Ahern opposed to standard EU corporate tax rate

The Taoiseach has repeated the Government's opposition to a standardised European Union corporate tax base.

The Taoiseach has repeated the Government's opposition to a standardised European Union corporate tax base.

Mr Ahern made his comments this afternoon during an address at the second annual lunch of the Irish Bankers Federation and the Federation of International Banks in Ireland.

During his address, Mr Ahern emphasised the importance of the financial services sector to the continued success of the economy and described the sector as "an essential part" of Ireland's economic infrastructure.

The Taoiseach said the sector represented "a significant taxpayer" that "underpins the activity of other sectors of the economy generally."

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He said the Government appreciated the competitive environment the banks worked in and insisted it was "very conscious" that the industry was "bottom-line driven."

Stressing that a "thriving banking community" was good for the economy "as a whole," the Taoiseach raised the importance to the country's pension funds of continued success in the sector and called for a "more balanced" and "less negative" public view of the banking institutions.

Mr Ahern mentioned measures included in the Finance Bill which he insisted would be "of considerable benefit" to the ongoing development of the sector.

He said work currently underway to develop a strategy for the future direction of the international financial services industry would be completed shortly.

He said the purpose of the review was to deliver "a practical, action-orientated strategy that will assist the industry in its transition from the ring-fenced IFSC environment to a mainstream environment."

He said he hoped the work, which will emphasise collaboration between the public and private sectors, would assist in facing into new challenges.

Mr Ahern also called on the industry to engage with the public sector adding that "the challenge we all now face is to build on that success in adapting to a new and more competitive environment."

Éanna Ó Caollaí

Éanna Ó Caollaí

Iriseoir agus Eagarthóir Gaeilge An Irish Times. Éanna Ó Caollaí is The Irish Times' Irish Language Editor, editor of The Irish Times Student Hub, and Education Supplements editor.