Davies: First Minister is naïve over Financial Transaction Tax

Responding to Oxfam Cymru’s event being held in the Senedd yesterday, the Welsh Conservatives urged caution in implementing a Financial Transaction Tax without international agreement on the issue first.

With one of the largest financial sectors in the world, the UK would be hit disproportionately hard if a Financial Transaction Tax was put in place without the agreement of other financial centres like Hong Kong, Singapore or New York.

According to the TheCityUK, around 50,000 jobs in Wales are associated to Financial Services.

The Welsh Government has already said that Cardiff is “best placed” for a financial services enterprise zone, which it plans to establish in the £160m Central Business District in Cardiff.

Welsh Conservatives have questioned how the Welsh Government can say that Cardiff is “best placed” for financial services, at the same time as promoting a tax without universal agreement globally.

Responding to Carwyn Jones’ comments on the Financial Transaction Tax, Andrew R T Davies, the Leader of the Opposition in the National Assembly said:

“It is all very well for the First Minister to deny he is anti-banking but giving his agreement for a Tobin Tax to be implemented without international agreement shows great naivety on his part. He clearly thinks financial services in Wales will not be hit hard by a policy being implemented without international agreement.

“Our financial sector, both in Wales and the UK as a whole, contribute huge revenues to the UK Treasury. By going ahead without centres like Singapore and Hong Kong taking the policy on board too, we risk putting our financial industry at risk.”

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