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Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: One would need to illustrate the number.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: I am informed that we have kept the risk adjustment modest in our negotiation. It is between 0.8% and 1.5%. That acts as an equaliser and does not expose us to extensive additional risk along the lines the Deputy suggests.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: The risk of extra cost-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: No, but there is a proposal for a Council directive amending the framework for the taxation of energy products and electricity. A summary outcome of the discussion shows that member states were evenly divided and had an exchange of views on whether work on the long-running energy tax file should continue or whether the proposal should be withdrawn and reconsidered. That is how the situation...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: The Deputy misunderstands our position. I have never taken a hostile position to a financial transaction tax.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: No, it has not. When Ireland held the Presidency last year, I put this matter on the agenda of the first ECOFIN meeting that I chaired so as to allow those who wanted to do so to move ahead and try to find agreement under the enhanced co-operation rules. I could have kept it off the agenda, as I had control for six months.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: That was not an act of hostility. It was an act of enablement.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: When the debate started, there were all sorts of proposal being made about a financial transaction tax. To be blunt, though, if the EU settled on a kind of stamp duty of 0.1%, it would make no difference to us beyond a reduction in our Exchequer flow from more than €200 million to approximately €25 million. I would oppose it in that context not because it would damage us, but...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: We have a financial transaction tax, a 1% stamp duty on shares. The only other country that has such a tax is the UK at 0.5%. The French have been pushing to introduce it at 0.1% and are participating in the financial transaction tax talks. However, the proposals are going nowhere at the moment. This is the position.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: I am not interested in a financial transaction tax because I-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: I make policy. That is the difference.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: Right, and I am-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: That does not mean that I have to agree with the committee. All I have to do is tell it what position I am taking. Until the electorate votes us out of office and I am removed as Minister for Finance, I will create policy.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: I do not have to-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: We are.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: We do not have such a report.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: We have a lot of work to do. It is not necessary to commission such a report at this time. If, on the other hand, a group of people in Europe devise a financial transaction tax and it becomes policy across even a limited group of countries, it would be worth our while conducting an analysis then. I would do it then.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: Why is it preposterous?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: I understand the position. I know what will happen if a tax is applied in Dublin that is not applied in London. It is self-evident.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Pre-ECOFIN Briefing: Minister for Finance (4 Nov 2014)

Michael Noonan: I was supposed to be out of here by 9 p.m.

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