Micheál Martin (Cork South Central, Fianna Fail)
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Question 5: To ask the Taoiseach the number of times in the past year that the IFSC Clearing House Group has met; the issues that were discussed; the actions that have been taken as a result; and if he will make a statement on the matter. [9367/12]

Joe Higgins (Dublin West, Socialist Party)
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Question 6: To ask the Taoiseach the number of times in the past year that the IFSC Clearing House Group has met; if he will give details of the matters that were discussed; the actions taken as a result; and if he will make a statement on the matter. [12523/12]

Gerry Adams (Louth, Sinn Fein)
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Question 7: To ask the Taoiseach the number of times the International Financial Service Centre Clearing House Group has met since the beginning of January 2012; and if he will make a statement on the matter. [13920/12]

Enda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 5 to 7, inclusive, together.

The IFSC Clearing House Group, CHG, has met on six occasions in the past year and is due to meet next on 3 April. Its associated working groups in banking and treasury, insurance, funds, asset management and pension funds meet regularly, typically on a monthly or bi-monthly basis.

My Department has supported the international financial services industry in Ireland since the establishment of the IFSC in 1987 by providing a forum for the exchange of views and the co-ordination of effort through the mechanism of the IFSC Clearing House Group and the related working groups. During this period, the IFSC has grown to employ 33,000 people and to contribute more than €1billion annually through corporation tax and payroll taxes.

The Clearing House Group itself is chaired by the Secretary General of the Department of the Taoiseach and its membership includes public and private sector representatives. This includes the leading industry figures including both firms and industry associations. The chairs of each working group are also members of the group and facilitate communication between working groups and the Clearing House Group. There are also representatives from my Department, the Department of Finance, the Department of Jobs, Enterprise and Innovation, the Central Bank, IDA Ireland, Enterprise Ireland and the Revenue Commissioners.

The spread of membership of the group and the working groups enables discussion to take place in an open way which reflects a wide range of experience and expertise so that opportunities to develop sustainable business and employment in the various sectors of the international financial services industry can be achieved.

The groups are mandated to identify and consider issues of importance to the long-term development of the international financial services industry in Ireland. These issues include the strategic development of new business areas and opportunities, the progress of relevant legislation and it identifies, from time to time, the need for responsibility to be assigned for overseeing and reporting to the Government on any appropriate initiatives in this area.

The programme for Government states that the Government "supports the future development of the IFSC as a source of future employment growth, subject to appropriate regulation" and commits to the development of the financial services sector to maximise employment opportunities. The IFSC Clearing House Group shares my conviction that there is scope for development and employment growth on a significant scale. In 2011, the group developed a strategy framed on the basis of an objective to create more than 10,000 net new jobs, to protect existing employment and business, and to consolidate the sector as a key driver of the Irish economy over the next five years.

I launched the strategy for the International Financial Services Industry in Ireland 2011-2016 in July of last year. That strategy was developed on the basis of extensive analysis and consultation carried out across the full range of international financial services. It reflects market trends and the business opportunities to which they give rise, as well as the established strengths and capacities for development of the industry, its advisory and supporting networks, and in the broader labour force available in Ireland. It is a strategy which recognises and fully supports the critical importance of a credible, responsible and proportionate regulatory system whose own capacity and reputation provides, in itself, a source of competitive advantage for this jurisdiction attracting reputable, responsible and sustainable financial services activity. The strategy forms the basis for the agenda and discussion at the Clearing House Group and it is being monitored by the group for specific implementation measures across all of its working groups.

Among other opportunities for growth, the strategy commits to developing Ireland as a centre of excellence in green finance and carbon management through the Green IFSC initiative which is being co-ordinated by my Department through the Clearing House Group and in conjunction with industry.

The core concept of the Green IFSC involves positioning the IFSC to take advantage of growth in the global green economy and green finance sectors. It envisages a cluster of financial and support services for the domestic and international green tech, renewable energy and carbon sectors.

Other issues considered by the Clearing House Group over the past year include the marketing and messaging of the international financial services industry and recommendations made by the group and the working groups resulting in measures being included in the Finance Bill to enhance and support the competitive position of the international financial services sector here.

