Posts tagged ‘Economy’
Economy: Patrick Love-Triple A shocks
Thursday, December 22nd, 2011The causes of the Great Recession risk being repeated, Patrick Love contends, as he reviews the downturn. Globalisation multiplies the effect of new shocks in a way never seen previously. Financial crises and recessions are nothing unusual. There were 195 stock market crashes and 84 depressions between 1860 and 2006. However, the 2007 crisis marks a turning point in that for the first time the entire world was affected. The trigger was the collapse of Lehmans, which called into question one of the unspoken assumptions of global finance: some banks are too big to fail. This assumption...[full story]
Economy: PwC’s Stephen Curragh – air passenger duty
Monday, October 10th, 2011Stephen Curragh argues that the cutting and devolution of air passenger duty should open the way for more tax varying powers. There may have been relief in the air when the Secretary of State announced a cut in Northern Ireland’s long haul air passenger duty (APD), but the relief may only be temporary unless the broader issue of tax devolution to the Assembly is comprehensively addressed. The announcement from Owen Paterson came as trans-Atlantic carrier, Continental Airlines, seemed poised to axe its daily service from Belfast to New York (Newark), thanks to the impact of APD on...[full story]
Economy: A Northern Ireland enterprise zone
Monday, October 10th, 2011Northern Ireland will be termed an ‘enterprise zone’ if corporation tax is cut. Peter Cheney considers what a zone could mean in practice and how it would differ from the existing definition. The aim of a Northern Ireland enterprise zone (a status expected if corporation tax is lowered) will be two-fold: to rebalance the province’s state-dependent economy and to help rebalance the UK economy away from London. Such a zone would be very different, in ambition and scale, than what has gone before. In the UK to date, enterprise zones have involved lowering business costs (e.g. through...[full story]
Economy: EMC’s Lean and green approach
Wednesday, September 7th, 2011With organisations focusing on reducing costs, EMC’s Brendan Crossey believes that the “disruptive” cloud-based technologies that are now being deployed promise even greater savings and increased innovation. He also argues that greening IT operations leads to lower costs. With the economic downturn, there is a much greater focus on cost reduction. “Essentially everyone is looking to be much more effective in what they are running, much more lean and much more just-in-time; and overall much more cost- effective,” observes Brendan Crossey. “They’re using a number of different...[full story]
Economy: Neil Gibson – regional economic forecast
Wednesday, September 7th, 2011A challenging economic road lies ahead as the UK pays down its debts, Neil Gibson predicts. Export growth and cutting corporation tax, he contends, can boost Northern Ireland’s economic recovery. It is a difficult time for economic forecasters. The economic climate, both globally and domestically, remains uncertain and the risks are so significant that forecasts for individual years carry a greater health warning than ever before. So why forecast at all? The process of developing forecasts and of considering all potential outcomes brings a discipline to one’s thinking and helps prepare...[full story]
Economy: Victor Hewitt – The rentier region
Wednesday, September 7th, 2011Victor Hewitt examines how the block grant separates work from reward: maintaining the welfare state takes priority over growing the economy. In the period between 2004-2005 and 2008-2009 (the last year for which outturn data is available) public expenditure in Northern Ireland totalled some £95 billion of which roughly £60 billion was covered by the revenue from taxes and charges paid by people and companies in the region, while the remaining £35 billion was covered by other UK tax payers. For a region with a population of only 1.7 million these are staggering figures. On an annual...[full story]
Economy: Corporation tax devolution – the process
Wednesday, September 7th, 2011Peter Cheney considers the steps needed to devolve corporation tax powers. Devolving corporation tax in Northern Ireland would be a first for the UK but the national fiscal and political landscape is rapidly changing. Tax devolution is normally advocated by nationalists as a move towards sovereignty. The Coalition Government, meanwhile, believes that the regional tax variations concept can stimulate economic growth and also reduce the block grants paid out by Westminster. The DUP, UUP and Alliance support devolving corporation tax to boost the regional economy. In theory, the Scottish...[full story]
Economy: Corporation tax – the case against a cut
Wednesday, September 7th, 2011Cutting local corporation tax attracts support from the main parties and business groups, but other politicians and the unions dissent. agendaNi summarises the opposition. The Unions Cutting corporation tax would transfer wealth “from the poorest to the richest, as public services are cut to fill the gap,” according to ICTU Assistant General Secretary Peter Bunting. There is no guarantee that jobs will follow or that profits will stay in Northern Ireland, Congress warns. It adds that the Celtic Tiger depended on extra factors, including the IFSC and the euro. A policy mix, it contends,...[full story]
