Alliance calls on Executive to challenge Varney decision to refuse tax cut

5.22.00pm UTC (GMT +0000) Mon 17th Dec 2007

Alliance Party Finance Spokesperson Dr Stephen Farry MLA

Alliance Party Finance Spokesperson Dr Stephen Farry expressed major disappointment that the Varney review into fiscal measures for Northern Ireland has ruled out a differential rate of corporation tax. He slammed the unimaginative approach from the British Government to effecting a step change in the Northern Ireland economy

Dr Stephen Farry stated: "There are major structural problems in the Northern Ireland economy not least a very heavy dependence on the British taxpayer and a limited ability to attract high value added inward investment.

"There was a strong case put by local political parties, economists and business leaders that a differential rate of corporation tax would be the single most effective tool in generating a step change in the local economy.

"There are major regional imbalances in the British economy. We now have a situation where most of the wealth is created in London and the south east of England, leading to all other regions being placed in a dependence situation. This is unsustainable both economically and environmentally.

"It is important that our local Executive does not take this rejection lying down. They must strongly challenge this decision."

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