Northern Ireland Economic Reform Group Report on Corporation Tax
Written and Oral Assembly Questions on Corporation Tax May 2007 – March 2010
FINANCE AND PERSONNEL COMMITTEE MOTIONS
Northern Ireland Economic Reform Group Report on Corporation Tax
Written and Oral Assembly Questions on Corporation Tax
May 2007 – March 2010
AQO 1042/10
Mrs Claire McGill (SF - West Tyrone) To ask the Minister of Finance and Personnel what discussions he has had with the Economic Reform Group regarding its proposal to reduce Corporation Tax.
18/03/2010
I have not yet had direct discussions with this Economic Reform Group. My officials, however, have had discussions and my concerns about their report have been conveyed.
It is my view that the ERG report doesn’t add anything new to the debate that took place at the time of the Varney studies. Indeed, this ERG report raises a number of important unanswered questions. The most obvious unanswered questions relate to concerns over the methodology employed and the unstated dangers of engaging with HM Treasury on altering how the NI Block grant is determined.
Rather unhelpfully the report doesn’t indicate how or where the Executive should make annual cuts of hundreds of millions of pounds to fund shareholders through lower levels of corporation tax.
Furthermore, the understanding of the public expenditure system is flawed in places, suggesting an incomplete knowledge of what scores within the Northern Ireland DEL allocation and what doesn’t. In the current UK fiscal environment any engagement with HM Treasury which seeks to open the Northern Ireland Block allocation could have very damaging consequences.
For these reasons, and because HM Treasury has already declared its position by accepting the two Varney Reviews in full, I would advise against engaging further with HM Treasury on this issue at this point in time.
AQO 953/10
Mr Francie Molloy (SF - Mid Ulster) To ask the Minister of Finance and Personnel if he will consult the British Treasury on the possibility of a reduced rate of corporation tax, in light of the Economic Reform Group's recent report on this issue.
04/03/2010
My officials have already ensured that HM Treasury has a copy of this Economic Reform Group (ERG) report. The ERG report doesn’t add anything new to the debate that took place at the time of the Varney analysis. Indeed the ERG report is quite simplistic in its analysis and it leaves many important questions unanswered.
These unanswered questions mainly relate to concerns over the methodology employed and the unstated dangers of engaging with HM Treasury on altering how the NI Block grant is determined. But most importantly the report doesn’t indicate how or where the Executive should make annual cuts of hundreds of millions of pounds to fund shareholders through lower levels of corporation tax.
For these reasons, and because HM Treasury has already declared its position by accepting the two Varney Reviews in full, I would advise against engaging further with HM Treasury on this issue at this point in time.
Northern Ireland Assembly
Monday 27 April 2009
Corporation Tax
3. Dr McDonnell asked the Minister of Enterprise, Trade and Investment whether there is a strategy and structure in place to take advantage of the 12·5% corporation tax in the Republic of Ireland, for the purposes of new industry, in areas located close to large centres of population in Northern Ireland. (AQO 2568/09)
The Minister of Enterprise, Trade and Investment : In recent years, Invest Northern Ireland and IDA Ireland have co-operated, to their mutual benefit, on several activities. However, the pursuit of foreign direct investment (FDI) is one key aspect of the agencies’ work in which they continue to be in direct competition.
It is also important to recognise that Invest NI and IDA Ireland have different propositions. The latter promotes Ireland’s corporation tax rate, which appeals to major corporations that seek to neutralise and optimise their tax position, whereas Invest NI promotes Northern Ireland as a cost-competitive location that is close to, and culturally compatible with, its customers. The different propositions mean that IDA Ireland and Invest NI target different companies and may work in different sectors.
However, both agencies recognise the importance of co-operation when mutual benefit can be generated for the two jurisdictions. Co-operation is, therefore, directed at areas of common interest in the business-operating environment, such as communication, infrastructure, skills, legislative policy, business environment, and knowledge and research. The north-west business and technology zone (NWBTZ) is an excellent example of the approach in practice. It is a cross-border business and technology zone that harnesses the synergistic — Members should try saying that word — benefits of linking the educational research institutions, graduate pools, business clusters and enhanced property solutions in Londonderry and Letterkenny. All are linked by a high-specification telecommunications network.
