By Johnny Andrews
A recent PWC report and figures from the Ulster Bank confirm that Northern Ireland’s economy is still lagging behind the rest of the UK. One problem which is highlighted again and again is our lack of competitiveness. Northern Ireland lags well behind the Republic of Ireland and the UK as a whole in this regard.
NI Conservatives have been calling for action from the executive, to avoid falling even further behind. This means a ‘can do’ culture, across Stormont departments, a single department charged with masterminding an economic plan and a long-term plan to rebalance the economy. Why not show the ambition and the drive to create jobs and make Northern Ireland competitive?
The aim of a long-term plan should be to achieve unemployment at only 4% or lower and build a robust economy, based 60% on the private sector, rather than the current 70% to 30% bias toward the public sector. Almost all the parties realise that that ratio is not sustainable in the long-term, but they’re not setting out any clear goals to change it.
How could all this be achieved? As a useful start, we suggest:
- More enterprise zones, featuring fast track planning and an emphasis on exports. The executive has powers to create these, but as yet only one has been set up; in Coleraine, at the insistence of the Conservative led government.
- A pipeline of infrastructure projects to exploit the monies which George Osborne has made available, based on a realistic timetable, with an emphasis on road and railway improvements.
- Publish DETI’s reports into the benefits of devolving Air Passenger Duty and cutting red tape immediately. Then let’s get on with implementing necessary reforms.
- Harmonise Northern Ireland’s employment legislation with the rest of the UK. Our companies are currently operating with one hand tied behind their back, when it comes to employment law.
Making our economy competitive is essential to start creating the type of private sector jobs which will keep people in work for the long term. Stephen Farry, minister at the Department of Employment and Learning admitted there is no consensus for change and, currently, he can only tinker at the edges, but the status quo is simply not an option.
Devolving Corporation Tax could be an important boost for our economy, but if the building blocks of competitiveness are not put in place, then we’ll not be in a position to exploit fully any reduction in business taxes. Northern Ireland is currently sitting 112th out of 145 countries as regards employment flexibility, in comparison to the whole of the UK, which is 33rd.
The executive simply must adopt policies aimed at rebalancing and growing the economy, to create a virtuous cycle of prosperity. Otherwise Northern Ireland will fall further behind its competitors, we will become more dependent on a huge public sector, which cannot be sustained and people here who desperately need jobs to look after their families will be utterly let down.