Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

The issue of a financial transaction tax has a long way to run. Under our Presidency, one of the first big decisions made by ECOFIN was to move forward on the issue. It is a very controversial one with reference to the current position of the industry here which employs 33,0000 people and is worth over €1 billion in payroll and corporation tax returns. Deputies will be aware that we would not have a difficulty if all 27 member states were to move at the same time to a harmonised tax rate. This is an aspect of tax law which is very contentious in the European Union. The dilemma is that if one member state, in this case, the United Kingdom, chooses not to do so, we are in a very vulnerable position.

The Deputy asked for evidence. Some of it is intuitive, while some is based on the stated objectives of some of the biggest firms involved. We have to be very careful. It could be argued that the financial services industry here is an offshoot of the industry in London and that changes could potentially have very dangerous effects on the 33,000 jobs provided and the underlying financial base. It is an open question. Any decision must be weighed against the potential negative impact on these jobs. Even in the worst of times in the teeth of the recession, the sector created additional jobs. During 2008 and 2009 it managed to employ additional workers in the IFSC.