Cutting links with EU could scupper corporation tax cut

The commendable efforts of the NI Executive to achieve a reduction in the corporate tax rate provides clear indication of the importance attached to the attraction of Foreign Direct Investment(FDI) as a vital component of our economic strategy.

Successful implementation of this strategy should ensure increased employment, retention of talented young people and enhanced economic growth.

However, taxation is only one of several factors considered by corporate leaders as they consider possible locations.

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National stability, a ready supply of well educated workers and access to world class research facilities are equally important in determining where to locate.

Unfortunately, each of these criteria would be seriously threatened if the United Kingdom votes to leave the EU.

Uncertainty about the UK’s ability to negotiate trade deals with European countries would make Northern Ireland an unlikely choice for companies seeking to penetrate European markets.

The loss of European funding for our Universities and probable reduction in opportunities for our students to spend time in other European Universities will lead to an inevitable decline in the quality and

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employability of graduates. University-based research will be adversely affected through loss of the £125 million in research funding that is currently targeted from the European Horizon 2020 programme.

It would be most unfortunate if the positive, “open for business” message conveyed by the reduction in corporate tax was scuppered by an ill-considered severance of links with the EU.

Roger Downer, BT5