Patrick Nulty (Dublin West, Labour)
Link to this: Individually | In context

Question 131: To ask the Minister for Finance if he supports the introduction of a financial transactions tax; and if he will make a statement on the matter. [33487/12]

Patrick Nulty (Dublin West, Labour)
Link to this: Individually | In context

Question 136: To ask the Minister for Finance the reason there was a three month delay between the completion of the ESRI research on a financial transactions tax and its publication; and if he will make a statement on the matter. [33712/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

I propose to take Questions Nos. 131 and 136 together.

I have stated in the past my view that, if a financial transactions tax (FTT) cannot be introduced on a global basis, it would be better if it were introduced at least on an EU-wide basis. This would prevent any distortion of activity within the Union.

The Deputy will be aware that following the ECOFIN meeting on 22 July, the Commission's proposal to introduce an FTT on an EU-wide basis will not now proceed and certain Member States are going to ask the Commission to propose that the tax be introduced via the "enhanced co-operation" mechanism in those states which are willing to introduce the tax.

Ireland is opposed in principle to enhanced co-operation in tax matters and will not be one of the enhanced co-operation countries. Our decision not to participate is consistent with the position we previously expressed that the tax should be introduced on at least an EU-wide basis. However, I indicated at the ECOFIN meeting that we would not stand in the way of those countries who wish to introduce an FTT. We will continue to monitor the issue, in particular to ensure the compatibility of any proposed measure with the internal market and with existing taxes on financial transactions such as our Stamp Duty on transfers of shares in Irish companies.

I received the ESRI/Central Bank of Ireland report into the FTT in late April. I did not publish the report immediately because my officials and I needed time to examine it. It has proven useful in our consideration of the issues surrounding the FTT.