Banks should pay more corporation tax now

THE support provided to Irish banks is of huge benefit to them as evidenced by a sharp rise in their stock values.

The cost is unclear, but at a minimum the Government will face higher borrowing costs for its own debts given its higher risk profile. What will the banks pay for this?

A computation of the difference between the banks’ borrowing costs before and after the guarantee will be very difficult.

Surely benefits should be sought in return, such as a temporary increase in the banks’ corporation tax rate for the duration of the guarantees.

Michael Kelleher

St Anthony’s

Cross Douglas Road

Cork