Martin accepts IBEC position that corporation tax should stay at 12.5%

The Minister for Trade, Enterprise and Employment, Mr Martin, has said he accepted IBEC demands that the current corporation tax rate "had to stay".

Mr Martin was speaking at the inaugural IBEC Kerry region president's dinner, which was attended by almost 500 business representatives.

Mr John Coffey, the IBEC Kerry region president, called on the Minister to retain current corporation tax rates to keep the region competitive. In response, Mr Martin said he accepted the argument.

During a recent visit to the US he "had been left in no doubt" that the current taxation package had to stay.

The Irish Congress of Trade Unions has consistently called for an increase in corporation tax - currently 12.5 per cent - arguing that it should be increased to the same as the standard rate of income tax, currently 20 per cent.

However, business lobby groups have argued strongly against this and there is no indication of a change of Government policy in this area.

Mr Martin also said he saw himself as "having a strong regional focus", in a bid to balance growth in the east.

However, regions from Waterford to Galway needed to "think more regional", rather than from an individual county basis, he said.

The Minister also said social economy schemes would remain at their current levels. The news was welcomed by several community groups.

Turlough O'Sullivan, Opinion, page 16