Ritchie Still Pushing for Corporation Tax Slash

SDLP Leader Margaret Ritchie has met with the UK Secretary of State on Thursday to again push the case for a reduction in corporation tax in Northern Ireland.

Ms Ritchie led a party delegation to the meeting with Owen Patterson to discuss a range of issues, particularly the issue of corporation tax, advocating its reduction to make the North a more competitive choice for foreign investment.

Speaking on Friday morning, Minister Ritchie said: “Owen Patterson confirmed that the Treasury still remains unconvinced as to the benefits in the reduction of corporation tax. With continued negative messages from Stormont’s Finance Minister, it’s imperative that businesses impress upon the consultation process.

"If we are to move our economy out of recession, and onto a new growth trajectory, then we need to take control of more economic levers."

The issue has become of particular concern for the SDLP Leader who on Tuesday claimed Finance Minister Sammy Wilson didn't believe in the policy of reducing corporation tax, despite leading the negotiations with the UK Government.

At present, Northern Ireland's tax on corporations is the same as the UK's at 26%. However, many in the Assembly are arguing that the Republic of Ireland's relatively low 12.5% has put them at an economic advantage, making it harder for the North to attract direct foreign investment.

Margaret Ritchie said that Minister Sammy Wilson has made it clear he does not share his Party's enthusiasm for a cut, and that he was completely at odds with the position of his Party Leader, First Minister David Robinson.

Ms Ritchie said: “I have made it clear many times that the position of the SDLP is one of strong support for the devolution of tax-varying powers and lowering of corporation tax here.

"If we are to move our economy out of recession, and onto a new growth trajectory, then we need to take control of more economic levers."

Sammy Wilson is this week involved in negotiations to have the powers to control corporation tax devolved to the Assembly.

Earlier this week DUP Assembly Member for Strangford, Simon Hamilton supported Ms Ritchie's comments, saying on Tuesday the reasons for a reduction are clear, "as are the benefits".

"Failing to positively pursue devolving Corporation Tax powers is in effect consigning Northern Ireland to an economic future of more of the same.

"If we need an illustration why, we need only look across the border to the Irish Republic: in spite of its economic woes it has reported record exports fuelled by companies attracted to Ireland by its low corporation tax rate."

(DW/GK)