Northern Ireland: Public Expenditure

Lord Dubs Excerpts

Tuesday 22nd June 2010 Lords Chamber

[Lord Shutt of Greetland]

My Lords, the Government have no plans to review the Barnett formula until the fiscal stabilisation plans set out in the Budget have been worked through. However, that report is still valid and will be considered at the due time.

[Lord Dubs]

My Lords, further to the answer that the Minister has just given, does he agree that the problem with the Northern Ireland economy is not that the public sector is too large but that the private sector is far too small? Does he further agree that reducing corporation tax to the same level as that in the Republic may be a very sensible move, but that the private sector will need more to boost the economy than simply that?

[Lord Shutt of Greetland]

The noble Lord is right: the biggest problem is that the private sector is far too small. However, there clearly is a difficulty when the corporation tax rate in the Republic of Ireland is 12.5 per cent—a matter which has been steadily addressed here. Northern Ireland does need more private sector jobs. It is interesting to note that between 2002 and 2010, something like 7,500 jobs were created by businesses from the United States. I have no idea what footloose industry there is about, but Northern Ireland has nevertheless gained those 7,500 jobs, and that was only the top five in that period.