I don't believe them
"Officials said they believed it is unlikely the powers will be used". Yeah, right.
Here's the future for Nominet:
1. Some minor thing occurs, something like a fire extinguisher is out of date.
2. The government steps in because "Nominet is not functioning properly".
3. Government cronies get the top jobs.
4. Government crony IT companies are called in as consultants. Let's have a big cheer for EDS.
5. Prices of domain registrations now cost £200, because they are a scarce resource. As such, only people with lots of money should have them. And MPs, who are specifically allowed to put them on expenses.
6. Some years later, Nominet is sold off to government cronies who keep milking it.
7. Ofdom, that is the Office of the Domain Regulator, is formed. It has a staff of 500, headed by numerous government cronies. It costs millions a year to run.
Nominet works, it is cheap and it is efficient. All things that the government is incapable of delivering.