Carroll urges Finance Minister to review industrial derating policy

Northern Ireland’s Finance Minister has been urged to review the industrial derating policy amid criticism of “rates handouts for multinational corporations”.

People Before Profit MLA Gerry Carroll described the policy as “obscene” at a time when Stormont is under financial pressure and public services are underfunded.

The Treasury has offered to write off almost £600 million of Stormont debt, conditional on the powersharing Executive raising £113 million and producing a plan to deliver sustainable finances.

The stipulation is a key element of a £3.3 billion financial package drawn up by the UK Government to support the return of devolution in Northern Ireland.

A Stormont budget is expected to be unveiled by the end of April.

Finance Minister Caoimhe Archibald told the Assembly last week that the Executive is facing a “significant challenge” in terms of its budgetary situation.

Industrial derating includes a 70% discount in rates for manufacturing spaces, and is awarded to more than 4,000 industrial properties in Northern Ireland

Figures obtained by People Before Profit have revealed a breakdown of the properties which benefit from the policy, ranging from factories, distilleries, film studios, workshops and depots.

They include businesses involved in food production as well as manufacturing.

The total cost comes to more than £71 million.

Mr Carroll said some of the world’s top firms are availing of “rates handouts”.

“It is unacceptable for multinational corporations to avail of such obscene handouts,” he said.

“Ordinary people have had their rates hiked year-on-year, while corporate profiteers are allowed to hold on to millions in unpaid rates.

“Just last month, we were told Stormont needed to raise £113 million to invest in public services.

“The Executive could take tens of millions off multinational corporations at the stroke of a pen if they were prepared to challenge the rich.

“Every penny we let these corporations keep is money lost to our public services.

“The Finance Minister needs to urgently review industrial derating to stop massively wealthy corporations from raking it in at public expense.”

The lobby group Manufacturing NI previously urged against the ending of the industrial derating policy, claiming it would be “deeply damaging”.

Responding, a spokesperson for the Department of Finance said the minister is assessing the findings of a consultation which looked at industrial derating.

“Industrial derating is awarded to around 4,400 industrial properties that are eligible for the relief,” they said.

“Industrial derating was part of the revenue raising consultation on non-domestic and domestic rating measures.

“The Finance Minister will be assessing the findings of the consultation, alongside a number of other strategic areas within the rating system.”