Safeguarding Industries in Northern Ireland

– in the Northern Ireland Assembly at 2:00 pm on 9 October 2001.

Alert me about debates like this

Photo of David McClarty David McClarty UUP 2:00, 9 October 2001

I beg to move

That this Assembly, realising the full extent of international terrorism, resolves that the Executive should re-double its efforts to safeguard existing industries in Northern Ireland and give maximum support to agencies responsible for the generation of new national and international investment.

I am painfully aware that the announcements of job losses and cutbacks in the past fortnight could be the tip of the iceberg. That gives me all the more reason to feel disappointed that the Benches are so empty this afternoon.

We all recognise the pain of unemployment. We all know people who have had their dreams shattered virtually overnight. We all know entrepreneurs — many of them self-made people — who wait anxiously to see how their enterprises will fare in the coming turbulent months.

The real tragedy is that Northern Ireland had been performing so impressively before the onset of global slow-down and the horrendous events of 11 September. It is worth reminding the House of the achievements of the local economy. In the past three years the IDB has promoted a total of over 21,000 jobs, of which 16,200 were with externally-owned companies and almost 4,000 with companies that are locally–owned.

From 1995 to 2000, the figures are even more impressive. In that period Northern Ireland attracted over £300 million in new foreign direct investment, and a further £1·6 billion from overseas firms already located in the Province. Almost 40,000 new jobs were promoted and sustained by foreign direct investment.

Rising productivity and consistent growth in overall competitiveness are features of a modern, progressive and outward-looking economy. Our performance has easily outstripped that of the rest of the United Kingdom. In the year to March 2001 output rose by 8·1%, compared to the UK average of 1·2%. Output in techology-led sectors such as electrical and optical equipment increased by 229% in the past five years, while the UK figure stood at 41%.

Our export performance has been nothing short of remarkable. Even with difficult sterling exchange rates, exports were up 14·2% in 1999-2000. In the year to June 2001, export markets outside the European Union jumped by 20% to represent almost half of Northern Ireland’s exports, now accounting for 39% of our total sales.

We are succeeding, but the task is far from complete. Global slowdown and the prospect of a full-blown recession will mean retrenchment, economic hardship and the prospect of only modest growth. If nothing else, the economic indicators that I relayed to the House tell us that we are, perhaps, better placed to meet whatever crisis arises. As the Minister of Enterprise, Trade and Investment acknowledged last week, we must brace ourselves for further job losses, gloomy news and economic reversals that threaten our manufacturing and service sectors.

We need a co-ordinated, joined-up approach to counter the threat. We need Government Departments to work under the direction of the Department of Enterprise, Trade and Investment to plot a course that will see us able to offer assistance to safeguard jobs and businesses, and we must redouble our efforts to attract new national and international investment. We saw the first signs of that last week when Sir Reg Empey told the House that he had suggested a range of measures to Downing Street and the Department of Trade and Industry to alleviate the problems at Bombardier Aerospace. In the case of B/E Aerospace (UK) Ltd, Kilkeel, specific, speedy and practical help was extended to protect employment in a TSN area.

As far as the crisis facing the aerospace industry is concerned, the Administration made representations to British Airways and Aer Lingus, who announced their decisions to withdraw from Belfast International Airport’s Heathrow and Shannon routes. Other companies in that hard-pressed sector should be encouraged, particularly British European and Easyjet. This morning, British European announced the addition of two daily services from Belfast City Airport to London City Airport. British European’s managing director, Mr Jim French, confirmed the company’s takeover of the Belfast City to Newcastle route following the demise of Gill Airways. British European flies about 800,000 passengers per year to and from Belfast, a figure that will rise due to the latest developments. If Easyjet gets its way, the route from Belfast International Airport to Heathrow will be safeguarded, and I was pleased to note British Midland’s decision last week to operate four daily services from Belfast International Airport to Heathrow.

In this unfolding and fluid situation, some companies are clearly suffering and, at the same time, there are companies that are poised to exploit a commercial advantage or fill a gap in the marketplace. These airlines are demonstrating enterprise, and, in British European’s case, the commitment made today is timely and welcome.

My constituency, East Londonderry, has not been immune to the recent economic downturn. Coleraine’s largest manufacturing employer, AVX Ltd, has had to lay off approximately 200 people in recent months. Although it has experienced a slight improvement in recent weeks, it is still much too soon to gauge the effects of the global slowdown and the events of 11 September on that sector of the market. The textile industry in my constituency has also suffered adversely with many redundancies and closures.

Manufacturing is not the only sector that is suffering. No economic sector has greater potential in Northern Ireland than tourism. In recent years, we have witnessed a steady increase in the number of visitors to the Province. However, the figures still fall short of the potential that could be achieved. There is little doubt that, if the current global war on terrorism continues or escalates, it will have an effect on the number of tourists who are willing to cross the Atlantic to Ireland and Northern Ireland. We may suffer a significant downturn in our North American and, to some extent, European markets. In recent years, we have welcomed international hotel chains, such as the Radisson Hotel in my constituency, to Belfast and other parts of the Province. We must safeguard these trends.

As the supply side continues to increase, we must work on the demand side. The vagaries of our weather dictate that we must encourage demand for a shoulder season and off-peak and event-led tourism. We have excellent hotels, conference and sporting venues as well as a great outdoors. Those should all be adequately marketed to a national and international audience in order to encourage their investment in our tourist product. Running parallel to that is the necessity to address key issues in the sector such as hospitality training and recruitment challenges, as well as providing efficient transport and infrastructure networks.

Retaliation against international terrorism began on Sunday and, as we meet today, it is being prosecuted vigorously. Undoubtedly, there will be consequences for the Northern Ireland economy — some good, some adverse. Terrorism — either of the home-grown variety or in the form of the Taliban — must not be allowed to succeed. Northern Ireland needs stability more than anything. It needs the opportunity to advance on the basis of the gains already made. I appeal to the Members of this House by saying that the stability we need must come in the form of decommissioning. I make no apology for saying to Republicans directly: "Decommission now, not only for your own sake, but for the sake of the entire community as we try to protect our manufacturing and business base against a slow-down or a recession that is likely to test our ability to the limit." I trust that the motion will attract unanimous support from all sides of the House.

Photo of Alasdair McDonnell Alasdair McDonnell Social Democratic and Labour Party

I am pleased to support the motion because it is timely and useful. The events of 11 September 2001 will turn out to be pivotal for our immediate and future economic state. When those events occurred. I was trapped with the proposer of the motion and others in Brussels airport en route to Denmark to look at some of the major energy issues facing us. I could not help thinking that the events in New York made our work seem out of context; that if those events were to realise their full impact, energy might not be the major issue we thought it was.

Everything changed that day — some things will never be the same again. However, the downturn had already begun; over the previous 18 months we had seen evidence of it through the demise of some dot-com companies. That downturn has accelerated.

