Dr. Tom McDonnell:

First, I echo the points about the CCCTB in the sense that it will happen some time in the next ten years because the Americans and the Europeans are pushing for this so it would be wise for Ireland to bake those potential losses into its fiscal policy. The IFAC has been trying to estimate the potential losses in revenue to Ireland and is coming up with figures of between €3 billion and €6 billion. That figure is too high; I do not think it will be that high. If the CCCTB comes into force, it will impact the public finances to the tune of close to €2 billion and it would be wise for the committee and Government to bake that into their figures.

Regarding the impact of getting rid of those particular breaks on the banks, in principle, the NERI and ICTU have consistently taken a position that, broadly, one should move to a system where tax expenditures full stop are squeezed out of the system. They tend to be economically inefficient, regressive and non-transparent, and are a form of public spending that is never acknowledged. Having said that, if we get rid of existing tax breaks, it is important to give a window or time or notice because often, the business will have assumed that those tax breaks are in place. I am not saying it is an existential risk but the risk is that a bank could suddenly be plunged into another crisis. I am not saying that would happen. What I am saying is that when a tax break is in place, particularly when it relates to the business sector - and that is pretty standard - it is a good idea to introduce the legislation to take effect a few years down the line rather than immediately because of the short-term implications. I could not give the committee an answer on the immediate impact of making those changes on the banks.