Crisis in Dublin, Opportunity for Belfast
Posted on November 11, 2010While all the focus at the moment is on dragging the Republic of Ireland out of the mire it stumbled into with the help of the Euro, Northern Ireland’s need for economic development is largely being ignored.
The Province has done a lot better in recent years but is still hugely reliant on the public purse and short on private investment.
We should be viewing the crisis in Dublin as a huge opportunity for Belfast.
For days now the speculation has been that the EU will demand as part of the deal that the Irish agree to raise Corporation Tax. Doing so would be lunacy, as it would cancel out one of the Republic’s few remaining selling points – its competitive business tax rates. However, since when has the EU been a stronghold of sensible economic policy, or acted in the best interests if its members?
Brian Cowen strongly denies that this might happen, but then again a week ago he was denying just as strongly that his country needed an EU bailout and look where we are now. As Bismarck said, “Never believe anything until it has been officially denied.”
If the Republic does increase Corporation Tax, the opportunity is clear. Plenty of companies will think about abandoning the country wholesale. A timely and drastic cut in Corporation Tax in Northern Ireland would persuade many of them to move across the border – boosting the economy and tax revenues in one of the most needy parts of the UK.
If anyone has any ethical qualms about the idea, ask yourself this: where would you prefer these businesses to go, Northern Ireland or Switzerland? It’s time to do our countrymen a favour.
Tags: Economics, EU, Northern Ireland, opinion, Tax
Categories: Economics, Opinion, Politics, Public spending
why not a corporation tax cut in the whole of Britain
22.11.2010 10:53
Why not indeed, set out a reduction of 10% for example, but spread it over the next 5 years.
This would send a message to international business that we are serious about wanting them to set up and do business in our country.
24.11.2010 20:03
Richrd – thought the coalition had committed to a 5% cut in rates, at 1% p.a.? Not as good as 10%, obviously, but not a bad start.
28.11.2010 10:53
One of our life-long mottos is:
“THINGS WORK OUT BEST FOR THOSE WHO MAKE THE BEST OF THE WAY THINGS WORK OUT.”
We entirely agree with your proposal Mark and repeat here the recent blogs of our colleagues The ESSEX GIRLS elsewhere following their Red Sea holiday excursion and discussions with other disgruntled Europeans.
21ST NOV
It’s been an interesting as well as a pleasant fortnight on the cosmopolitan Red Sea rubbing shoulders with ordinary holidaymakers from countries across Europe.
With so much of the Euro in the news the conversation at dinner, and way beyond, often
turned to the common and topical concern.
Germans, Swedes, Dutch, Austrians, Irish and English were more or less agreed that the EU
experiment has served its initial purpose of keeping war at bay whilst setting a base for post-1945 international trading but that the concept is outmoded and is being propped up only by the will of those who benefit most – the Brussels Bureaurocracy – and certainly not by the will of the people. Most gave it 3 – 7 years to unwind completely and the many Germans we spoke to certainly do not relish the very heavy lifting they forsee in propping up the euro.
There was surprise amongst us at the lack of a cross border opposition as nearly all EU countries contain a strong scepticism to the EU project as shown by referenda in France, Holland & Ireland and all the UK research. A united voice on behalf of ordinary nationalistic Europeans is long overdue.
22ND NOV
Perhaps we could remind ourselves of the credentials of Mr Barrosa and Mr Roumpay that their opinions, let alone their actions, should be of such significance to the lives of 500 million Europeans. From all we have been able to glean they are middle-ranking beaurocrats and their thinking and raison d’etre reflect this.
The opinions of the host and even the contributors to this site carry greater merit. The EU battle is starting to flow in the direction of us, the people of Europe, we believe and Mr Hague is possibly trying, belatedly, to showing his 2001 metal and true convictions?
22.11.2010 12:07
Indeed, VAT at zero, halve govt. expenditure and corp tax. Ride it out then ride the wave!
22.11.2010 13:34
To be honest I’d rather see them relocating to Hull, Liverpool or Truro
22.11.2010 14:08
They could’nt cut taxes if they wanted too.
Their drunk on it.
22.11.2010 15:50
Why stop at just a corporation tax cut? Cut all taxes and sack 5 million civil servants. Oh no- that’s not possible because they all have jobs for life. The tiny minority that actually produce something of value will just have to carry on supporting everyone else.
22.11.2010 16:47
Why anyone in their right mind would do business in an armpit like Belfast is beyond me.
22.11.2010 22:54
Have you even been to Belfast?
One of the best cities in the UK, with a standard of living way above many of the “armpits” in England (like London.) A friendly and yes a safe city with a standard of education far above the rest of the UK.
23.11.2010 08:50
Unfortunately its full of Irish…
23.11.2010 09:49
I am sure there are many there who would dispute that remark – about 50% of the population on NI. Seems you have already done Sinn Fein’s work for them and reunited Ireland….
(Always good to have discourse with a good old fashioned racist.)
23.11.2010 10:44
Your upset? Gosh, think of all those British taxpayers that have been funding the northern Irish troughing our wallets directly all these decades and similarly the southern Irish troughing our wallets via the EU.
23.11.2010 14:34
Troughing? A fabulous Daily Express style phrase if ever I heard one!
And no, I am not at all upset. Why would I be? As a taxpayer I am happy enough to pay for the NI . That is what happens in society – you pay your taxes but you do not get a choice on where they go. And to be honest stabilizing NI is as good a cause as any.
After all it is the UK’s problem – and will be for the forseeable future.
23.11.2010 15:53
Good post.
VAT cannot be cut to less than 15% whilst we are part of the Euro. Another reason to leave…
23.11.2010 00:33
“A timely and drastic cut in Corporation Tax in Northern Ireland would persuade many of them to move across the border – boosting the economy and tax revenues in one of the most needy parts of the UK.”
NI cannot have a different rate from the rest of the UK EU Rules.
23.11.2010 14:15
Good to see traditional old Tory Racism surfacing – want to talk about troughers look at all the Tory piggies still in Parliament.
23.11.2010 15:52