The trade union representing professional and administrative staff in the Central Bank has rejected the proposal that the financial services industry should be regulated by an authority independent of the bank.

The MSF union has stated that the Central Bank is already "an effective and independent financial regulator". Rather than setting up an independent authority, MSF has urged that a subsidiary of the Central Bank - with consumer representation - be considered.

The MSF deputy national secretary, Mr Jerry Shanahan, said: "It is demoralising for our members to now hear certain legislators, accuse the bank of not taking action in relation to matters relating to taxation issues, when the bank has neither responsibility nor authority in relation to such issues."

Mr Shanahan said that the MSF supported the position of the Central Bank Governor, Mr Maurice O'Connell, that the separation of the functions of supervision and responsibility for the stability of banking system is not an issue to be treated lightly. He added that 120 of MSF's 340 members in the Central Bank work in the banking and securities supervision departments.