I take that point from the Minister; nevertheless, the provisions in the Bill that I just quoted allow the Treasury to draw and redraw that line in future. There is no argument in principle with that, even though we know that it may be arbitrary and capricious as well. It may well be the subject of representations when it happens, but we are asking for the spirit of that power to be used and even reflected in the Bill, if possible.
The point we need to go back to is that the Minister relies on the definition of trading activity. People will find it hard to see that the Government can, for a good and understandable reason, make sure—and want to declare on Second Reading—that something like the operations of Citigroup in the Titanic Quarter in Belfast are catered for. In spite of the fact that we are talking about international financial services activity, that will come under the devolved corporation tax rate, but somehow, under this handcuff the Minister is creating in the definition of trading activities, credit unions and mutual building societies such as the Progressive cannot be. That is what people see as disproportionate, artificial and unfair. The Assembly clearly wants to know that, when it has the power to set a corporation tax rate for small and medium-sized enterprises and has legislative power over credit unions, credit unions will pay the devolved rate of corporation tax on their investment income. That seems fair and reasonable in the overall scheme of things.
I hope the credit unions in Northern Ireland will continue to thrive and grow, and no doubt they will. However, at no point is the amount of money they will be paying in corporation tax or the amount of relief they will receive from the corporation tax rate going to bust the Assembly’s or the Exchequer’s budget. We are talking about clear, definable, workable and absorbable margins here. The money would be used for good and understandable purposes, and never sold for profit or given away in gross bonuses or anything else like that. The same applies in respect of the Progressive building society.
The Minister said that if I pressed the amendment to a Division he would vote against it. I do not want to create a complete lock-in on the issue. I do not want the Government to find themselves locked in on an argument
they cannot climb down from. I just encourage the Secretary of State and the Financial Secretary, who are both here listening to the debate, to stay open not just to the arguments they have heard from me and other hon. Members today, but to listen very closely to the arguments they will be hearing from the Executive, the Assembly and the credit union sector in Northern Ireland—not just the credit unions that are members of the Irish League of Credit Unions, but the Ulster Federation of Credit Unions and other credit unions too.
The Minister has heard the arguments, although he has perhaps not listened to them as well as I would have wanted him to. I do not accept the points he has made in supposed rebuttal, because I do not think they stand up to the facts. I also do not think they stand up to some of the terminology used in the Bill. After all, the Minister on a previous occasion, as quoted by the right hon. Member for Belfast North (Mr Dodds), said that in the Bill as drafted they are neither included nor excluded from the devolved corporation tax rate. It seems very clear from what the Minister is saying today that for the purposes of the corporation tax they do pay on their investment income, they will definitely be excluded from the devolved corporation tax rate. The Minister seems to have left us in very little doubt about that, unless he wants to indicate that, under the powers outlined on page 66, that may be subject to other interpretation in the future. That is something I would certainly encourage if the Government are not prepared to accept my amendment, or any other amendment that I hope will be tabled in another place.
That said, I have no wish to press my amendment to a Division at this point, because I do not want to put people in that sort of difficulty. I want the Government to move on this, and I will not give the Government an excuse to embed their position. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Third Reading
1.46 pm