The Minister for Finance, Mr McCreevy, has backed the tough stance being taken by the Revenue Commissioners with banks at the International Financial Services Centre, in relation to Deposit Interest Retention Tax (DIRT).

Speaking at the launch of the Finance Dublin IFSC Yearbook 2000 yesterday, Mr McCreevy said the Government fully supported the Revenue in its execution of its duties. "The Revenue Commissioners have the Government's full support in exercising their functions with the highest standards of diligence, including the long-standing principle of care and management which guides their work."

The Financial Services Industry Association (FSIA), which represents the industry, has lobbied the Government to urge the Revenue to take a more pragmatic approach in relation to establishing DIRT liabilities.

The FSIA recently met the Revenue to outline its concerns and Mr McCreevy welcomed the joint statement issued after that meeting which acknowledged those concerns. Revenue chairman Mr Dermot Quigley has pledged that each IFSC-based company would have an opportunity to discuss the findings of audits with the Revenue before any conclusions were reached.

Mr McCreevy paid tribute to the support for the IFSC provided by the Revenue Commissioners over the years. "Without Revenue support, the IFSC would not have developed as it has done. We should all remember that."

Referring to the widescale abuse of non-resident accounts at the Republic's domestic financial services institutions in the 1980s and 1990s, which is being investigated by the Revenue, Mr McCreevy said it was important that failures of the past, especially those which relate to DIRT, should be addressed quickly and fairly.

"The standards the public are entitled to expect were not adhered to in many financial institutions, and that was disappointing. I strongly believe there is no place for a vindictive attitude to a key sector of the economy such as the banks, no matter what the immediate hue and cry at any time might suggest. We must move quickly to solve these issues and move on."

IFSC companies currently employ more than 8,500 people. Some €126 billion in funds is now managed at the Dublin centre.

The Minister stressed that, despite the centre's success, there was no room for complacency. He said the Government is committed to continuing to work with the financial services industry in developing the sector.