The first clear message that the House should learn from the events of 11 September is that we have a global economy. Within hours of their taking place, the events in New York led to the threat — and in some cases more than just the threat — of insolvency for numerous American and European airlines. The proposer went into detail about that. The downturn in those airlines, and the financial crisis that they found themselves in, rapidly reduced the need for new aircraft and aircraft parts. In turn, jobs were threatened in Kilkeel, County Down. That is not something that we would have envisaged on 11 September. Nevertheless, the spiral of decline has continued, and there will be an ongoing knock-on effect on our economy.

Another clear message we received is that we can all do well when things are going well; however, in bad times we will all be affected. Even the Minister of Enterprise, Trade and Investment’s tremendous skills cannot protect us from the chill winds that are now beginning to blow.

The events of the 11 September 2001 and their fallout have rapidly taught us just how much influence and leverage we have over indigenous local industry, which has nowhere to run to. It is quite easy for big multinational operations with a headquarters in Toronto, Chicago or Boston to cut back on what, for them, could be a relatively insignificant subsidiary or branch in Belfast. It is much harder for a local company to cut back if its base and headquarters are here.

Perhaps we are all Nescafé instant experts on how to get jobs and generate an economy. The events of the last month show clearly that the prosperity, growth and economic well- being put together brick by brick, by slow, steady slog, can be taken away at a stroke.

The motion seeks a redoubling of efforts to safeguard existing jobs. That is a desirable objective, and we have a clear window of opportunity to assess our indigenous businesses fully, including the small businesses that are often neglected. Those small and perhaps not-so-small businesses may be able to exploit opportunities that perhaps have lain stagnant for some time. Perhaps some event has had a stranglehold on them and held them back. We may now be able to focus on some degree of growth, expansion and job creation in our indigenous industry.

I have often heard cries from local industry that it is neglected and taken for granted. This is due to its perception that large packages of considerable financial clout were offered to foreign investors here while local businesses were rarely granted the same favour. I am not saying that that did happen. However, it is a perception that we now have an opportunity to deal with.

Furthermore, there is an chance to dramatically expand some niche markets for local industry and, in particular, to avail of a range of life and health science opportunities. Mr McClarty is well experienced in the advances that are being made by the University of Ulster at Coleraine — I only wish that similar advances were being made in the Belfast region. A range of medical and bio-medical opportunities exists within the context of expanding niche markets.

Moreover, we must be honest with ourselves. There has been much waste, padded bureaucracy and inefficiency under the guise of research and development (R&D). I hope the Minister will take the opportunity to find out what happens to the substantial research and development funds in the Department of Health, Social Services and Public Safety budget. I have long been dissatisfied with the amount of money that is put into R&D and the lack of any product from it. There is a tremendous opportunity to create between 3,000 and 5,000 jobs in a short period in the complex employment network that bridges enterprise, trade and investment and our health capacities.

The motion also requests maximum support for agencies responsible for the generation of new national and international investment. No one could disagree with that. I will gladly support those agencies, but I want to be sure that they want my support. I need to be sure that they are operating with a maximum of efficiency and effectiveness. In the past I have not been sure that some of our agencies have been as inclusive and user-friendly — not just to clients but also to local government officials, local councillors and others — as possible. Though some of us may not have been as enlightened, well-informed or well-heeled as they were to deal with some of the issues involved, our intentions were nevertheless honourable and our commitment genuine. As we move forward, we have to get everyone who can contribute into the tent. We have to be as inclusive as possible.

I do not want to drag on, but I do have some other brief points. I want to be sure that we reduce duplication. I am thinking of our various local enterprise agencies. It is no secret that we have a whole web of people and organisations trying to create jobs — or so they tell us. It appears to me that, at times, they spend more money on, and put more effort into, surviving and competing with each other than actually creating wealth. We have to find some mechanism, subservient to our main agencies, where they can fit in — underneath the skirts or umbrella of the main agencies — and play a constructive and creative role. There will have to be some considerable amalgamations, and perhaps a fivefold reduction in the number of organisations.

I am aware that with the present restructuring of IDB, LEDU, IRTU and others, we are reorganising ourselves for the twenty-first century. However, in that reorganisation we have to be sure that we develop a strong structure, with the right attitude. We have to create a can-do and will-do situation — a sort of "Bob the Builder" role. Perhaps, Mr Deputy Speaker, you are not familiar with Bob the Builder, but through domestic circumstances I have become extremely familiar with Bob the Builder in the last few months. [Interruption] Bob the Builder cannot say no; he can fix anything, and we are asking the Minister to be a sort of Bob the Builder — a will-do and can-do individual.

Joking aside, we need to be as creative as possible. In our new agency we need to get as far away from bureaucracy and process as possible, and to focus on results. Process is necessary when public accountability is involved, but we cannot allow the process to smother the product.

In redoubling our efforts we cannot allow any of the hard-won gains of the last 10 years to slip away easily, and I urge the Minister not to allow that to happen. I urge too that the men and women of the small business community be listened to. In the past we have found that the whole generation of the last surge in the American recovery was driven by small businesses.

I do not want to hog this debate, but I want to briefly mention the possible role that local government can play. I urge that we look at sectors where we have strength, such as food and agribusiness — even though the latter has taken a battering in the last few years. The proposer mentioned tourism, and I do not want to dwell on that, or indeed on the transport connections that I think are vital.

I want to mention e-business, e-government, and the whole opportunity afforded by the downturn. We need to get our act together in a much more efficient way. We should cut out the bureaucracy and make things work. We now have an opportunity to gear ourselves up for the next upturn. For years we were struggling behind, but we have made tremendous gains in the last 10 years. We would much prefer that we did not have a downturn, but with the downturn we can take advantage. There are opportunities in the downturn for us to position ourselves and ensure that we advance on the next surge at the front of the field.

Photo of Edwin Poots Edwin Poots DUP 2:15, 9 October 2001

I support the motion, and I recognise its import. To take it to its natural conclusion would mean providing more financial support for the Department of Enterprise, Trade and Investment, if that were called for. Last year’s Budget did not provide a significant increase in that Department’s budget, and the same is true of the current draft Budget. Those decisions were right at the time because the economy was strong, and it cost less to attract inward investment. However, in recent months there have been signs of economic change, and that change became ultimately more dramatic as a result of the events of 11 September.

The first line of the motion states that the Assembly realises the full extent of international terrorism. There is probably no political body in the world better placed to realise the extent of international terrorism than this Assembly. For 30 years so-called freedom fighters have used arms from eastern Europe and Czechoslovakian Semtex supplied by Col Gaddafi in the Middle East.

They have trained with the Palestine Liberation Organisation with the Revolutionary Armed Forces of Colombia and with ETA, and they have carried out a campaign in five different countries in Europe — but in particular, in our own country. We fully know and understand the extent of international terrorism in our own country. It has decimated every opportunity that Northern Ireland’s tourism industry has had to create jobs. It has stopped the tourism industry here from realising its potential.

