Peter Robinson makes corporation tax appeal

The main corporation tax rate in NI is more than twice that in the Republic

The first minister has said the British government should allow NI to relax corporation tax following its decision to give a loan to the Irish Republic.

Peter Robinson said it would be difficult to justify making the Irish economy more competitive while it had a more advantageous business tax rate.

The main rate of corporation tax in the UK is 28% for 2010, while corporation tax south of the border is only 12%.

The treasury will publish a paper on rebalancing the NI economy next month.

Mr Robinson said he would know more when he had read the document.

Business leaders and politicians have argued that the lower rate in the Republic puts Northern Ireland at an unfair disadvantage.

However, there have also been concerns that lowering the rate would lead to a reduction in the block grant allocated to the executive from London.

Some economists say it could cost about £200m, but Finance Minister Sammy Wilson said earlier this year that the cost to Northern Ireland could be as high as £500m.