Joan Burton (Dublin West, Labour) | Oireachtas source

I will make another point about my amendment. This has arisen in the context of losses carried forward by the banks. I believe the OECD would agree strongly with what I am proposing. A predecessor of the Minister, the late Brian Lenihan, adopted this particular approach a number of times. Under this approach, the capacity to carry forward losses is restricted, meaning in this case that the banks would come into the realm of being liable for corporation tax. We are talking about this applying in the context of extraordinary levels of tax losses, which are being carried forward.

In that context we are talking about restricting the use of these losses in order that the banks pay a minimum effective tax. I am open to discussion and advice from the Minister and his officials as to what the rate might properly be. There is an alternative to this approach, which is to increase the bank levy. The Minister has refused to do this. Instead, therefore, we have banks carrying losses forward for very long periods into the future when they will not be levied with corporation tax. It should be remembered that the other companies the Minister talks about have significant intellectual property that has been brought into this jurisdiction. This has given rise to much of their capacity to vary their tax contribution. There have been reports from the chairperson of the Irish Fiscal Advisory Council, IFAC, on that. This is a different situation. It arises from losses being carried forward. The political point about these losses is that they were carried for the banks by the public. I therefore ask the Minister to go back and do what was done previously now that the banks are profitable again. This did not arise a couple of years ago, when in fact the banks had not gone back into profit, but they have now gone back into significant profit. However, the contribution they are making to paying back the public and the Exchequer for what they paid is not sufficient. By paying more they would also add to the well-being of Ireland. This is what I am talking about.

The Minister talks about foreign direct investment in the context of significant elements of intellectual property coming on shore in Ireland. I am not bringing that into this discussion. If the Minister wishes to do so, he should do so. I am talking about two things. The first is the bank levy raising some money from the banks. I believe the figure is €150 million now. It is a paltry contribution on the part of the banks but an important one. They are coming into significant profit. The second thing I am talking about is the tax they have saved. Is there a way of addressing this? Yes, and the way to do so is to restrict them in the amount of tax losses they can carry forward. In other words, they will have to pay minimum levels of tax. The Minister can say that this is simply postponing it, and I accept that argument, but at least in the here and now, when the country needs the money to deal with housing, health and other social issues, this could go to all the deficits in respect of the children's hospital and other projects he may identify. There is a profound case for the banking sector to pay more. I do not accept the Minister's explanation as to why the banking sector should not contribute. It is time it did.