Consumers continue to be exploited by the banking industry because of delays and disagreements involving the Minister for Finance, Mr McCreevy. Ten months ago, Mr McCreevy promised an effective system of consumer protection to ensure that the financial sector operated to the highest standards. Nothing happened.
The promised legislation is still being prepared. And an interim board, which was to be established immediately on a non-statutory basis, has not been appointed.
In the meantime, while Irish banks continue to enjoy the highest profit margins in Europe, small businesses frequently complain of excessive charges. There are instances where private customers have been overcharged and later recompensed. And there are complaints about high credit card charges.
A spokeswoman for the Department of Finance explained that they were waiting for the Tβnaiste, Ms Harney, and Mr McCreevy to agree on the composition of the consumer board in order to "get the right people". However, Progressive Democrat sources insisted that there was no question of the Tβnaiste delaying the matter.
In spite of a series of interest rate cuts since the events of September 11th, commercial rates here have fallen by only 0.5 per cent, to 9.45 per cent. The cost of individual borrowing stands at more than 12 per cent. And bank branches are being closed even though the number of branches per 1,000 Irish customers is already the lowest in the EU, apart from Greece and Sweden.
Official recommendations to the Government that windfall savings to the banks, from a series of reductions in Corporation Tax, should be used to reduce electronic/automated banking charges, and that branch closures and customer services should be monitored by the regulatory authority, have not been acted on.
The need to protect the consumer was one of the key recommendations of the McDowell report on reform of the Central Bank three years ago. Following considerable discord, both the Tβnaiste and the Minister for Finance agreed last February that new structures should assure consumers that they were "receiving an internationally competitive, high quality and fair service from the industry".
An Irish Financial Services Regulatory Authority (IFSRA) was to have its own board with an independent chairman. And a director of consumer protection was to absorb the functions of the Director of Consumer Affairs.
Sources at the Central Bank said they had expected the promised structures to be in place by now. However, the European Central Bank is expected to initiate an investigation into bank charges and consumer protection throughout the EU within a matter of weeks.
Some weeks ago, the Labour Party's spokesman on finance, Mr Derek McDowell, complained to the Oireachtas Committee on Finance and the Public Service that 70 local branches had been closed by Allied Irish Banks and the Bank of Ireland since 1997 and that rationalisation and increased profits were the main reasons.