Ministerial Statement by the Minister of Economic Development, The Hon. Dr. E. Grant Gibbons, JP, MP
Mr. Speaker, I am pleased to introduce the Electronic Communications (Regulatory Authority Fees) Regulations 2017.
Mr. Speaker, these Regulations are made by the Minister responsible for telecommunications in accordance with sections 6 and 11 of the Electronics Communications Act 2011, as read with section 44 of the Regulatory Authority Act 2011.
Mr. Speaker, the Regulatory Authority (‘Authority’) is authorised to impose two different types of Regulatory Authority Fees namely, service fees and general regulatory fees. The service fees are charges designed to recover from a sectoral participant a reasonable estimate of the cost to the Authority of performing the function for which the fee is assessed; while the general regulatory fee is calculated to cover all expenses incurred by the Authority for the supervision of the electronic communications industry that are not recovered from service fees or other sources.
Mr. Speaker, the Authority’s proposed expenditure budget for 2017-2018 is $3,550,000 which is an increase over the approved expenditure budget for the fiscal year 2016/17 by approximately $174,500.
The RA estimates that the integrated communications operating licence (ICOL) holders’ annual relevant taxable turnover during the financial year 2017/18 will be approximately $196.5 million, which would generate Revenues of approximately $3,440,000 for the Authority at 1.75 % of relevant turnover.
Mr. Speaker, as required by section 44 of the Regulatory Authority Act 2011, the Authority submitted together with its proposed annual budget, a recommendation to the Minister responsible for telecommunications for the making of Regulations to keep the fee for the current financial year at 1.75 % of relevant turnover. I should also note that the same section indicates that until such time as the Minister makes those Regulations, the said fee would automatically be adjusted by the Consumer Price Index from the previous financial year.
Mr. Speaker, as the Minister responsible for telecommunications, having considered both the Authority’s budget and proposed fee, I accepted the fee recommendation on the basis that the Authority is able to maintain the high standard of service delivery established by the Authority, yet contain spending.
Mr. Speaker, these 2017 Regulations keep the general regulatory fee at 1.75% of relevant turnover and ensure that the fee is not automatically adjusted by the Consumer Price Index from the previous financial year.
Mr. Speaker, last year the total integrated communications operating license ("ICOL") fee paid by the ICOL holders was 4.25% of relevant turnover (the RA retained 1.75% and transferred the remaining 2.50% to the Government).
Mr. Speaker, for Fiscal Year 2017/18 the ICOL fee paid by the ICOL holder will remain the same. ICOL fees are set for this current fiscal year at 4.25% of relevant turnover - the RA will retain 1.75% to cover their 2017/18 Budget and will transfer the remaining 2.50% to the Government. The retention of fees is how the RA is self-funded moving forward.
Mr. Speaker, this concludes my presentation on the Electronic Communications (Regulatory Authority Fees) Regulations 2017 and I invite my Colleagues to participate in the debate. .
Thank you Mr. Speaker.