Simon Coveney (Cork South Central, Fine Gael)
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Question 39: To ask the Minister for Finance his views on whether Ireland's attractiveness as a location for international financial services is being eroded; and if he will make a statement on the matter. [18333/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The financial services sector is a competitive dynamic environment and it is necessary to always look to the future for innovative products with which to ensure its continued success. In this regard, one only has to look at the continued success of the International Financial Services Centre, IFSC, as an example of how this industry continues to develop, notwithstanding the fact that the special 10% corporate tax rate has been closed for new entrants since 1998 and will cease to exist from the end of this year.

The international financial services sector is an important sector within the overall financial services industry and to this end the State engages with the industry at all levels to identify opportunities in the sector and any potential benefits to Ireland. This is particularly evident in the budget and Finance Bill process where on an annual basis proposals for changes in legislation designed to facilitate new business are considered. An example of this are the changes I made in this year's Finance Act to clarify the tax treatment of common contractual funds. This investment vehicle is a new product that will be available shortly, subject to Oireachtas approval, as a result of primary legislation which is currently before the Dáil. It is envisaged that this change will attract a lot of new business opportunities to Ireland particularly the management activities of pooled pension funds.

The international financial services sector is also very important to Ireland in terms of the annual corporation tax yield, €663 million for 2004, and in terms of the substantial amount of high quality employment it provides. None of us can rest on our laurels however and must always be looking for ways to improve the products and services on offer to ensure the sector's ongoing success.