30 January 2007 Legislation laid setting industrial rate liability at 30%
The Finance Minister, David Hanson MP, today confirmed that legislation was now in place to set rate liability for manufacturers at 30% for 2007/2008.
The Minister said
“
I announced on 23 November 2006 that the level of rate liability for manufacturers in 2007/2008 would be 30% rather than 35%. I can now confirm that the legislation to bring this into operation from 1 April 2007 has been laid at Westminster.
“I would emphasise once again however that this measure, which will cost £3.7 million in lost revenue for 2007/2008, should not be seen as a signal for future decisions in this area as there is a very real consequence to the money available for spending on public services in Northern Ireland if the full removal of industrial derating does not take place. A formal review into the effects of the policy will begin in April 2007, which will examine this issue in greater detail”.
He continued
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During my meetings with the Northern Ireland Manufacturing Focus Group and Amicus in November 2006 on the phasing out of industrial derating, these organisations proposed the introduction of a manufacturing skills levy.
“My colleague, Maria Eagle MP, who has responsibility for the Department of Employment and Learning (DEL) and I view this proposal as having potential to be effective in developing more capacity and sustainability in the manufacturing sector. However detailed consideration would need to be given to the overall feasibility of such a scheme including how it would align with other training programmes, development processes and initiatives that are already in place.
“We are aware that the Committee on the Programme for Government recommended this week that a restored Executive should explore with the sector the feasibility of such a scheme – and with restoration now within the grasp of the local political parties, it can only help create the conditions where local initiatives like this can be brought forward ”.
NOTES TO EDITORS:
Industrial rating was introduced in April 2005 at 15% of full rate liability and will be phased in to 100% by 01 April 2011. The rate for the current year (2006/2007) is 25% and was planned to rise to 35% in 2007/200
