Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The position is very different from what Deputy Higgins says. The route out of inequality and unfairness is decent and gainful employment, where work can be seen to pay. It is not for the British Government to intervene in the budgetary process here, and it is not our function to interfere in the work of the Northern Ireland Executive and how it decides to spend its money. That is its business. It is the decision it makes with the Chancellor of the Exchequer in respect of what funding it gets and how it decides to spend it. Clearly, there have been reductions in elements of the public service that have an implication for jobs. They have been decided by the Executive and the Assembly, in the same way as happens in every other jurisdiction.

For our part, we wish to continue to co-operate and to fund those projects to which we have committed. Some €50 million is available for the A5 - €25 million this year and €25 million next year - but because of the court cases which have taken place, it is unlikely construction will start before 2017. This is outside my control.

Deputy Adams asked a question about the Narrow Water bridge. The Minister for Transport, Tourism and Sport, Deputy Donohoe, met Louth County Council recently but the proposition put to him was costing in the order of €50 million. This is in excess of the original cost of the first proposal. The money which was not spent on the Narrow Water bridge was invested in the rail line from Dublin to Belfast, which is of interest to people who are travelling north and south. The promoters of the project have to bring forward their proposition but the structure and the design of the bridge need to be examined.

I do not accept, as suggested by Deputy Higgins, that we did not lift a finger down here to help our colleagues across the Border. We continue to support strongly the cross-Border co-operative agencies and organisations and we will continue to fund these for the foreseeable future. It is also fair to say, as I mentioned to Deputy Martin, that the extent of current cross-Border business is exceptional, particularly in the hospitality and business sectors. These are the routes for getting out of poverty and inequality in Northern Ireland. In fact, there have been complaints about workers from Northern Ireland doing contract or subcontract work on projects in various locations in the Republic. This has been a cause of anxiety for people who thought they should have been able to get those particular projects.

One needs to look at the expansion of credit for small and medium enterprises and the decisions made by Government, such as that on the strategic banking corporation, to make new moneys available in addition to what is available from the restructured banks. The availability of these moneys is for longer terms and at lower interest rates and gives opportunities for business both ways. Deputy Higgins has been consistent in his views on the Tories and the Tory Government, but for us it is about expanding the opportunity for the economy of the island of Ireland. This is why we had people from Northern Ireland over in Brussels during the permanent representation and those discussions we had during the Presidency. We continue to work very closely with them.

It is a matter for the Executive, the Assembly and the British Government to decide to give the authority to the Executive and the Assembly to decide on the rate of corporation tax. Depending on how far that is to be reduced by the Executive - we have not objected to it; we have welcomed it, in fact - there will be a loss to existing corporation tax levels, once a decision is taken to change or reduce it.

It makes the situation a little clearer when the two rates are closer to each other. I remember being in Japan with the First Minister and Deputy First Minister. The rate of corporation tax in the Republic is 12.5%. It is not moving up and not moving down. It is very consistent and is the cornerstone of our recovery. It is a different level in Northern Ireland. Therefore, we are more attractive from that perspective in terms of foreign direct investment and jobs creation. The Chancellor has given authorisation to the Executive. It will probably be 2017 or 2018 before this is actually implemented, following the decision. This is a matter for the Executive itself.

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