Dáil Éireann Debate, Tuesday - 29 September 2015
270. Deputy Mary Mitchell O'Connor asked the Minister for Finance if he will provide an update on the proposed increase in the industry funding levy; and if he will make a statement on the matter. [33281/15]
View answerUnder Sections 32D and 32E of the Central Bank Act 1942, the Central Bank is required to seek my approval for the Regulations prescribing levies and fees to be paid by entities subject to regulation by the Central Bank. However, I have not yet made any decision under Sections 32D and 32E on the 2015 levies that will be applied by the Central Bank.
I am aware that the Central Bank had consulted industry on the proposed 2015 levies which I understand would have in some cases amounted to a significant increase on 2014. The Bank attributed the proposed increase to both a proliferation of legislative regulation/regulatory activity and an increase in staff pension costs arising from Financial Reporting Standard 17 coupled with current low yields on the bond market.
The Central Bank has acknowledged the potential impact that the volatility of pension costs would have on individual levies and, as a consequence, it is considering the possibility of spreading current service pension costs over an extended period, thereby mitigating the impact on the proposed 2015 levies.
It is important to note that a robust regulatory environment benefits the financial services industry by promoting stability, a level playing field and facilitating prudent development and innovation. A well regulated financial services sector also benefits consumers, industry, and the economy at large. The Government's priority is to ensure that the regulator is sufficiently resourced to fulfil its important role and staff costs (including pension costs) are a key component of this effective regulatory regime. This is something that I will be taking into consideration in my deliberations on this matter.
