Race-to-the-bottom competition for tax haven status will not deliver
Parties need to adopt a proactive approach to growing a productive, balanced economy
Ireland Secretary for Unite, Jimmy Kelly, welcomed comments by DFP Minister Arlene Foster signalling that the NI Executive is unlikely to lower corporation taxes in 2017.
“Unite has led the demand that the Northern Ireland Executive reconsider its low-tax approach to growing the economy.
“Advocates of lowering corporation tax tell us that it will be a ‘magic-bullet’ solution to all our problems. The reality is that it would result in relatively few jobs being created with the bulk of benefit going to businesses attracted by nothing other than the opportunity for tax avoidance. Do we really want to base our future growth on such businesses?
“The cost of participating in a global race-to-the-bottom for a fleeting advantage in tax haven status will be even more severe cuts to public services at a time when funding for roads maintenance, public transport and further and higher education is already being decimated by Conservative austerity policies.
“The NI Executive should seek to base our economic growth and job creation on fundamental strengths such as a highly educated and skilled labour force, and world-class transport, telecommunications and energy infrastructures.
“My union is pursuing opportunities with Manufacturing NI to address the serious challenges facing the productive sector. We now need the Northern Ireland Executive to pursue a hands-on approach to growing the economy”, Mr Kelly concluded.