Oral Answers to Questions

Guto Bebb Excerpts

Wednesday 23rd March 2011 Commons Chamber

The Secretary of State was asked—

[Guto Bebb (Aberconwy) (Con)]

1. What recent progress has been made in discussions with the Northern Ireland Executive and the Chancellor of the Exchequer on changes to corporation tax in Northern Ireland.

[The Secretary of State for Northern Ireland (Mr Owen Paterson)]

I have had discussions with my right hon. Friend the Chancellor on this issue yesterday and today. A Government consultation paper on rebalancing the Northern Ireland economy will be published tomorrow. The paper will include a discussion on the potential for transferring the power to reduce corporation tax to the Northern Ireland Executive.

[Guto Bebb]

To what extent has the Azores judgment had a bearing on the Government’s ability to vary the rate of corporation tax in Northern Ireland and other regional authorities?

[Mr Paterson]

I thank my hon. Friend for that question—given that I converted him to the Conservative party in my kitchen. The Azores judgment will conform to our plans, which will be laid out in the consultation tomorrow. We agree that the powers should be devolved to an Assembly that has entire control over its own area and that there should be no countervailing intervention from central Government.