Corporation tax cut will not help ordinary people
Published 13/01/2012 | 08:00
Eamonn Donaghy, of the pro-corporation tax cut body Grow NI, is rather selective (Business Telegraph, January 10). He mentions that business bodies in Northern Ireland want lower corporation tax.
This is no surprise as they, and not the ordinary people of Ulster, would benefit by paying less tax. He also mentions that 75% of those who replied to the consultation by the Treasury were in favour of the devolution of corporation tax.
Again this is no surprise as there was a strong canvass to request professional practices to send in favourable responses to the Treasury.
What is surprising is that some 25% went out of their way to register their opposition to the devolution of corporation tax. What is disappointing is that Mr Donaghy, in his enthusiasm to have less tax paid by businesses, fails to mention the cost of this to public expenditure in Northen Ireland.
There could be a reduction of £400m in the block grant from the Treasury to Stormont each year. This would likely mean a loss of many public jobs and closure of schools, hospital wards and rural development schemes.
Teachers' unions, health unions and farmers' unions should oppose the campaign to reduce corporation tax. Who will speak up for the ordinary people of Ulster?
House of Lords, London SW1