Thursday, September 16, 2010

Sinking ship

During House of Commons questions to the Secretary of State for Northern Ireland --

Nicky Morgan (Loughborough) (Con): I thank the Minister for his reply. Have he and his team considered what lessons can be learned from the economic successes of the Republic of Ireland in the 1980s and 1990s that could now be applied to the economy of Northern Ireland? 
Mr Swire (The Minister of State, Northern Ireland Office): Yes, we certainly continue to study that. It is worth pointing out that despite the economic slowdown experienced in recent years the Republic of Ireland continues to attract major foreign direct investment. Indeed, the Republic of Ireland’s stock of direct inward investment is five times greater than the OECD average. According to one leading accountancy firm, there have been well over 50 investment projects this year alone. It is significant, we believe, when spending is being cut and many taxes are going up, that the one set of taxes that are not being touched in the Republic are the low rates of corporation taxes. 

Thus an illustration of the continued grip of low tax mania even when associated with an economy in crisis.

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