Joe O'Toole (Independent)

I echo Senator Fitzgerald's points on the local government (Dublin mayor and regional authority) Bill. I have significant interest in that legislation because it is also the intention to deal with the name of a small town in west Kerry in which I have a deep and abiding interest. Last month, I asked my esteemed colleague Senator Boyle about it and he assured me it was in play. I take his word on that and I look forward to seeing it.

Senator Fitzgerald touched on the matter of today's UK budget, which has two points of significance. The VAT rate has been raised from 17.5% to 20%, which should be good for businesses on the Southern side of the Border. The other issue is that a levy was placed on the banks and I want to raise an issue related to this which I ask my colleagues to take very seriously. Last week, the Minister for Finance said, conceded, admitted or told the Joint Committee on Finance and the Public Service that the costs of the new central bank regulatory system would be borne significantly by the taxpayer. This flies in the face of what is happening in regulation throughout the world. Recently, people on both sides of the House spoke up about the cost to local radio stations of paying for their own regulation. We saw it was necessary, we conceded certain points on it but we had strong words to say on it. In the regulation of accountancy, and I am a member of the board of the Irish Audit and Accounting Supervisory Authority, IAASA, the accountancy bodies pay more than half of the costs. The entire cost of the Personal Assessment Injuries Board is borne by the insurance industry or the applicant. The Government now proposes that the taxpayer should once again be asked to go to the well to pay for the cost of regulating banks. It is grossly and utterly unacceptable that we should be asked to do this and I ask my colleagues on the other side of the House to raise the matter within their parties. It is not included in the Central Bank Reform Bill which I have gone through with a fine tooth comb. I am not sure how it is covered, but at this stage the banks should pay their own regulatory costs. Last year the cost of regulation to the taxpayer was €39 million. An additional 50 or so people will be appointed and one can add another €50 million this year. In the scheme of things, when we are talking about billions of euro, one might say €50 million is only a drop in the ocean, but these are the drops in the ocean that concern people in terms of the way we are doing our business. I ask the Minister for Finance to come before the House or to send somebody else to explain to us why this is happening this way, why it cannot be changed, what is the rational behind it and why the taxpayer has to pay to regulate the individuals who got us into this mess in the first place.