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30 July 2015

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A united Ireland makes economic sense, says MEP Matt Carthy

“No independent analyst given the task of designing the best economic model for an island of 6.4million people would dream of separating the north-east corner from the rest of the country and, in turn, creating two separate competing currencies, tax systems, legal frameworks and two administrations”

Sinn Féin MEP Matt Carthy responds to Journal.ie columnist Aaron McKenna’s contention that Disaster of a reunited Ireland may come one step closer this summer if Jeremy Corbyn is elected as leader of the British Labour Party*

Journal poll – Would you like to see a united Ireland?

AARON McKENNA makes a weak argument against Irish unity, using a tired logic and a failed economic position that doesn’t stand up to scrutiny, writes MATT CARTHY MEP (pictured).

Matt Carthy MEP

Of course a debate on a united Ireland cannot and should not be limited to the economics, but seeing that Aaron centralises it, let me respond to some of his key points.

The ‘unmitigated disaster’ in this story is the absolute failure that partition has been for the people of Ireland, North and South.

No independent analyst given the task of designing the best economic model for an island of 6.4million people would dream of separating the north-east corner from the rest of the country and, in turn, creating two separate competing currencies, tax systems, legal frameworks and two administrations.  

Aaron McKenna makes the same fundamental mistake when considering the out-workings of Irish unity as almost every partitionist since our country was first divided by an artificial border. Either by laziness or lack of imagination, they can only consider a united Ireland to mean an extension of the current 26-county southern state. That is not what proponents of change are seeking.

The type of nation building and islandwide reconciliation that Sinn Féin, for example, is working towards is not about grafting the North onto the current political, cultural and economic status quo of the South.

We are seeking new, agreed and united Ireland that caters for the aspirations of all of us who share this island. We want to build a just, fair and equal Ireland.

AP Border poll cover

Securing a referendum on Irish unity, North and South, is only one step within the process of nation building and reconciliation.

Aaron McKenna focuses upon estimates of the level of public expenditure in the North as the central reason as behind his reasoning for denouncing the benefits of a united Ireland. This over-used method of distraction has been used by some commentators and political figures to try and halt demands for change across Ireland, North and South.

The truth is we would all be better off with a single economy within Ireland.

Outlandish numbers are frequently presented to illustrate the level of subsidy of the North by Britain, with no focus upon resources generated within the North. The fact is the people of the North pay taxes which are returned directly to Britain but the British Government has refused on repeated occasions to publish the exact amount of taxes that are raised in the North.

The most recent and complete estimates of the level of taxes raised in the North are available in a report commissioned by the former Finance Minister in the North, Sammy Wilson, and it underestimates the amount of revenue raised in the North in 2011-12 at £14.1billion.

These figures are incomplete because they fail to take account of the level of Corporation Tax and VAT generated within the North by companies with headquarters in Britain.

The British Treasury tells us that, in the same year for which Sammy Wilson has provided us with an estimate for revenue, the Northern Executive and councils spent £17.7billion. That leaves an over-estimated fiscal gap of £3.6billion, much less than the deficit McKenna quotes.

Sinn Féin will continue to demand that the British Government release full and accurate details of the amount of revenue generated in the North so that we can move beyond this stale non-debate.

Let’s be clear: simply maintaining the status quo in the form of two separate, competing economies on a tiny island will not deliver prosperity for the people of this island.

There are no advantages for a small island nation on the edge of Europe having separate tax regimes, regulatory and legal systems, disparate economic development agencies and programmes, divergent and competing investment strategies and economic policies.

Harmonised and integrated policies, laws and structures across the island are central to creating a fully-integrated and healthy economy.

Ambulance

Healthcare is one area in which the case for Irish unity is strong.

There are multiple examples in which a better service has been delivered through an all-Ireland approach. The new joint cancer centre in Derry now provides services for patients from throughout the north-west. No longer will patients from Donegal or Derry have to travel to Belfast or Dublin for treatments.

There are opportunities within a new integrated islandwide structure to reconfigure how we deliver health services across this island. The total money spent per person within the current regressive health system in the South is more than is spent per person in the North of Ireland or in Britain. With vision, commitment and determination, we could deliver better services to all the people of Ireland, North and South.

The real question of Irish unity is about a fundamental democratic choice for us all. Is an all-Ireland government representative of all the people best placed to deliver prosperity, equality and reconciliation or should that ultimately rest with an unaccountable and unrepresentative government in Westminster and political administrations that can only serve some of our people?

It can no longer be a case of asking if we can afford a united Ireland – the real question is how much longer can we afford partition and the duplication and inefficiencies it has created.

◼︎  British Labour Party elections timetable:-

Friday 14 August – Ballot papers are sent out

Thursday 10 September (12 noon) – Ballot closes

Saturday 12 September – Special Conference to announce results

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