27 August 2009
City of London's response to Tobin tax
Following comments by Lord Turner, Chairman of the Financial
Services Authority, Stuart Fraser, Chairman of the Policy and
Resources Committee, City of London Corporation said:
“The Tobin tax was first put forward in 1978 so is hardly a new
idea. The question remains if it is a ‘good idea’ why has it
not been implemented? The effect of such a tax on economic
activity is at best uncertain and at worse could put a serious
restraint on global growth. The world is now much more
complicated and interconnected with Asia playing an increasingly
important role with a need to grow strongly just to feed and
educate their people. Any such ‘global’ tax proposal would
have to be judged against this backdrop.
“With the global community struggling to adopt a common approach
to vastly more important areas such as climate change, free trade
and human rights the chances of a new global tax on financial
services being agreed and uniformly implemented are virtually
nil. For Europe or the West to implement such a tax
unilaterally would simply drive the financial services industry to
the emerging centres in Asia, where they would be welcomed with
open arms. Having lost most of our ‘traditional’ industries
to the East it would be folly to push the one area where we are
still dominant in the same direction.”
Notes for editors
The City of London Corporation:
The City of London Corporation is a uniquely diverse organisation.
It supports and promotes the City as the world leader in
international finance and business services and provides local
services and policing for those working in, living in and visiting
the Square Mile. It also provides valued services to London and the
nation. These include the Barbican Centre and the Guildhall School
of Music & Drama; the Guildhall Library and Art Gallery and
London Metropolitan Archive; a range of education provision
(including three City Academies); five Thames bridges (including
Tower Bridge and the Millennium Bridge); the Central Criminal Court
at Old Bailey; over 10,000 acres of open spaces (including
Hampstead Heath and Epping Forest), and three wholesale food
markets. It is also London’s Port Health Authority and runs the
Animal Reception Centre at Heathrow. It works in partnership with
neighbouring boroughs on the regeneration of surrounding areas and
the City Bridge Trust, which it oversees, donates more than £15m to
charity annually.
Press enquiries
Kristina Blissett, Press Office, City of London
Corporation
T: 020 7332 3451 / M: 07795 290040
Email:
kristina.blissett@cityoflondon.gov.uk