Examination of Witnesses (Questions 100
- 104)
TUESDAY 20 JUNE 2000
MS PAMELA
TAYLOR, MR
JOHN CUTHBERT
MR BOB
BATY AND
MR ROBERT
WEEDEN
100. There will be a post hoc rationalisation
not a request to listen to their views. In fact on the question
of mutual companies, would that pose any problems for the next
review?
(Ms Taylor) The Regulator has said that he intends
to regulate them in exactly the same way he intends to regulate
people who have not gone down that particular style of restructuring.
101. So no problems in principle or practice
for them participating in the future?
(Ms Taylor) There cannot be because the Regulator
will have to ensure that what he wishes to do he can still do
because we still have comparative regulation.
102. One final question in my role as sweeper
on this.
(Ms Taylor) I think you should be playing this evening
in that case.
103. Are there any additional obligations which
are imposed between reviews or arise between reviews and are the
arrangements for dealing with those adequate, in your opinion,
particularly as regards financing?
(Mr Baty) It depends on the magnitude of the changes.
Certainly my company has been involved in an interim determination
in the first quinquennium and that was a pretty demanding exercise
and it is not something that I would particularly recommend. If
it is possible to get the clarity that you are talking about earlier
so that it avoided the need for an interim determination that
is a far better arrangement for all concerned. We had a significant
change relating to European legislation and the cleaning up of
bathing waters which had such a big impact it did necessitate
an interim review but, as I say, the process that we went through
was very demanding in resources from the business and then having
to gear up and start to deliver it was a big challenge. It is
practical, it can be done. John may to comment as their company
also went for an interim determination because of a change of
circumstances. It is a safeguard if the circumstances are so significant
but, in terms of the commitment to do it, we think it is equally
as onerous and a far better arrangement is to have clarity at
the outset to take the process through within the framework which
we all understand.
104. Thank you all very much indeed, that has
been a very helpful and frank session.
(Ms Taylor) Thank you and thank you very much indeed
to your Committee.
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