Kenny backs NI corporation tax cut

Published Friday, 10 June 2011
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Taoiseach Enda Kenny has backed a cut in Northern Ireland's corporation tax rate to match that of the Republic of Ireland.

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    Kenny backs tax cut
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    Analysis

Mr Kenny was speaking at a North-South Ministerial Council meeting, which marked the first appearance of Sinn Féin advisor Mary McArdle.

Ms McArdle, whose appointment sparked controversy, arrived for the meeting at Farmleigh in Dublin's Phoenix Park, with Sinn Féin Culture Minister Carál Ní Chuilín.

This was also the first formal meeting between the two administrations since the Irish General Election in February and the Northern Ireland Assembly election last month.

After the meeting, Mr Kenny said his government backed a reduction in the corporation tax rate in Northern Ireland.

We in government here would be very supportive of a reduction in the corporation tax rate - equivalent to our own - in Northern Ireland.

Taoiseach Enda Kenny

Political parties and businesses in Northern Ireland say reducing the current UK-wide business tax rate of 26% would help the region compete with its immediate neighbour, where the rate is 12.5%.

A consultation paper on lowering the rate of corporation tax is currently out for consultation. The devolution of corporation tax powers to the Northern Ireland Assembly would have to be accompanied by a proportionate reduction in the Northern Ireland's block grant.

Mr Kenny said he envisaged an enhanced role for cross-border bodies to secure savings for the two administrations.

"This is a period where the new assembly and the new government here have a period of stability in electoral terms in front of them, which gives us an opportunity to really get down to business in terms of the cross-border bodies and the work that they do," he said.

"And if it is required for instance, that there be changes to the cross border bodies in terms of their effectiveness, obviously ministers and members of the executive will discuss that."

First Minister Peter Robinson said cutbacks could also be part of a move to make the agencies more efficient.

"There are no sacred cows, we want to get more for less and that is in much of respect of cross-border bodies as any other part of our administration," he said.

Deputy First Minister Martin McGuinness said: "We have to understand that in very challenging circumstances we have a duty and a responsibility to see what efficiencies will be deployed; not just within governmental structures in Dublin or in our Executive but through the hospices of the North South ministerial council.

Mr Kenny, Mr Robinson and Mr McGuinness said the meeting was "warm and engaging".

Mr Robinson said he was encouraged by Mr Kenny's style, with the Taoiseach revealing all ministers had swapped telephone numbers.

"It was very much a case of getting the ministers to know each other but there was some business", UTV's Political Editor Ken Reid said.

The administrations spoke about areas of co-operation, including the funding of a new radiotherapy unit at Altnagelvin Hospital, the A5 Dublin to Derry dual carriageway project and the A8 Belfast to Larne road upgrade which are all being part-funded by the Republic of Ireland.

Friday's meeting was overshadowed by the announcement of former Irish Finance minister Brian Lenihan's death, at the age of 52.

The North-South Ministerial Council will meet again in November.

© UTV News
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2 Comments
norman.d in bangor wrote (348 days ago):
get rid of half the mlas and north south bodies costing millions and put that money into creating jobs instead of this nonsense of north south bodies that do nothing only set up to appease sinn fein
Ciaran Mc Clean in Sixmilecross, Co Tyrone wrote (348 days ago):
"!Deputy First Minister Martin McGuinness said: "We have to understand that in very challenging circumstances we have a duty and a responsibility to see what efficiencies will be deployed; not just within governmental structures in Dublin or in our Executive but through the hospices of the North South ministerial council." Given the above statement one would think it would be prudent to downscale the A5 duel carrageway. The A5, as can be seen from the debate in Stormont on June 7th is dividing the community along old narrow sectarian lines, that was not what was envisaged in the GFA or subsequent agreements. Why should the already hard pressed taxpayers of the Republic of Ireland have to fund projects that are dividing the community (quite literally for those in its path) to the tune of half a Billion Euro? The proposal makes no sense whatever way its looked at.
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