Minister announces new Central Bank of Ireland Commission

See article today on the Minister for Finance's announcement about the creation of a new Central Bank of Ireland Commission. Go to http://www.complianceireland.com/documents/CI_Newsletter_June09_03_web.pdf and http://www.finance.gov.ie/viewdoc.asp?DocID=5839.

After reading the Minister’s announcement, it is exceptionally difficult to see how the proposed changes should be any more effective then the current structure commenced merely 6 years ago in 2003 by the Central Bank and Financial Services Authority of Ireland Acts (2003 & 2004). No one has debated the workings of the current law or the structures created thereunder. However the Minister and media commentators all appear convinced, without offering any meaningful explanation, as to why the existing structure (both legal & organisations) failed. Let’s not kid ourselves, the cost to implement the new regulatory vision will be in the millions of euros. I have worked at two regulators – UK & Australia – which went through restructures and such changes do not come cheap in terms of money, lost management time and regulatory disruption. The flipside is, of course, what will be the cost to Ireland if the structure is not radically reformed? However you do get the feeling that the human resources element – as opposed to the letter of the law and the exact nature of the current structure – was a significant contributor to the problems leading to the Minister’s announcement today. Hopefully, in the words of the Minister of Finance, we will find people of ‘the calibre, reputation, experience and expertise to lead the reform outlined’.

Comments to posting on this blog welcomed .
(peter@peteroakes.com)