Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I have three points to make. First, the effect of what the Senator is proposing would mean having a different taxation regime for banks from what applies in the rest of the economy. That would be the effect. Second, I did not say the banks that are not subject to a pay cap do not employ people within our economy. I said they employ fewer people than Bank of Ireland, AIB and Permanent TSB. Third, I would never suggest that the fact our banks have to lend within our economy and we rely upon them to invest in funding new infrastructure, business expansion and the delivery of homes is an argument they should not pay tax. Some of the banks the Senator referred to do not pay tax from a corporation tax point of view. The reason for that is they are taxed in the same way other employers and firms in our economy are taxed. That is appropriate and to change it and bring in a different taxation regime for the banking sector from that applying to the rest of the economy would be bad for the economy. Certainly, for banks in which we still have a share, it would decrease their value and the value of the State shareholding in them. Over time, those are consequences that would not be good for investment and employment within our economy.