Allister has his say on state aids
14 February 2006
In a debate on State Aids in the European Parliament in Strasbourg, Jim Allister MEP welcomed the changes which had been secured in the Commission's Regional Aid Guidelines as they affect Northern Ireland. Originally, the Commission had wanted to ban all State Aids aimed at encouraging inward investment from the end of 2006. Jim Allister has been active in lobbying Commissioners Kroes, Hubner and Mandelson on the issue, stressing that as Northern Ireland had to compete for foreign investment with the Republic of Ireland which benefited from a 12.5% Corporation Tax, the ability to offer financial incentives was indispensable in the Province's foreign promotion. Accordingly, changes to the Guidelines which maintain, though on a reducing scale, the right to offer State Aid until 2011, were welcomed by the DUP MEP.
In the course of his remarks, Jim Allister said:-
"The Commission's policy on State Aids has often proved to be a blunt, inflexible and inappropriately directed instrument, which discourages instead of facilitating economic development. I question if a further assault on State Aids is properly justified in pursuit of the failing Lisbon Agenda.
However, the specific area I wish to focus on is Regional Aid. I welcome the fact that the present Regional Aid Guidelines, as they affect Northern Ireland, are a marked improvement from earlier drafts and that the Commission listened to representations from myself and others. The new draft Guidelines provide for continued distinctive treatment of Northern Ireland as an economic development region and therefore allow ongoing aid to attract inward foreign investment, though on a reducing scale until 2011.
With having to compete with the 12.5% Corporation Tax south of the border in Ireland, the capacity for Northern Ireland to give aid to attract investment is indispensable. It is exactly such local realities which more and more the Commission needs to reflect in the implementation of what, too often, are its rigid dogmas on State