The zone will ultimately enable the region to compete more favourably for, and to secure, value-added inward investment. When investors subsequently choose to locate in the zone, the population in the wider region, from both jurisdictions, will be able to take advantage of the opportunities created.
Dr McDonnell : I thank the Minister for her answer. She will be aware that, in the light of the recent shabby behaviour and ill-treatment of workers by companies such as Visteon and Nortel, most Members are trying to think creatively, perhaps even latterly, outside the box. If a 12% corporation tax zone were to be set up in or near Belfast, the Assembly could make try to make some use of it. Inward-investment opportunities may be being lost because of the rate of corporation tax here. Is there any way in which we might piggyback that situation?
Is there a chance, through joint working, to create some leverage to persuade those companies that demand a corporation-tax rate of 12%, and will not come here without it, to locate on the border? Companies located in Buncrana, Monaghan and Dundalk will employ people from Derry, Enniskillen and Newry respectively. Does that suggestion provide an opportunity for the Assembly to work to find jobs that would compensate for the current drastic levels of redundancy?
The Minister of Enterprise, Trade and Investment: I thank the Member for making those points. I have no difficulty with his thinking laterally. As I said, the problem is that, in seeking FDI, there are two completely different propositions. Therefore, my Department is considering areas of co-operation, such as on infrastructure and the telecommunications network, which, as the Member knows, has been upgraded.
Only last week, significant FDI was secured from the Republic of Ireland. I am glad to be saying that in the week after it happened. We announced the creation of 77 new jobs with Intune Networks, a Dublin firm that decided to invest in the Linfield Industrial Estate in the Member’s constituency of South Belfast. Eircom NI announced that its new headquarters will be situated in Forsythe House in the city centre, creating 30 new graduate jobs, with 30 more over the next 12 to 18 months.
Opportunities are being taken — this is a good, cost-competitive place to come. The two companies that announced last week that they were coming here were great advocates for investment in Northern Ireland. They spoke much better than I could on the subject. They talked about the level of skills, about the people and about why Northern Ireland is such a good place in which to do business. I am happy to tell the Member that we are securing FDI from the Republic of Ireland, and that we will continue to do so.
Mr McFarland : What discussion has the Minister had with her colleague the Finance Minister, and the Treasury in London, with a view to lowering corporation tax in Northern Ireland so that companies can improve their chances of surviving the present economic crisis?
The Minister of Enterprise, Trade and Investment: I do not know whether the Member knows of the Varney Report — he should have had the opportunity to read it by now. Over the past six months, I have had no discussions with the Minister of Finance and Personnel on that issue, because I am concentrating on the issues that I referred to in my previous answer. It is a different proposition from that in the Republic of Ireland; we are looking at the cost-competitive nature of Northern Ireland, the value of our skills, the people that we have, and the fact that we have the youngest population per head in Europe. We are a very good proposition. I will not talk down the economy of Northern Ireland; there is much to be proud of. I wish that others would recognise that, stop talking down the economy and stop asking for handouts.
Northern Ireland Assembly
Monday 1 December 2008
Corporation Tax
2. Dr McDonnell asked the Minister of Finance and Personnel what action he has taken to advance the case for a 12·5% rate for corporation tax, since taking up office. (AQO 1375/09)
The Minister of Finance and Personnel : On 8 May, in his response to the second Varney Review, the Prime Minister confirmed that fiscal dispensations, including a reduction in corporation tax, would not be granted to Northern Ireland. I still believe that a lower rate of corporation tax would be beneficial for our local economy. In recent weeks, I have had several discussions with the Prime Minister, the Chancellor and other Treasury Ministers on a range of other financial matters that are critical to the Executive and the Assembly, securing material improvements in our finances rather than just focusing on issues such as corporation tax.
Dr McDonnell : Will the Minister share his thoughts on the progress made or the progress he might be able to report, since May 2007, in relation to our level of economic activity generally, as regards taxation? Are we moving up or down, or are we standing still?
