Fintan O Toole is correct in asserting that Ireland's national interest will be served by taxing financial transactions

Sir,

 Fintan O Toole is correct in asserting that Ireland's national interest will be served by taxing financial transactions (Jan 17) .

According to the Impact Assessment on a Financial Trading Tax (FTT) carried out by the European Commission, a tax on activities such as high volume automated secondary trades will accrue many financial, structural and social benefits.

The Green Party have long supported the introduction of such a tax. The case for it is overwhelming. The sums raised will be vast; perhaps 9bn on an annual basis. It will be a popular tax and would be seen as both morally correct and financially sensible. And unlike so much of what was contained in Budget 2012 it will be a progressive tax, as its impacts will be felt by those on the very highest salary scales.

It is designed not to impact on Central Bank activities, mortgages or the primary markets. It will add to the cost of speculating on securitised products and change investor behaviour in favour of the cash starved productive economy.

It is planned that the revenues raised would be for use within the European Union, in part replacing national contributions to the EU, and will be collected on the basis of where institutions operate from. This could be advantageous to Ireland and would ultimately mean that the industry that caused the ruinous collapse finally begins to pay for it. What a relief this would be for all of us who resentfully do so at present?

With all this to gain, the Taoiseach was far too hasty in locking Ireland onto the British position a day after his meeting with David Cameron. His pronouncements were overly aggressive and self-limiting, particularly when the rest of the Union sees the FTT as achievable, particularly if done in tandem with the G20 (of which Britain is also part).

The Green Party urges the Government to conduct its own impact assessment on the  FTT Directive, taking account of the full cost of under regulation to this country and then to make a decision on where our long term interests lie .

Yours ,

Mark Dearey.

Green Party Finance Spokesperson.

Phone 087 2358197