The mandate of the Clearing House Group in the coming years will be to drive and monitor the implementation of the strategy, and the achievement of its goal of creating 10,000 new jobs. Doing so will require action across the seven drivers identified in the strategy. These drivers are a transparent and competitive direct and indirect tax framework; a credible, responsible and proportionate regulatory regime; the development of new business lines; co-ordinated international engagement and marketing; integrated support for investment and growth; targeted development of appropriate skills; and sustained control of business costs.

A key aspect of the success of the IFSC and the Clearing House Group has been Ireland's responsiveness to trends and opportunities, built on an effective relationship between the public sector and industry. The Clearing House Group is an essential part of this relationship, and I believe it will play an important role in delivering the jobs target this Government has set.

Micheál Martin (Cork South Central, Fianna Fail)
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I thank the Taoiseach for his comprehensive reply. The concept and development of the IFSC is a testament to the vision of Governments in earlier generations, particularly in the late 1980s and early 1990s. We now have 33,000 people employed in what is an important sector in Ireland in terms of its global impact and number of jobs created.

Has the Clearing House Group discussed or undertaken any analysis of the impact of a potential transaction tax on the IFSC? It has been mooted by the French President and in a number of other states and has created tensions across the European Union. I am not referring to such a tax in London. What would the impact on Dublin be if Europe agreed one and the rest of the world did not?

The Taoiseach referred to the green IFSC. Can he give any examples of any concrete steps that have been taken to develop the concept? It has been around for about two or three years. Has the Clearing House Group agreed any specific steps to take to advance the concept into concrete, realisable and tangible outcomes?

Have sharia compliant funds been discussed recently by the Clearing House Group? A recent PricewaterhouseCoopers report outlined the potential return from such funds and the possibility of Dublin acting as a hub for them. I understand other locations like Edinburgh are competing for that kind of business.

Enda Kenny (Mayo, Fine Gael)
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I recognise, as does the Deputy, that the original concept of the IFSC came from a very important businessman and was implemented by a former Taoiseach, Charles Haughey, who set up the IFSC in the 1980s. It now employs 33,000 people which is a testament to its evolution over a number of Governments and is a very important entity in terms of corporation and payroll taxes.

I cannot answer the question on whether the Clearing House Group has discussed sharia finance. It was a central part of a launch I attended last year. I will give the Deputy an up to date response on the situation.

On green finance, as the Deputy knows it refers to capital investment in banking, treasury and insurance businesses that supports the development and promotion of a low carbon economy. It includes the funding of renewable energy generation, energy efficiency measures and carbon credits trading. In a wider context it embraces issues like the environment, water, waste and weather.

Recent related green tax changes include the inclusion of carbon offsets within the existing structured finance tax regime, including the Finance Bill 2012 amendments to explicitly include forest carbon credits; relief from stamp duty on transfers of greenhouse gas emissions allowances; the extension of corporation tax relief for investments made in renewable energy projects; and the inclusion of companies involved in the production of energy from renewable sources within the income tax relief scheme for investment of corporate trades. There have also been a range of educational and other developments under the green IFSC initiative.

Since the third quarter of 2011 the Green IFSC, in partnership with Summit Finuas which is under the remit of Financial Services Ireland, FSI, has earmarked €600,000 for sustainable finance educational projects to ensure Ireland has the talent base needed to grow green finance business and attract companies to Ireland that operate in that sector.

September 2011 saw Ireland's first postgraduate course in sustainable finance launched at DCU. In January this year Ireland, through UCD, launched the world's first of its kind master's degree in energy and environmental finance. In the same month, the Institute of Bankers announced a new graduate diploma in green energy management and finance. FSI, a constituent body within IBEC which represents financial services companies, is conducting an indepth report into the education needs of new and existing businesses to ensure Ireland is at the forefront of producing professionals with the skills needed to grow sustainable businesses in the sector.

All green IFSC-assisted courses have emerged from collaboration with industry leaders, public sector representatives and academics who have come together to ensure Ireland is a global centre for green finance. Green IFSC projects are all of that nature. I will send the Deputy an up to date response in respect of the current position on sharia finance.

Micheál Martin (Cork South Central, Fianna Fail)
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What about a transaction tax?

Enda Kenny (Mayo, Fine Gael)
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I do not know whether the Clearing House Group discussed it. The Government is opposed to it.

Micheál Martin (Cork South Central, Fianna Fail)
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It is a very important issue. The Taoiseach has representatives on the Clearing House Group. He might ask whether an analysis was undertaken of the potential impact of such a tax.

