Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputies. There are three points here. One is about how we respond to the great harm done by mica. I am faced with calls all the time to meet groups about every issue the Government is dealing with that involves the use of money. I am inevitably called on to meet those affected by mica. If I decide to meet residents and homeowners who have had such an awful time with this trauma, it will not be because of public calls for me to do so but because I either feel it is the right thing to do or decide that it can help me with inputting into the decision the Government will make.

On the issue before the committee, it is worth noting that this revenue stream was due to come to an end this year. We had not included in any of our forecasts for 2022 the extension of a bank levy and assumed the continuation of revenues from it. From a budgeting point of view, any decision made about the extension of the bank levy was going to bring in additional revenue versus our budgetary forecasts for 2022.

I made the decision to do this because we have two banks that are either closing down for new business or have closed down. Next year, we will need to see 1.4 million customer accounts transition from the two banks that are leaving Ireland to the three banks we still have. That is a massive change in the loans, savings, business and personal lives of well over 1 million business owners and workers in the State. My view was that any change in how the bank levy was applied could make that more difficult. As to whether we are giving a tax reduction to any bank, AIB, Bank of Ireland and PTSB will continue to pay the same bank levy they paid this year. No bank will receive a reduction in the bank levy. Two banks are in the process of leaving Ireland and since they are leaving this economy, my view was that it was not appropriate that they pay the levy.