John Bruton
Question:7 Mr. J. Bruton asked the Taoiseach the committees dealing with the International Financial Services Centre on which his Department is represented. [5778/98]
Ceisteanna — Questions. - International Financial Services Centre.
My Department chairs the IFSC Clearing House Group which undertakes a co-ordinating role in relation to the development of the IFSC. In addition, three specialised working groups meet under the aegis of the Department of the Taoiseach. The clearing house group and the working groups include representatives of relevant Government Departments and State agencies, including the Department of the Taoiseach, as well as members of the financial services industry in the IFSC. In addition, subgroups may meet on an informal basis to deal with particular issues.
In view of the fact that the Finance Bill does not contain proposals to deal with allegations of fairly widespread tax evasion by non-resident companies using the IFSC, will the Taoiseach ask the relevant committees under the aegis of his Department whether it would be a good idea to introduce special legislation to deal with this problem in advance of next year's Finance Bill? Waiting for the Bill would allow another year to pass in which these concerns hang in the air, potentially doing considerable damage to our reputation.
The IFSC working group has been revamped recently and now includes a number of international seniors with the other groups. For some time that committee has been concerned with these matters and has done a considerable amount of work. It is more than anxious to give its advice and assistance on whatever changes are necessary. It has been warning about these issues since 1994. Many of the issues raised are not within the remit of the IFSC companies and this concerns the committee. It has an interest in making sure that these issues are properly regulated and is concerned that we make any changes which are required. I will ensure that this happens.
Does the Taoiseach agree that one of the reasons the IFSC committees have been placed under the aegis of his Department is that the reports can be passed to a Department which has a co-ordinating role across the range of departments? In view of this would the Taoiseach consider that it would be useful to ask the committees for recommendations on short-term action to deal with the concerns about tax evasion by non-resident companies with a view to such action being taken in special legislation to be enacted this year rather than waiting until next year's Finance Bill?
The committees have already put forward proposals. The IFSC committee was responsible for the changes in 1995. I do not have to ensure that the committees propose changes as I know they are already doing so. I met the IFSC committee in the autumn and again at Christmas. It will put forward suggestions and give any assistance it can to the Minister for Finance to make sure that these issues are dealt with. It has an interest in ensuring that these issues are properly dealt with.
When? Will we have to wait until next year's Finance Bill?
It put forward its views in time for the 1995 Bill. In good faith the Minister and the group thought they had dealt with these issues. The group will again put its views to the Minister for Finance this year.