Enda Kenny welcomes plans for reduction of corporation tax in the North

Taoiseach Enda Kenny has welcomed plans in the North to reduce their corporation tax to the same level as here, saying that Wales and Scotland may next move to cut their rates.

Fri, 20 Nov, 2015 - 00:00

Juno McEnroe

Mr Kenny was responding to deals in Belfast this week which will see the Stormont Executive back up and running and measures to resolve outstanding budget issues.

Among the key proposed reforms are moves to devolve corporation tax reforms from London, so the North can bring in a 12.5% rate, in line with the Republic, after 2018.

Despite concerns that such a move would be in direct competition with Dublin, there have been suggestions that more investors may move here as it would allow them work with both euro and sterling.

Mr Kenny said: “We’ve always been supportive of Northern Ireland in the context of it building an all-island economy.”

He said the devolution of the corporation tax powers to Belfast, so their rate would be the same as here, would make the island of Ireland “more attractive” for investors.“We’re happy about that [the change].”

Jobs Minister Richard Bruton said there had been a 30% increase in the number of companies registered over the last year and lending to businesses had also increased by almost a third.

Fianna Fáil welcomed the reduced unemployment rate figures but warned the Government could not continue to focus efforts on creating jobs in Dublin at the expense of other regions.

Jobs spokesman Dara Calleary added: “The latest stats from the CSO reveal that over 50% of the jobs created here in the last 12 months were concentrated in the Greater Dublin Area. Only 3% of new jobs were in the Mid-West and Mid East Regions, with 8% in the Border region.”

Meanwhile, the Minister for Public Expenditure has been criticised for failing to provide any degree of information on over €1.1bn of supplementary estimates.