Harmonisation of corporation tax between Northern Ireland and the Republic would be beneficial but must not be considered as an economic "antibiotic", the North's Deputy First Minister Martin McGuinness said in Dublin last night.
The "unprecedented democratic accountability" that now existed North and South was a major factor in seeing that economic development benefited society as a whole, Mr McGuinness told the Institute of Directors' North/South dinner in Dublin Castle, where he was guest of honour.
In mid-October, Sir David Varney is due to recommend to the British chancellor of the exchequer, Alastair Darling, whether Northern Ireland should be granted special status to establish a 12.5 per cent corporation tax - the same as in the Republic.
The Deputy First Minister said, although he would support a harmonisation of rates between the North and South, it should not be regarded as a cure-all.
"Too often this is presented as some form of industrial antibiotic which will cure all economic ills. It won't. Studies have shown that a favourable tax regime is only one of a range of elements needed for a successful foreign direct investment strategy," the Sinn Féin MLA said.
Other components necessary to develop a thriving economy included quality infrastructure, as well as a skilled workforce.
Mr McGuinness expressed confidence about the economic future. "Communities have never been better placed to influence and determine policy and strategies that will influence the management of economies North and South. In addition, the goals of government and business are not incompatible," he said.
