Mick Wallace (Wexford, Independent)

I realise that if London does not play ball by buying into the notion of a financial transactions tax, this will prove problematic for Ireland. However, in principle, we should argue in favour of the introduction of such a tax. Perhaps the Minister might try to convince George Osborne about the merits of a financial transactions tax. Having such a tax must be a good idea in the long term, particularly as it would lead to greater stability in the financial system. In the light of the fact that the financial sector played such a major role in causing the difficulties which obtain across the globe, it is only fair that it should be obliged to carry the can to some extent.

The European Commissioner on Taxation and Customs Union, Audit and Anti-Fraud, Mr. Algirdas Šemeta, has made a number of interesting points on this matter. He stated the cost of a financial transactions tax would be small and absolutely legitimate, particularly in the light of the support the financial sector has been granted in recent years. He went on to say, "The financial markets have to make a fair contribution to the crisis they provoked". Furthermore, he commented that a financial transactions tax "will act as a disincentive to high frequency trading and other practices which increase risk without ensuring liquidity". Does the Minister agree that the benefits of introducing a financial transactions tax would include an equal distribution of the tax burden and a more responsible financial sector? As he indicated, such a tax, particularly if it were introduced on an EU-wide basis, would yield revenues of as much as €57 billion. Does he agree that it would be great if the financial sector was made to work for society again rather than having it the other way around?

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