Ryan defends watering down of NAMA levy
Communications Minister Eamon Ryan
Communications Minister Eamon Ryan has defended the Government's decision to water down its plan to impose a levy on Irish banks if NAMA fails to make a profit.
Finance Minister Brian Lenihan signalled this morning that he would be introducing a corporate tax surcharge rather than a levy.
Mr Lenihan says the change is necessary as the threat of a levy could devalue the balance sheets of the banks.
However, the move means the banks would only pay money to the State if they were making a profit, something Labour says may not happen for more than 40 years.
The introduction of a special levy on banks to help recoup potential losses by NAMA was announced just before the Green Party held a vote on whether to support the establishment of the assets agency.
Speaking in Dublin today, Mr Ryan claimed the surcharge was the same concept as a levy and insisted that there were "a lot" of measures in the NAMA legislation to protect the taxpayer's investment in NAMA.
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