Sir, – Irish banks have accumulated losses from the financial crisis of some €34 billion. As a result some will not make a corporation tax payment until the end of the next decade. If Minister for Finance Paschal Donohoe were serious about dealing with the banks in even a fair-minded manner he could simply introduce legislation which would prohibit the use of legacy losses against profits beyond December 31st, 2017 (or even 2018).
The Minister believes that any sanction against our publicly quoted banks would adversely affect their share price. In that he is correct. Share prices would drop by 5-10 per cent. However, the markets would shrug off this news within hours and would quickly bid up the price of these price-gouging virtual monopolists.
The €4 billion-plus in corporation tax receipts thus freed up could then be ring-fenced in a social housing fund. – Yours, etc,
MICHAEL SHOVELIN,
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Sligo.