Micheál Martin (Cork South Central, Fianna Fail)
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Question 131: To ask the Minister for Finance if he has held consultations concerning the implications for the Irish Financial Services Centre of potential EU proposals concerning financial regulation. [28450/11]

Michael Noonan (Limerick City, Fine Gael)
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I would like to advise the Deputy that a comprehensive programme of regulatory reform in the financial sector is already underway at 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, especially at EU level. It is a key objective of my Department to engage constructively during EU negotiations and 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. My Department's active engagement with the IFSC is aimed at ensuring that potential implications for IFSC companies are identified well in advance to provide sufficient time for consideration. The Deputy will be aware that the topic of financial regulation is a regular feature on the agendas of both the ECOFIN Council and meetings of Heads of State and Government.

The Programme for Government states that the Government supports the future development of the IFSC as a source of future employment growth, subject to appropriate regulation and commits to the development of the financial services sector to maximise employment opportunities, not least for staff leaving employment as a result of downsizing in the domestic banking sector.

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 2.1 billion euro in corporate and payroll taxes to the Exchequer. Accounting for 10% of multinational 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.

Last July, 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.