The Minister of Finance and Personnel : I take it that the Member is looking for a fairly general economic update. He will know that taxation is a matter for the Westminster Government, and I have set out the position on corporation tax. As regards the general position, it is fair to say that a number of major difficulties and challenges confront us — not just here in Northern Ireland, but elsewhere across the world. However, it is important to note that the local manufacturing sector expanded by 4% over the year to the second quarter of 2008.
It is also important to bear in mind that we have the lowest recorded rate of unemployment of any UK region. As regards the current downturn, it is also important to note that our 60% level of GVA in the public sector helps us in comparison with some other regions of the UK. Employment levels, at 788,000, is an increase of 6·4% over the corresponding period in 2007. The investment strategy has a substantial amount of money — £5 billion — to roll out over the next five years.
When one considers that in 2003-04 that figure was £670 million, and the figure for this year is over £1·2 million, one realises that the increase is substantial. Thus, there are positive aspects, including the Euro exchange rate and the reduction in VAT that was announced by the Chancellor in his pre-Budget report, which is helping to bolster our retail sector. Anyone who travels through any of our border towns knows that only too well.
There are also negative factors to consider. For instance, there are very real concerns about the impact of the present economic situation on house-building and the construction industry — about which we will talk more shortly — our local banking sector, the liquidity squeeze, and so on. The Assembly and the Executive have a limited number of tools at our disposal, but we are determined to do what we can in the circumstances to help people in small businesses and the construction industry through the worst of a very difficult situation.
Mr Simpson : Can the Minister give an assessment of the likely impact of the Chancellor’s pre-Budget report on small businesses in Northern Ireland?
The Minister of Finance and Personnel : I have already mentioned some of the highlights of the pre-Budget report. VAT will be reduced by 2·5%, at a time when the Irish Republic is implementing a 0·5% increase in VAT. Although one may argue and debate the nature of a fiscal stimulus and the appropriate approach to take, that kind of fiscal stimulus is welcomed by most sensible people.
The pre-Budget report also defers the 1% increase in the rate of corporation tax for small companies. The rate will now stay at 21% during the next financial year. Businesses can now reduce corporation tax liability by offsetting three years’ prior losses against any corporation tax liability — previously, it was only one year’s losses. A new business payment support service will allow businesses that find themselves in temporary financial difficulty to pay their tax bills according to a timetable that they can afford. There is also a new small business finance scheme to support bank lending. Those measures are in the pre-Budget report, but it should be borne in mind that the Assembly, too, has introduced significant measures to help small businesses.
Mr Neeson: Has the Minister, in his current or previous portfolio, met economists such as Sir George Quigley or the Economic Research Institute to discuss fiscal incentives that could assist the economy here?
The Minister of Finance and Personnel : In my previous incarnation as Minister of Enterprise, Trade and Investment, corporation tax and the Varney Review were major parts of my work. Of course, the Department talked to many people involved in that area to see what could be done to help us, what responsibilities we could be given in those areas and what might be the best way forward. We should not overlook the fact that, at the moment, without tax-varying powers, public expenditure is not related to the amount of money recouped here in Northern Ireland. With tax-varying powers, that would become an issue — we should be cognizant of that fact, given the £7 billion subvention from the UK Exchequer. We must also be cognizant of the fact that a reduced rate of corporation tax is likely to cost the Northern Ireland block grant some £300 million per annum. We must bear those issues in mind. Nevertheless, everyone in the Assembly and Executive was persuaded that a reduction in corporation tax should be pursued — that remains a desirable outcome. However, we have not sat back, put all our eggs in one basket and waited for the Government to do something. We have pursued our own measures to try to help small- and medium-sized businesses, as well as urged the Government to adopt measures apart from corporation tax reductions.
AQW 8631/08
Dr Stephen Farry (ALL - North Down) To ask the Minister of Finance and Personnel to detail the representation made to the UK Treasury in relation to a differential rate of corporation tax for Northern Ireland, since the publication of the Varney I report.
