Brendan Howlin
Question:35. Deputy Brendan Howlin asked the Minister for Finance his Department's current role in engaging with the financial services industry here. [38620/16]
View answerTuesday, 17 January 2017
Questions (35)
Oral answers (6 contributions)
Today we heard the announcement by the British Prime Minister, Theresa May, that she is likely to pursue a hard Brexit option. The financial services industry has a series of structures with the Department and the Civil Service. I would like to know whether or not the Minister proposes to engage through those mechanisms with the likely number of financial services companies that may want to relocate in whole or in part from London to Dublin in the context of the UK making preparations to leave the EU. We could have a considerable gain from getting ready now to take advantage of this likely development and that we could generate jobs not only in the financial services sector in the Dublin region. As the Minister knows, those jobs are spread throughout the country and, for the most part, are very significant and well-paid jobs.
The Deputy is referring to the structures in place to engage with the financial services industry following the discontinuation of the IFSC Clearing House Group. The Minister of State, Deputy Eoghan Murphy, is responsible for leading implementation of the whole-of-Government international financial services, IFS, 2020 strategy via reformed consultative structures. The Minister of State is unavailable to answer this parliamentary question as he is currently in Asia promoting the Irish financial services sector. The new structures under IFS2020 were established to ensure greater co-ordination and transparency and replace the IFSC Clearing House Group. Implementation of the strategy and the associated annual action plan is driven by a public sector high level implementation committee, HLIC, membership of which comprises top level civil and public sector officials from key Departments, IDA Ireland and Enterprise Ireland. A senior representative from the Central Bank attends as an observer.
A private sector industry advisory committee, IAC, has also been established. The IAC is composed of representatives of leading and evolving indigenous Irish and international IFS companies from a broad range of financial services sectors with diverse experience and perspectives. There is a rotating secretariat, an external international member, and time-bound terms for IAC members. The public sector HLIC and the private sector IAC meet on a quarterly basis as the IFS2020 joint committee and the Minister of State as chair ensures that this committee is accountable for its progress and actions. Annual action plans and quarterly progress reports on the implementation of the strategy are considered by the joint committee and then submitted to Cabinet before publication on the Department of Finance website. The IFS2020 action plan for 2017 will be published shortly.
Have any changes been made or contemplated in the context of the Brexit proposals, particularly since we have had confirmed what many of us have known for a considerable period of time, namely, that the British Government is likely to opt for a hard Brexit? In the context of the City of London and the IFSC, we know that the fact that English is the local language in each location is an enormous attraction to people establishing companies and investments. With a review of the structures between the Department and the financial services industry, we could turn an element of what is likely to be a very difficult and uncertain situation for the Irish economy to our advantage by preparing to attract companies that want to locate to a location within the EU but which favour an English-speaking location. Ireland is extraordinarily well placed to provide that.
The financial services section of the Department is in the charge of the Minister of State, Deputy Eoghan Murphy. He is proceeding with the committees to which I referred to publish a new revised policy statement on financial services.
The response from my Department so far is that in amending section 110 to obviate the various issues raised by Deputies in respect of property transactions we ensured that the changes did not infringe on the financial services industry because making the financial services more attractive in Ireland was the reason section 110 was introduced in 2003.
The Central Bank has recruited a significant number of additional regulators because it has had in excess of 100 inquiries from the City of London from people who are anxious to find out what the regulatory regime would be here if they were to move activity. The Department of Finance have had many inquiries and I understand IDA Ireland have also had many inquiries.
Given that this is one of the potentially positive options arising from Brexit, I am surprised that the Department has not been somewhat more proactive. I do not know when this committee last met. The Brexit referendum took place well over six months ago. We need to move as quickly as possible to build on the opportunities that exist for Ireland. A significant number of people are already employed in financial services in Ireland and there is a significant opportunity to increase that number. While people obviously associate financial services particularly with the IFSC, a significant proportion of those jobs are located throughout the country. I am thinking of counties such as Kerry where land and IDA developments are available which could host such jobs and become very successful.
There is no lack of activity. The Taoiseach and I along with other Ministers, the Minister of State, Deputy Eoghan Murphy, and senior civil servants in various Departments have all been in the City of London in the past six months and are in direct contact with several companies that have expressed interest is setting up in Ireland - in Dublin and outside Dublin.
It is premature to make any legislative or tax changes because we do not know where the Brexit negotiations will land. However, I assure the Deputy that we intend to maintain the advantages we have.
Question No. 36 answered with Question No. 34.