Our geography, weather and other factors are similar to those in the South of Ireland and Scotland, yet both those countries can attract enough tourists to represent 7% of their gross domestic product, while we can manage only 2%. The role that terrorism had, and continues to have in destroying our tourism industry is clear.

Dr McDonnell made some salient points. Promoting jobs is not so difficult when the world economy is good. It is a different task altogether when the world economy is in recession. In a sense, the Minister of Enterprise, Trade and Investment had an easy ride. I am not saying that he has an easy job by any stretch of the imagination, but he did have an easy ride in attracting inward investment, because world economies were going well.

America could not get enough people for the jobs in its own country, so it was looking at other areas where those jobs could be carried out. In the new era of electronic communications, the option of moving to the other side of the Atlantic was much more realistic than it might have been in the 1970s, when a similar American situation prevailed. In the light of those factors, the Minister’s job was not so difficult. In the current circumstances, however, we are going to see what he is made of.

Shorts have indicated that they are laying off 2,000 workers. In my constituency, Shorts have a base in Dunmurry that employs 680 workers; that is just over 10% of its workforce. It appears, therefore, that some 200 of those workers could lose their jobs. That is not all. Many of my constituents travel to work in Newtownabbey, Queen’s Island and the other Shorts bases.

It is likely, therefore, that more than 200 jobs will be lost in the constituency. In addition, EM-Solutions (Electro Mechanical Solutions), a successful company that has delivered a great service to the local economy, has recently made 90 workers redundant. That would have had an impact on the economy before 11 September, but the events of that date could further exacerbate the problems.

The loss of 160 at British Airways, located in the adjacent constituency of South Antrim, will also have an impact, because it is likely that some of its former employees came from Lagan Valley. Many of the firms that supplied equipment and carried out subcontracting work for Shorts were based in the Lagan Valley constituency. Those events will have a devastating impact on my constituency.

The impact is not confined to the manufacturing industry; it feeds right through to the service sector where many will feel the pinch as a result of what has happened. For a long time I have maintained that the manufacturing base is by far the most important element of our economy. While I like to hear of the creation of service jobs, I much prefer to hear of new manufacturing jobs being created, because if the manufacturing base is in place, the service industries will flow from it. It is therefore essential that we concentrate on ensuring that our manufacturing base is consolidated.

"Consolidation" is the key word at this time. Companies might have to downsize by paying off employees, and, while we must do our best to try to avoid that situation, it is much more favourable than the complete closure of a company. If, during a world economic recession, a company pays off some employees, and does not close, it will have the opportunity to increase its staff levels when the economy recovers. If companies are allowed to close down altogether, no base will remain. It is therefore important that the Minister of Enterprise, Trade and Investment and his Department seek to consolidate jobs and companies as far as possible so that companies do not close.

I hope that the Minister succeeds in preventing the closure of the factory in Kilkeel, because it provides essential work for an area that is not well located to attract fresh manufacturing jobs. My Colleague, Jim Wells, has been encouraged by the support that he has received from the Minister in that regard.

The Department needs to set up an early warning system. It must look at what companies are likely to suffer or to be hit as a result of a downturn in the world economy. It must at an early stage identify the weak areas and implement contingency plans to assist those companies that are affected.

Having said all that, I am happy to support the motion. As I said at the outset, it is essential that we have a strong economy. If necessary, we should divert money from other Departments to retain that strength. The other Departments will suffer as a result of a weakened economy, and they will benefit from a strong one. It is essential that in this situation we look after the Department of Enterprise, Trade and Investment.

Photo of Mr John Kelly Mr John Kelly Sinn Féin 2:30, 9 October 2001

In normal circumstances, the Ulster Unionist Party’s motion would be laudable. However it is slightly surreal that Ulster Unionist Party members should call on the Executive to redouble their efforts to support local industry in the very week that their party leader has announced his intention to collapse these institutions. It is clear that any progress, particularly on economic development and safeguarding existing industries, relies on the Assembly’s continued functioning.

Reg Empey has displayed a degree of competence and energy that recalls the late Brian Faulkner; there is no better compliment that any Nationalist could pay him than that. It would be a pity to lose such energy, enthusiasm and commitment to the creation of the kind of economy that would sustain the North of Ireland. Everyone wants to see the institutions continue; no one more so than we on this side of the House — [Interruption]. It is those who are laughing who least want to see the institutions coming down.

I do not want to rehash yesterday’s debate, but I must say that the leadership of Sinn Féin has made — and continues to make — a genuine effort to resolve the outstanding differences that impede the further progress of the institutions. Martin McGuinness and Bairbre de Brún have played an outstanding role and have demonstrated their ability to use the fruits of the peace process or the political process to help not just their own community, but the community at large in the North of Ireland.

It would not be helpful to introduce bitterness or vindictiveness into the debate, but we should consider a recent survey by PricewaterhouseCoopers, which said that the suspension or collapse of the Assembly would cause 88% of companies to reduce their investment plans for the North of Ireland. That gives us an indication of the likely economic effects of any political downturn. What would be the effect of such a reduction in investment and such a diminution of confidence in the peace process?

No one could disagree with the motion. There has been agreement in the Health and Education Committees about the need to improve health or education services or to improve the lot of the unemployed, the young and those who are finishing education and seeking employment at home, so that they can rear their family here. We all have an obligation to them. Perhaps, some of us who are getting on a bit look at our grandchildren and wonder what kind of society we will leave to them. We must create a better and more secure future, one in which we can all share.

Photo of Sir John Gorman Sir John Gorman UUP

I call Mr Neeson, who wishes to speak in a private capacity rather than as Deputy Chairperson of the Committee for Enterprise, Trade and Investment.

Photo of Séan Neeson Séan Neeson Alliance

In the circumstances, it is better that I speak as an individual, although much of what I have to say will be endorsed by other members of the Committee.

I welcome the opportunity to speak on the motion. It is an important one, bearing in mind the circumstances in which we now live. It is almost exactly four weeks ago to the minute that we witnessed the terrible events in the United States. Dr McDonnell was correct when he said that things would never be the same again. It is somewhat ironic that we are debating this issue today, when we consider the implications of yesterday afternoon’s debate.

What are those implications? At this point, we face the collapse of the institutions. By allowing that to happen, we are handing all of our responsibilities over to the street politicians. We have seen marches through Belfast in recent days. Does that provide stability? I do not think so.

I am sorry that Mr John Kelly did not remain in the Chamber. We are involved in a process. Many of us — not all — signed up to the Good Friday Agreement. We signed up to it in the hope and expectation that it would be implemented in full. It is to be regretted that the paramilitaries, both Republican and Loyalist, have failed to live up to their responsibilities. That is why I am sorry that Mr Kelly is not here.

