Dominic Hannigan (Labour)

On behalf of the Labour Party, I congratulate Mr. Owen Paterson on his recent appointment as Secretary of State for Northern Ireland. Like many people in this House, I am a member of the British-Irish Parliamentary Assembly, which meets on regular occasions, and as a result I have had the opportunity to meet Mr. Paterson. It shows the benefits of that body and provides an opportunity not just for Government members but also members of the Opposition on both sides of the sea to get to know each other and the ideas and philosophies of the various parties. I listened to Mr. Paterson this morning and in wishing him well I note his comments on corporation tax in the North and his interest in and research into the matter. Part of his research led him to conclude that the introduction of the low corporation tax rate in the South has led to tremendous benefits, in terms of inward investment and job creation. I would be very concerned about any moves which may lead to an increase in the level of corporation tax.

Yesterday's draft proposals must be debated with respect to that fact. I heard Deputy Bruton on the radio this morning and I am not quite sure if the draft document goes as far as he suggested. He suggested it would lead to the Government ceding authority on the issue to other European countries. I do not think it goes that far but we need to have a debate on the matter because it is clear that the reaction to the proposal, not just here but elsewhere, such as in France where its Government is concerned about the proposal, means we need a debate.

I would like to see such debate widened to include the issue of the euro because when it was introduced it was a unique experiment to create a major currency for hundreds of millions of people, akin to the United States dollar. The eurozone is very different from the United States, which has flexible, integrated labour markets and one common language. People in Texas and California see themselves as American, and not Texan or Californian, first. That is clearly not the case here. I would welcome a debate on the euro and how we can deepen the level of integration across the eurozone countries to make sure the currency works better.