Enda Kenny (Mayo, Fine Gael)
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I do not know whether the Clearing House Group discussed it. The Government has made it perfectly clear it is opposed to it. I note President Sarkozy's wish to introduce one on his own or in collaboration with some other countries. Countries are entitled to do that. The Clearing House Group is chaired by the Secretary General of my Department. I will let Deputy Martin know whether there have been any discussions at the Clearing House Group in regard to a financial transaction tax.

Joe Higgins (Dublin West, Socialist Party)
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Does the Taoiseach have any concept of how incredible it sounds to ordinary people that he boldly stated the Government is opposed to a transaction tax? There are tens of billions of euro swirling around the IFSC and financial centres of Europe in all kinds of speculative ventures which are ongoing despite the crash. It resulted from the total deregulation of the financial markets and the type of speculative and casino-like activities that took place in the pursuit of private corporate profit at a huge cost to society.

The Taoiseach is opposed to a tax-----

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy, we are not discussing a transaction tax.

Joe Higgins (Dublin West, Socialist Party)
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-----that might bring in desperately needed revenue for the hard-pressed people of Europe for investment, etc.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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That is a separate question. Stick to your question.

Joe Higgins (Dublin West, Socialist Party)
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In his reply the Taoiseach begged a supplementary question. His predecessor, Brian Cowen, said in May 2010, "The IFSC Clearing House Group identifies and considers issues of major concern to the long-term development of the national financial services industry in Ireland and also lists consideration of regulatory issues."

To the knowledge of the Taoiseach has it analysed and reported on the events leading up to the financial crash in 2007 and 2008? Has it drawn any lessons from it or provided the Government with any lessons? Has it made any self-criticism? Has there been any clearing out of the Clearing House Group in terms of its absolute failure to call a halt to the type of obscene speculation that was going on around Europe in the lead up to 2008?

Industry members who have served or are serving on the Clearing House Group and related subgroups include a who's who of the biggest finance companies in Europe and the world.

Enda Kenny (Mayo, Fine Gael)
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The Deputy is deliberately mixing up retail banking transactions and those that take place in the IFSC. If we were to follow the Deputy's advice, we would close down the country completely.

Dinny McGinley (Donegal South West, Fine Gael)
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That is what he wants.

Enda Kenny (Mayo, Fine Gael)
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If the Deputy's socialist policies were implemented, bearing in mind he is the only socialist I know in the whole of Europe who is opposed to any kind of property tax, the country would close down completely.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Tax the hedge funds.

Enda Kenny (Mayo, Fine Gael)
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The Deputy has not raised the role and responsibility of the banking and treasury working group, nor has he raised the role of the IFSC funds, insurance, pensions or asset management working groups.

Regarding the retail banking sector, I agree with the Deputy on what happened when Ireland decided to run its affairs on the basis of windfall taxes from property speculation and that the greed of the banking sector resulted in extraordinary incentives and more pay for those who lent more, but that is a very different proposition from that associated with the IFSC. The Deputy wants to lump them all together and close down the country entirely.

Joe Higgins (Dublin West, Socialist Party)
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Who gave the loans?

Enda Kenny (Mayo, Fine Gael)
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Deputy Martin asked a valid question about a transaction tax. We have pointed out on many occasions that one cannot have one set of circumstances in Dublin and another in London, Amsterdam or Frankfurt. Theoretically, if there is to be a transaction tax in a global situation, everybody would like to see it happen. As I stated previously, I would like to see the law in Ireland dealing with those who should be dealt with. Clearly, while there are independent authorities in the country over which I have no control, the people want to see somebody pay some price for the activity that dragged our country over the edge, driven by the incentive mechanism in retail banking and greed in respect of developers.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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What about hedge funds?

Enda Kenny (Mayo, Fine Gael)
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The Deputy is mixing these matters up completely.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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I ask Deputy Boyd Barrett to stay quiet.

Enda Kenny (Mayo, Fine Gael)
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Deputy Higgins believes the IFSC is like the local manager incentivised to throw out more money to the local developer to build houses for which people could not pay.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Who lent the Irish banks the money?

Enda Kenny (Mayo, Fine Gael)
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There are 33,000 people working in the IFSC.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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This is not Deputy Boyd Barrett's question. I ask him to desist.

