Corporation tax cut would be a big incentive to new investors

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£70m pledged already at Ulster economic summit

Thursday, May 08, 2008

By Robin Morton

Northern Ireland would be an even more attractive location for overseas investors if tax breaks were to be on offer, Sir George Quigley said last night.

Sir George, who is chairman of the Industrial Task Force, was commenting as more than 100 senior executives from the US arrived for the US:NI investment conference.

He said: "Northern Ireland is a highly attractive location for investment, as I trust the delegates will come to appreciate.

"But it is a great pity that we are prevented from capitalising fully on the assets we have by the Government's failure to concede a reduction in corporation tax.

"The most recent Varney Report exemplifies the same woefully weak analysis of the importance of tax competitiveness that was demonstrated in the first report."

Sir Anthony O'Reily, CEO of Independent News & Media, owners of the Belfast Telegraph, who has championed the corporation tax issue, was due to address delegates at Parliament Buildings this afternoon.

Sir Anthony, who first raised the issue several years ago, was expected to make reference to the advantages in attracting investment which the Republic has enjoyed as a result of its lower corporation tax rate.

Large companies operating in Northern Ireland are obliged to pay the standard UK corporation tax rate of 28% on their profits.

By comparison, companies located in the Republic pay just 12.5%, a factor which is encouraging a number of large firms to consider redomiciling their tax base from the UK to the Republic.

Brian Cowen, the Republic's new Taoiseach, who was due to attend the conference today, has defended the Republic's strategy, arguing that its policy on corporation tax is "transparent".

Despite all the pleas of the Northern Ireland Executive and other parties, including the Industrial Task Force and the Institution of Chartered Accountants in Ireland, the Government is refusing to budge on corporation tax.