations to another jurisdiction where transposition of the directive is at a more advanced stage and that this is being actively considered for reasons of maintaining competitiveness; and if he will make a statement on the matter. [14141/09]

Enda Kenny (Mayo, Fine Gael)
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Question 45: To ask the Minister for Finance when the payment services directive will be transposed here; the reason there has been a delay; if he is confident he will have the necessary legislation in place before November 2009; and if he will make a statement on the matter. [14145/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 44 and 45 together.

I refer the Deputies to the answer to Question No. 158 of 31 March 2009. The Payment Services Directive (PSD) provides the necessary legal framework to support the development of the Single Euro Payments Area (SEPA), a major payments industry initiative aimed at eliminating any remaining difference between domestic and cross-border payments within the eurozone. The Directive introduces standard rules for payment execution in all Member States, seeks to ensure fair market access to new payment services providers and introduces harmonised standards of consumer protection.

The Directive comes into effect on 1 November 2009 and my Department is currently preparing legislation to enable Ireland to apply the Directive provisions by that date. A set of draft regulations was submitted to the Office of the Parliamentary Counsel in February 2009 for formal drafting and work is now progressing to produce a final set of regulations, which will give effect to the Directive by the required transposition date. It is anticipated that the relevant regulations will be published in Summer 2009 and be given effect from 1 November 2009.

As regards the competent authority for the management of the transposition of the Directive into law in Ireland, Section 3 of the European Communities Act 1972 allows me, as Minister, to make Regulations in order to fulfil Ireland's obligations which arise by virtue of our membership of the EU. In this case, the Directive will be transposed through a Statutory Instrument. The Statutory Instrument will designate a competent authority for the authorisation and prudential supervision of payment institutions, as required by Article 20 of the Directive.

My Department consulted relevant stakeholders on two occasions in 2008. In February 2008, it held a public consultation on the national discretions available within the PSD and in October 2008, it held a further consultation on the draft text of the transposing regulations. My Department plans to hold another consultation when the text of the regulations is more advanced.

I am aware generally that industry participants have sought and received assurances from my Department that the Directive would be transposed in time and officials from my Department and the Central Bank and Financial Services Authority of Ireland continue to be available to meet relevant stakeholders as necessary.