Finian McGrath (Dublin North Central, Independent)
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Question 105: To ask the Minister for Finance if he will investigate the possibility of a tax of 0.05% of every euro spent on business-related transaction levied on those in the transaction. [23507/11]

Michael Noonan (Limerick City, Fine Gael)
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I understand that the Deputy is referring to a type of Financial Transaction Tax (FTT). The EU Commission stated in a Communication in October 2010 that it supported the idea of an FTT to help fund international challenges such as development at climate change. However, the Commission has recently proposed the introduction of an FTT in Europe for the purpose of an "own resource" tax imposed centrally to fund the EU. Ireland has traditionally opposed the concept of an EU-wide tax and believes that the financing of the EU Budget should continue to be mainly based on GNI. While we will examine any proposal, we would have serious concerns about its economic, budgetary and political impact.

There is no consensus as yet among European member states on this issue, and most Member States are awaiting the EU Commission's impact assessment of the various measures before deciding what stance to take. There is a strong emerging view that the EU and other international groupings such as the IMF and G20 should move in tandem in a global manner to avoid the danger of financial sector business gravitating to areas where taxes are not levied on financial transactions.