IFSC is microcosm of Celtic Tiger - Harney From 7 jobs in 1987 to 7000 jobs today Single Financial Regulator on way Tánaiste warns - decision will be in public interest No sectional interest will be favoured - Harney

Mary Harney, Tánaiste and Minister For Enterprise Trade and Employment said today (Friday 18th June, 1999) that the Irish Financial Services Centre (IFSC) was "a microcosm of the wider development of Ireland over the past decade."

Addressing over 250 top IFSC executives in Dublin Castle, the Tanaiste said that "the co-operative spirit that underpinned the turnaround of the Irish economy from the verge of bankruptcy in 1987 to the fastest growing economy in the world was also essential right from the conception of the IFSC."

Looking back to when the IFSC idea was first mooted, the Tanaiste recalled that it was greeted with a healthy dose of Irish scepticism, if not cynicism. "But the critics were soon to be confounded and within eighteen months of the Centre's launch, 35 projects with an employment commitment of some 1,000 jobs had already been approved. Seven of the approved companies had started up by that stage and were awaiting completion of facilities at the docklands site."

Leading the way were our own two major banks as well as some of some of the major banking and financial institutions in the world such as Chase Manhattan Bank and Citicorp.

The Centre has expanded way beyond the dreams of the pioneers of the late 1980s. In 1987 there were 7 employees. Now almost 7,000 people employed in IFSC companies and in associated back office operations. As an example of the financial scale of the docklands-based operation, the IFSC funds industry administers or manages the equivalent of over twice Ireland's GNP annually.

In her first public comments on the topic since she received the Report of the Implementation Advisory Group on the establishment of a Single Regulatory Authority for the Financial Services Sector, the Tanaiste stated that the Government would make an early decision on the matter. But she warned "the decision on the direction to go will be taken in the public interest. It most definitely will not be taken to further the interests of any sectional group."

The Tánaiste went on to say that the creation of a single regulator will be an opportunity to address, in a coherent manner, the requirements of the financial services industry in general.

We will also determine an appropriate level of regulation for specific sectors and financial instruments. "For example, reinsurance has not been regulated in Ireland to date. I am considering whether some form of regulation would now be appropriate."

Other products and other service providers that currently fall between banking and insurance supervision may also require to be regulated.

"The Government recognise the importance of good regulation in achieving recognition for Ireland, and Irish companies, for high standards in all financial services. At the same time, we will seek to maintain the competitiveness of companies established in Ireland and to ensure that the level of regulation is appropriate and sufficiently flexible to suit the dynamism of the financial services sector, the Tanaiste concluded.