Credit unions should benefit from reductions in corporation tax, says Committee

The Committee for Enterprise, Trade and Investment has written to the Secretary of State seeking assurance that credit unions and mutual societies will benefit from the lower devolved corporation tax. The Corporation Tax (Northern Ireland) Bill, which will be debated in Westminster on Wednesday, 4 March, currently excludes the financial services sector from taking advantage of these new provisions.

Chairperson of the ETI Committee, Patsy McGlone MLA said: "We understand that the Bill quite rightly wishes to ensure that there is no undue exploitation by the financial services sector of lower corporation tax. However, we believe that credit unions and mutual societies contribute greatly to their communities and play an invaluable role supporting individuals to manage their financial affairs. They provide a much needed alternative to high-cost lending and illegal lending and we must do all we can to support them.

"Allowing credit unions and mutual societies to take advantage of lower corporation tax could free up an additional £1.5m per annum of resources; monies that could assist in the modernisation and expansion of services and could also help credit unions to invest in community projects.

"We need clarity on the status of Northern Ireland credit unions and mutual societies within the Bill and we need to ensure that they will be helped to carry out their important work within their communities."

ENDS

Notes to Editors:

The Enterprise, Trade and Investment Committee is currently carrying out its 'Inquiry into Economic Growth and Job Creation in a Reduced Tax Environment'.

The Committee would like to hear your views on how Northern Ireland can attract inward investment, grow the economy and create jobs following the devolution of corporation tax varying powers. The deadline for comments is 10 March 2015.