Robinson: Corporation tax cut will not damage relations with Republic

First Minister Peter Robinson has claimed he is confident a reduction in corporation tax in the North will not create cross-border tensions.

The DUP leader said the Irish Government has been supportive of the Stormont Executive's push to cut the business levy from 26% to 10%, lower than the 12.5% in the Republic.

Speaking in Dublin, he said: "The Government here has been fairly supportive of us having the power of setting corporation tax in Northern Ireland and the level decided by the Northern Ireland Executive."

Mr Robinson addressed the Chartered Accountants Leinster Society luncheon in Dublin, were he praised the Republic's approach to tackling the economic crisis.

He explained that strengthening north-south relations was important as it would benefit both economies.

In his address, he said: "The economic difficulties which you have been experiencing in the Republic of Ireland have also impacted the Northern Ireland economy.

"The Republic is one of our key markets for exports and tourism, and it is in our interests, as neighbours and trading partners, to strengthen those economies, recognising what works and taking a pragmatic approach to guide us through these difficult economic times."

Mr Robinson praised the Irish Government for avoiding short-term simplistic solutions in its recovery, adding: "They are no substitute for the difficult, long-term measures that are being taken."

Meanwhile, he confessed he was looking forward to Martin McGuinness returning to Stormont following his Irish presidential campaign.

"I hope he takes a few days, revives himself and comes back ready to move us forward," he said.

"We have a system which is a mandatory coalition. I hope we can get a number of the decisions that are sitting and that are ready to be taken over the next couple of days.

"There is work to be done. We need to get a programme for government, an investment strategy, an economic strategy - which are all in the final stages - dealt with."

Mr Robinson added that while he did not wish to comment on his colleague's place in the election and the impact it is likely to have on his Stormont role, he said it was still important for the Republic and Northern Ireland to maintain close ties.

"In Northern Ireland we want to have a close working relationship with the Government and structures of the Irish Republic," he said.

"And to continue to have that, we note the decision of the election in the south, but that's a democratic decision of the people who live here."

Mr McGuinness finished behind Irish president-elect Michael D Higgins and runner-up Seán Gallagher.