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McDonnell: Tax cut only one part of economic strategy

SDLP Enterprise spokesperson Alasdair McDonnell said lowering the rate of corporate tax in Northern Ireland could well be meaningless unless it is part of a coherent long-term strategy for economic development and job creation.

Tue 15th March

He said: “The latest indications from London that the Treasury is coming round to the idea of a lower corporate tax rate in Northern Ireland are welcome. But we need to be clear that this would merely enable us to compete for international investment and will not on its own bring the growth we need.

“The rate of corporate tax is only one factor in an investor’s decision to locate. If a company decides it can’t make a profit here, it matters little what rate the profit would be taxed at. We have to build up our general proposition as a potentially profitable location first, based on our geography, workforce skills and other factors.

“We would be much more attractive for FDI (foreign direct investment) if it was clear that we had a strong business and enterprise culture and a clear understanding within our devolved government of the need to generate economic growth. Unfortunately this is not the case as the budget debate demonstrated.

“We urgently need to move the economy to the heart of the political debate and keep it there, instead of interminable wrangles over how to slice and dice the block grant from London. We have got to reduce our over-dependency on the public sector, but in the meantime intelligent use of public spending can be used as a lever to boost vital economic sectors. This is the opportunity that was lost in the budget.”

Dr Alasdair McDonnell MP, MLA, Assembly

Email mcdonnella@parliament.uk
Tel 028 9024 2474

Press Office

Tel 028 90 52 1837

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