Enda Kenny (Mayo, Fine Gael)
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The companies pay very large amounts in corporation and payroll taxes. The Deputy wants to reduce the numbers in the IFSC and close it down.

Gerry Adams (Louth, Sinn Fein)
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I thank the Taoiseach for his preliminary detailed answer. He might have covered the point I am going to ask about. If so, mea culpa. When I last asked about the Green IFSC, the Taoiseach reported that a marketing and business plan, including the proposed establishment of a Government-supported carbon market initiative, was being reviewed by an independent, cross-departmental evaluation group. Does it report to the clearing house group? If so, how often?

The Taoiseach quite rightly reminded us that last July the IFSC set out a plan, which he launched, to create 10,000 new jobs in the finance sector over the next five years. Unfortunately, we heard about 2,500 jobs being lost in Allied Irish Banks. There is speculation about further job losses in the Bank of Ireland, and Ulster Bank has announced 950 losses. Cá bhfuil na pleananna atá curtha le chéile ag an Rialtas chun jabanna eile a chur ar fáil do na daoine a chaill a bpostanna? Tá a fhois ag an Taoiseach go bhfuil daoine óga i gceist agus go minic bíonn morgáistí móra acu. An bhfuil aon phlean ag an Rialtas chun jabanna a chur ar fáil?

Enda Kenny (Mayo, Fine Gael)
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I am sure the Deputy has noted the announcement that 2,500 redundancies are to be made by Allied Irish Banks over the next 12 to 18 months. The bank is in consultation with the IBOA in respect of the package for the personnel who will be leaving the bank. Deputy Adams is aware that, because of the downsizing and deleveraging of AIB and other banks, banks' requirements are much smaller. Inevitably, this will result in people leaving the banking sector. I hope that some of those who will leave the sector but who have IT training and skills will have an opportunity to take up some of the 10,000 jobs announced as part of the programme under the IFSC. In so far as the Government can assist those who can up-skill and retrain in a different direction, it will do so.

From 1999 to 2011, the number of jobs in the IFSC increased from 8,500 to 33,000. Notwithstanding the difficult international conditions, the IFSC's number of employees has continued to grow. Opportunities are highlighted in the strategy across different sectors, including shared services provision, green financial services, the location of EU hubs, payments and transaction processing, private equity and IP centralisation.

I regularly meet people from the IFSC, including some very major players who come here occasionally to meet their staff. There is a competitive and challenging environment internationally and the business is a very mobile business. It is important for the clearing house group and Ireland to stay at the forefront of new products and opportunities that evolve. I made this point on many occasions to chief executives, who have said they are very pleased with the quality of the talent coming through in Ireland, particularly younger people who display extraordinary passion for the work they do.

While the environment is very challenging for the time ahead, the IFSC report clearly indicates the capacity and potential to create 10,000 net new jobs over the period ahead. I hope the people who have decided to leave AIB and other companies can take up some of those new jobs.

With regard to the future of the green carbon finance area, as raised by Deputy Martin, the Green IFSC is currently researching and measuring the number of jobs and the companies that currently operate in the sector here. It is considering where the trend is likely to lead. There is an existing cluster of green carbon financial services activity across funds - front, middle and back office, as they say - insurance, carbon management and project finance within Ireland. Recent research highlights that environmentally related investments under management in Ireland are growing very rapidly. According to figures from December 2011 from Thomson Reuters, green investment funds managed out of Ireland have more than doubled in the past two years to €2.3 billion from just over €1 billion in 2009. The company identifies 24 firms that manage 36 funds from Ireland.

Financial Services Ireland has commissioned a study on the market and skills needs associated with green finance growth, and this is currently under way. This study gives a conservative projection over the period 2012 to 2017 of an additional green finance requirement of a minimum of 1,400 jobs. There is much activity on identifying sectors where jobs can be created. It is in Ireland's interest that it maintain a very high level of activity in this regard so as to be at the forefront in attracting those who decide to invest in the first place. That is why the IFSC continues to be a vibrant, energetic and attractive location for continued investment and we want to keep it that way.

Gerry Adams (Louth, Sinn Fein)
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It is not clear from the Taoiseach's reply if the independent cross-departmental evaluation group which was to examine the marketing and business plan is in place. Does it report back to the IFSC Clearing House Group? If so, how often?

