“The lowering of Corporation Tax by the Northern Ireland administration will guarantee not one single new job but will assure tax breaks for large firms, accountants and lawyers. This is a massive economic con trick. Beyond the rhetoric – that is the reality of what is happening today”, says John Lowry of the Workers Party.
“New jobs will not flood into Northern Ireland. What we will witness is companies setting up front offices here, taking advantage of reduced taxation and channeling the money straight back out of the country to places like Bermuda, Switzerland and Liechtenstein”.
“The Executive parties will attempt to dress this up but this is not the economic Holy Grail to solve all our economic problems. Instead it will be the ordinary people of Northern Ireland, who have to face the consequences of a substantial reduction in the block grant and see no meaningful return for the sacrifice”, said Mr Lowry.
“If expected initial losses in the Westminster block grant of up to £300 million are not offset by an increased tax take, then it will be job losses in the public sector that will be paying for this tax break for wealthy corporations”, he said.
“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 hand-outs to those who don’t need them”, Mr Lowry concluded.