belfastuniguy
May 15th, 2010, 02:31 PM
Inspired by the UK Skybar thread. This is really for people to post stories of interest whether it be economic, development or whatever :)
Owen Paterson planning to slash corporation tax
Northern Ireland’s new Secretary of State is drawing up plans that would allow corporation tax to be slashed as part of a 25-year blueprint to end reliance on Government cash.
Owen Paterson will have his first public engagements in the province today, including discussions with First and Deputy First Minister Peter Robinson and Martin McGuinness.
He is also expected to meet other Assembly party leaders, while an early security briefing from PSNI Chief Constable Matt Baggott is also anticipated.
Mr Paterson revealed Prime Minister David Cameron is “on target” to keep his promise of returning to Northern Ireland within one week of taking office.
On his first full day in the new post, Mr Paterson insisted that his commitment to reversing Northern Ireland’s dependence on state cash would not mean any rapid moves that would threaten economic stability here.
Instead a series of plans, that could take shape over as long as 25 years, would be needed to bolster the private sector and realise his ambition to make Northern Ireland the “most business friendly area of Europe”.
Three years ago Government adviser Sir David Varney ruled out a reduction in corporation tax to bring Northern Ireland into line with the Republic’s much lower rate, warning it would cost almost £300m a year in lost tax receipts.
Labour had also said the change could not be made because it breached European rules — the “Azores Judgment” — which means tax must be the same across one area.
Mr Paterson said: “We have said quite clearly it’s not a sustainable in the long-term for Northern Ireland to have 77.6% of GDP dependent on state spending.
“I have said it until I am blue in the face over the last three years, but it is equally irresponsible to do anything too fast and too far.
“The Azores ruling means taxes can only be changed within an entire democratic area, so I am looking at a Government paper on transfer of responsibility to the Assembly. The broad strategy is that it is just not sustainable to have such a huge dependency on public spending. What we want to do is grow the private sector. But we are looking at doing that over the course of maybe 25 years.
“I am being very sober about this, if we try to do anything too quickly it will cause instability.
“I would like to see Northern Ireland as the most business friendly place in Europe.”
Mr Paterson took his seat at the Cabinet table for the first time yesterday as Mr Cameron called his first No 10 meeting with all of the coalition’s secretaries of states.
He added: “It was a really interesting Cabinet meeting.
“Even for the likes of Ken Clarke, who has been there before, it was novel because we have not had a coalition in 65 years.
“There were Lib Dems that I had never met before but there was a real sense of everyone wanting to make it work. I will be carving out a new role for Northern Ireland’s Secretary of State.
“I told the Prime Minister before the election this is an absolutely vital role.”
Meanwhile, Conservative East Devon MP Hugo Swire has been appointed a junior minister at the NIO. Mr Swire, who has served on the NI select committee, said: “I am greatly looking forward to my new role and working closely with the Secretary of State.”
Owen Paterson planning to slash corporation tax
Northern Ireland’s new Secretary of State is drawing up plans that would allow corporation tax to be slashed as part of a 25-year blueprint to end reliance on Government cash.
Owen Paterson will have his first public engagements in the province today, including discussions with First and Deputy First Minister Peter Robinson and Martin McGuinness.
He is also expected to meet other Assembly party leaders, while an early security briefing from PSNI Chief Constable Matt Baggott is also anticipated.
Mr Paterson revealed Prime Minister David Cameron is “on target” to keep his promise of returning to Northern Ireland within one week of taking office.
On his first full day in the new post, Mr Paterson insisted that his commitment to reversing Northern Ireland’s dependence on state cash would not mean any rapid moves that would threaten economic stability here.
Instead a series of plans, that could take shape over as long as 25 years, would be needed to bolster the private sector and realise his ambition to make Northern Ireland the “most business friendly area of Europe”.
Three years ago Government adviser Sir David Varney ruled out a reduction in corporation tax to bring Northern Ireland into line with the Republic’s much lower rate, warning it would cost almost £300m a year in lost tax receipts.
Labour had also said the change could not be made because it breached European rules — the “Azores Judgment” — which means tax must be the same across one area.
Mr Paterson said: “We have said quite clearly it’s not a sustainable in the long-term for Northern Ireland to have 77.6% of GDP dependent on state spending.
“I have said it until I am blue in the face over the last three years, but it is equally irresponsible to do anything too fast and too far.
“The Azores ruling means taxes can only be changed within an entire democratic area, so I am looking at a Government paper on transfer of responsibility to the Assembly. The broad strategy is that it is just not sustainable to have such a huge dependency on public spending. What we want to do is grow the private sector. But we are looking at doing that over the course of maybe 25 years.
“I am being very sober about this, if we try to do anything too quickly it will cause instability.
“I would like to see Northern Ireland as the most business friendly place in Europe.”
Mr Paterson took his seat at the Cabinet table for the first time yesterday as Mr Cameron called his first No 10 meeting with all of the coalition’s secretaries of states.
He added: “It was a really interesting Cabinet meeting.
“Even for the likes of Ken Clarke, who has been there before, it was novel because we have not had a coalition in 65 years.
“There were Lib Dems that I had never met before but there was a real sense of everyone wanting to make it work. I will be carving out a new role for Northern Ireland’s Secretary of State.
“I told the Prime Minister before the election this is an absolutely vital role.”
Meanwhile, Conservative East Devon MP Hugo Swire has been appointed a junior minister at the NIO. Mr Swire, who has served on the NI select committee, said: “I am greatly looking forward to my new role and working closely with the Secretary of State.”