25/06/2008
The first Varney Report rejected the case for a differential rate of corporation tax for Northern Ireland. The Northern Ireland Executive responded to the Varney Report and made representations to the second review in the area of fiscal measures however Sir David's second report ruled out additional fiscal measures relating to R&D and skills. The two Varney Reports have now been accepted by the UK Government. While we will continue to press for a lower rate of corporation tax we should also focus on the policy levers directly available to the Executive.
AQW 8630/08
Dr Stephen Farry (ALL - North Down) To ask the Minister of Finance and Personnel to detail the current policy on a differential rate of corporation tax for Northern Ireland.
25/06/2008
Responsibility for corporation tax lies with the UK Government. The first Varney Report ruled out a differential rate of corporation tax for Northern Ireland and the second Varney report rejected further proposed fiscal measures. The Varney conclusions have been accepted by the UK Government. The Northern Ireland Executive will continue to press for a lower rate of corporation tax for Northern Ireland however there is also a need to focus attention on what the Executive can do, within its own policy remit, to promote economic development within Northern Ireland.
AQO 3593/08
Mr Danny Kennedy (UUP - Newry and Armagh) To ask the Office of the First Minister and deputy First Minister what recent discussions it has had with the UK Government on the issue of Corporation Tax under its economic policy remit.
12/05/2008
We met with Sir David Varney on 26th February 2008 to express our views on the importance of corporation tax as an economic development tool. We subsequently wrote to Sir David reiterating our views.
The publication of the second Varney Review on 30th April 2008 confirmed that Sir David and HM Treasury did not see merit in granting a corporation tax dispensation. We are disappointed at this conclusion given that we are a society emerging from decades of conflict and underinvestment.
While we may continue to pursue this matter we recognise that our future prosperity does not entirely depend on a reduced rate of corporation tax. Through our Programme for Government we have set out a range of interventions to make our economy more competitive, deliver increased prosperity and tackle disadvantage and poverty.
AQO 3429/08
Dr Stephen Farry (ALL - North Down) To ask the Minister of Enterprise, Trade and Investment what contingency plans he has to promote indigenous business growth, given that the Varney Review has not allowed for lower corporation tax in Northern Ireland.
29/04/2008
I was disappointed that Sir David Varney was not persuaded on the merits of a lower rate of corporation tax, although his conclusion on this matter was not unexpected.
The second Varney review has identified removing the barriers to business growth as a key way to improve the local economy. As with many of the recommendations, we are already working to achieve this. In particular, my Department has, and will continue to target investment to increase innovation and exports, and improve energy and telecoms infrastructure.
Furthermore, between 2002 and 2007, Invest NI offered £631m of assistance to stimulate over £2.6 billion of business-related investment in the Northern Ireland economy. Almost 54% of the assistance was directed toward locally owned businesses.
DETI remains committed to promoting enterprise locally and attracting Foreign Direct Investment, which will provide further business opportunities for the local private sector in the future.
AQW 4243/08
Dr Stephen Farry (ALL - North Down) To ask the Minister of Finance and Personnel to detail the contingency plans he has within the context of the Budget 2008-2011 to cover a loss of revenue in the event that the Northern Ireland Assembly is granted the ability to vary the rate of corporation tax during the lifetime of that Budget.
20/02/2008
On 29 January 2008 the Assembly approved the programme of expenditure proposals for 2008-09 to 2010-11 as set out in the Budget document, laid before the Assembly on 22 January 2008.
These spending plans will be subject to review as more up to date information becomes available and any pressures emerge, through the in-year monitoring process and subsequent Budgets.
The Review of Tax Policy in Northern Ireland led by Sir David Varney rejected the case for a lower rate of corporation tax in Northern Ireland based on the costs and benefits to the UK as a whole. It also suggested that the broader business environment was more important in influencing business investment decisions than the corporation tax rate.
In the event that the ability to vary the rate of corporation tax was made available to the Executive, I would make strong representations to HMT to ensure that priority front line services would not suffer as a consequence.
