Corporation Tax (Northern Ireland) Bill — House of Commons, 2015-03-04
Topic: Macroeconomics
Ian Richard Kyle Paisley (Democratic Unionist Party, Right): Indeed Some Members have suggested that the devolution of corporation tax is not a silver bullet, but I do not think I ever heard anyone say that it was going to be a once-in-a-lifetime, miracle-working, stand-alone solution. No one ever thought of it like that. It is one of the arrows in the quiver, to be fired at the right target at the right time The important thing about the corporation tax measure is that it will change people’s perceptions about our economy. We have a go-forward, low-tax, incentivised economy. Indeed, that seems to be part of the Government’s own economic plan. They have tried to reduce taxes time and again, and I welcome that. I agree with the right hon. Member for Wokingham (Mr Redwood), who has often contributed to debates in the House by demanding that we have even lower taxes across the whole of the United Kingdom. Would it not be a far better day today if the Bill were introducing a reduction in corporation tax for the whole of the United Kingdom? That is what we should really be debating, and I hope that one day Government Members will follow our lead and reduce their corporation tax to the new levels that Northern Ireland has ambitions to achieve The Government’s plan to reduce tax is welcome. When we look at the history of the economy of the Republic of Ireland, we see that it was not corporation tax reductions alone that supported the country’s boom years. There were other unique selling points that it is important to consider. The Republic sold the fact that it had a great, well-educated and advantaged youth population who made the country cheaper, as an offshore part of Europe, to invest in. Northern Ireland competes on exactly the same footing as that, and I believe that we can do it even better. After all, we are British. We are an offshore part of Britain: we are Britain offshore. If we can use that to our advantage as a unique selling point, we should do so, and I welcome those who will join us. As other Members have said, this change will affect 34,000-plus local companies, 26,500 of which—the small and medium-sized enterprises—form the backbone of our economy. I know that many of them welcome this measure, and I look forward to the opportunities that the legislation will create I welcome the fact that those on the Front Benches have changed their minds on this matter. For a long time, certain Members were like John the Baptist, in that they were preaching in the wilderness. Eventually, however, they have managed to convert; I think that those on both Front Benches recognised that they needed to do so. That is a good thing. There has been a lot of thought on this issue on both sides of the House and I welcome the change of heart, particularly on the Labour Front Bench. I remember the former Prime Minister telling us in 2007 that he could not do this. He gave us the Varney review and told us that we could tamper with this, that and the other. Indeed, the then Treasury spokesman, the right hon. Member for Leigh (Andy Burnham), said at the time that corporation tax reduction for Northern Ireland "does not offer the best way forward".—[Official Report, 17 December 2007; Vol. 469, c. 74WS.] I am glad that we have recognition today that it is the best way forward, and I hope that we will have unanimity on the matter in the House As I have said, this is not going to be a one-night wonder; it will not change things overnight. It will probably take at least a decade before we reap the benefit of the change, but anyone who knows that Northern Ireland’s economy also has a strong agricultural sector will appreciate what I am about to say. Before we can reap the benefit of the changes, we have to sow, and today we have very good seed that I believe we are going to be putting into very good ground. I look forward to seeing the game-changing strategy that is being put in place today reaping a wonderful economic harvest for Northern Ireland over the next 15 to 20 years. I believe that anything the Republic of Ireland has been able to offer as a result of its corporation tax reduction, Northern Ireland will be able to do on steroids. We will do it better. After all, we are part of a G20 nation, and the benefits of that stability should be recognisable to all In 2011, the Select Committee, under the watchful eye of the hon. Member for Tewkesbury (Mr Robertson), indicated that this measure was going to be a game-changer. The Select Committee is to be congratulated on pursuing this matter and encouraging the Government to look afresh at it. At that point, it had been dropped from the agenda and people thought that it was all over, and the Chairman of the Committee should be singled out today and congratulated on pushing the matter forward Over the past five years, the Northern Ireland Executive have demonstrated their ability to look at other good competitive economic measures that we should be embracing.