On Friday, 5th October, Fine Gael TD for Cavan and Monaghan, Deputy Joe O’Reilly took part in a Council of Europe debate on the European Union Commissioner’s proposal to introduce a European-wide Financial Transactions Tax. The UK Prime Minister, David Cameron, has stated that they will not operate such a tax in order to protect the city of London.
The introduction of a tax without a UK buy in will greatly threaten jobs in the IFSC to which, Deputy O’Reilly states, ‘many people from Cavan and Monaghan commute to on a daily basis’.
Speaking during the debate, the Deputy warned that the ‘tax had to be implemented on an European Union wide basis, or not at all.’
He pointed out that the Financial Services Sector represents 10% of Irish GDP. He further explained that ‘Our existing 1% Stamp Duty would have to be removed to facilitate the new tax, with big implications for our economy. That financial tax will go to the European Union as our domestic economy loses the Stamp Duty.’
The Deputy then emphasised that our problems with the Financial Transaction Tax were practical rather than a principled objection to it. ‘It is the method of application that threatens Irish interests’ he concluded.

Senator Joe O'Reilly representing Cavan & Monaghan 2010. | An ExSite website