Below is a platform piece published in today’s News Letter by TUV Party President and former UUP economics spokesperson William Ross.

The claim that a reduction in the level of corporation tax would have significant beneficial effects on the economy is an attractive attention grabbing headline.

Those in favour point to the recent “Celtic Tiger” economy of the Irish Republic and clearly believe it was a consequence of the 12.5% corporation tax rate.

If so, why did other nations in the EU set the same rate? It follows that they did not believe that a low rate of corporation tax was the only – or even the main – factor when investors decided where to place their capital. Indeed a report by PricewaterhouseCoopers quoted survey evidence which showed the level of corporation tax ranked 17th in a list of factors which decided where they would invest.

If a lower rate of corporation tax will result in a flood of Foreign Direct Investment one would have thought that the other devolved regions of the UK would be crying out for it too. Not so. The First Minister of Wales, Carwyn Jones, said any such move would be “disastrous” in light of the implications it would have for the Welsh block grant.

The Wilberforce Society, a UK political think tank, has also warned of the serious danger of tampering with the existing arrangements while HM Treasury made it clear in their consultation paper Northern Ireland would lose around £300m a year from its block grant. Yesterday we learned that it has revised the figure to £400m.

Remember, the Finance Minister described the devolution of corporation tax as “totally unattractive” when he believed the cut to the block grant would be around £300m!

Simply put, a cut in the level of corporation tax will mean even less money for our schools, our health service and the police while the likelihood of increased investment in Northern Ireland is, according to HM Treasury, “uncertain”.

Add to all this the fact that tampering with the level of corporation tax severs an important fiscal tie with the rest of the UK.

I believe that a reduction in the level of corporation tax in Northern Ireland will be nothing more than a dangerous gamble with our economic future.

We should not go down this path.