Government is 'stone deaf' to corporation tax cut

US:NI Conference

Invest US:NI

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Friday, May 09, 2008

By Robin Morton

The UK government has been accused of being "stone-deaf" to the argument for a cut in the rate of corporation tax in Northern Ireland.

The issue was raised forcefully by Sir Anthony O'Reilly, CEO of Independent News and Media, owners of the Belfast Telegraph, during his speech yesterday at the US:NI investment conference in Belfast.

Sir Anthony said that a cut from the present rate of 28% to 12.5% in the profits tax could be made at no cost to central government.

He told delegates that the Varney review, which rejected the proposal last December, had shown "no understanding" of the importance of tax as a factor in competitiveness.

"In my wife's racing parlance: 'The jockey was riding to trainer's instructions'," said Sir Anthony.

He said it was obvious that Northern Ireland deserved to be singled out for special treatment because it was the only region of the UK which was emerging from 35-years of conflict.

"It is vital that those of us who feel that tax is crucially important, and that government must waken up to the tax message, should seize this unprecedented opportunity to say so — loudly and clearly," said Sir Anthony.

"We will all be doing Northern Ireland an immense service.

"It is time for the Government to get on and give the Executive all the tools it needs to do the job.

"Northern Ireland deserves no less."

Sir Anthony said he did not want Northern Ireland to be "pipped at the post" because it failed a company's tax test.

"The Republic's Enterprise Minister said recently that its corporate tax rate was vital in attracting investment, echoing what many of the great global players who have located there also say," he added.

"I believe a low corporate tax regime is equally vital for Northern Ireland."