§ Mr. BeggsTo ask the Secretary of State for Northern Ireland what assessment he has made of the impact the low corporation tax rates in operation in the Republic of Ireland has on manufacturing industries in Northern Ireland. [174198]
§ Mr. GardinerNo formal assessment has been made as to the impact that the low corporation tax rate in operation in the Republic of Ireland (RoI) has had on manufacturing industries in Northern Ireland.
1338WAlthough the RoI can offer a lower rate of corporation tax, in recent years, Invest NI has successfully secured new investment from the RoI by promoting Northern Ireland as a region where companies can reap the benefits of the greater competitiveness of the Northern Ireland economy. In practice, it has been found that the more competitive cost base in Northern Ireland often outweighs the corporate taxation differential between Northern Ireland and the RoI.
Indeed, a recent report, commissioned by the Office of the First Minister and Deputy First Minister, into the cost of operating business in Northern Ireland concluded that lower labour and property costs, which represent a significant component of the cost base of many firms, places Northern Ireland businesses at a competitive advantage vis-a-vis Great Britain and the Republic of Ireland.