Kenny rejects tax on financial services

TAOISEACH Enda Kenny has ruled out accepting an EU-backed transaction tax on Irish financial services unless the levy is introduced in Britain and other states.

Mr Kenny said people wanted to see a tax for banks but that it was unacceptable that the proposed charge be introduced in Dublin and not in London.

Britain has vetoed an EU fiscal budget agreement which includes plans for the tax.

Deputy British prime minister Nick Clegg yesterday said there was evidence that such a tax would see 500,000 jobs lost across the EU.

Speaking at a British-Irish Council meeting in Dublin with Mr Kenny, Mr Clegg said London opposed the tax unless it was introduced on a global scale.

“When you’re in an economically precarious position, as the whole European continent is, I just somehow don’t think the priority should be a measure which its proponents admit would lead to significant levels of unemployment for thousands of people,” said Mr Clegg.

Mr Kenny said that Ireland would not stand for the transaction tax unless it was universally accepted by other countries.

“Obviously, the International Financial Services Centre here is of critical importance to our economy, as indeed the City of London is very important to the British economy. We’ve made it very clear that that would not be acceptable to us. Obviously, in a global sense, a financial transaction tax, were it to be agreed by everybody, would be acceptable.”

The Irish funds industry, centred mainly in the IFSC in Dublin, services assets worth more than €1.8 trillion held in over 11,000 different funds, and employs more than 30,000 people.

France last week signalled that it would move to introduce the proposed tax by the end of the month. The IDA has expressed concern at the proposed tax.

Meanwhile, a row erupted ahead of the summit of leaders from Britain and Ireland over a proposed referendum in Scotland on its independence.

Earlier, on RTÉ radio, Scottish first minister Alex Salmond launched an attack on the British government for what he described as bullying tactics. He also compared London’s treatment of Scotland to its historic behaviour towards Ireland. But Mr Kenny would not be drawn ion the row.

Finucane review

THE Government said it still backs calls for an inquiry into the murder of Pat Finucane, as the family of the late solicitor was granted a judicial review of the British government’s refusal to grant such an inquiry.

The review will be held in May at a Belfast High Court.

Geraldine Finucane, Pat’s widow, welcomed news of the judicial review.

Tánaiste Eamon Gilmore said the Government would await results of the review but still supported the family’s interests: “The Irish Government has been strongly supportive of the Finucane family in their requests for further inquiries.”