Peadar Tóibín (Meath West, Sinn Fein)
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Question 151: To ask the Minister for Finance if he will provide for safe regulations and incentives for the financial services industry here; the amount that these provisions will cost; the way they will prevent firms that set up domiciles here from being a potential cost to the Exchequer in future; and if the plans will allow for other centres of financial services development outside of the IFSC. [21145/11]

Peadar Tóibín (Meath West, Sinn Fein)
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Question 153: To ask the Minister for Finance the action that he has taken to establish a task force on the future of the financial service sector; if so, the persons that will be part of this task force; if not, when he will establish this task force; and the persons he sees playing the role on this task force. [21150/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 151 and 153 together.

More than 32,000 people are directly employed in international financial services, in over 500 firms. Substantial indirect employment is also generated, and the sector contributes €2.1bn in corporate and payroll taxes to the Exchequer. Accounting for 10% of multi-national employment, international financial services represents an estimated 7.4% of GDP, and 5% of EU international financial services activity is carried out from Ireland.

The fundamental goal of public policy in relation to the IFSC is to develop the international financial services industry in Ireland, built upon sustainable, responsible and internationally respected foundations, to maximise not only the number of jobs, but also the quality of employment and the future sustainability and growth prospects of the industry. The Government believes that it is necessary to continue to adopt, articulate and implement a clear vision for the development of the IFSC to demonstrate Ireland's commitment to the promotion and growth of its international financial services industry.

As part of this, the Deputy will be aware that last week, An Taoiseach, Enda Kenny T.D., announced a new IFSC Strategy for the future of the international financial services industry in Ireland over the next 5 years. The Strategy, which will be implemented by the Clearing House Group of the Department of the Taoiseach, sets out the key drivers to support the achievement of the overall objective of 10,000 net new jobs. The foundations are a tax framework which is competitive and internationally respected and a regulatory regime which supports responsible business operations and ensures effective oversight and control. The Strategy 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.

As Minister for Finance, I welcome the IFSC Strategy and consider that it represents a comprehensive approach to maintaining and developing the international financial services sector in Ireland. In this context, I do not have any immediate plans to establish a separate task force on the future of the financial service sector. I will, however, keep the situation under review.

With regard to the provision for safe regulations and incentives for the financial services industry here, the Strategy recognises that it is essential to develop tax and regulatory structures within the parameters of EU and other international requirements. While the Strategy sets out a commitment to the development of the IFSC and a direction for policy development, any relevant implementing measures will be considered through the appropriate legislative or other processes, including, inter alia, consideration of relevant EU law implications, in particular around state aid rules. The Deputy will note that a comprehensive programme of regulatory reform in the financial sector is already underway at domestic, international and EU levels which will have significant implications for the regulation of the different IFSC sectors. My Department is engaging actively in this regulatory reform agenda in relevant international fora and it is a key objective of my Department to transpose all EU legislation in good time to ensure that both the Central Bank and industry are well placed to implement new regulatory requirements.

In addition to international regulatory reform, the Deputy will also be aware that domestic legislative changes have been introduced to merge the Central Bank and Financial Regulator and to enhance the powers of the unified organisation. Further enhancements to the Central Bank's powers will be introduced to the Oireachtas shortly in the Central Bank (Supervision and Enforcement) Bill. In addition, the Central Bank is engaged in a significant programme to increase its staff numbers and to enhance its supervisory capacities.