Enda Kenny (Mayo, Fine Gael)
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I will have to give the Deputy an up-to-date report on the group's activities. I will send it on to him later.

Micheál Martin (Cork South Central, Fianna Fail)
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One of the significant issues for the financial services sector is increased competition from other financial centres across Europe and the world. There is a sense that for the strategic direction of the IFSC, the nature of its activities will have to change over time. More higher end functions and activities will have to be attracted. There is also a certain vulnerability in the job content at the centre, particularly the number of back office operations which could move elsewhere given the competition. Strategically looking ahead, our objective must be to attract higher end activities into the sector, just as we did in the life sciences, technology and ICT.

Will the Taoiseach comment on this and indicate any concerted outcomes of the recent meetings in driving that agenda forward?

Enda Kenny (Mayo, Fine Gael)
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The programme we launched with the IFSC has a target of creating 10,000 net new jobs over the next several years. Obviously, this is not a situation that will stay static because, as the Deputy knows, it is the most mobile of all employments. That is why it is necessary that there be constant vigilance about keeping the IFSC very attractive, which it is anyway and has a high rating from serious players across the world.

This year's Finance Bill contained 13 sections introducing 21 individual measures to support the IFSC and meet the target of helping to create those 10,000 jobs over the next few years. Measures include reduced double taxation in the corporate treasury and the aircraft leasing sectors, providing clarity around the tax treatment of complex financial transactions, particularly with stamp duty, addressing tax issues arising for investment funds due to the undertakings for collective investment in transferable securities, UCITS as they are called which was directive 4 and was implemented on 1 July 2011, and a further easing of the administrative burden on non-resident investors in Irish investment funds.

In so far as the recommendations for the IFSC come through the meetings of the different working groups of the clearing house group and through the clearing house group itself, I get reports on these matters from the Secretary General as is required. Some of the responses and initiatives have been reflected in the Government's and the Minister for Finance's decisions in the Finance Bill. These are to keep the centre vibrant and attractive for continued investment. Over the next decade, we will see a whole range of new financial products being made available. It is for Ireland to continue to be at the forefront of that change which will lead to achieving the target of 10,000 new jobs in the next five years.

Joe Higgins (Dublin West, Socialist Party)
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The Taoiseach rubbished the idea of a transaction tax on the billions of euro swishing around in the European financial markets with reference to London and Britain not having one. Judging from the reports about yesterday's meeting the Taoiseach had with the UK Prime Minister, David Cameron, the chemistry was massive with people thinking they were seeing a remake of "Band of Brothers". Did the Taoiseach discuss the issue of a transaction tax with his new best friend? It is an issue which has to come to the fore when the UK Prime Minister has made pronouncements on it. Did the Taoiseach raise it with him and lead the discussion by stating it would be a social progressive measure to take?

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
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We are straying, Deputy.

Joe Higgins (Dublin West, Socialist Party)
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The Taoiseach went on at considerable length about the greening of the IFSC and various related policies. Does he not see that anyone with any concern for the environment knows it is a bad joke to rely on the financial markets to drive a greening policy when they have turned greening issues, including swapping and speculating on carbon credits, into another source of speculation and profit?

Enda Kenny (Mayo, Fine Gael)
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The British Government, for which I do not speak, is opposed to a financial transaction tax. The Irish Government has made its position clear on this.

I do not share Deputy Higgins's view that the greening issue is a bad joke. I actually believe investment in green and renewable energy, such as pumped-storage hydroelectricity and wind-generated electricity, are worthwhile and achievable targets. Deputy Higgins is aware this country imports over €6 billion worth of fossil fuels every year. We have the best water and wind resources of any country in Europe yet we have not harnessed them to the extent we should.

There is potential for the direct export of electricity from our country to Britain. The Minister for Communications, Energy and Natural Resources has had several meetings with his British opposite number, Charles Hendry. The British Government is concluding its internal analysis of Britain's energy needs for the years ahead. I know the Minister, Deputy Rabbitte, will be anxious to pursue, if at all possible, and to conclude an intergovernmental agreement in this area which would be in Ireland's and Britain's interests as well as Europe's. If there is a significant potential for investment and job creation in clean, green, renewable energy, I would not refer to it as a bad joke and neither should Deputy Higgins. Written Answers follow Adjournment.