Unify taxes, and Ulster will prosper, says O'Reilly

If Northern Ireland's prosperity is to be restored, its tax system must be overhauled in line with the Irish Republic, Sir Anthony O'Reilly has warned.

The chief executive of Independent News & Media, which owns The Independent and the Belfast Telegraph, said yesterday that the current tax system in Northern Ireland could prevent its economic growth. Sir Anthony said that, with a new Assembly and Executive about to take power in Belfast on 8 May, Northern Ireland had all the right ingredients to become a major growth market - "with the exception of tax".

He repeated his call for a tax cut, saying: "The inflow of foreign investment has largely passed Northern Ireland by. I strongly believe that a reduction in corporation tax would go a long way to redress the balance and open new opportunities for the local economy."

In common with others, he attributed much of the Irish Republic's recent prosperity to its low rate of corporation tax. Many of Northern Ireland's political parties are expected to press Westminster for the lowering of the tax rate.

Sir Anthony was speaking in Newry, where Independent News & Media's new Print Centre was officially opened by the former MP for Newry and Armagh Seamus Mallon. Expected to create 60 jobs, its full-colour press is described as the first of its kind in the world.

A new state-of-the-art library at Queen's University Belfast is to be named after Sir Anthony. While Sir Anthony's interests extend across the globe, yesterday's developments highlight his importance in the media world on both sides of the Irish border and his donations to educational establishments in both Northern Ireland and the Republic.

Construction has already begun on the £45m landmark Queen's University building which is due to open in 2009. To be known as the Sir Anthony O'Reilly Library, it will house 1.5 million volumes and have 2,000 reader places.

It has been designed by architects based in Boston who have already developed more than 50 major academic libraries at establishments including Harvard, Yale and Cornell.

The O'Reilly name is already to be found on major university buildings including Trinity College Dublin, University College Dublin and Dublin City University. His foundation, chaired by his wife, Lady Chryss O'Reilly, provides scholarships to students from both parts of Ireland. His long-established Ireland Funds have raised more than $300m for projects north and south.

Sir Anthony helped to provide £4m of the Belfast library's cost, including a large personal donation and monies from the Ireland Funds and Independent News & Media (Northern Ireland), the publishers of the Belfast Telegraph. Queen's Vice-Chancellor, Professor Peter Gregson, said: "The library will be the focal point of the campus. We are honoured that this building will be named after one of our most distinguished honorary graduates, whose dedication to the advancement of society in Ireland is legendary. This is a milestone in philanthropic giving."