Kevin Humphreys (Dublin South East, Labour)
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Question 82: To ask the Minister for Finance his views on a European-wide financial transaction tax, FTT; if he will provide any briefing documents drawn up by him on the FTT to this Deputy; if he has conducted an economic impact assessment on the FTT for Ireland; if not, his plans to conduct one; if he has made any submission to the EU Commission on President Barroso's proposals for an FTT; if he will provide a copy of such to this Deputy; and if he will make a statement on the matter. [29457/11]

Michael Noonan (Limerick City, Fine Gael)
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The European Commission recently published its proposal for a Financial Transactions Tax, or FTT. My Department is analysing the detailed proposals contained in the draft Directive. The draft Directive will now be subject to detailed discussions at EU level and, as always, we will participate constructively in those discussions. There is no consensus as yet among European Member States on this issue, either about whether an FTT should be introduced, or what precise form it should take.

It is important that any proposal does not have the effect of encouraging relocation of activity or damaging the EU's competitiveness in financial services. It is for this reason that there is an emerging view that the EU and other international groupings, such as the IMF and G20, should move together in a global manner to avoid the danger of financial sector business gravitating to jurisdictions where taxes are not levied on financial transactions. Indeed the Commission has indicted that it sees its proposal as part of a wider development in this area.

In my view any tax would be best applied on a wide international basis to include the major financial centres. I also think it important that the proposed Directive would apply on an EU wide basis to prevent any distortion of activity within the European Union.

The Commission is proposing that the FTT should be an "own resource" tax imposed centrally to fund the EU and will be developing proposals in the context of the future of the EU Budget. However, we will need to assess the impact of this on our contribution vis-À-vis the current system based on Gross National Income.

My Department has not conducted an impact analysis as yet but it is consulting with various parties on the possible impact of an FTT. The EU Commission published an impact analysis simultaneously with the Directive and this is available on the Commission's website. I have not made a submission to the Commission on the proposal as yet since we will be participating, as is normal, in the detailed discussions within the Council.