Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Does the Taoiseach accept that a balance is always required in dialogue with industry, which is necessary – the Clearing House Group has been effective in that regard – to ensure relations are not too cosy and that there is clear guidance on how to proceed and rules of engagement between the sector and Government officials? The financial services area is a competitive world. I regard the fact that 33,000 people are employed in the IFSC as a significant factor to be taken into consideration in any policy position we adopt. The creation of this initiative is an extraordinary and enduring legacy of the Fianna Fáil Government in 1987. There was a seminar on the subject in the Global Irish Economic Forum. The concern articulated by many who are aware of what is happening around the globe is that the challenge for the IFSC is to move to higher value activities and that there is a deficit in terms of the quality and skill sets of personnel required in view of the type of people we need to attract to this country from other centres with their products and companies over and above what we already have. It has been said certain of the activities ongoing for some time are vulnerable to migration to other low-cost regions and that we must attract higher value activities to the IFSC. The point has been made that there must be a combination of upskilling education and working through arrangements to encourage or incentivise individuals to move from one sector to the next.

If the Taoiseach reads what Paul Krugman or others have to say, he will be aware that they are clear that the Great Recession, as they dub it, that we are now experiencing is fundamentally one that initially was a factor in causing the collapse of the financial and banking world. First and foremost, it was a global financial and banking collapse, followed by sovereign iterations of the problem when they took on board the financial collapse. I often believe there is an absence of contrition in the financial and banking world about this reality. It is in that context that I ask whether the Clearing House Group has discussed the issue of pensions or salaries. One invariably hears about global benchmarking in the setting of salaries and some countries tend to do it better than others. We have had discussions in recent weeks about the pensions and salaries of bankers. I presume the issue has been discussed between the Government, departmental officials and the representatives of the financial services sector. The sector has much work to do, with other sectors, to regain respect and credibility from the person on the street who is aghast, annoyed and angry at the scale of the salaries and pensions enjoyed by bankers. Were these issues discussed with the Clearing House Group and what has emerged from it?

Apart from the ESRI and the Central Bank, did the Government commission research on the likely impact on the industry in this country and the IFSC of a financial transaction tax? The proposal ultimately emanated from Brussels. Do we have hard evidence-based research on potential job losses or the impact of such a tax? I have heard various estimates, ranging from €150 million to €3 trillion worth of activity. We must have clear answers on that front. I would be interested in hearing whether specific research has been conducted in that regard.

See this speech in context