Oral Answers to Questions

Baroness Ritchie of Downpatrick Excerpts

Wednesday 24th October 2012 Commons Chamber

[Mrs Villiers]

It has indeed, and I had the honour of discussing these matters in a meeting in the city only recently. Northern Ireland has seen some striking success stories, such as the investment by Citigroup and the New York Stock Exchange. I praise the role of the universities in Northern Ireland, which have engaged with business, particularly in the financial services technology sector. That is an incredibly important industry for the UK as a whole, and it is a matter of real credit to Northern Ireland that it has successfully obtained so many inward investment jobs in the financial sector.

[Ms Margaret Ritchie (South Down) (SDLP)]

I welcome the Secretary of State and her ministerial colleague to their positions.

I understand that in the negotiations on corporation tax, the point at issue is not one of principle but one of cost, with one side estimating the cost to the Northern Ireland block at £300 million and the other estimating it as being in the region of £420 million. What is the Secretary of State’s understanding of that? If the latter is the case, how does she intend to suggest that the gap be met in discussions with the Treasury, and what will her advice to the Prime Minister be?

[Mrs Villiers]

Real progress has been made on the issue. The working group on corporation tax concluded on Thursday, and we are now proceeding to write up our findings and will report them to the Prime Minister in due course. We have an idea of how devolved corporation tax might work in a way that would not impose unnecessary administrative burdens on business. The hon. Lady is right that there are still important practical issues to resolve and alternatives to consider, and we will continue to work on those matters.