Dáil Éireann debate -
Thursday, 12 Dec 1991

Vol. 414 No. 6

Written Answers. - International Financial Services Centre.

Patrick McCartan

Question:

62 Mr. McCartan asked the Minister for Finance the total number of jobs created to date at the International Financial Services Centre; the number created by (a) Irish firms and (b) foreign firms; and, in respect of the Irish firms the number which were (i) totally new jobs and (ii) jobs transferred from other locations; if he will outline the implications of the new German tax laws for German firms operating in the Centre; and if he will make a statement on the matter.

Minister for Finance (Mr. B. Ahern)

Approximately 190 projects have now been approved to operate from the International Financial Services Centre, with total new job commitments over 2,800 which are to materialise over the next four years or so. The total number of new jobs created to date by companies approved to operate from the International Financial Services Centre is 986. Of those jobs, 345 are accounted for by Irish firms. The balance of 641 is accounted for by foreign owned companies.

On the basis of the information available to me, all of the 345 jobs above are completely new, that is, they are incremental employment in respect of additional activity by the Irish companies. They do not include any jobs in respect of activities which had been carried out by companies prior to their move to the centre and which, because they are international financial services, could qualify for the 10 per cent rate of corporation tax. Care is taken in assessing every new project at the centre to ensure that such "displacement" does not outweigh new jobs. However, statistics in relation to "displaced" jobs are not available.

In addition to the above, financial institutions and professional firms in the legal and accounting areas have, for their own commercial reasons, moved into the Customs House docks. However their activities do not qualify for the 10 per cent rate of corporation tax. I have no specific information on the numbers involved but it is estimated to be of the order of 700 - 800 people.

The new German legislation affecting the International Financial Services Centre is still in draft form and has not yet been enacted. Until that happens, it is not appropriate for me to speculate as to its impact on operations at the IFSC. I would say, however, that any measure that acted against investment in Ireland or the centre in particular is a cause for concern to the Government.