Press release

There is a Plan B to economic recovery and cutting corporation tax is not part of it

1 July 2011

Friends of the Earth today stated its opposition to any lowering of corporation tax in Northern Ireland. On the last day that HM Treasury will accept responses to their consultation on Rebalancing the Economy, the environmental pressure group argued that reducing corporation tax is a dangerous distraction from the pressing need to rebalance in favour of a low carbon economy.

In its response to the consultation Friends of the Earth is also warning that the lowering of tax will result in drastic cuts to public services, is unfair to small and medium sized businesses and is potentially unlawful. The response argues that instead of lowering corporation for the few big organizations that pay it, we should be closing the loopholes on tax avoidance to increase revenues.

Friends of the Earth Director, James Orr said:

"Secretary of State Owen Patterson says there is no Plan B to rebalancing the economy. He may not have one, but in conjunction with many other stakeholders in the public, private, and voluntary sector, we have devised a roadmap to develop a secure, diverse, and prosperous economy in Northern Ireland, by way of The Green New Deal. If others have no vision for the future other than business-as-usual they should start listening to the people who have."

"The private sector needs to grow but in the right direction. That direction is to increase our self reliance by producing more local energy for local needs and weaning ourselves of our dangerous dependency on oil. Increasing our energy security and food security are not economic obstacles but opportunities to drive a new economic revival."

"What is crazy about lowering corporation tax is that The Green New Deal can offer 24,000 jobs for less money than the money Northern Ireland will lose from subsidizing the few big corporations who will in turn drain their profits out of Northern Ireland. The way to rebalance is not to continually bend to the whims of corporate giants, like large supermarkets, but to build up and invest in the low carbon economy."

Notes

[1] Read Friends of the Earth's response to the consultation.

[2] Friends of the Earth believes the environment is for everyone. We want a healthy planet and a good quality of life for all those who live on it. We inspire people to act together for a thriving environment. More than 90 per cent of our income comes from individuals so we rely on donations to continue our vital work. For further information visit www.foe.co.uk/ni

Friends of the Earth Northern Ireland
7 Donegall Street Place
BELFAST
BT1 2FN
Tel: 028 9023 3488
Fax: 028 9024 7556
Email: foe-ni@foe.co.uk.

Published by Friends of the Earth Trust