Integrated approach crucial for future economic development

8 Sep 2015 03:22 PM

A comprehensive report from the Assembly Committee for Enterprise, Trade and Investment detailing what the Executive must do to grow the local economy was debated in the Assembly yesterday.

The report, entitled Opportunity for Excellence: The Report on the Committee's Inquiry into Growing the Economy and Creating Jobs with Lower Corporation Tax, confirms that sustained economic development in Northern Ireland will require significant infrastructure in addition to any lowering of corporation tax.

Chairperson of the Committee, Patsy McGlone MLA said: "My Committee initiated this Inquiry to look at the factors that will play a part in improving our economic development--whether or not corporation tax is devolved--and to make recommendations for improvements where this is necessary.

"The overarching conclusion from this Report--and we received evidence from a wide range of stakeholders from economics to academic and industry experts--is that we must agree a long term integrated strategy which includes transport, energy, telecoms and water to provide the environment for business to flourish.

"We found that, for all our policies and programmes, we are too focused on short term goals and that there is no evidence of a joined up approach horizontally between Executive departments or vertically between regional and local government. More worrying is the lack of recognition that this problem needs to be tackled if we are serious about creating the environment for business success. Lower corporation tax is just one piece of the puzzle, it is not the solution in and of itself.

"As part of this coordinated and long term plan we must put into place strategies for education and skills, the economy and employment, and infrastructure--roads, fast reliable internet, electricity supply and prices.

"We are calling on the Executive, not just the Department of Enterprise, Trade and Investment, to implement our recommendations and begin to implement a 20 year strategy that will yield the environment we need to grow our industry, both in terms of inward and local investment. We must start now; we have no time to lose."

NOTES TO EDITORS

Recommendations from the Committee's report include:

• The Executive must articulate and implement a rolling 20-year shared Vision & Strategy for Economic Development. The vision and strategy can be renewed and updated through each Programme for Government period. [Recommendation 1]
• In order to inform the debate on European Union membership, the Executive must provide a detailed analysis of the impact on the Northern Ireland economy of a UK exit from the European Union. This must be based on robust economic data. [Recommendation 2]
• It is essential that the Executive works with HM Treasury to identify the overall cost of reducing corporation tax so that it can get to a position where a rate and a date for devolution can be set at the earliest feasible opportunity. [Recommendation 3]
• The Export Plan and other strategic and local economic development plans along with other strategies and plans relating to the economy and employment must fully consider the relationship between Northern Ireland and the Republic of Ireland in supporting economic development and job creation through maximising cross-border opportunities. [Recommendation 5]
• In developing an Economy & Employment Strategy consideration must be given to how a step change in access to finance can be achieved and to how the Northern Ireland banking sector can become involved in working as partners in economic development. [Recommendation 10]