Joan Burton (Dublin West, Labour) | Oireachtas source

I thank the Minister for his response but it is foolish to have as a fundamental part of a banking strategy the significant carrying forward of losses without any reduction or mitigations. I was involved in the discussions that resulted in increases in bank levies, which in my view are a relatively poor substitute for taxes. These rules were devised when the banks were mired in massive losses and there was not an optimistic view as to how quickly they might return to profitability. The banks are now returning to profitability and will possibly return to very significant profitability into the future. It is interesting that this is being done. It shows that there is flexibility in the Department of Finance to address issues but not in the context of the future significant profits of the banks that were bailed out in terms of the indefinite carrying forward of losses. This means effectively means that the banks on a voluntary basis can decide whether, for ten or more years, they will pay corporation tax. In terms of accounting standards and so on this may be policy but it is a wrong policy, notwithstanding the levy.