THE Government may withdraw Licences to operate in Dublin's IFSC from companies that will not move its", traders into the centre, the Minister for Finance, Mr Quinn, suggested yesterday. Such a move would immediately deny the companies the lucrative tax breaks they currently enjoy.

Speaking at a luncheon in the IFSC, Mr Quinn said he saw the urban renewal aspect of the financial services centre project as important.

"I want to see an increasing number of companies taking up office accommodation there," he said.

His comments were aimed at some 165 firms which, despite having received licences and begun trading, have not moved in.

"Each IFSC company at present located outside the centre has a responsibility in this regard. Everything is being reviewed, including Licences," Mr Quinn warned.

Business observers said last night that while a handful of large companies are set to move in, many of the offending 165 are smaller firms. The problem is that they require relatively small parcels of space, perhaps 200 sq m, while only bigger allocations are available for rent.

There were suggestions last night that the IFSC would soon parcel more of its office space, allowing wore small companies to lease space.