THE NORTHERN Ireland First Minister has reiterated his party’s commitment to securing a 10 per cent corporate tax rate for Northern Ireland.
Ahead of his address to the Chartered Accountants Leinster Society lunch in Dublin yesterday, Peter Robinson said devolving corporate taxation powers to Northern Ireland could result in a cut of between £300 million and £400 million to the block grant the region receives from Westminster to run its public services.
The reduction in the corporate tax rate from 26 per cent to 10 per cent would be achieved over a period of time, he added.
The DUP leader described the issue of corporate tax as “the most important decision the Northern Ireland Executive will have to take in this term of the Assembly”.
A decision by the British government on devolving corporate tax is expected next year. It opened a consultation process in March, with a summary of the responses expected to be published later this year.
Mr Robinson expressed the need to “move to the next stage as quickly as possible”.
“We know from your experience what a key role a low rate of corporation tax can have on encouraging economic growth,” he told delegates. “We want to have all possible policy levers available to us.”
A change to EU rules means that Northern Ireland will face significant restrictions on its ability to offer grant aid to companies from 2013, traditionally a key way in which it has attracted foreign direct investment. This has thrown the spotlight on the issue of corporation tax as a way of securing inward investment.
On the subject of Nama, Mr Robinson said that Minister of Finance Sammy Wilson had been in regular contact with Michael Noonan, although there had been some concern about individual cases where Northern Irish trading companies had gone into Nama.
Mr Robinson said the Republic’s economic difficulties had affected the Northern Ireland economy. “The Republic is one of our key markets for exports and tourism, and it is in our interests, as neighbours and trading partners, to strengthen those economies.”
