Borderless thoughts on Politics, Public Affairs, the media and anything else that matters from Conall McDevitt, SDLP MLA for South Belfast
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  • Varney wont go away you know

    Posted on December 19th, 2007 Conall McDevitt 4 comments

    … not my words but those of the Big Man himself and First Minister of Northern Ireland, Ian Paisley.

    Now that the dust is settling on this less then impressive report the consensus here (in Ireland) and amongst those following the issue in GB appears to be that in old footballing parlance Varney chose to play the man and not the ball.

    In 130 pages Sir David concedes the only reason for not giving NI a differential rate is a political one. Gone are his old arguments about it being illegal or against fiscal policy.

    The Institute of Chartered Accountants in Ireland has called for an inquiry by the Northern Ireland Affairs Committee at Westminster. Given this is a non devolved matter and given Varney has chosen to disregard the opinions of pretty  much everyone on the island of Ireland including two governments, one cannot see how the NIAC would not want to explore in public how Sir David was able to be so right and the rest of us so wrong.

    Everyone will want to take a well earned Christmas break but O’Conall Street predicts this issue will run and run in 2008. In many ways the Varney report, through its weakness, has given fuel to a campaign which unites the Island of Ireland and leaves the Scots thinking this is one they might want in on too. 

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    4 responses to “Varney wont go away you know”

    1. West Belfast Comrade December 20th, 2007 at 18:18

      Since when is a political reason not a valid one?

      In any case the argument that you are repeating – that a 12.5% corporation tax rate generates more tax revenue is tripe.

      Why hasn’t everybody in Europe cut the rate to 12.5% then?

      And what is so special about that rate? Why not cut it to 10% and get even more, or 0% and get infinite revenue? Yes, sounds ridiculous but then the whole Laffer Curve or whatever it is called is a cover for a “political” decision to cut taxes.

      Be closer to Baltimore than Berlin if you like, but I don’t blame the UK government for taking the social democratic road.

      Of course, as you have said, and I agree, if Paisley wants a 12.5% rate, he’d better start learning the words of Amhran na bhFiann

    2. Conall McDevitt December 20th, 2007 at 20:13

      WBC I dont agree that a lower rate is somehow less progressive in political terms. I can’t speak for the rest of Europe and you raise an interesing question which deserves learned research. It’s the sort of question I would like to see the Northern Ireland Affairs Committee consider beacuse sure as hell Varney hasn’t. For the record corpo tax take doubled in the Republic after the reduction. That’s a fact and in my books a very good reason for keeping the debate going.

      Hope all are well and Santa is good. Hope to see you back home soon.

    3. West Belfast Comrade December 21st, 2007 at 00:13

      Post hoc ergo propter hoc?

      Have a good one.

    4. DC December 23rd, 2007 at 13:40

      It is a very unimaginative response in light of much sought after constitutional reform namely that of Barnett and under Brown’s thought of bringing into play new ideas for the Union. Perhaps if we were to get corporation tax reductions it may well turn out to create ‘verschlim,besserung’. A reduction of public spend may have to be delivered upon in order to grow other sectors.

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