Derek McDowell (Labour)

I second the amendment and wish to ask the Minister of State two questions. One relates to the nature of the levies that will be imposed to recover costs. Is it intended to equalise this in some way between institutions or is it intended to make some assessment of the cost of regulating a certain institution or type of institution? I presume, for example, it would not be intended to levy a relatively small building society in the same way as one might a large commercial bank. How is it intended to reach a decision on what class of levy will be imposed on an institution or will the institutional basis be used? Will it be done instead on a class basis by attempting to levy the commercial banks together and allowing them to divide the cost between them?

Is it intended to make a profit? The Commission for Communications Regulation has been quite successful in making a substantial profit in the regulation of the telecommunications sector in recent years. I am not sure this is entirely appropriate. On the face of it, money is being taken from large commercial institutions with reasonably deep pockets but the inevitable result is that the cost is passed on to consumers which adds to the cost they pay. That is something we would not want to support. Is it intended that the levy should simply recover costs incurred by the regulator? What happens in the event of a profit being made in the course of a year? I am aware the section allows for a refund of levies in certain circumstances. Is it intended in circumstances where the amount levied exceeds costs in any one year that the excess will be released back to the institutions which paid it in the first place?