TUV warns against further dilution of The Union
03 February 2011
Statement by TUV Leader Jim Allister QC:-
“Being neither Irish nationalists nor Ulster nationalists, TUV believes emphatically in the integrity and unity of the United Kingdom. Devolution certainly has its place in delivering better local administration, but it must not become an instrument to hollow out the essentials of The Union.
“The essence of The Union is equal citizenship, which is not a one way street. A common fiscal regime is inextricably linked to the maintenance and purpose of The Union, which is why devolved institutions in Northern Ireland have never had tax-raising powers. The matters reserved to Westminster are the common bond that binds the UK together and warrants our representation in Parliament. Reduce those reserved matters and you further detach from the rest of the UK. Hence, the reason why IRA/Sinn Fein see the transfer of tax-raising powers as its next staging post to Irish unity.
“From fiscal parity flows benefit parity. So any region of the UK whose tax take is below its spend should be careful in what it wishes for. You can’t cut the link on tax, and in particular contribute less to the Treasury, and expect to keep parity in benefits and expenditure. Hence, the inevitable and large reduction in the block grant which would result from devolving power over corporation tax to Stormont.
“And, of course, it wouldn’t end at corporation tax, because once the first tax chord is broken those whose agenda is political, not economic, would soon be demanding more. Enabling legislation at Westminster to permit devolution of tax-raising powers away from London would be the scene- setter for the next Hillsborough showdown when Sinn Fein would again put the gun to the DUP’s head and require them to roll over as the price for clinging to power. It worked so powerfully over policing and justice, the same trick will be pulled again.
“So, I warn Unionists against the folly of cutting the ties that bind us in to the United Kingdom. When one recognises that under the Belfast Agreement harmonisation is the means to attaining Irish unity, then the politics behind the plausibility of harmonising our corporation tax rate with that of the Republic is pretty obvious.”
