6 March 2003 Edition
Bank robbery
BY ROBBIE SMYTH
Can't pay, won't pay. That was the message from not just the banking community this week but also from the Minister for Finance on why banks cannot be levied to hand over more of their billions of euros profits to the Revenue Commissioners.
Charlie McCreevy claims that bank profits cannot be siphoned into much needed infrastructural investment because of EU rules on state aid. Two weeks ago, AIB reported pre-tax profits of §1.375 billion, and last week Ulster Bank recorded §388 million in profits for 2002. These are just two of 60 Irish financial institutions.
Both these companies will be able to avail of the new 12.5% low corporation tax. Because of EU regulations, there cannot be a special tax on the huge profits of the banking sector.
Interesting then that the same banks can charge Irish customers overdraft rates that are higher than those levied on British or French banking customers. A Davy Stockbrokers' report released this week has found that Irish banks are the most expensive for personal loans in Europe. The Irish Bankers Federation claims the report is misleading and inaccurate.
Michael Kilcoyne, the chairperson of the Consumers Association of Ireland, has said that Irish consumers "are being ripped off" and has called on the new financial services regulator to take action on this overcharging.
But for now, it seems that there is one EU law to protect the banks and none to protect banking customers.
Can't pay, won't pay. That was the message from not just the banking community this week but also from the Minister for Finance on why banks cannot be levied to hand over more of their billions of euros profits to the Revenue Commissioners.
Charlie McCreevy claims that bank profits cannot be siphoned into much needed infrastructural investment because of EU rules on state aid. Two weeks ago, AIB reported pre-tax profits of §1.375 billion, and last week Ulster Bank recorded §388 million in profits for 2002. These are just two of 60 Irish financial institutions.
Both these companies will be able to avail of the new 12.5% low corporation tax. Because of EU regulations, there cannot be a special tax on the huge profits of the banking sector.
Interesting then that the same banks can charge Irish customers overdraft rates that are higher than those levied on British or French banking customers. A Davy Stockbrokers' report released this week has found that Irish banks are the most expensive for personal loans in Europe. The Irish Bankers Federation claims the report is misleading and inaccurate.
Michael Kilcoyne, the chairperson of the Consumers Association of Ireland, has said that Irish consumers "are being ripped off" and has called on the new financial services regulator to take action on this overcharging.
But for now, it seems that there is one EU law to protect the banks and none to protect banking customers.