AQO 1286/08
Mr Ken Robinson (UUP - East Antrim) To ask the Minister of Finance and Personnel what discussions he has had with HM Treasury in relation to the creation of enterprise zones as an alternative to a reduction in corporation tax.
07/01/2008
I have had a number of discussions with the Chief Secretary on tax instruments over the recent months. These discussions have been in the context of the Varney Review which recently concluded. Enterprise zones were not specifically raised because assessments of earlier schemes indicated that they did not represent good value for money.
AQO 188/08
Mr Kieran McCarthy (ALL - Strangford) To ask the Minister of Finance and Personnel to make a statement on prospects for a reduction in corporation tax in Northern Ireland.
11/09/2007
On the 19th July 2007 the Executive issued its formal response to the Varney Review's call for evidence. I currently have no further insight into Sir David's intentions on the issue of a reduction in corporation tax in Northern Ireland. I understand he will presenting his final report to the Chancellor in early October. In light of this I will be pressing for a further meeting with Sir David in advance of publication of his final report.
Northern Ireland Assembly
Monday 25 June 2007
Corporation Tax
2. Mr B McCrea asked the Minister of Finance and Personnel what plans he has to progress the issue of a lower rate of corporation tax in Northern Ireland. (AQO 183/07)
9. Mr B Wilson asked the Minister of Finance and Personnel what consideration he has given to how the short-term loss in revenue arising from a differential rate of corporation tax would be addressed. (AQO 173/07)
Mr P Robinson : With permission, Mr Speaker, I shall answer question 2 and question 9 together.
Following my initial meeting with Sir David Varney on 24 May, I shall take forward a formal response to his call for evidence. That will detail why the Executive believe it imperative that Northern Ireland receive a fiscal dispensation to allow it to stimulate economic growth. With regard to any possible short-term loss of revenue, the Executive must then consider the wider implications for economic development policy and its resourcing. Some existing programmes may no longer be necessary — or allowable — in the new environment.
Mr B McCrea : Does the Minister accept that, for many companies in Northern Ireland, corporation tax reductions may be of limited value, given that only lower rates of interest apply to them or that they are manufacturing-only concerns and do not pay tax? Can he confirm that the corporation tax for Northern Ireland is in the region of £300 million per annum, and that the banks pay £100 million of it and would therefore be the major beneficiaries of any reduction in tax? Does the Minister agree that the international context of foreign direct investment has changed significantly since the start of the Celtic tiger economy and that some European states now offer 0% corporation tax? Does he agree that carefully targeted incentives are needed to encourage investment from abroad and from indigenous companies?
Mr P Robinson : The Member’s questions highlight the key issue that is often forgotten when the issue of lowering corporation tax levels is considered. The lowering of corporation tax is not the goal in itself; the goal is to stimulate and grow the economy, and lowering corporation tax is only a means to an end. The Member has outlined the impact that it would have on existing business in Northern Ireland. However, the purpose of lowering the rate of corporation tax is not as a handout for existing business; it is to encourage more business to come to Northern Ireland. Obviously, lowering corporation tax would be an attraction, but there are other ways of encouraging businesses that the Member may consider to be less blunt an instrument than lowering corporation tax.
Mr B Wilson : As the Minister pointed out, a problem is that tax reduction results in a loss of revenue. When the overall Budget is considered, a reduction in corporation tax may not be the most effective way of running the economy. The fact that Northern Ireland has no tax-varying powers has implications for the regional rate, and this must be taken into account when considering the issue of lowering corporation tax. Can the Minister say what might be the impact of the loss of revenue from freezing the industrial rates at 25%?
Mr P Robinson : I do not want to comment on the industrial rate now as a review is being carried out on that topic; in due course I will report on that review. The Member is correct that there are advantages in encouraging businesses to come to Northern Ireland if the rate of corporation tax were lowered but that there are also consequences in doing that. The regime of incentives currently available cannot exist alongside the lowering of corporation tax. As the Member for Lagan Valley Mr McCrea pointed out, around £300 million a year is currently raised from corporation tax. If interpretation of the Azores ruling should mean that that must be ruled out, the money would have to be found by the reduction of other elements of incentives in the Department of Enterprise, Trade and Investment.
