Dáil Éireann díospóireacht -
Tuesday, 12 Nov 1991

Vol. 412 No. 5

Written Answers. - Financial Services Growth.

Peter Barry

Ceist:

108 Mr. Barry asked the Minister for Finance if he will outline the specific measures which will be taken to promote growth in the financial services as referred to in page 2 of the Review of the Programme for Government which was published on 18 October 1991.

Minister for Finance (The Taoiseach)

Growth in financial services in Ireland will be achieved primarily through the development of international financial activities, particularly through the International Financial Services Centre in Dublin. In that respect, the extension, to the end of 1994, of the period during which new firms can establish in the centre and the approval for the continuation of the 10 per cent rate of corporation tax until the end of the year 2005, as confirmed by the European Commission earlier this year, are important.

Moreover, the future of the centre depends on new and expanded business. In that connection, our programme of legislation is designed to enhance the type of product available to companies within the centre. Ireland has been among the leaders in putting into effect recent EC directives concerning collective investment undertakings and life assurance.

Last year the new unit trust and companies legislation came into force.

This year's Finance Act expanded uniformity of treatment to designated investment companiesvis-à-vis similar investment vehicles such as units and unit trusts.

The tax treatment of foreign life assurance in the IFSC has also been amended this year so that such companies will enjoy tax exemption in relation to the income of policy holders. This income will now be taxed in the hands of the recipient as is the norm in continental European countries.

I am confident, therefore, that we have created the right environment at the centre to attract companies and to encourage them to expand and develop. This will result in the growth of financial services in Ireland.