Dáil Éireann díospóireacht -
Thursday, 12 Feb 1998

Vol. 487 No. 2

Written Answers. - Single Currency.

Ruairí Quinn

Ceist:

108 Mr. Quinn asked the Minister for Finance the changes, if any, he proposes to make to sections 110 and 446 of the Taxes Consolidation Act, 1997, to ensure that dealings in currencies which form part of the Euro common currency zone after 1 January 1999 are not deemed to be domestic currency; and if he will make a statement on the matter. [3707/98]

Ruairí Quinn

Ceist:

109 Mr. Quinn asked the Minister for Finance if his attention has been drawn to concerns regarding the single currency and how it might affect IFSC/Shannon transactions after 1999; and if he will make a statement on the matter. [3708/98]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 108 and 109 together.

As outlined in the Preliminary Finance Bill List which was published on 22 January 1998, I am making provision in this year's Bill to amend sections 110 and 446 of the Taxes Consolidation Act, 1997, so as to remove the restrictions which currently confine the carrying out of activities by IFSC companies to those which do not involve Irish currency. This and further measures which are contained in the Finance Bill being published to-day are designed to deal with certain tax issues arising from the change in the currency of the State to the euro, on the basis that Ireland will become part of EMU from the outset. These measures will not take effect until such time as appointed by me by order.

In relation to concerns regarding the single currency and how it might affect IFSC/Shannon transactions after 1999, the issue of EMU has been on the agendas of the various IFSC working groups operating under the aegis of the Department of the Taoiseach which deal with matters of concern to the various sectors of the international financial services industry. Apart from the Irish currency restriction issue which I have already dealt with above, other issues raised by the IFSC industry at these working groups would be matters of general concern to the overall financial services sector.