Media statement
Thursday, February 26th, 2009

Jobs Summit must focus on retaining and growing businesses

The Jobs Summit must keep focused on giving businesses every opportunity to survive and grow, the Employers & Manufacturers (Northern) says.

The fairest way to do this would be to slash the company tax rate, said Alasdair Thompson, EMA's chief executive.

"The recession has reminded all of us how dependent we are on the success of business," he said.

"Without business success there are no jobs and no growth in wages and salaries.

"So to save jobs, first we have to save our businesses since it is business activity that pays all the taxes collected by the government.

"A government really wanting to galvanise a return to investment and growth would cut the company tax rate to 20 per cent.

"Cutting the company tax rate is the fairest way to help our businesses survive, retain jobs and grow as it would help them service their debts while leaving more money for reinvestment to grow again when demand recovers, as it will.

"Some people oppose this on ideological grounds. Apparently they can't see the direct link between successful businesses, and their own income and dependency on taxpayer funded services or welfare.

"Taxing business profits indirectly taxes all of us.

"By all means, tax the business owner's income, and shareholder dividends in the same way that employees are taxed through PAYE.

"But taxing a company's profit is much the same as choking off investment in jobs, new plant, products, markets, and skills development.

"Everything the government does from now on has to be on deciding how to help otherwise competent business enterprises not only survive, but get stronger."

ENDS

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