I am very pleased to welcome you all in such numbers to this very important conference here in Dublin today. While I see some familiar names in the attendance list, I know that there is a large representation from abroad, and would like to add my own personal welcome to you, in particular, in this special week when we celebrate our annual national St Patrick's Day Festival. We in Ireland have a great reputation for our ability to celebrate social occasions, but I have to warn you, that we have a commensurate drive and determination to be the best and this doesn't come about without sheer hard work. We are here to work for the next few days, but I've no doubt that our hosts will make it as painless as possible for everybody.

That you are all here today is testament to the strengths of Dublin as a location for international financial services. The IFSC would not have happened without a combination of factors that include professionalism, a good infrastructure, and a firm but fair regulatory framework. Of course, we can't stand still - having the right location is not enough if it is not marketed effectively.

I have particular responsibility for insurance supervision and I know that our Departmental officials in that area have been kept extremely busy examining new applications for authorisation. This is clear evidence of the success of Mr. David Smith of the IDA, since his appointment as Ireland's International Insurance Representative. Mr. Smith has given you an outline of what he hopes to achieve for Dublin, and I want to tell you that the Government is committed to ensuring that, where possible, this plan can be carried out. He has outlined some new areas for development and I expect that this conference will highlight further areas for consideration. Some of these may require more investigation, particularly by the regulatory authorities. Some proposals may not be possible without legislative change. At this stage, I can make no definite commitment about any changes. I can promise, however, that all the Departments and Agencies involved will be responsive to new ideas and will progress them where it is right for Ireland and is compatible with our obligations to our fellow EU Member States.

The environment in Ireland is due to change with the ending of the certification process for companies in the IFSC but I can assure you all that the Irish Government is firmly committed to developing the international financial services sector in Ireland further. The Government's proposals are outlined in its report called a "Strategy for the Development of the International Financial Services Industry in Ireland", which has just been published.

Our Government is concerned to ensure the continuation of the image of Ireland as a centre of quality. This will be done through addressing a matrix of issues. The Government will seek to ensure that there is effective regulation and that there is no place in Ireland for companies operating to low standards. Government Departments and Agencies are also firmly committed to working with the industry in providing an appropriate regulatory response to the rapid changes that are taking place in the marketplace.

As regards insurance itself, I believe that our strict regulatory regime should continue. In our experience, this is welcomed by financial service providers because of the customer confidence which it generates and, of course, international competitive advantage. At the same time, the Irish regime does not try to tell financial service providers how to run their business, on a day-to-day basis. We attempt to achieve an effective but pragmatic approach to problem solving that we feel is the most efficient way of delivering our services. The officials in our Department of Enterprise and Trade and Employment are conscious of the needs of business and willing to discuss new ideas or, indeed, problems if they arise. We are willing to listen to you at all times. We also believe strongly in the merits of a partnership approach to business. Our insurance officials participate in constructive discussions on a regular basis with industry representatives and, of course, and with all relevant bodies at the IFSC Insurance Committee, chaired by Mr. Eamon O'Brien who will by now be no stranger to you.

This conference today is about merging insurance and financial risk. As the distinction between banking and insurance fades, regulators may also need to merge resources to deal with new products and markets. This is a challenging time for regulators and new regulatory measures and skills may be needed. There is an undeniable case, in a such a small country, for building a critical mass of financial regulatory skills within a single body. The Government has decided, therefore, that all financial services should be overseen by a single regulator. The establishment of a single regulator will be a major task and a Working Group appointed by the Government is currently reviewing the functions and activities of all existing regulators including those of our own Department and the Central Bank. I know that the industry has identified continuity and consistency in regulation as an important factor in the IFSC's success and I have no doubt that the Expert Working Group on the single regulator will also take these factors into account.

The efficient regulation of financial services in Ireland may also be hindered by the multiplicity of regulatory bodies, each of which has different powers and functions.

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, and to determine an appropriate level of regulation for further sectors and financial instruments. For example, reinsurance has not been regulated in Ireland to date but consideration is being given to whether some form of regulation would now be appropriate. Other products and service providers that currently fall between banking and insurance supervision may also require to be examined.

We 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 to the circumstances. I am very interested in the topics to be discussed over the next two days. I know that there are many important issues emerging that provide challenges and opportunities and I look forward to hearing from you about any issues where either myself or our officials can be of assistance.

Finally, I wish you all a very constructive conference and I hope that you all enjoy our week of festivities.