Jack Wall (Kildare South, Labour)
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Question 60: To ask the Minister for Finance his views on the most recent employment, unemployment, participation and emigration trends and their impact on the public finances; and if he will make a statement on the matter. [25625/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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According to the latest Quarterly National Household Survey (QNHS), released earlier this week, the number of people in employment in Ireland fell by 108,000 (-5.5 per cent) in the year to the first quarter of 2010. While there is no doubt that this is a disappointing figure, it should be noted that the rate of employment loss is slowing compared to last year, when employment fell by 8.1%. A total of 275,000 people were classified as unemployed in the QNHS for the first quarter of 2010. The seasonally-adjusted unemployment rate was 12.9% in Q1 2010, down from 13.3% in Q4 2009. Labour force participation rates have declined, falling by 1.3 percentage points, year-on-year, in the first quarter of 2010. The decline was more pronounced for males, declining by 2.0 percentage points, reflecting the strong difficulties in the male-dominated construction sector and the challenges of re-skilling this group.

The numbers of non-Irish nationals in the labour force is estimated to have declined by an annual 53,500, or 15.9 per cent, in the first quarter of 2010. A significant amount of this is due to outward migration. Considerable anecdotal evidence would point towards the outward migration of Irish nationals also. While firm data are not yet available, the annual CSO release, Population and Migration Estimates, will be available in the Autumn, and will provide more comprehensive data on current migration trends. As our economy improves, and employment growth returns, I would hope that much of the short-term outward migration by Irish nationals will be reversed. In terms of the public finances, I would point out that labour market trends are broadly in line with expectations, and these developments have been taken into consideration in terms of the forecasts for Government revenue and expenditure.

Jan O'Sullivan (Limerick East, Labour)
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Question 61: To ask the Minister for Finance the funds that have been earmarked for capital injections into Anglo Irish Bank and Irish Nationwide Building Society for 2010; if this money is to be borrowed at market rates; the way this is expected to impact on the general Government balance for 2010 and beyond; and if he will make a statement on the matter. [25627/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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To date in 2010, I have issued a Promissory Note with a principal amount of €10.3 billion to Anglo Irish Bank. I have also provided capital of €2.7 billion to Irish Nationwide Building Society which comprises €100 million for Special Investment Shares and a Promissory Note of €2.6 billion. The recapitalisation of INBS and Anglo Irish Bank has been made pending the agreement of the respective restructuring plans for those institutions with the EU Commission. In that context, the Promissory Notes have been classified for the time being as financial transactions with no effect on the General Government Balance in 2010. This decision can be reviewed as necessary following the outcome of discussions with the Commission on the restructuring plans. Although the Promissory Notes were issued this year, no money in respect of the Notes will be borrowed in 2010 as the first redemptions, involving the payment of the first 10% of the principal amounts, will not arise until March 31st 2011. It is envisaged that the principal amount of the Notes and the accrued interest on the Notes will be payable over a ten to fifteen-year period and that the money will be borrowed as required in the normal way by the issuing of bonds by the National Treasury Management Agency.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 62: To ask the Minister for Finance his views in the introduction of an international tax on speculative currency transactions; and if he will make a statement on the matter. [24532/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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While there are no specific proposals for a speculative currency transaction tax, considerations of how to ensure that the financial sector contributes to the cost of dealing with crises is underway in various fora internationally. The IMF is due to report to the G20 Summit later this month. In a preliminary report in April the IMF focused on two possible contributions from the financial sector: · A Financial Stability Contribution levy (FSC) to pay for the fiscal cost of government support of the sector.

This would be linked to a resolution regime to avoid moral hazard. This is intended to complement the regulatory and supervisory reform package, and · Financial Activities Tax (FAT) - a broader tax levied on the profits of financial institutions to curb risk taking behaviour, tax the externalities and pay for the broader cost of financial crises. Revenue generated by the FAT would be part of general government revenues while revenue from the FSC could be part of general revenues or used to finance a dedicated resolution fund.

The European Commission's recent Communication supports the establishment of ex ante resolution funds, funded by a levy on the banks to facilitate the managed failure of ailing banks in an orderly manner and suggests that a resolution fund should form part of the toolbox of measures available to Member States in an EU crisis management framework. It is important to note that an objective of the Commission's proposal, in conjunction with its wider proposals on a crisis management system, is to mitigate the burden on the taxpayer arising from financial crises. As acknowledged in the Commission Communication, it would be difficult at present to initiate a single pan European resolution fund.

In my dealing with the banks I have clearly maintained the principle that the banks will contribute to the cost of State's support - the banks have been charged for the Government's guarantee of their liabilities and the NAMA Act provides for a levy on the banks should NAMA result in a loss for the taxpayer. In the context of the enhancement of supervision and the restructuring of the banking sector underway in Ireland it is my intention to ensure that the sector contributes its appropriate share, thereby minimising as much as possible taxpayers' exposure to potential costs arising from State support of the banking sector.