Sir, – In your editorial of January 10th, you describe the prospect of Northern Ireland's devolved taxation powers as "a powerful new tool to attract investment".
Stormont’s problem in trying to capitalise on that will be the undevolved political powers that will inhibit such investment, including David Cameron’s promise to hold a referendum on the UK leaving the EU.
Why build a factory in Derry and risk your access to markets being restricted by customs tariffs if the UK leaves, when you can locate 30km away in Letterkenny and benefit from an economy firmly locked into the EU family? – Yours, etc,
KENNETH HARPER,
Burtonport,
Co Donegal.
Sir, – The reduction of the rate of corporation tax in Northern Ireland will certainly be welcomed by existing businesses as they will pay less tax and it probably would help to attract more inward investment in the longer term.
However, lowering corporation tax will come at considerable cost as it involves a major reduction in the annual block grant transferred by the London treasury to Stormont. If the rate is reduced to 12.5 per cent, the chancellor of the exchequer has suggested that the transfer of funds to Stormont could be reduced by up to £400 million per annum.
This inevitably will mean that Stormont will have to reduce public expenditure in areas such as schools, hospitals, welfare or agriculture grants. So the ordinary people will suffer as existing businesses enjoy paying less tax.
It is surprising that there has been no comment from the health sector, teachers or farmers. – Yours, etc,
Lord KILCLOONEY,
Mullinure,
Armagh.