Role of regulators put under scrutiny at UCD

The delegation of responsibilities from government departments to independent regulators must not be allowed to erode the principles of democracy and political accountability, the Attorney General Mr David Byrne SC said last night.

Addressing the Law Society at University College Dublin, Mr Byrne said the need for, and value of, independent regulators had been very fully recognised.

"However, we may be coming to the realisation that there has been relatively little examination in this jurisdiction of the interaction of regulators with the traditional democratic triangle of legislature, judiciary and executive."

In an address entitled "Who regulates the regulators?", Mr Bryne said the legislature was not free to abdicate its responsibility "without formulating the principles and policy to be implemented by a regulator". Delegation of authority must be done in a detailed and precise manner.

"Most importantly, a comprehensive, statutory system must be devised through which regulators are required to render account to the legislature and ultimately to the people."

Replying to Mr Byrne, Mr Cliff Taylor, finance editor of The Irish Times, said that recent controversies showed that greater consideration needed to be given to overseeing the existing regulators operating in the financial sector, including longer-established institutions such as the Central Bank and the Revenue Commissioners, as well as newer agencies such as the telecommunications regulator. One route to accountability was hearings before Oireachtas committees, but these committees had to be given considerably more resources if they were to be effective in this area, he added.

Mr Taylor said regulators had to be given a clear policy mandate if they were to operate effectively and a clear reporting structure. They must also develop a culture of openness to scrutiny from the media and other sources.