The Chairman of Chartered Accountants Ulster Society says that the proposed cut in the rate of Corporation Tax from 27% to 12.5% would be a crucial factor for potential investors considering setting up operations in Northern Ireland.
Speaking to over 300 guests at the Ulster Society’s Annual Dinner tonight (10th March), Richard Gardiner said: “There has been a great deal of debate locally about the impact of a cut in the corporation tax rate. A key issue which has been underplayed are the views of potential investors from outside of Northern Ireland.
“In the last few weeks, and with the assistance of Invest Northern Ireland, the Ulster Society asked 10 existing and 21 prospective investors about the impact that a change in corporation tax might have on their investment decisions.
“Over three-quarters of the companies asked stated that tax was important or very important to their international investment decision making. Over two-thirds of organisations asked stated that a reduction in corporation would increase the likelihood of them setting up or expanding their operations in Northern Ireland.
“The message from these 31 global investors, with business to grow and investments to be made, is clear. Tax is an important factor for location decisions. Changes which incentivise investment and growth increase the chances of investment.
“Tax is, of course, not the only factor. Skills are vitally important. Costs, efficiency and competitiveness are also fundamental. Infrastructure and access to markets are also key factors.
“We believe that this snap-shot of investors is a key indicator that changes to taxation could have a major positive effect on our economy. In an increasingly global marketplace, in which we must grow and compete internationally, the key question is – can we afford not to address the issue of taxation in our efforts to rebalance the Northern Ireland economy?”
The Ulster Society also showed the potential of local business talent at the dinner, highlighting some of Northern Ireland’s most successful and innovative indigenous companies with presentations in its Spirit of Enterprise Awards series, run in partnership with Northern Bank and BusinessEye.
Nine local companies were named as winners and examples of success and inspiration. Seopa, PK Murphy Construction, GPS Colour Graphics, i-Path Diagnostics, SlurryKat, Phoenix Supply, Kelvatek, Natural World Products and GRP Systems were highlighted in the series.
On the night, SlurryKat Ltd and Kelvatek Ltd were named as Overall Joint Winners of the Spirit of Enterprise Award for their ambition, drive and commitment to innovation.
Richard Gardiner says: “We’re delighted to announce SlurryKat and Kelvatek as this year’s Spirit of Enterprise Overall Winners. These companies showcase the depth of talent we have in Northern Ireland and what can be achieved by local businesses, even in the midst of trying and challenging economic times. As leaders on a global scale in their own sectors, they are living out what it really means to re-build and re-balance the local economy.
“All of our winners this evening have demonstrated courage, innovation and determination. My hope and belief is that our politicians and leaders, in both the private and public sectors, will demonstrate similar characteristics in the days ahead. My challenge and call is for us all to share in the Spirit of Enterprise.”