DUP Ministers from the Northern Executive yesterday maintained pressure on Gordon Brown's office to provide a financial package to assist the smooth running of devolution in Northern Ireland that would include reducing corporation tax in the North in line with the Republic, writes Gerry Moriarty, Northern Editor
At Stormont yesterday the Minister for Finance and Personnel, Peter Robinson and the Minister for Enterprise Trade and Industry, Nigel Dodds pressed chancellor of the exchequer Mr Brown's special adviser Sir David Varney to come through with a package to assist the North's drive towards normal politics.
While disaffected DUP MEP Jim Allister yesterday warned that Northern Ireland had no chance of achieving 12.5 per cent corporation tax, as operates in the Republic, Mr Robinson and Mr Dodds told Sir David that such a tax incentive would be crucial to helping economic growth in Northern Ireland.
Sir David, who was asked by Mr Brown to carry out a review of tax policy in Northern Ireland, is meeting key representatives from all the main parties in the North. He will report back to the chancellor of the exchequer in the autumn and, possibly, also directly to Mr Brown, who by that stage will be prime minister.
"We have been pressing the chancellor for a lower rate of corporation tax to enable us to attract more high-value-added foreign direct investment," said Mr Dodds after the meeting.
"I explained that a reduced rate of corporation tax - though not a silver bullet - would make the single biggest contribution to accelerating economic growth and to reducing our dependence on the public sector," said Mr Dodds.
"We owe it to every citizen in Northern Ireland to develop an economy that is able to compete globally and to deliver the necessary increases in income and living standards."
Added Mr Robinson: "I hope that all the key stakeholders will play their part in taking the review forward. The importance of identifying all the available policy levers that can stimulate economic development in Northern Ireland cannot be overestimated."
However, Mr Allister, who resigned from the DUP in protest at its powersharing deal with Sinn Féin, said Northern Ministers had no chance of securing a corporation tax rate that harmonised with the Republic. Under European Union rules, the North could not meet the criteria to allow it have a corporation tax separate from that applying in Britain, he said.
Meanwhile, the Northern Executive yesterday held its second meeting since devolution. First Minister the Rev Ian Paisley, Deputy First Minister Martin McGuinness and their 10 Ministers discussed a range of issues, including a programme for government from 2008 to 2011.