Crisis 'will impact on the North', says Robinson

Ireland, north and south, will suffer in international eyes from the collapse of the Republic’s economy, DUP leader Peter Robinson has said.

Mr Robinson said economic ties across the island, plus the overseas reputation of the ’Ireland’ brand name, would have a combined impact north of the border.

And with Stormont politicians also under pressure to agree a budget following the cuts imposed by London, he said he hoped a deal could be reached before Christmas.

With the Republic poised to introduce its own multibillion-euro cuts, plus take on a €85bn international bailout package, Mr Robinson said Northern Ireland would inevitably be affected.

“The North has suffered along with everywhere else worldwide because of the banking crisis,” he said.

“We will be hurt much more than anywhere else as a result of the problems in the Irish Republic. The ripples are going to touch Northern Ireland.

“Not only is the Republic a massive trading partner of Northern Ireland, not only are there jobs that flow across the border.

“(But) with the construction industry, when jobs dry up in Northern Ireland, people can move down to the Republic. That is going to be tightened up considerably with the reduction in their capital spend.”

Mr Robinson pointed to the international significance.

“Go to Australia, the United States and anywhere else in the world and when people are considering where they will do business, they hear about the financial problems of the ’Republic of Ireland’ – but it is with ’Ireland’ that there is reputational damage, which impacts on Northern Ireland as well,” he said.

He added that Britain’s proposed seven billion euro loan to the Republic must coincide with a reduction in the North’s rate of corporation tax to compete with the 12.5% low rate south of the Irish border.

“You could have a situation that the British taxpayer is helping to make the Republic of Ireland more competitive than Northern Ireland,” he said.

Meanwhile, Mr Robinson said cross-party discussions at Stormont on a new udget in the North were progressing well, while a British government paper on corporation tax changes in the region was due before the end of the year.

“We are in intense discussions at the present time, there is a lot of common ground as to how the budget should be shaped,” he said of the multi-party talks at Stormont.

“We’re in agreement on the areas that we want to protect.

“I would like to see us having a draft budget agreed before the end of this year – before Christmas – and then put it through the Assembly during the course of January.”