Joan Burton (Dublin West, Labour)
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Question 192: To ask the Minister for Finance the actions and measures he has put in place to ensure that the financial institutions covered under the Government guarantee have compiled with Section 44 of Statutory Instrument 411 of 2008, which required institutions not to pass on the costs of the guarantee in an unwarranted manner; if any studies or research have been undertaken to confirm compliance with this provision; and if he will make a statement on the matter. [25673/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My Department and the Financial Regulator have set up mechanisms for monitoring the financial institutions in relation to the Guarantee. The Scheme requires that covered institutions submit a compliance certificate to the Financial Regulator each quarter which must be certified by the CEO and Chairman of the institutions and reviewed by the institutions external auditors. The requirement that costs are not passed on in an unwarranted manner must be addressed under this compliance certificate. Nothing has arisen to date which suggests that the Covered Institutions are not acting in accordance with Section 44. Additionally, the Financial Regulator monitors, reviews, and approves bank charges as outlined under section 149 of the Consumer Credit Act. In particular, the Financial Regulator must be notified of any charge imposed by a bank in relation to the provision of a service to a consumer and any increase in a charge previously notified. The notification to the Financial Regulator must be accompanied by a statement of commercial justification (including a detailed statement of cost) and details of the estimated amount of additional income accruing from the proposal. The Financial Regulator can waive or reduce a fee notified to it under section 149.

Joan Burton (Dublin West, Labour)
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Question 193: To ask the Minister for Finance the actions the financial institutions covered under the Government guarantee have taken to comply with Section 45 of Statutory Instrument 411 of 2008 on Corporate Social Responsibility; if he will provide copies of the biannual reports submitted by the Irish Bankers Federation; the progress made on the delivery of a national payments strategy, actions taken to promote financial inclusion and financial education and the implementation of the next phase of the Government's social finance initiative; and if he will make a statement on the matter. [25674/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In accordance with Paragraph 45 of the Credit Institutions (Financial Support) Scheme 2008, the biannual reports on Corporate Social Responsibility are published on each institution's website. Copies of the reports are also available on the IBF website. In relation to progress on the specific issues mentioned, in 2009 the Social Finance Foundation reached agreement with twelve banks and building societies to access €72 million in funding over the period 2009-2020. This funding is being provided by the institutions at a discounted rate of interest and is key to the future of the Foundation, and the growth of social finance in Ireland. This new funding arrangement is consistent with the requirements on the "covered" financial institutions in the area of corporate social responsibility under the terms of the Government Guarantee Scheme introduced in September 2008.

In relation to payments, the Government's policy is to promote the increased use of electronic payments throughout the economy, with the longer-term objective of significant reductions, over a number of years, in the volume of paper-based payments in use throughout the economy. This policy is fully aligned and is developing in tandem with market and regulatory developments at EU level, including the Single Euro Payments Area (SEPA), the introduction of the Payment Services Directive from November 2009 and the introduction of the revised Electronic Money Directive from April 2011. In promoting this policy objective, the Government has reduced stamp duty on combined ATM cards from €10 to €5 in Budget 2009, building upon changes in the previous year's Budget. Stamp duty on cheques was also increased from 30 cent to 50 cent per cheque, to act as a further disincentive to cheque usage.

I previously indicated the need to establish new governance arrangements to further promote the development of electronic payments in our economy. As part of this process, the National Payments Implementation Programme Advisory Group has provided recommendations in a report on the possible mechanisms and mandate to further promote the development of electronic payments. I am currently considering these recommendations.

In accordance with the Government's recapitalisations in February 2009 the recapitalised banks were committed to work towards broadening the provision of basic or introductory bank accounts in order to progress financial inclusion. Specific proposals have not yet been finalised. Basic bank accounts are current accounts designed for people who are unbanked and for those who want to ensure that they cannot overdraw their account or who might not meet the banks' criteria for opening a standard current account. While the features of a basic bank account can differ the following European Commission definition captures its essence: "A basic bank account is understood as a bank account which includes services like making and receiving electronic payments for goods and services (e.g. transfers, direct debits, standing orders) and making withdrawals, but excludes any overdraft facility".

The Financial Regulator has included in its Consumer Protection Code a requirement that any measures adopted in relation to the identification of consumers should not deny a person access to financial services solely on the grounds that they do not possess certain specified identification documentation. In relation to financial education, the information and education role of the Financial Regulator was recently transferred to the National Consumer Agency (NCA). The NCA recently invited a number of stakeholders (including covered institutions) to form a working group to co-ordinate some of the key commitments in the Report of the National Steering Group on Financial Education - published in 2009. Specifically, the NCA plans to develop a workplace financial education programme.