Complacency ‘threatens growth of the financial services industry’

INTERNATIONAL financial services contribute €1 in €8 of corporation tax in Ireland, but complacency is threatening its growth.

Speaking at the Financial Services Ireland (FSI) annual lunch in Dublin yesterday, FSI chairman Denis Casey called for greater recognition of its importance.

“The International Financial Services Centre has been a key driver of Irish services export growth, accounting for over one-third of all service exports,” he said.

It would require a shift in the top level of income tax from 42 to 46%, to make up for its revenue contribution to the Exchequer, he said.

He warned complacency posed a serious threat to its future success.

“We would do well to remind ourselves that the positive achievements of the international financial services sector have, in no small measure, been due to our fantastic success in sourcing a range of specialised financial service activities from other jurisdictions,” he said.

Members of the FSI fear the economy has started to develop a “fortress mentality” which, if allowed to develop, would be damaging to the sector and the economy overall.

“Introducing rigidities, or establishing artificial blockages to markets, poses enormous risks for Irish business, the Irish economy and Irish workers,” he warned.

Guest speaker, Finance Minister Brian Cowen, said the amended Finance Bill contained a number of revisions, such as significant concessions in the area of the “leasing ring-fence”, which should ensure the continued development of the international leasing sector in Ireland.