REDUCING CORPORATION tax in the North in line with the Republic’s rate could generate an extra 90,000 jobs in Northern Ireland over 20 years, according to key business leaders and economists.
Businesses in the North pay 28 per cent compared with the Republic’s rate of 12.5 per cent.
A new business lobby group launched yesterday, the Northern Ireland Economic Reform Group, says the only change which will turn the North’s economy around quickly is a low rate of corporation tax. The reform group comprises senior economists, accountants and Sir George Quigley, chairman of Bombardier-Shorts,
In its first report the reform group said urgent economic reform is needed because the NI economy faces a difficult future with continued dependence on a huge subvention from the UK treasury.
“Twelve years after the Good Friday Agreement, Northern Ireland remains the UK’s poorest region. It has the lowest average wages and among the lowest productivity. Despite having proportionately the smallest private sector, it has suffered the largest percentage loss of jobs of any region during the current recession,” the report stated.
About half of all government expenditure in the North is financed by taxpayers in Britain, the report notes, amounting to about £9 billion (€10 billion) annually. “This means £5,000 for every person living in Northern Ireland,” the report adds.
This is not the first time Sir George Quigley has spearheaded a campaign for a reduction of corporation tax rates in the North. Three years ago, together with other leading NI business figures, he led an abortive campaign to try and persuade the UK government to cut corporation tax in Northern Ireland.