It is not just the Ulster Unionist Party, the DUP or the other parties that are calling for decommissioning to take place. With the events of 11 September, the discovery of Republicans in Colombia and the almost daily violence from Loyalist quarters, the world is now demanding that international terrorism should be brought to an abrupt end. I entirely agree with that. The onus is on all those involved to live up to their responsibilities so that the institutions can move forward. However, it is regrettable that the leader of the Ulster Unionists is going to carry out his proposal to withdraw his party’s Ministers from the Executive.

The benefits of devolution are recognised by the vast majority of people in Northern Ireland. Devolution has worked in the areas of enterprise and the economy. After Nortel’s recent announcement that it was going to cut 20,000 jobs worldwide, Sir Reg Empey immediately got in contact with the company. His intervention, along with other circumstances, meant that Northern Ireland did not suffer the impact that many dreaded. That shows the importance of devolution and of having someone on the ground to deal with such issues. That was clearly seen last year when, at times of difficulties for Bombardier Shorts and Harland & Wolff, Sir Reg Empey was there.

Direct rule is not good for Northern Ireland. Despite the good intentions of the various NIO Ministers, we have all come to realise that during the period of direct rule we had almost 30 years of gross underfunding in our public services, such as education, transport and schools.

Most Members have acknowledged that the downturn in the economy began before 11 September. Northern Ireland is very much a part of the global economy. We cannot ignore that, nor the difficulties that we will face in the days ahead in trying to attract inward investment from overseas. It is going to be very difficult. However, our economy has a very strong indigenous base. We have over 80,000 small businesses, the vast majority employing less than 50 people. That is something that needs to be built upon and encouraged. We need to concentrate mainly on the strong base that we have.

We need to encourage more companies to avail of the research and development facilities that exist and will be created in Northern Ireland, not only through the science parks but also through the universities. It is vital now to develop marketing, to encourage exports and to create greater competitiveness within the industries of Northern Ireland.

There is also the issue of the development of the European market. I look forward to the enlargement of the EU. It will provide a challenge, but it will also provide major opportunities for many companies in Northern Ireland. It is up to businesses to take up the challenge. It is also up to the Assembly and the companies to avail of the new facilities of the Executive office that we have now in Brussels. In the same way, we are at present developing our own office in Washington. It is important to develop IDB, which will become Invest Northern Ireland.

A big danger on the horizon for Northern Ireland is the danger of isolation. We have witnessed the proposals by British Airways to withdraw from Belfast International Airport. Any other air carrier that wants to take up the slots that British Airways will not be using at Heathrow should be granted them. We knew that Sabena was withdrawing, but its recent announcement was also a bitter disappointment. With regard to direct links with America through Aer Lingus, I was talking at the weekend to one of my predecessors, John Cushnahan, MEP for Munster, and the two of us hope to work together to try to retain at least some of the services from Belfast to Shannon. It is a very important link. However, there are serious dangers there.

This afternoon I received a letter from the Northern Ireland Hotels Federation warning of the same dangers. The tourism industry has had a difficult year, first with the foot-and-mouth disease crisis and now with events following 11 September.

I welcome the interdepartmental approach that Sir Reg Empey is prepared to take on many issues. He and Seán Farren have worked closely together. Infrastructure is important, but ultimately the stability of these institutions is vital for the future.

Several months ago the Committee for Enterprise, Trade and Investment brought forward its report in response to ‘Strategy 2010’. It was a good report and, if anything, is more relevant now than ever. I hope that many of the major recommendations — particularly those relating to small businesses, which the Minister knows I have a deep interest in — contained in the report will be implemented as far as possible to ensure that the interests of the economy are safeguarded.

Edwin Poots mentioned the need for extra money. While there may be a small reduction in next year’s Budget, it is important — and this was outlined to the Committee last week by departmental officials — that there is flexibility in approaching it. I am sure that the Minister would agree with me on that.

I support the motion. I meant what I said about the institutions very sincerely, because it has been shown that the Assembly works. It is important that Members be allowed to continue that work.

Photo of Ms Jane Morrice Ms Jane Morrice NIWC 2:45, 9 October 2001

I support the motion. Given the state of the world economy in the aftermath of the 11 September attacks and what might become of the economy, and given what the Minister of Enterprise, Trade and Investment said to the Assembly last week about the potential fall-off in foreign direct investment — and Members are aware of that serious possibility — the Minister must urgently consider a serious rethink of the direction of Northern Ireland’s economic policy. It should not be a knee-jerk reaction to what is going on but a reassessment of our priorities in light of the global circumstances.

There must be a new focus, as Mr McClarty said, on rescuing those industries that are feeling the immediate effect of the 11 September events. Unquestionably, companies such as Bombardier Aerospace, and the airline and tourism industries, will need special attention, and we do not know whether other industries will join that list. The need for funding to rescue, to help and to divert the skills of those people into other valuable areas is important. I welcome the fact that the Minister of Enterprise, Trade and Investment is working with the Minister for Employment and Learning on those immediate needs.

As each Member has said today, greater support is also needed for local indigenous industries, on which the economy will become more dependent as the weeks, months and — I predict — years go by.

I have figures from the IDB for funding inward and local investment. I was not surprised to see that IDB support during the years since 1995-96 for inward investment compared with its support for local investment has been at a ratio of almost 5:1. The IDB has put approximately £500 million into attracting foreign investment to Northern Ireland and just over £100 million into supporting local industries. The ratio will have to change.

For a period during 1995-96 it was costing Northern Ireland £23,619 per job for the IDB to bring in foreign investment. The cost was high. The cost has reduced, and we welcome that. Much of the policy has worked, and we have had good, healthy investment in Northern Ireland, particularly in recent times. However when one takes the global context into account there needs to be a volte-face. The money that has been put into attracting foreign investment must be put into local industry because there will be much less foreign investment available, at least in the coming year. The Minister knows that I have been suggesting this for some time, but since 11 September it has become more important.

I want to focus on three sectors that I think merit specific attention. First, there is the manufacturing industry. In the housing market it is said that price is dictated by three things; location, location, location. In a shrinking global market, I say that what matters for our industry is reputation, reputation, reputation. In Northern Ireland the reputation of the textiles industry is second to none. Irish linen, for example, is of the highest quality and is a superb product that we can export throughout the world; to the tables of Presidents and the fashion centres of Milan. However, I do not believe that we are marketing it enough. We should be doing more to market it locally and globally.

We have been watching our textiles industry shrink. We have such special skills in textiles; and we know that people have to be clothed throughout their life. Why should we allow competition from the Far East to reduce our market? Why do we not push harder? I appreciate that work is being done using experts from Denmark to examine the textiles industry. However, I am impatient; I want things to happen faster, and I want us to get there faster. Northern Ireland and our textile industry are worth it.

Northern Ireland has a worldwide reputation for shipbuilding. Why is it being allowed to disappear? Think of the skills that are being lost. There is one contract left at Harland & Wolff, or so the television reports tell us. The workforce has fallen from 30,000 to 1,000. It is a superb industry employing skills that should be valued, supported, rewarded and helped.

