Enda Kenny (Mayo, Fine Gael)

The Deputy raised a number of important questions. The common consolidated corporate tax base, CCCTB, is a subject of a paper prepared by the European Commission. Deputy Martin is aware the European Commission is the body responsible for the promotion and initiation of legislative measures within the European Union. As a member of the European Union, Ireland has agreed to engage in the discussions about this matter. I can inform the Deputy there is much resistance to that matter around the European table. It was not discussed in any shape or form or to any extent at the European Council meeting and was not the subject of a discussion between Prime Minister Cameron and me. However, a financial transaction tax was the subject of discussion between Prime Minister Cameron and me. Clearly, this is an issue Deputy Martin rightly identifies as being broader than simply being between Dublin and London. It also is of serious import to people in Frankfurt, Amsterdam and Paris. I note the comment of the French President that he intends to introduce unilaterally a financial transaction tax in France. While that of course is his right if he wishes to do so, it is the view of the Government that were a financial tax to apply, it should apply on a global basis. One cannot have differences of impact between, for instance, the cities of London and Dublin.

Deputy Martin is correct when he stated that 32,000 people are directly employed in the International Financial Services Centre in Dublin, which is the location of more than 5,000 firms. Moreover, substantial indirect employment also is generated and the sector contributes €2.1 billion in corporate and payroll taxes to the Irish Exchequer. International financial services account for 10% of multinational employment and represent an estimated 7.4% of GDP. In addition, 5% of European Union international financial services activity is carried out from Ireland. The fundamental goal of public policy in respect of the IFSC is to develop an international financial services industry in Ireland that is built on sustainable, responsible and internationally respected foundations to maximise both the number of jobs and the quality of the employment, as well as the future sustainability and growth prospects of the industry. The Government believes it is necessary to continue to adopt, articulate and implement a clear vision for the future of the IFSC and to demonstrate Ireland's commitment to promotion and growth there.

The Deputy also will be aware that I announced a new IFSC strategy for the next five years, which came from the industry itself. It reckons it is possible to achieve 10,000 net new jobs in that period and the strategy sets out the key drivers in this regard. Its foundations are a tax system and tax framework that are competitive and internationally respected, as well as a regulatory regime that supports responsible business operations and ensures effective oversight and control. As Members are aware, the oversight of that and the clearing house in respect of the IFSC and all these areas are vested in the Department of the Taoiseach. The strategy I launched recognises and fully supports the critical importance of a credible, responsible and proportionate regulatory system, the capacity and reputation of which will provide in itself a source of competitive advantage for this jurisdiction, attracting reputable, responsible and sustainable financial services activity. I have met numbers of representatives of the firms in question and they always have proposals and observations to make on the manner in which the IFSC is structured and run and I appreciate that. The sector is convinced that given the system that applies in Ireland, it will be possible to achieve 10,000 new net jobs in this industry over the next five years in the green area and in the Islamic finance sector, which is growing rapidly. From this perspective, the Government obviously understands its absolute importance.

I can inform Deputy Martin there was no discussion, good bad or indifferent, on the financial transaction tax or the corporate rate of tax at any of the Council meetings. I discussed it specifically with the British Prime Minister, who is completely opposed to it unless it was to apply globally. While tax obviously is a national competence, universal endorsement is required if there are to be changes across the board. While individual countries may wish to take measures, they cannot apply in an overall universal sense. It is a very important industry for Ireland and on foot of the publication of the strategy, all concerned are anxious to drive it on. I make the point that a chief executive from the United States observed to me the reason that organisation shifted its primary financial products to Ireland was because of the passion - that was the word used - of its young people to do the job and to move on to evolving new financial instruments and products, which are of enormous interest to Members in respect of the creation of jobs.

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