Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

We have been calling for this, which the Minister will know because he has our alternative budget. It is online. We have asked the Department to make a clear signal to him as to where he can access it. However, let us deal with the issue here. The Minister talked about how we need to pay for stuff. Up to €20 million in foregone tax is lost here. The loss is difficult to justify, especially when the transactions in question are of limited value to a company and the practice can lead to corporate executives and shareholder enrichment at the expense of the company, investment in employee compensation or lower price for consumers. It is clear that share buyback regulation deserves attention. The opportunity cost of share buyback is considerable. As I said, resources could be used to lower prices and, indeed, increase productivity or workers' pay.

The Minister's own officials make it clear, stating that as there is a transfer of the beneficial ownership to the shares from one person to another in exchange for valuable consideration, there is clearly a conveyance of transfer on sale of the shares and therefore a charge of stamp duty at 1%. That is not being applied because the law has a gap. There is no rationale for allowing such a large volume of share buybacks to slip through the net without the 1% stamp duty being paid. The Minister can deflect all he wants. This is a sensible proposal that could benefit the State by up to €20 million. That is what we are talking about. Why will the Minister not introduce this measure? Why will he not close the gap that his own officials have identified and believe there is justification for?

See this speech in context