Michael McGrath (Cork South Central, Fianna Fail)
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360. To ask the Minister for Finance the actions his Department has taken arising from the review of Central Bank funding for its financial regulation; the timeframe for its implementation; and if he will make a statement on the matter. [26407/16]

Michael Noonan (Limerick City, Fine Gael)
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Following the joint public consultation published by the Department and the Central Bank in July 2015, I have approved a phased movement towards 100 per cent industry funding of the cost of financial regulation, contingent on the Central Bank agreeing to and implementing new cost control measures. This will commence in 2017 with a move from 50 to 65 per cent of regulation costs being borne by industry, subject to parameters on cost growth being implemented.

The inclusion of cost control measures in the phased increase of industry funding are to demonstrate that both the Central Bank and Government have considered and acted on the valid concerns raised during the industry funding public consultation.  Further, it should reassure Central Bank stakeholders that the commitment to cost control is firmly embedded in the Bank, and it is also an example of the Bank leading in best practice for the wider public sector. Any cost control parameters will be implemented with regard to protecting the Central Bank's statutory independence and ensuring regulatory best practice.

In terms of the timeframe for implementing the phased move, I have agreed an initial increase to 65 per cent in 2017, contingent on the Central Bank agreeing to and implementing cost control measures. The phasing of the remaining increases are yet to be agreed between the Department and the Central Bank. The rollout of the phased increase will take into account the unique characteristics of each sector in the industry and if appropriate may adopt different tracks to achieving 100 per cent funding in different industry sectors.

The Central Bank is at present working to agree the cost control parameters. When this work is concluded, its outcomes will be integrated into the Joint Feedback Statement on the Public Consultation.