Slugger's Mick Fealty is one a range of good writers at the Guardian's new Comment is Free Site. In his latest piece he asks Who can save Northern Ireland's economy?
He highlights a noteworthy piece by Alan Ruddock which asks some searching questions about the way forward.
Unless the British government is prepared to give the province fiscal independence, allowing it to set corporation tax at the Irish rate of 12.5% compared with the prevailing British rate of 30%, then Northern Ireland's business sector starts at an unhealthy competitive disadvantage, while its ability to attract foreign investors is severely curtailed.
According to a report compiled last year by Goodbody Stockbrokers, a Dublin firm, a competitive tax rate could elicit a 20-fold increase in foreign direct investment. Yet the prospect remains as fantastical as local demands for a derogation by which Northern Ireland would join the euro while the rest of the UK remains wedded to sterling.
It will not happen, because it would spark demands from the Scottish and Welsh assemblies for similar autonomy, as well as provoking revolt in the English regions. The province is stuck with Britain's fiscal and monetary regime, and needs to chart a recovery plan that accepts reality rather than pandering to pipedreams.(Management Today)
To my mind, both these articles highlight the shifting terms of the debate about the north's future.
Continue reading "Northern Ireland's changing terms of trade" »
Recent Comments