CORPORATION TAX RATES

Newly-elected Taoiseach Enda Kenny has  told Europe where it can get off with its offer of a 1% reduction in interest rate repayment rates in exchange for changes to Ireland’s sacred 12.5% corporate tax rate, according to The Sunday Business Post and The Sunday Independent.

In language reminiscent of the darkest days of Paisleyism in the wee north, the Sindo leads with a poll showing overwhelming support for Kenny’s stance and some colourful quotes on how Ireland must stand firm. Former PD magnate Michael McDowell’s views were given particular prominence: any climbdown would represent “economic and political suicide”, he told the newspaper.

The Sindo poll showed 78% of respondents believed corporate tax to be the bedrock of any prospects of economic recovery and backed Enda’s stance all the way.

For the record, a 1% cut would save Ireland around €450m a year in interest payments on its €85 billion loan.

Government sources said the negotiations were only beginning on the bailout terms – it is a case of ‘watch this space’ over the coming months.