Robinson Pushes For Corporation Tax Cut

The Stormont First Minister, Peter Robinson has acknowledged that the financial crisis in the Irish Republic will have an impact on the whole of Ireland, due to the levels of cross-border trade and investment.

He was speaking after the UK Financial Secretary to the Treasury Mark Hoban - the fourth most senior politician in the Chancellor's department - met with NI leaders on Wednesday to discuss the UK's role in the bail-out of the Republic of Ireland.

The DUP leader said that NI needs the ability to reduce its business tax rate to match the rate implemented in the Republic of Ireland.

The main level of corporation tax in the UK is 28% for 2010, while that south of the border is only 12.5%.

Despite the coming bailout, of around £7bn from the UK and the overall EU package of loans - in the region of £80-90bn - all backed by the European Union and the International Monetary Fund, the Irish Taoiseach Brian Cowen has refused to raise the country's controversially low tax rate as part of his radical austerity measures to restore the State's finances by 2014.

Commenting on the high level meeting, the Sinn Féin Deputy First Minister Martin McGuinness also said they sought and received assurances on corporation tax: "We are greatly encouraged by these assurances and look forward to receiving further detail in the coming weeks," he said.

The SDLP Leader Margaret Ritchie has also welcomed assurances that the UK government also intends to support the Irish position on corporation tax, while the UUP Leader Tom Elliott said the Coalition Government at Westminster must ensure Northern Ireland is not placed at a disadvantage.

In his official statement, Peter Robinson described yesterday's meeting as a useful opportunity to discuss a range of issues including the current crisis in the Irish economy and the rate of Corporation Tax here.

"The current financial crisis in the Republic of Ireland is of great concern to us all. There can be no doubt that the current situation with the Irish economy has the potential to have a knock on effect in Northern Ireland.

"We have used this opportunity to voice our concerns, in particular with regard to the issue of Corporation Tax, to the Treasury."

Deputy First Minister Martin McGuinness said: "We sought and received assurances that the Treasury and NIO are actively considering mechanisms through which the Executive could reduce our corporation tax rate.

"We are greatly encouraged by these assurances and look forward to receiving further detail in the coming weeks.

"Both economies on this island are intertwined. It is vital that the South receives every assistance available to ensure economic stability throughout the island.

"The meeting provided an opportunity to discuss the issues surrounding the support package with the Treasury."

(BMcC/GK)