I visited the research and development office in the Industrial Research Technology Unit (IRTU). Their computer screens show stretched aeroplanes and all of the new technology that is making the aircraft industry work so well. Why is this technology not being applied to the shipbuilding industry, and particularly to Harland & Wolff? It should be allowed to move away from shipbuilding and into areas such as offshore wind energy, a pet subject of mine. Something like that would be valuable to Harland & Wolff.

We have a superb reputation for producing excellent, clean, green farm products. Why do we not push organic produce? We have a healthy product that can be sold in these islands and beyond. We need to expand the export market and provide more support for indigenous industry.

One of the most important areas that we need to consider is energy. The Committee for Enterprise, Trade and Investment is conducting an energy inquiry. In the aftermath of 11 September, we need to rethink our energy policy, especially our reliance on imports. We have a perfect opportunity to meet our energy needs with local supplies, particularly renewable energy supplies. It has been said that Ireland’s potential for wind energy equals that of Saudi Arabia’s for oil. Why are only a few windmills dotted around Northern Ireland? We recently visited Denmark, which has many windmills. There is no need for us to destroy our wonderful landscape in the process — we can consider offshore wind energy. That option has been taken up elsewhere. We have the potential to reassess our energy policy and look at renewable sources such as water, waves, solar energy, biomass and recycling. Those could change our approach and make us more self-sufficient in energy, which is vital to our economy.

Mr Neeson mentioned small businesses, the backbone of our economy. DrMcDonnell said that there was much more support for indigenous industry, especially niche markets and creative industries — things at which we excel. I refer to support for life and health sciences, and for the film industry. It is vital that we enter those areas using new technology. People are moving into the new sector of social economy that we need to support, similarly, we need to support socially- responsible business because that is to the fore globally. Business must put something back into the community as well as take from it.

The Minister has heard my plea many times before. It is now more poignant and important than ever. We have a worldwide reputation for excellence. Please let us push that. We have so much to do — not just to make Northern Ireland normal, but to make Northern Ireland great in world terms. We have far too much to lose if we stop now.

Photo of Esmond Birnie Esmond Birnie UUP 3:00, 9 October 2001

I congratulate Mr McClarty and Mr Ken Robinson. The motion is vital, and it is regrettable that attendance is so low.

The motion refers to economic development agencies, and one crucial issue in that context is research and development. Nothing can contribute more to economic growth than research, development and the associated training of human capital. That is not something for which my party has responsibility, but if we are at the point at which the Assembly is to be paused, it is a good time to evaluate progress under devolution on certain fronts.

Mr Neeson referred to the particular importance of cross-departmental work. To take the Executive as a whole, there has not been much interdepartmental work in the past couple of years. The Executive programme funds have had only a limited effect. However, one favourable exception is that the relationship between the Department of Enterprise, Trade and Investment and the Department for Employment and Learning seems to have been close and fruitful.

I commend the Minister of Enterprise, Trade and Investment and his Colleague at the Department for Employment and Learning on their work to promote a regional research, development and innovation strategy. I urge them to complete that as soon as possible and to conduct an audit of the R&D effort across the entire economy, including the public and private sectors and the universities.

The Committee for Employment and Learning has already made recommendations on such a strategy as part of the consultation. The Committee tends to favour the 1999 recommendation from the Northern Ireland Economic Council that there should be a single unit in Government that could bang together departmental heads to achieve a greater output from Northern Ireland’s R&D spend. Dr McDonnell made some interesting points on that. Perhaps such a unit could be based in the Office of the First Minister and the Deputy First Minister; perhaps it could be aligned with the Economic Policy Unit.

It is interesting that both the Minister of Enterprise, Trade and Industry and the Minister for Employment and Learning have proposed that the management or co-ordination role for public sector R&D should lie with the Industrial Research and Technology Unit (IRTU). Is that appropriate, given that IRTU will form part of the new single agency, Invest Northern Ireland? Will that new role fit with its industrial development role?

Regardless of the institutional architecture, it is more important to raise the total amount of R&D in the local economy. That currently stands at 0·6% of GDP, which puts us almost at the bottom of the western international league. We should be reaching at least 1%, as the Irish Republic has achieved in recent years. It is a matter of regret that from the perspective of employment and learning, the block funding for university-based R&D in Northern Ireland declined during the 1990s, whereas in Great Britain it grew by about 30%.

The economic agencies must encourage overseas marketing. They need to encourage preparation for or adaptation to the introduction of the European single currency in January 2002. Even whether one thinks, as I do, that the balance of economic arguments alone stands against the United Kingdom joining the single currency, our companies must be prepared to deal with it.

Finally, much work on R&D and related issues has drawn on the research of the Northern Ireland Economic Council. There is an ongoing review of independent economic advice and research for Government in Northern Ireland. It is important to get the right information in order to form a sound basis for policy.

At present, we have the Northern Ireland Economic Council and the Northern Ireland Economic Research Centre, each of which differs in its own way. There is a role for both types of research in the future, although whether those units should merge or not is another issue. It is important to strengthen the Economic Policy Unit so that we can have strategic oversight of all Departments in order to promote higher economic competitiveness and productivity.

I wish to refer to some of the remarks made by the Sinn Féin Member, Mr John Kelly, who, unfortunately, is adopting an abstentionist policy at this point.

At least, or at the very best, his party is ambiguous about the use of violence to "break the British connection", as Sinn Féin would say. Somewhat hypocritically, Sinn Féin also wishes to see more money squeezed out of the imperialist British Treasury, as it would term it, to underwrite some of its economic notions. I am reminded of Gerry Fitt’s remark about getting the Brits out but asking them to leave their chequebook behind. That is not the way forward. There must be a decommissioning of weapons and of mindsets. I support the motion.

Photo of John Dallat John Dallat Social Democratic and Labour Party

I am not sure what efforts the Executive can make to safeguard existing industries or to attract new industries, given the arrangements for the orderly transfer of responsibility to direct rule. Mr Trimble said that he was preparing a soft landing for the Executive and the Assembly. Let us hope that there is progress on decommissioning from everyone, and an understanding by Mr Trimble that the Assembly is not his property but that of the people who voted overwhelmingly for it.

Since the democratic institutions came into being, we have been told that the greatest single contribution to sustaining economic activity is the retention of those institutions. However, there seems to be an obsession with doing away with them. That makes no sense whatsoever — not now and not ever. The very institutions that can instil confidence in the business world and create the potential for inward investment have been undermined continually by those who have caused their suspension on more than one occasion.

The violence of the past 30 years has cost tens of thousands of jobs. No one would deny that fact, given that the reasons for murdering industrialists, burning out factories and warehouses, and generally causing mayhem were to undermine the economy and to cause widespread unemployment. I hope that that aspect of our lives is in the past and has gone for ever. One would have hoped that, given our relative stability and that the political institutions were working well, there would be opportunities to rebuild what had been destroyed or neglected during the past 30 years of direct rule. However, I am pessimistic.

