Oral Answers to Questions

Shaun Woodward Excerpts

Wednesday 23rd March 2011 Commons Chamber

[Mr Shaun Woodward (St Helens South and Whiston) (Lab)]

It is good that it is not yet in the bag, because the Secretary of State will know that since 2000, 80 countries have cut corporation tax rates. I am sure that, among those, he has studied Puerto Rico, a territory of the United States which has an effective corporation tax rate for manufacturing of 2%. What assessment has he made of how that has helped tackle unemployment in that United States territory, and how it has helped those countries generally to recover from global recession?

[Mr Paterson]

I am most grateful to the shadow Secretary of State for his question, but Puerto Rico is a bizarre comparison. I spent three and a half years travelling to Northern Ireland every week. Week after week I went to businesses, and week after week they said that a reduction in corporation tax would most help them.

[Mr Woodward]

It is clear that the Secretary of State travelled week after week, but it is also clear that he learnt nothing. Unemployment in Puerto Rico went up again last month, to 16%. The economy remains in recession for the fourth year. We need Northern Ireland to get out of recession, not to stay in it, so let us be clear—and a simple yes or no will do. Given the vital importance of infrastructure, education and skills to attracting and retaining business, will he guarantee that any consequential changes to the annual block grant and from tax revenue will not leave the Executive with an annual net loss? Yes or no?

[Mr Paterson]

We need no lectures on the economy from the right hon. Gentleman. He was in the bunker with the right hon. Member for Kirkcaldy and Cowdenbeath (Mr Brown), and he left us with a bill of £280,000 a minute in borrowing and £120 million a day in interest costs. We are absolutely clear that, following the example of the Republic of Ireland, we will grow the revenue.