The development of international financial services has a vital role to play in underpinning the continued growth and success of the Irish economy, Taoiseach Bertie Ahern said yesterday.

Addressing the annual lunch for the International Financial Services Industry in Dublin Castle, Mr Ahern said that the Government's priority was to ensure that Ireland could share in the growth of the sector and build expertise and capacity in key niche activities with high growth potential.

He said it was becoming increasingly clear that the education and skills gap issue was centrally important to the development of the international financial services industry.

This was a fact that he said had already gained recognition from the Financial Services Skills Group.

"This group will provide an important opportunity for the industry to scope out what their existing and future skills requirements will be and I understand that the group will shortly be issuing a public call for submissions in this regard," Mr Ahern said.

He also said he was aware that migration policy was a matter of concern to this sector.

"I am happy to say that the concerns of the financial sector are to be addressed in the context of the new migration arrangements under the Employment Permit Act 2006, which will establish a Green Card system for different occupations including some in the financial services area. These arrangements will take effect in early 2007."

The Government had also agreed the start of a programme of consolidation and modernisation of the legislative framework for the regulation of financial services and the establishment of the Financial Legislation Advisory Forum, Mr Ahern said.

"The legislative framework should enable regulators, in adopting a risk-based approach to regulation, to balance costs against benefits, while at all times supporting the soundness, security and reputation of our regulatory regime.

"In this way, responsible risk-taking and innovation by financial service providers will not be impeded," he said.