Ms Brenda McVeigh:

I agree. However, when one does not know how something will operate in practice or even what type of institution will be impacted, it is very difficult to quantify specific potential effects. All we can say is that there are issues of concern and it is then for the Government to decide whether the concern is sufficient for it to make sense that we opt out. It is useful to consider the situation in countries which have already introduced an FTT. In France, where the tax was introduced last year, the yield seems to be 50% less than envisaged. Instead of an expected intake of €1.5 billion, the actual intake is €700 million, together with a drop in the volume of transactions. As we know, a decrease in the volume of transactions means a decrease in the volume of the work. There are indications that the Italians have also suffered a drop in yield and volume of transactions following the introduction of an FTT in that country earlier this year. One would have to assume the same scenario would play out in Ireland were we to introduce an FTT.