Allister answers DUP abuse
04 February 2011
Statement by TUV Leader Jim Allister in response to attack from Ian Paisley Junior over corporation tax:-
“The DUP, of all people, should be the last to suggest others have abandoned past stances. They hold the gold medal for political somersaulting.
“The point I was making in my statement of yesterday is that tax-raising powers for Stormont – which is the Sinn Fein demand and is much wider than corporation tax - inevitably reduces the commonality with the rest of the UK, risks parity on benefits, thereby diminishes our equal citizenship and ties to the UK, and, specifically now in Northern Ireland puts fiscal management into an Executive where the economic illiterates of Sinn Fein hold a controlling veto. None of these points, of course, are addressed by Mr Paisley, rather his is a statement merely consumed with abuse, but no substance.
“Does he agree that “a common fiscal regime is inextricably linked to the maintenance and purpose of The Union”? We don’t know, he doesn’t say?
Does he agree that “the matters reserved to Westminster are the common bond that binds the UK together and warrants our representation in Parliament”? We don’t know, he doesn’t say.
Does he agree that “reduce those reserved matters and you further detach from the rest of the UK”? We don’t know, he doesn’t say.
Does he advocate letting the economic illiterates of Sinn Fein (who are on record as recommending higher corporation tax) exercise their controlling veto over fiscal matters? Probably, because he was happy to empower them to run amok on everything else!
“Rather, he makes a selective quote from something said in 2005 – maybe he’d like to be reminded of some of the things he used to say, including about terrorists in government.
“We didn’t have devolution in 2005, so, any variation in corporation tax then would not have transferred tax-raising powers to Stormont. Anyhow, my reference in 2005 to corporation tax was in a speech in the European Parliament opposing the suggestion of an EU corporate tax. I emphatically insisted such is a national issue.
“Now, I fear, corporation tax is being used as an all-Ireland harmonisation tool in the context of wanting even further tax-raising powers so as to cut a vital bond binding us to the UK.
“Moreover, it is now clear from the Azores judgement that corporation tax cannot be cut in NI without a corresponding cut in the Block grant. The Azores judgement, which so impacted on the viability of a unilateral reduction in corporation tax, did not issue till 2006, whereas the 2005 statement quoted in aid of his attack on me pre-dates it. The Azores decision has removed much of the appeal of reducing corporation tax solely in Northern Ireland, because of the raid that would result on the block grant. So the reality is very different in 2011 than it was in 2005.
“A way to circumvent the Azores judgement is to reduce corporation tax on a UK wide basis and then enhance our wider foreign investment inducement package, which can be done within the rules.”
