Here we are going into a very exotic area, conditions for admission of securities to official stock exchange quotation, prospectuses and indirect taxes on transactions and securities. Again, this is something that has been gone into very thoroughly in subcommittee, and it is something which Senator FitzGerald and others discussed in some detail with the officials of the Department of Industry and Commerce. Our views are summed up on page 11, paragraph 11.
Proposed Directives relating to Securities: Admission to Official Stock Exchange Quotations, Prospectuses and Conditions of Admission; and Indirect Taxes and Transactions.
The first point they raised was the question of a national authority to supervise this, and it was suggested that The Stock Exchange was the authority to deal with this, and that is not set out in the proposed Directive.
The Stock Exchange have indicated that they are quite happy with the draft Directive, regarding conditions for admission which in general does not, except in some very minor respects, go further than their general practice.
It has been suggested that there has been a certain amount of rigidity in the proposals, as circumstances would vary in different companies. We instanced certain industries which I do not think necessary to mention here. It was pointed out to us that that is very much an ongoing procedure. In the London Stock Exchange they have a yellow book which is amended from time to time and updated quite frequently to deal with matters as they arise in commercial experience and practice. It has been suggested to us that the proposal here is somewhat rigid; that it might not allow sufficient elasticity as regards the reform of the rules.
We mention that on page 12.
In regard to the last item " D. Indirect Taxes on Transactions in Securities," we say:
In the case of Member States which impose a tax on transactions in securities the third proposal seeks to prescribe that a tax may be imposed on the disposal or the acquisition of securities for valuable consideration at rates not exceeding 0.15 per cent in the case of bonds and 0.3 per cent in the case of other securities.
In regard to the effect on Ireland, we say:
The adoption of the Directive would involve an alteration of the stamp duty payable in Ireland on transactions and securities. At present the rate is 1 per cent in the case of Irish registered securities and 2 per cent for non-Irish registered securities. The new rates would be 0.3 for bonds and 0.6 for other securities. Some loss of revenue would be involved but the Joint Committee is informed that it would not be significant. The Joint Committee have no objection to the proposal.
Then we have a very impressive list of people who advised us and whom we consulted, all very reputable pillars of the financial establishment.
Paragraphs 1 to 14, inclusive, agreed to.
Draft Report agreed to.
Ordered: To report accordingly.