Business leaders call for all-Ireland corporation tax

British Chancellor Gordon Brown was put under fresh pressure today to reduce the corporation tax rate in the North to help boost the region’s economy.

The call for tax harmonisation with the Republic of Ireland, where the economy has been booming, was made at a business breakfast in Belfast hosted by the SDLP for more than 100 representatives of the business community, trade unions and the community and voluntary sector.

SDLP leader Mark Durkan, MP, launched a paper called ‘Shaping An All-Island Economy’, which said the creation of such an economy could only be achieved with a greater degree of tax harmonisation, especially as regards the business sector.

Mr Durkan admitted there had been “no encouraging signs from Gordon Brown or anyone else” over the call for corporation tax to be reduced in the North from 30% to the 12.5% enjoyed by competitors across the border.

However, he said he would keep plugging away and revealed that in talks with Mr Brown before Christmas the chancellor had announced he would set up a corporation tax office in Belfast to give advice to business.

His call for tax harmonisation was backed by Irish billionaire businessman Denis O’Brien who said:” It is not sustainable on a small island to have one part moving on driven by the private sector and low taxes while the other is held back because of the interests of London and the south-east.”

Outlining the all-island economy proposals, Mr Durkan said there was nothing anyone in any part of the island should fear from them.

He added: “People in every county in Ireland can benefit, not least those that have suffered most through years of facing away from each other instead of working hand in hand with and for each other.”

His proposals included:

:: Jointly marketing the whole island to international investors.

:: Creating specific cross-border economic action zones to tackle the particular disadvantage and deprivation felt in border regions.

:: Harmonising tax regimes to create a level playing field throughout the island to allow it to compete in the global economy.

:: Growing stronger strategic partnerships for better public service delivery.

:: Creating all-Ireland funds, modeled on the the Executive Programme Funds pioneered in the North, which would be open to joint bids from departments north and south.

Mr Durkan said the last proposal would “ensure not only we all get the best value for money as taxpayers, but that resources are targeted strategically where they are most needed and can make the biggest difference”.

The Foyle MP told the gathering: “We are hungry to get on with the work of growing the north-south agenda in ways that improve the lives of everyone on this island.

“We want to take north-south off pause and press fast forward. We know we have much more to do, far further to go and much more to do if we are to fulfil north-south’s vast potential and deliver the scope and scale of change that people across Ireland have every right to demand of us.”

Hotelier Lord Rana called for action by the Irish and British governments over visas for the growing number of tourists visiting the island from outside the EU or US.

He said at present they have to get visas from both jurisdictions and proposed one should be enough with the each government respecting the visa issued by the other.