Ministers Meet To Clarify Taxation Draft

There have been further high-level discussions on NI's economic situation with the NIO Secretary of State, Owen Paterson, and the Exchequer Secretary, David Gauke meeting local representatives on the UK Government's draft paper on rebalancing the economy.

The Stormont First and Deputy First Ministers, together with the Economy Minister Arlene Foster and Finance Minister, Sammy Wilson, met Mr Paterson and Mr Gauke with First Minister Peter Robinson commenting: "This was a good first meeting. The possibility of devolving corporation tax is a huge opportunity for us to grow our economy in the future."

He said that it is clear that the Government needs to work with the (Stormont) Executive to identify the different options and mechanisms for doing this and to be as clear as possible about the benefits and costs of each.

"This has started the engagement we need in order to achieve our shared goal of rebalancing the economy in Northern Ireland," the DUP MLA said.

Martin McGuinness, the Sinn Fein Deputy First Minister said: "We are committed to creating economic growth for the benefit of all. We are hampered by the lack of powers to fully realise our economic potential.

"The ability to vary corporation tax is one of those powers that could have the potential to promote and deliver growth.

"We cannot deliver growth with one arm tied behind our backs. However there is a need to ensure that any reduction will deliver jobs and growth without undermining public finance. There is more work to be done."

Sammy Wilson added: "There is a lot to clarify in the Government paper as it stands. We have asked the treasury to be more explicit about the benefits we can expect in terms of investment and job creation."

Arlene Foster said: "Given the current and ongoing challenges facing the Northern Ireland economy, we indicated the importance of exploring all tax options to stimulate growth in the local private sector.

"We also highlighted to Government ministers the need to engage now with the European Commission, in respect of state aid issues, so that any tax measures could be introduced as early as possible."

As part of Budget 2010, the UK Government committed to publishing a consultation paper on rebalancing the Northern Ireland with the First and Deputy First Ministers getting a draft of this paper by HM Treasury in December.

(BMcC)