Tony Killeen (Clare, Fianna Fail)

Deputy Burton's amendment seeks to ensure that the financial services industry meets 100% of the costs associated with regulation. Other Deputies have made related points which do not, however, appear to be apprehended by amendment No. 3.

At present, the costs associated with regulation are shared on a 50-50 basis between the industry and the Central Bank and the Financial Services Authority of Ireland, except in the case of covered institutions which pay the full cost of the regulatory regime applying to them. Specific arrangements apply to credit unions in respect of levies.

The Government has signalled its intention to move to a model in which the industry meets the entirety of the costs associated with regulation. The Minister for Finance had a long discussion on this matter with the Deputies opposite on Committee Stage and he has asked his officials to undertake a process of consultation with the Central Bank and the industry with a view to moving towards full recovery of costs.

The existing provisions of section 33J of the Central Bank Act provide the bank with the power to impose levies and make regulations which, inter alia, determine the amount of such levies. The Minister has a statutory role in approving these regulations. It is unnecessary, therefore, to explicitly provide in legislation that the financial services industry shall meet the full cost of the regulatory regime to which it is subject. Arrangements are being made to achieve the Government's objective of a 100% funding model. In these circumstances, I cannot accept the amendment

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