Wilson concerned over devolution costs

Published Thursday, 26 July 2012
Comments
Toggle font size
Print

The Finance Minister has accused the Secretary of State of not being sympathetic towards Northern Ireland's efforts to devolve corporation tax.

Video available to UK viewers only.
We’re sorry. This video is unavailable from your location.

To find out if this video is available to you, we need to know what region you live in. Please enter your postcode below (including space).

Frequently Asked Questions

Thank you for confirming your region.

Frequently Asked Questions

We are sorry but this video is not available on u.tv in your region. Your region is listed below.

Frequently Asked Questions

Are you in Northern Ireland?

1. Why is my postcode required?

We are asking you to insert your postcode before watching some videos to confirm you can access the video content via u.tv.

This is because some videos on u.tv are only available in Northern Ireland.

Don't worry, we won't store or use this information for any other purpose.

If you are not in Northern Ireland, the content may be available to watch at itv.com or stv.tv.

2. Why am I directed to itv.com or stv.tv when I try to view certain clips?

The videos, which are not available on u.tv to users outside Northern Ireland, will be available to those users on itv.com (for users in England and Wales) or stv.tv (for most users in Scotland).

We need to know where you are in order to make sure you are getting the right content.

If you think we've got your location wrong, then please click here.

Need more help? Contact us

If given control of the tax, Stormont hopes to lower it to match the rate in the Republic of Ireland - a shift from 24% to 12.5%.

The decision is expected to be taken in the autumn, but the Treasury has predicted that the devolution would result in a £500 million cut from Northern Ireland's block grant.

Owen Paterson has also said that questions over the cost of reducing the tax rate "must be resolved before a final decision can be made".

But on Thursday, Sammy Wilson described the Treasury plans as "a smash and grab raid on the budget of Northern Ireland".

"When you're going into a political fight like we are going to have to go into in the autumn, then you really want to have a Secretary of State who is well clued in to the issues here in Northern Ireland, and who is sympathetic to the issues that we have in Northern Ireland, in respect to the costs of this.

It would be damaging to the economy of Northern Ireland if we had to get that amount of money taken off the block grant.

Sammy Wilson

"We have to keep public services going here in Northern Ireland. Industry wants us to keep spending money on infrastructure. We can only do that if we have spending money in the purse.

"That's why I would have expected the Secretary of State to have some sympathy with the situation that we have got here."

In the House of Commons earlier this month, the Exchequer Secretary to the Treasury, David Gauke, was questioned about the progress of the devolution.

"While good progress has been made on some aspects of the work, including the potential shape of a devolved corporation tax regime, there remain some crucial areas where significant differences of opinion still exist, including on the potential costs to the Northern Ireland block grant," he explained.

The Finance Minister described Owen Paterson's attitude towards the cost of devolving the tax as "blasé".

Sammy Wilson said he believes the figures now given by the government do not give fair representation of the cost of handing over power of corporation tax to the region, and suggested the government is more focused on cutting the deficit.

"That means getting as much money from government departments and devolved administrations as they can," said Mr Wilson.

It is hoped that a drop in the corporation tax rate would bolster investment and create jobs.

Last year, a public consultation exercise on the matter received over 700 responses from interested parties.

© UTV News
Comments Comments
7 Comments
Eamonn Andrews in Falls Road wrote (327 days ago):
THIS IS FOR SAMUEL AND SAM FROM BELFAST.Have you read the first line in Sammy's comment. it states that the Republic have a tax of 12.5% and the brits our making us pay 24% tax.Now you say im talking inocherent drivel,And this is for the other moran.The brits dont want us and the free state dont want us.So what. Given a choice i think i would always go with the senseable option and go where the tax is better for my pocket.But of coarse guys like you cant see past your stupidity. Wise up lads.
Stevo the Magnificent in Newtownabbey wrote (328 days ago):
This is proof once again - if needed - that it is high time Northern Ireland left the Union to become a completely autonomous Crown territory where we can set our own tax rates, legislate our own affairs, and actually have proper democracy back again...
Ryan in Belfast wrote (328 days ago):
Of course Northern Ireland is of no great concern to Westminister, it never was. Westminister has wanted rid of Northern Ireland for decades, we're a drain to the British economy. So im not surprised at Owen Pattersons attitude. Nationalists have been saying for years we'd be better off in a United Ireland but try telling Unionists that, they dont listen. Something esle Unionists/Loyalists seem to forget about a United Ireland is that they would automatically hold 20-30% of all the seats in the Irish Parliment. In London they currently hold just over 2%.
ben in armagh wrote (328 days ago):
what a load of tripe from Eamonn. does he think that the republic wants anything to do with the 6 counties. they can hardly afford to keep there own side afloat never mind another million and a half people. what sammie and eamonn needs to understand is that the money train has run out of speed and eamonn is right on 1 thing the goverment does not give a stuff about n ireland europe is in the middle of a double recession and as a result each part of the uk has to share in the pain why should n ireland be excluded
Samuel in Belfast wrote (328 days ago):
Eamonn Andrews, sorry to ruin your little United Ireland delusions, but do you think the Dublin government or the people of the Irish Republic want YOU?
POST A COMMENT:
Name:  
Email address*:    
Location:  
Validation:
House Rules:  
Your Comment:  
[All comments are moderated and will not appear immediately. Your name, location and comment will be displayed on this page if your post passes moderation.]
MOST POPULAR GALLERIES
Obama in Northern Ireland
Mon 17 June 2013
BGT: The semi-finals
Thu 30 May 2013