David McClarty, a mover of the motion, knows as well as I do that there is enormous potential for the generation of new international investment. He has been to the United States on several occasions and knows that the one fundamental question that is asked relates to political stability and the evolution of the peace process.

I shall travel to Pittsburgh and Washington later this month to renew and advance relationships that both Mr McClarty and I have helped to build in the past few years. I shall be supporting the University of Ulster and shall do everything possible to influence industrialists to take advantage of the ultra-modern research and development facilities at the university.

Years of effort have gone into the science parks that were created on the back of a stable society in which politicians were expected to sort out their problems without pulling down the political institutions. Surely we owe it to the people who placed their confidence in us to ensure that the present crisis is resolved in a way that does not penalise the very people who helped to keep the economy of this country going while others were pulling it down.

We need look back no further than a few months ago, when the foot-and-mouth epidemic threatened to ruin our tourist industry, for evidence that the Assembly can manage the economy, protect jobs and do what Governments are expected to do. Through the Department of Enterprise, Trade and Investment, and in co-operation with Coleraine Borough Council and local hoteliers, it was possible to put together a rescue package that shielded the tourist season from the worst effects of that crisis, and saved many jobs and businesses. Sir Reg Empey has, of course, been in my constituency on many occasions, where he has promoted jobs, opened new premises, and generally encouraged economic growth and job creation. He could not have been better. He is an outstanding Minister who is doing a good job.

His Colleague, Seán Farren, who has responsibility for employment and learning, has transformed the entire approach to further and higher education and widened access for people who previously had no hope of a vocational or academic education. The problems of illiteracy and innumeracy, which were not only personal injustices for employees but a real difficulty for them in the changing world of new technology, are being tackled so that Northern Ireland will no longer be three times more illiterate than some of its European competitors.

Let us hope that common sense will prevail in the days ahead and that those of us who were elected to the Assembly to help to improve the standards of life for everyone will be allowed to get on with that job. Let us hope that we do not have a repeat of 1974, when political institutions were pulled down by hooded men and ordinary decent people were consigned to 30 years of misrule called "direct rule".

Many did not survive, because a political vacuum creates opportunities for men of violence who have no interest in protecting industries or in creating jobs.

I have no doubt that we can create full employment, attract new industries, lift our labour force to new heights and earning capacity, and educate our youth to compete with those in any other part of the developed world. There is no better part of the world; the ordinary people here have hearts of gold. We owe it to them and to the next generation to create stability, to build confidence, to forget about political chess games and to get on with the job in peace and in partnership.

I worked with David McClarty for many years. I know that he and his Colleagues on the Ulster Unionist Benches are sincere, and I have no difficulty in supporting the motion. I only wish that their party leader were singing from the same hymn sheet — or at least taking singing lessons. However, we must look on the bright side and assume that common sense will prevail. We must believe that the rights of ordinary people are greater than the survival of private armies. We must also hope that our politicians will accept that they are no more than the servants of the people. They must develop the confidence and self-esteem to allow them out of their trenches and on to the middle ground, where partnership, friendship, trust and co-operation are the cornerstones on which to build new jobs and to protect existing ones. Rather than put out the lights in the Assembly, we should radiate hope and prosperity for the future. Industrialists here and abroad have told us that, and they know.

Photo of Sammy Wilson Sammy Wilson DUP 3:15, 9 October 2001

I started by agreeing with Mr Dallat, but he went rapidly downhill after the first few paragraphs. Although almost every party noted John Kelly’s description of the debate as "surreal", many of us find it surreal that IRA/Sinn Féin Members should speak about a strong economy and protecting jobs when they spent 30 years waging economic warfare. It is a pity that Mr Kelly did not stay to hear the remarks of the SDLP, Sean Neeson and Esmond Birnie. He probably expected such comments from me, but they also came from unexpected sources.

It is important that the Assembly voices concerns about the present economic position, but we must realise that we from a small part of the global economy. In creating some jobs, we are especially dependent on big, global companies. However, there are limits to what an individual politician or a collection of politicians in a regional Assembly can do. We should not raise unrealistic expectations of the Minister’s or of the Assembly’s capabilities.

We must recognise that, despite the great strides that Northern Ireland’s economy has made, there are still many structural weaknesses. We rely too heavily on the public sector and not enough on the private sector. More people here are employed in low-productivity sectors of the economy than in any other United Kingdom region. Our gross added value in manufacturing is still the lowest of any region or sector of the UK economy. Those structural weaknesses make it difficult to tackle some of the problems caused by the present global situation. If we are to compete, we must make our economy attractive to investment.

‘Strategy 2010’ identified the ponderous planning process as one of the constraints on our economy. That process has held people back from spending money in our economy. That situation has not improved; it has got worse. The Minister of Enterprise, Trade and Investment is in the House, but other Ministers should also address the problems that we face in attracting inward investment. It takes two and a half years, on average, for a major industrial or retail project to get planning permission. That is a major disincentive to investment and, thus, to the creation of jobs.

I listened to what Jane Morrice and other Members said about small-scale industry. There are Members who — almost every week — call for the placing of more and more bureaucratic burdens on small industry. Last week, Dr Esmond Birnie rightly raised the issue of the human rights legislation that Members on the other side of the House so enthusiastically embraced. The impact of some of the Human Rights Commission’s recommendations, especially the social and economic rights, would place an immense burden on small firms.

We already have that burden imposed through much of the equality legislation. One of the biggest changes that we should make, if we want to remove some of the pressure from small businesses, is to make the Equality Commission liable for the costs of failed cases. At present, many small firms find themselves having to settle out of court because they cannot afford to win a case if they must bear all the legal costs. We must address those problems.

‘Strategy 2010’ included a recommendation that the Assembly should introduce a rates regime that would help to nurture small, indigenous retail businesses. What has the Assembly done? It has voted, every year, for a rates system that puts a greater financial burden on small businesses. That must be addressed. It is not only a question for the Minister of Enterprise, Trade and Investment, it is a question for several Ministers. Those are small moves, but they can help.

Photo of George Savage George Savage UUP

It is essential that the Assembly and its Ministers continue in office as long as they can in order to protect the interests of Northern Ireland industry. Only by having such well-informed local input will businesses here be adequately protected in the increasingly uncertain world economy. Recession was a possibility before the World Trade Centre disaster; it is now a betting certainty. In such a recession, job losses are part of our daily experience. My Colleagues spoke about the uncertainty in the textiles and manufacturing industries. That uncertainty affects many of my constituents, especially those in Lurgan, Portadown and Banbridge. The situation has arisen because of problems over which they have no control.

Northern Ireland needs the care of local Ministers. With the best will in the world, a return to direct rule would be a return to a less focused approach, which would put Northern Ireland low on the list of national priorities. In contrast, local Ministers who are accountable to the Assembly have a greater sense of duty, a greater sense of urgency, a greater sense of responsibility and a greater need to do something to protect local business.

