SF enterprise policy raises corporation tax to 17.5%

SINN FÉIN yesterday outlined a new policy direction on enterprise that would see corporation tax being increased from 12% to 17.5%, an all-Ireland approach to job creation, and the euro becoming the operable currency north and south.

Launching the party’s discussion paper on enterprise and job-creation, the party’s general secretary, Mitchel McLaughlin, said that the proposed policies would represent a “step-change” in policy for Sinn Féin.

In keeping with the party’s stance that the major parties will need to speak to SF after the next election, he said the policy, if adopted, could “influence those parties who aspire to form a government.”

However, the paper needs to be approved at the Sinn Féin Ard Fheis before it become official policy.

Mr McLaughlin and Sinn Féin’s Donegal North East candidate, Councillor Padraig Mac Lochlainn, stressed the all-island approach as key at the press briefing yesterday.

Mr McLaughlin said the party wanted to challenge the economic orthodoxy that has emerged in Ireland in relation to low wages and low taxes. In spite of the Celtic Tiger, said Mr McLaughlin, there was still social and regional inequity. “You only have to point to the West, North West and the border regions, as well as to the sectarian agenda in the North.”

An increase in corporation tax would not reduce competitiveness but would bring benefit to the island as a whole, he further argued. Pointing to the fact that corporation tax was 30% in the North (19% for smaller enterprises there), Mr Mac Lochlainn said that a flat rate of 17.5% on both sides of the border would have a “key impact in developing the economy on an all-island basis.”

The adoption of the euro in the North seems to run contrary to Gerry Adams’ previous opposition to the currency. Responding, Mr McLaughlin said the acceptance of the euro as a currency reflected the reality of the economy as it now is.

Asked if a 5% increase in corporation tax would deter foreign direct investment (FDI) in Ireland, Mr McLaughlin said: “We flatly reject it. What we are addressing are the weaknesses and looking at ways in which well-paid jobs could be provided.”