Paul Murphy (Dublin South West, Solidarity) | Oireachtas source

I move amendment No. 51:

In page 42, after line 36, to insert the following:

"CHAPTER 7

Financial Transaction Tax

30. The Minister shall, within 6 months of the passing of this Act, bring a report on the potential additional income that would be raised by imposing a financial transaction tax.".

This is a proposal for a report on the potential additional income that would be raised from the imposing a financial transaction tax.

The model that the European Commission has looked at is a tax of 0.1% on transactions of shares and bonds and 0.01% on derivatives. Ireland has the 15th largest international financial sector in the world and the fourth largest shadow banking system. The Irish Financial Services Centre, IFSC, currently manages €1.9 trillion in assets without providing much in the way of jobs or taxes. The logic for a financial transaction tax is twofold: first, to cure volatility and speculation in financial markets, which would mean more of a focus on productive investment as opposed to short-term speculation, and second, potentially to raise revenue that can be used for any number of matters.

Dr. Micheál Collins of the Nevin institute produced a report a couple of years ago which found that the net yield would be between €320 million and €350 million when one takes into account the loss of revenue in terms of stamp duty. At a later stage, the Department of Finance estimated potential revenue of €500 million. That was the average estimate at that stage. As far as I remember, in the run-up to this budget we did not get any estimates but our figures suggested that the net sum raised by the 0.1% and 0.01% would now be up to €610 million given the growth of the financial sector.

The previous Minister for Finance always rejected this. He always said, in terms of the European Union discussions, that the Government wanted an international solution and therefore did not want a European solution, which was effectively a recipe for doing nothing and certainly not taking any initiative from the point of view of Ireland. Does the attitude of the current Minister differ in any respect?