If I may say it as his Colleague, we could not have a better Minister than Sir Reg Empey, whose recent achievement in obtaining the North/South gas pipeline cannot be praised too highly.

The people who are losing their jobs are the constituents of local Ministers or Assembly Members. Those Ministers are accountable to their constituents. The importance of having Northern Ireland Ministers was forcibly brought home to me last week when Sir Reg Empey told us that 70,000 people in Northern Ireland are employed by firms from outside Northern Ireland. That is a lot of people. Make no mistake, those jobs will be most at risk in a world recession. Without local Ministers working in a business-friendly climate that attracts inward investment, I fear for many of those jobs. In order that the public are left in no doubt, it is critical that the Assembly sends out the loud and clear message that the survival of the Assembly and its Ministers is vital to protect present jobs and to attract more jobs to the Province.

It is vital for all of us to behave responsibly because only the survival of the institutions will provide people with the maximum possible security for their jobs and futures. I am amazed at the behaviour of Members. There were two important debates today — this debate on the economy and this morning’s debate on agriculture. However, only a handful of Members thought it worthwhile to take part. Those are two of the most important debates to take place on the future of our community. Jobs are jobs, and while people have jobs they are content and make a sizeable contribution to the well-being of all. I hope that the party opposite will get its act together and fulfil its obligations.

Following the establishment of economic and monetary union and the single market, the economic integration of Europe is almost complete. It is now necessary to draw up clear proposals for a political union. We face the task of designing a political union that may consist of 27 or more member states. A clear allocation of powers, tasks and responsibilities between the various levels of Government and Europe is essential. For reasons of political transparency and economic efficiency, that allocation of power should comply with the principles of transparency, proximity and subsidiarity. Citizens must know who is responsible for what. We must know who is responsible for our country’s well-being. Our people need to know what is happening. We need to know what is in the minds of people, and where we want to go. The European Union currently has 15 member states and is in accession negotiations with 12 other states. All of those are our competitors. We must compete, and it is better to compete with those communities than to compete against them. I support the motion.

Photo of Joe Byrne Joe Byrne Social Democratic and Labour Party

I support the motion and the sentiments expressed about what has happened to our economy since the events in America. Consumer demand has been severely affected and we have entered a period of recession. The old economic factor of external-shock syndrome has become apparent to us as a result of the collapse of the World Trade Centre on 11 September. Business confidence has been hit, inward investment has suddenly dried up and uncertainty prevails. Many manufacturing businesses that were already vulnerable because of exchange rate difficulties, high energy costs, high fuel duties and general business uncertainty now face difficulties, or downsizing at least.

Economic development agencies must therefore be sensitive and prudent in their handling of the situation. I pay tribute to the Minister of Enterprise, Trade and Investment, Sir Reg Empey, for reacting so quickly to the difficulties experienced by the aerospace industries, in particular Bombardier Shorts and B/E Aerospace in Kilkeel. Many American firms in Northern Ireland and the Republic are offshoot or peripheral plants, which are always vulnerable when demand for their products declines. However, firms such as Bombardier Shorts and DuPont have a long, well-established track record in Northern Ireland.

Technology businesses — and dot.com businesses in particular — have experienced difficulties in international trading for at least 18 months. Nortel’s position here is an example of the general international difficulty in the IT sector, which is causing job losses such as those experienced in Newtownabbey.

Northern Ireland has a good track record in manufacturing, engineering and technology-based companies. We have a powerful range of good companies such as Bombardier Shorts, FG Wilson, Powerscreen International, the Finlay group, SDC Trailers Ltd, Hyster (Northern Ireland) Ltd, and R Wright & Son (Coachworks) Ltd in Ballymena. Those are all good examples of resilient and robust manufacturing companies. Many of them are also good examples of local companies that started out as small or medium-sized enterprises. Norbrook Laboratories in Newry and Galen (Pharmaceuticals) in Craigavon are excellent manufacturing examples in the pharmaceutical sector. They are high-value-added businesses whose strong export records successfully contributed to good foreign exchange receipts. All those companies give a good volume of quality jobs to their local communities.

If we were to talk to people in manufacturing who have been involved in exporting over the last three years, I think we would find that they do not agree that we should stay out of the euro. We must give greater support to more of those industries and individual businesses.

Northern Ireland has developed some excellent high- technology, software-based businesses over the past 10 years. The role and support of our two universities has been crucial and strategically significant, especially in the area of R&D. My Colleague, Esmond Birnie, said that more resources should be put into R&D in the universities. I agree with him. Indeed, more financial resources should also be given to those companies that are at the cutting edge of technology research in their particular sectors.

Since the events in New York, people here have realised that the Northern Ireland economy is a small regional economy, very much intertwined and interlocked with the international business community. The industries and services that depend on global and international demand have been severely damaged. The tourism industry in Northern Ireland, which has struggled over the past three or four years, has been dealt a severe blow. It will take time for foreign tourists to visit again, given the great uncertainty surrounding international air travel and public reluctance to fly. We hope that confidence can be rebuilt. It is crucial, therefore, that our economic development agencies be sensitive to, and supportive of, those businesses that have long-term potential.

I support the sentiments of the motion. I am not going to indulge in the more narrow political aspects of it. We are dealing with a largely economic situation. However, it is important that our local Administration should be kept going. In general, people respect and acknowledge the support that local Ministers can give when such external economic shocks affect our industry.

Photo of Reg Empey Reg Empey UUP 3:30, 9 October 2001

I have listened to many constructive and encouraging contributions during this important debate, and I want to thank those Members who attended for their frank and forthright sentiments.

First, I want to outline the background to this debate. Since my statement to the Assembly last week, air attacks in Afghanistan must be added to the equation. I said that Northern Ireland was facing its stiffest economic test in more than a decade. Especially since the commencement of the counter-offensive on Sunday, it is fair to say that that test will not be for the faint-hearted. It is clear that we will pass this test only if we can demonstrate the same mettle, resilience and determination that saw us through decades of terrorism here. The coming weeks and months will not be easy for Northern Ireland plc. However, we have one huge advantage: more than at any time in our past, we are well equipped to weather the difficulties. We are taking action. It is not all doom and gloom. Our economy remains strong.

Northern Ireland continues to be a prime investment location in which to grow profitable business. Leading world economies may be on hold at the moment, and there will doubtless be some retrenchment. However, we must ensure that when the upturn happens, Northern Ireland is strategically placed to take advantage of it. The proposer of the motion gave some of the economic indicators: our competitiveness has never been better, we are producing and selling more, we are employing more people, and the underlying strength of the local economy is not in question. However, I readily acknowledge that there are structural and strategic weaknesses in productivity, output, wage levels and business birth rates. It would be foolish to brush them under the carpet.

