THE Private Sector Organisation of Jamaica (PSOJ) has responded with concern to the attempt to the regulate bank fees and charges which began in the House of Representatives on Tuesday.

In a release on the debate on a private member’s Bill tabled by Opposition Member of Parliament Fitz Jackson, seeking to regulate the fees and charges, the PSOJ said that it is concerned with the proposals to amend the Banking Services Act to regulate price setting in banks, and viewed this as a retrograde step where the State could return to pricing controls.

“In particular, the minimum service package proposed seeks to place the power to set fees in the hands of Parliament, through Section 4 (8),” the PSOJ said.

It also noted that the 12th schedule of the Bill details how the fees and transactions are to be determined which, according to the private sector, would remove the competitive distinction from the market and make it less efficient.

The PSOJ called on the Government to immediately engage in discussions with the private sector and the banking community towards finding a win-win solution, “and not seek to further regulate a market that has been suffering from over-regulation”.

Jackson, in opening the debate on Tuesday, said that he embraced and acknowledged the imperatives of a “profitable and viable” banking industry, as indispensable to modern societies.

“However, it is the obligation of the State to ensure balance and fairness in transactions among parties that are of national importance, to say the least,” he stated.

“It was clear from the report that these fees were often so exorbitant and unreasonable that it militated against financial inclusion, and the growth of licensed and transparent financial space,” he said.

He stated that he saw as “gross contempt for the Parliament and the concerns of the people the members represent” that the banks continued to raise their fees despite their complaints.

He described the banks actions as “skimming of deposits” from places usually considered a safe place to deposit people’s earned funds.

Jackson also urged his colleagues in the House to support the Bill or, by their own inaction, “remain complicit in these egregious actions against defenceless depositors”.

He said that the Bill offered the Parliament an opportunity to “end the banks egregious practices”, and should be seen as an amendment to the Banking Services Act which would strengthen the regulations as they relate to depositors.

He suggested a “minimum service package”, which he suggested should apply to all licencees.

He also noted that the Bill included proposals arising from discussions within the House’s Economy and Production Committee, which was chaired at the time by current Minister of Industry, Commerce, Agriculture and Fisheries Karl Samuda.

But, the PSOJ said yesterday that, while it very aware of the public outcry against the cost of banking services in Jamaica, it views the attempt to deal with the matter in the Bill’s amendments as “misguided”.

“The PSOJ has always been of the view that economic and social development must be underpinned by efficient and competitive markets, and that our stagnation over the past 40 years is directly as a result of markets not being allowed to be efficient,” the release said.

“Our view is that what is needed at this time is deregulation of capital markets, thus allowing a deepening of capital availability and participation, which in turn will allow for greater competitiveness and employment.”

Debate on the Banking Services (Amendment) Bill is expected to resume in the House of Representatives next Tuesday.