Sir David Varney
Room 2/29, HM Treasury
1, Horse Guards Road
London
SW1A 2HQ

January 2008

VARNEY REVIEW OF TAX POLICY IN NORTHERN IRELAND

At the meeting of the Enterprise, Trade and Investment Committee on 10 January the Committee discussed the content of the Varney Review of Tax Policy in Northern Ireland.

The Committee wishes to record its utmost disappointment at the key decision of the review in not accepting the need for a reduction, to 12.5%, of the rate of Corporation Tax in Northern Ireland. The general consensus among the Committee was that this decision highlighted that the expected ‘peace dividend’ does not exist and that it is apparent that Northern Ireland will not be treated as a special case.

I understand that the Department of Finance and Personnel will have the lead role in relation to your next review, however, our Committee will retain a keen interest in this area. In this respect it would be useful for the Committee to know what structural differences, in terms of scope and nature, there are between the first and second reviews.

I look forward to hearing from you.

Yours sincerely

_______________________

Mr Mark Durkan, MP MLA

Chairperson
Committee for Enterprise, Trade and Investment

cc Nigel Dodds, Minister for Enterprise, Trade and Investment