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Budget Measures

Dáil Éireann Debate, Tuesday - 12 November 2013

Tuesday, 12 November 2013

Questions (99)

Lucinda Creighton

Question:

99. Deputy Lucinda Creighton asked the Minister for Finance if he or his Department met with or received any representations regarding proposed budgetary measures from Danske Bank or ACC in advance of budget 2014; his views that announcements on a bank levy and increased dirt tax may have incentivised their exit from the Irish market; if he is concerned about these banks exit from the Irish market; and if he will make a statement on the matter. [48074/13]

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Written answers

I can confirm that I did not receive any representations from Danske Bank or ACC in the run up to the Budget, and neither I nor officials of my Department met with personnel from those Banks with regard to any Budget measures. I do not believe that measures announced in Budget 2014, including the increase in Deposit Interest Retention Tax and the levy on financial institutions, had any bearing on the decisions by either bank to curtail their operations in the Irish market. Such decisions would have presumably have been under consideration for some time and based on wider factors than these two measures. Danske Bank will still continue to take deposits from corporate customers.

There is no doubt that the loss of ACC Bank and Danske Bank will have an effect on the level of competition in the Irish financial sector. However, the banks are independent commercial entities and have the right to conduct their business as they consider appropriate. The recent commitment by RBS to the Irish market is a welcome step in the other direction, and KBC Bank has been expanding its network. I think that it is fair to say that it is not all bad news and that the Irish financial market does offer opportunities to certain institutions.

This Government has also take steps to ensure that the Irish financial market is accessible to any financial institution considering establishing in Ireland. Section 149 of the Consumer Credit Act, which provides for the regulation of bank fees and charges, has been dis-applied for three years in the case of new financial service providers setting up in Ireland.

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