Shane Ross (Dublin South, Independent)
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To ask the Minister for Finance in view of the statement by his Department welcoming the Cypriot bailout, if he will outline the elements he welcomes and if it includes the levy on small depositors; the arguments he put forward against the levy on small depositors at the meeing; the discussions, if any, that have been held with the Troika on such a levy here, now or in the past; if he will support such a levy if it were to be suggested for other countries; and if he will make a statement on the matter. [14745/13]

Andrew Doyle (Wicklow, Fine Gael)
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To ask the Minister for Finance if he will guarantee that deposits under €100,000 in Irish banks will not be subject to a deposit levy; his position on the circumstances in which another Eurozone country (details supplied) where a deposit levy has been imposed; and if he will make a statement on the matter. [14746/13]

Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Finance his views of the proposal to take money from Cypriot deposit accounts; and if he will make a statement on the matter. [14867/13]

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance if he will explain his decision to welcome the Cypriot loan deal as proposed; his views on whether it is acceptable to levy depositors in a banking crisis but leave senior bondholders untouched; if he put forward any alternative solutions to the levying of depositors, particularly depositors under €100,000; if any discussions have been held regarding this being a potential avenue for Ireland either in the past, or in the future; and if he will confirm that he is still committed to guaranteeing the first €100,000 of a depositor's account in the event of a bank collapsing or needing new capital. [15319/13]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 179, 180, 188 and 227 together.

In answer to media queries, my Department commented that the “agreement of the Programme of Assistance for Cyprus is to be welcomed.” Following many months of uncertainty and negotiations in Cyprus and the Eurozone, the fact that an Agreement was reached between the Cypriot Authorities and the Troika was an important step to stabilise the Cypriot banking system and economy. At that time, my Department did not give any comment on the specific measures the Cypriot Government had agreed with the Troika.

The structure of the levy of deposits was proposed by the Cypriot authorities. The Eurogroup made its views clear to the Cypriot authorities that small depositors should be treated differently from large depositors. To reinforce this point; the Eurogroup reaffirmed that EU law guarantees deposits up to €100,000 per customer, per bank in the event of a bank failure. On 16th March, the Cypriot Government proposed a once-off levy on all bank accounts in Cyprus. The Eurogroup advised against this proposal, but it recognised that fiscal measures such as taxes and levies are matters for individual member states, whether in a programme of assistance of not.

As the Deputies are aware the terms of the bailout agreed for Cypriot banks have now changed in the sense that a levy will now no longer be applied to depositors with deposits of €100,000 or less. Deposits equal to or less than €100,000 will be fully protected and there will not be a system-wide levy. In addition, the Cypriot authorities have agreed that senior bondholders will share fully in the costs of bank resolution.

I can confirm that this Government fully adheres to the EU policy of guaranteeing deposits of up to €100,000 per customer, per bank and would be against imposing a levy on guaranteed savings of under €100,000 as this would in itself undermine the nature of the guarantee. I can also confirm that discussions on a levy never arose with the Troika.

While there is a Deposit Interest Retention Tax (DIRT) on deposits, this applies only to interest earned and does not impact on the guaranteed deposit under €100,000. DIRT is a common form of tax, which ensures that the income earned on deposits, like other income, is subject to tax.