Enda Kenny (Mayo, Fine Gael) | Oireachtas source

First, it is important to set out what the Clearing House Group actually does. It is not a case of cosy relationships. It is a forum chaired by the Secretary General of the Department of the Taoiseach which draws together representatives of the private and public sectors to look at issues of importance to the country. When the question of a financial transaction tax was first raised, a range of different views were expressed. The matter was discussed extensively in the media and raised in other quarters, including this House.

If I am correct, the spokesperson on finance for the Fianna Fáil Party spoke in the House in October last year and raised the prospect of difficulties being created in terms of job creation and job retention if a financial transaction tax was not considered properly. The Departments and the Clearing House Group did consider the issue. The Departments discussed the matter with various elements of industry and those involved in the financial services area. Independent research was carried out by the ESRI and the Central Bank. It is quite in order that the Government should consider such matters carefully before it would agree to a change. The decision announced by the Minister for Finance on behalf of the Government was that we would not be supportive of a financial transaction tax unless it applied universally. The reason is that one does not want to place Dublin and the IFSC at a disadvantage in comparison to London where such a tax might not apply.

Deputy Gerry Adams is aware that stamp duty is applied in this country. As part of the process of the European Union, he is also aware that enhanced co-operation applies where a majority of countries wish to pursue a particular course of action. Eleven countries wish to introduce a financial transaction tax. As the incoming holder of the Presidency, I have made it perfectly clear to colleagues in Europe that we do not support a financial transaction tax for the reasons set out, but that will not prevent us from processing the enhanced co-operation element under the rules that apply and the eleven countries that wish to introduce such a tax can go ahead and do so. It is not a case of the Clearing House Group making policy decisions; it is only a forum for interaction on the development of information and the analysis of views between private and public in the interests of the financial services area and the retention of jobs and the promotion of job creation. As always, policy is a matter for Ministers to develop and Governments to accept and disseminate. I hope that clears up the issue for the Deputy. The Clearing House Group is chaired by the Secretary General of the Department of the Taoiseach and there is no question of cosy relationships being adopted. I have met representatives of the industry on a number of occasions. It is perfectly in order for them to say the regulatory position, in so far as regulator X or Y is concerned, is too restrictive and needs to be adapted or modified in order that decisions can be made about business that will make it easier to retain and create jobs. As the Deputy is aware, the number of jobs in the IFSC has grown to 33,000 from 8,000 20 years ago.

Since 2011 more than 3,000 jobs have been created as a result of the advantageous decisions taken with IDA support for investment in this country. We hope that, as part of the strategy for the international financial services industry,10,000 net new jobs can be created by 2015. This figure is based on the reckoning of the industry. I will forward a copy of the strategy to the Deputy, if he does not already have one. A good start has been made with the first 3,000 jobs.

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