Mr O’Loan : In the light of the stated policy positions of political parties on the rate of corporation tax, can the Minister assure the Assembly that he, the First Minister and the Deputy First Minister are all equally committed to pursuing a rate of 12·5% corporation tax?
Mr P Robinson : I seem to recall that we wanted a 10% rate, but if we got it to 12·5% we would be reasonably content. I have not discerned any difference in the Executive on the emphasis that has been placed on trying to reduce the rate of corporation tax. The First Minister and the Deputy First Minister discussed that issue with the First Minister of Scotland, and there was a general view that we should work together at least to reduce the level of corporation tax for the United Kingdom as a whole. That would help, as it would reduce the differential between Northern Ireland and the Republic of Ireland. I have not discerned that there is any difference between the Department of Finance and Personnel and the Office of the First Minister and the Deputy First Minister in the approach to those issues.
The Member’s party was present in Downing Street with the three other main parties when they discussed those issues with the Chancellor.
Mr Newton : I agree with the Minister about the potential for corporation tax to help to grow Northern Ireland’s economy. To what extent do the decisions that were made in the Azores and Rioja cases inhibit Northern Ireland from having a differential corporation tax rate from the rest of the United Kingdom?
Mr P Robinson : The Azores case set out three conditions that would apply to Northern Ireland if it were to have a differential rate of corporation tax. I have always recognised that there are three issues that we must overcome if the Chancellor and the Treasury are to be convinced. First, the financial issue: the Executive can put forward a case that deals with the financial arguments — issues such as brass-plating, and so forth.
Secondly, there are legal arguments, which were referred to by the Member for East Belfast. Contrary to what has been suggested by some, European law does not prohibit there being a differential rate of corporation tax. It is permissible under European law, but would require change to United Kingdom law. There are, however, implications from the Azores ruling as to what such a change would mean, such as having to forgo some current funding, which was referred to earlier.
Thirdly, the prevailing issue that must be overcome is whether there is the political will to introduce such a change. The financial and legal arguments can be answered, but do the United Kingdom Government have the political will to take that step? I hope that Sir David Varney’s review will be able to answer that. If there is no answer with regard to corporation tax, I will want to know how the Government propose to make Northern Ireland competitive vis-à-vis the Irish Republic on industry, commerce and foreign direct investment.
Mr Kennedy : Is it still the view of the Minister and his party that an inadequate financial deal and a lack of significant progress on corporation tax will be a deal-breaker?
Mr P Robinson : I have already stated in the House that, even in its present terms, the Chancellor’s deal can be regarded as satisfactory. I do not consider it to be generous: however, it is satisfactory. The Member would do well to remember that the Assembly will receive funding of around £17 billion for its total managed expenditure from the Exchequer. That is a considerable amount of money.
I am sure that the Member treasures the link with the United Kingdom and, like me, is prepared to enjoy the benefits of being part of it. Northern Ireland enjoys the financial package that it gets from the United Kingdom. Of course, the package could be better and there is more that the Executive could secure from the United Kingdom Treasury. Indeed, they are attempting to do so. I hope that the Varney review will assist in that and that further consultations with the Treasury on the comprehensive spending review and end-year flexibility will also bring improvements.
AQO 70/07
Mr Alan McFarland (UUP - North Down) To ask the Minister of Enterprise, Trade and Investment what progress was made during his meeting with Sir David Varney, and whether it is the Minister's assessment that a cut in corporation tax remains part of the agenda for the Varney review team.
04/06/2007
My meeting with Sir David Varney was very much an initial meeting at the outset of his review. Nonetheless we discussed a broad range of issues relating to the economy, and the often unique factors which have constrained development in Northern Ireland. In particular, I outlined the case for a reduced rate of Corporation Tax to attract additional Foreign Direct Investment and to accelerate economic growth in Northern Ireland. I and my Executive colleagues will continue to press this case and ensure Corporation Tax remains on the agenda of the review team.
