The Workers Party have said the announcement by Finance Minister Sammy Wilson that the cost of introducing a reduction in Corporation Tax in Northern Ireland has now been revised upwards to £400m per annum is a vindication of the position adopted by the Party in opposing a reduction in Corporation Tax from the outset.
This demonstrates that this proposal has not been thought through. Not only would a direct reduction in the NI budget of £400m result in even more vicious cutbacks which would increase poverty and hardship in NI, than those that are already planned, but the source of the additional £100m loss is precisely what we had warned about ie large supermarket retailers like Tesco declaring profits in NI.
This information was already in the public domain and had been highlighted by the Workers' Party as one of the many flaws in the argument for a reduction in the rate of corporation tax.
The fact that the Finance Minister has stated this only days after the Consultation process had closed can only be seen as a most cyncial move.
The Workers Party restate our long held view that the only way to advance economic recovery is by the planned investment in public works and infrastructure coupled with the development of export driven industries not tax handouts to those who don't need them.
Thursday 21st July 2011
See: Response by: The Workers’ Party To: HM Treasury document, “Rebalancing the Northern Ireland Economy”. Click link below