Corporation Tax Devolution 'In The Balance'

NI's money matters have been in focus nationally with news that the NI Secretary of State's plan to vary corporation tax and devolve it to the Stormont Assembly may not be achieved as easily as first thought.

However, Owen Paterson told the Tory conference that he was going ahead with setting up a Joint Ministerial Group to examine a number of issues.

He said: "It is absolutely right as a responsible government that we should get into the nitty-gritty."

But, he said that the transfer of the power to Stormont would mean a corresponding cut in the block grant from Westminster.

But there's a complication in that, a public consultation on the issue had raised "considerable disagreement" on how much the block grant should be reduced.

He said on Monday: "As of this morning, as of last year, as of during the consultation process, I would not tell you which way this is going to go."

Money matters were also in the news last week when Owen Paterson welcomed the announcement by his colleague, the Chancellor of the Exchequer, George Osborne, of reduced Airline Passenger Duty on all direct long haul flights from Northern Ireland from 1 November.

Mr Paterson said: "This is really good news for Northern Ireland. Our priority is to protect jobs and help create more jobs. First-rate transport links are essential to Northern Ireland's future prosperity and that is why we have worked so hard with the Chancellor on this issue."

Speaking last week he said the announcement would help safeguard the vital direct link from Belfast to the United States.

"It makes it easier for the Executive to develop other long haul routes to attract foreign direct investment and increase tourism," he said.

However, the devolution of corporation tax - long an aim of the First Minister, Peter Robinson, may be a more complex process.

(BMcC)