In his
pre-budget statement, the Chancellor of the Exchequer declared that the UK
is “judged as one of the best locations
to do business and attract inward investment” – before bizarrely increasing
taxes, alienating financial services and failing to make any significant
in-roads into the UK’s rising public debt.
On
the same day, his Irish equivalent, Brian Lenihan, announced a very different
set of measures based on a more realistic assessment of his country’s
attractiveness. He said that Ireland had priced itself out of the market: “We will not be able to stem the haemorrhage of jobs until our prices and the
costs of doing business here move down in line with those of our main trading
partners.”
As
Alistair Darling announced an increase in National Insurance, the tax on jobs,
Lenihan declared that: “Our Corporation
Tax rate of 12.5 per cent has become an international ‘brand’, known the world
over. It is a powerful expression of our pro-enterprise ethos and continues to
attract new business and new jobs to this country. In a time of great
uncertainty for international business, it is important that we send out a
clear message. The 12.5 per cent Corporation Tax rate will not change. It is
here to stay.”
Attracting
inward investment requires a certain approach.
Quite
simply, Lenihan gets it. Darling doesn’t.
