Emmet Stagg (Kildare North, Labour)
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Question 116: To ask the Minister for Finance his views on recent changes to the charging structure on current accounts by Bank of Ireland, a bank subject to significant taxpayer support; his further views on whether the imposition of the new fee structure will impact most heavily on those least able to pay, that is, those with the lowest incomes and with the lowest balances; if he proposes the introduction of countervailing measures to combat a potential rise in financial exclusion; and if he will make a statement on the matter. [1391/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am disappointed that the bank is increasing charges for its current account customers but can understand why they are doing so. The Government operates an arm's length relationship with the banks in which the State has a shareholding and the commercial decisions on how best to operate the bank remain a matter for management and the board.

I have no role in approving or setting bank charges. This responsibility lies with the Central Bank. Under the Consumer Credit Act 1995, banks must make a submission to the Central Bank if they wish to introduce or increase charges in respect of a service.

I would also advise the Deputy that the National Consumer Agency's website www.itsyourmoney.ie provides a cost comparison table on the main current accounts provided by individual firms which includes details of how to qualify for free account maintenance and transactions.

As part of the restructuring plan process currently underway with the European Commission it has been proposed that the domestic banking sector will be required to support and promote the availability of a basic bank account. This is to be done in the context of the implementation of the Government's strategy on financial inclusion in the State.

Work is underway on a review of the options available to achieve greater financial inclusion, including the introduction of basic bank accounts by year end 2011. The objective of the review, which is being undertaken by the Social Finance Foundation on my behalf, is to identify recommended actions to achieve a substantial reduction in financial exclusion over a 3 – 5 year period.

The preparation of the review is being overseen by a steering group chaired by my Department and comprising key stakeholders. I expect to receive a draft report which sets out the recommendations from the review sometime in the first quarter of this year, and I intend to publish this for consultation purposes.