Industrial derating phase out is 'reasonable', says Minister

Finance Minister, Ian Pearson has said that proposals to phase out industrial derating will help to establish a modern and fairer rating system in Northern Ireland.

Mr Pearson was speaking after meeting representatives of the Northern Ireland Manufacturing Focus Group (NIMFG). He said proposals to phase out industrial derating had been formulated following an extensive consultation exercise during 2002 and detailed discussions with the business community in 2003.

"It is a reasonable policy based on a thorough assessment of all the evidence on the impact upon industry," the Minister said. "I am satisfied that it will be in the economic interests of Northern Ireland.

"NIMFG suggest there will be substantial job losses as a result of the removal of industrial derating, but have not provided substantive evidence to support this claim. I have listened to the proposals put forward by the NIMFG and was able to outline to them my plans to introduce an exceptional hardship scheme for businesses."

Mr Pearson confirmed that industrial derating will be phased out over a prolonged period, commencing in 2005, when the rate liability will be 15%. This phased approach is being introduced to assist companies with their financial budgeting and has been supported by many during the consultation process.

"It cannot be right to use £55 million of government support in the existing derating scheme, which has no regard for the circumstances and needs of particular firms.

"My clear view is that it would be far better to use resources in ways that are targeted and effective in raising company profitability and therefore their ability to meet all their costs," the Minister concluded.

(MB)