Northern Ireland Assembly
Monday 18 June 2007
Corporation Tax
7. Mr Cree asked the Minister of Enterprise, Trade and Investment what discussions his Department has had with officials from regional Governments in Wales and Scotland in relation to proposals for lowering corporation tax in Northern Ireland. (AQO 69/07)
Mr Dodds : My Department has had no formal contact with officials from the regional Governments in Wales or Scotland on proposals for lowering the rate of corporation tax. Any such engagement is a matter for the Department of Finance and Personnel, which would be acting on behalf of the Executive.
Mr Cree : I thank the Minister for that. Does a platform exist for similar discussions with the English regions, whether conducted by himself or his colleagues, with a view to having lower corporation tax for the UK as a whole?
Mr Dodds : I again thank the Member for raising that important issue. My Department will always try to work with colleagues in any other part of the United Kingdom — whether it is England, Scotland or Wales — to try to advance something that we believe would be in the best interests of the economy of Northern Ireland.
As the Member is aware, the Scottish First Minister is visiting the Assembly today, something that has rightly been recognised in most sensible quarters as an opportunity to build relationships to advance the economic cause of Northern Ireland and other regions. Therefore, I welcome the hon Member’s indication that it is actually beneficial to be in collaboration with other regions of the United Kingdom. To insult representatives of Governments of other parts of the United Kingdom is not a sensible or productive way forward. As the ‘News Letter’ editorial rightly pointed out, the devolved Admini strations should work together on those important issues and gain the best for Northern Ireland.
Some Members : Hear, hear.
The Chairperson of the Committee for Enterprise, Trade and Investment (Mr Durkan) : As Chairperson of the Committee for Enterprise, Trade and Investment, I welcome the Minister to his first Assembly Question Time.
The Minister emphasised earlier the need for people to concentrate on the Varney review of corporation tax. Does the Minister agree that, in that context, if parties and Committees in the Assembly are going to marshal their efforts in the direction of that review, which has been given specifically to the Northern Ireland Assembly, it might be a bit premature to engage too heavily in canvassing other options — which we might have to consider in the medium term — with other parts of the United Kingdom?
Mr Dodds : I thank the hon Member for his words of welcome, and I look forward to working with him in his capacity as Chairperson of the Committee for Enterprise, Trade and Investment. I welcome his contribution thus far, and that of his Committee, on many of the serious issues that we have to grapple with.
The Member made a good point. All of our efforts should be concentrated on trying to win the main argument, which is for a reduction in corporation tax to a level that would make a significant difference within a relatively short period of time.
There are other areas that need investment — whether or not we get a corporation tax reduction — including stimulating enterprise, stimulating innovation, building up our infrastructure and improving our skills and education. All of that has to happen. People should not say that it is not going to happen as that is obviously an open invitation for Sir David Varney to report that not even the Northern Ireland Assembly, or certain parties in the Northern Ireland Assembly, are seriously in support of that happening. Alternatively, the view could be taken that we are now going to concentrate on a range of other measures, falling short of the main target. It may be that that will be the case, but at this juncture, we need to be pressing strongly for what all of us have recognised, or certainly what most of us recognise — there may be other parties present or other spokesmen who do not recognise that — would be a major boost for the Northern Ireland economy.
Miss Mcllveen : Does the Minister have any plans to meet with his Scottish and Welsh counterparts to discuss matters of mutual interest?
Mr Dodds : Yes, I certainly do intend to meet with my Scottish and Welsh counterparts, and I have already been in touch with them to seek early meetings. I have done so despite the advice given to me by members of the Ulster Unionist Party, who seem to take the view that we should no longer meet with the Scottish Executive, that somehow we should insult our friends, that we should go down the road of insulting the Scottish people, and all the rest of it — [Interruption.]
I hear sedentary comments being made to my right. The approach suggested by the Ulster Unionist Party is not the approach that should be taken — that is not the way to win friends, and it is not the way to promote Northern Ireland. It is strange that a unionist party is saying that Members should not meet their Scottish colleagues. I would have thought that we would want to promote an Ulster-Scots connection. There was a time when that party heavily promoted North/South Ministerial Council meetings at the expense of east-west relations.
