Tuesday, 31 March 2009
Dáil Eireann Debate
158. Deputy Jimmy Deenihan asked the Minister for Finance the progress being made on the implementation of the payment services directive; the procedures which must be followed to ensure that all the PSD is operational by the November 2009 deadline; the consultation process that has been undertaken to date with the financial services providers; and if he will make a statement on the matter. [13052/09]
Minister for Finance (Deputy Brian Lenihan): The Payment Services Directive (PSD) provides the necessary legal framework to support the development of the Single Euro Payments Area (SEPA), a major payments industry initiative aimed at eliminating any remaining difference between domestic and cross-border payments within the eurozone. This Directive comes into effect on 1 November 2009 and my Department is currently working on draft legislation to enable Ireland to apply the PSD’s provisions by that date. The Deputy may be aware that the Directive introduces standard rules for payment execution in all Member States, seeks to ensure fair market access to new payment services providers and introduces harmonised standards of consumer protection.
As regards the procedures which must be followed to ensure that all of the PSD is operational by November 2009, Section 3 of the European Communities Act 1972 allows me, as Minister, to make Regulations in order to fulfil Ireland’s obligations which arise by virtue of our membership of the E.U. In this case, all of the PSD will be transposed through secondary legislation, namely a Statutory Instrument.
My Department has consulted relevant stakeholders on two occasions in 2008. In February 2008, it held a public consultation on the national discretions available within the PSD and in October 2008, it held a further consultation on the draft text of the transposing regulations. Based on responses received during both consultations, a draft set of regulations was submitted to the Office of the Parliamentary Counsel in February 2009 for formal drafting and work is now progressing to produce a final set of regulations, which will give effect to the Directive by the required transposition date. My Department plans to hold another consultation when the text of the regulations is at a more advanced level. It is anticipated that the relevant regulations will be published in Summer 2009 and be given effect from 1 November 2009.
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