The efforts of companies in their export drives have been showing dividends: exports have increased to almost £4 billion in 1999-2000. Seventy five thousand jobs here depend on sales outside Northern Ireland. Some 44 companies recently participated in three visits and trade events, including missions to Romania, meetings with French executives in the aerospace industry, and participation in textiles exhibitions in Dubai. Sixteen local companies leave this week on a trade mission to the United Arab Emirates, Oman and Qatar. Next month, 45 representatives from local companies will take part in a trade mission to China, which is an important emerging market. The determination of our companies to continue to seek out opportunities in world markets augurs well for the economy in overcoming the challenges facing us. At a time when our industrial base is under pressure, we must ensure that existing manufacturing operations are as efficient and effective as possible.

The IDB, LEDU and the Industrial Research Technology Unit (IRTU) are working with client companies to improve efficiency, take out costs and achieve greater results. For example, I recently approved the piloting of a business improvement agent scheme under IDB’s business excellence service. In this scheme Government will part-fund the cost of employing a person who has the knowledge and experience to offer continuous improvement skills to several companies. In the current circumstances, I am considering whether there is merit in extending this pilot to cover more companies.

The IDB’s e-business service is promoting web-based solutions as a means to interface with companies, to find new markets and to speed up transactions. Of course, this is even more relevant if companies have air travel difficulties. I am pleased to tell Members that a consultancy contract has just been placed with a locally based business to develop e-business solutions with IDB and with appropriate LEDU clients.

We have also developed a Northern Ireland small business strategy that identifies the need to provide support for small indigenous businesses as a key objective. Under the small business strategy, a business birth rate strategy is also being developed; it will deal with generating more business start-ups. Several key initiatives have already been undertaken, and these will be part of the business birth rate strategy.

I will list a few of them. A revised business start programme aims to support 6,000 new business starts over the next four years and offers a range of training, mentoring and grant support. That is in addition to the fast growth start supported by LEDU’s regional offices, over 100 per year, which are export-orientated businesses. The personal enterprise roadshow — a major event — will encourage entrepreneurship and help individuals progress their business ideas.

Business/education linkages will be developed through the Northern Ireland business and education partnership, which is supported by the Department of Education and the Department for Employment and Learning. I met with them a few days ago. A raft of business education activities will be funded. Organisations such as Young Enterprise, Sentinus and Livewire will play a role in encouraging young people to be more positive about enterprise.

In 2001 the Department of Enterprise, Trade and Investment’s support for young enterprise will enable more than 20,000 young people to participate in schools programmes, and they will be supported by more than 1,000 business advisers. Enterprise Northern Ireland and LEDU, together with the information age initiative, have supported the development of the local enterprise agency network with a major project costing more than £2 million to build an information and communications technology network and introduce the e-business process for locally based businesses.

The local enterprise agency network is a valuable asset, with more than 300 local voluntary directors, 200 staff and more than 1,000 tenant businesses, which in turn employ more than 5,000 people. The enterprise agencies will also provide information at local level to encourage people to start businesses and deliver the business start programme.

At the end of October the Washington business summit will take place. It has been created and led by American sources. The summit is dedicated to developing economic networking opportunities between companies in the United States, the Republic of Ireland and Northern Ireland; expanding relationships amongst corporate and government leaders; and developing collaborative strategies to respond to the challenges presented, especially following the events of 11 September.

Prior to that date we had already seen the start of a slow-down in the global economy and a reduction in the flow of foreign direct investment since the start of 2001. That mirrors the experiences of our nearest competitors. The events in September will have brought uncertainty into international markets, particularly to north America, which traditionally has been the largest market for investment in Northern Ireland.

The IDB had record results for inward investment last year but anticipates a much-reduced level of inward investment this year from all major markets as the global economy continues to slow down. Nevertheless, some sectors, such as software and biotechnology, will continue to demonstrate growth and provide inward investment opportunities. We will pursue all such opportunities with current and potential investors.

Several Members mentioned the tourism fund. Clearly there is uncertainty in the tourism industry due to the present unpredictability in the economic, political and travel situations. The Northern Ireland Tourist Board (NITB) is in a unique position to benefit from market intelligence from the British Tourism Authority’s (BTA) and Bord Fáilte’s international networks. NITBs approach has been to work with Tourism Ireland Ltd to analyse several likely developments and their impact on travel demand and Northern Ireland’s competitive stance within the "Ireland" brand.

Tourism Ireland Ltd and NITB will announce a detailed domestic and international tourism strategy for 2002 in November. Cohesion of effort with Northern Ireland industry will be the key to success. The availability of competitive access is critically important to tourism performance. In recent years the advent of low-cost carriers increased capacity, and competition, thereby acting as a driver for growth, especially in the British market.

NITB will work in partnership with key carriers and operators to determine the best prospects for 2002 and will benefit from the additional selling platforms Tourism Ireland Ltd and the extensive BTA network will provide. Both organisations are committed to profiling the Northern Ireland region and its products in key markets. However, some Members noted that there have been some redundancies because companies have lost orders. My Department’s officials have been in contact with client companies to discuss ways of limiting job losses and to look towards recovery.

I have already mentioned some of the programmes that IDB and LEDU have in place and in which companies are already participating.

Members have raised many points, and I will try to respond to as many as I can. If I miss any out, I apologise.

In giving many of the statistics, Mr McClarty set the scene. He spoke about the airlines, as did other Members throughout the House. We are doing what we can. Mr Mallon and I are initiating negotiations and working closely with Gregory Campbell, the Minister for Regional Development, who has charge of the airport issue. We have a keen interest in it from a tourism perspective. We have been making approaches on behalf of Belfast International Airport. The key issue is not simply which airline flies — although that is important — but the landing slots at the airport. If one loses those slots and they are sold off for international trade, then nobody can fly from Belfast to London, for example. That is a huge problem.

Mr McClarty took the opportunity to mention some little local issues in East Londonderry, such as AVX. I am pleased to say that having gone through a difficult period in recent months, that company is beginning to bounce back a bit and some recruitment has recommenced. Both Mr McClarty and Mr Dallat mentioned the question of how tourism affects their borough. I was pleased earlier this year to be associated with the North West Fest and with the attempt that was made locally to resuscitate the borough from the huge blow caused by foot-and-mouth disease. Nobody could deny the impact of that on the local economy, but there was a willingness, led by a consortium including the council and local tourism operators, to do something to help restore their fortunes. We were pleased to be able to identify with that.

Mr Poots raised the issue of the Department’s budget. He is, of course, correct. A few weeks ago people were saying that we did not need the budget; everything was going well. I kept making the point that the Department of Enterprise, Trade and Investment’s budget is largely discretionary. It is not like education or health; we know how many doctors or teachers there are, and we can easily calculate what they need. That is not the case with our budget. Because it is not already pre-committed, the tendency is to grab it and use it for something that it is pre-committed. We have been making the point that if we do not spend our budget, it goes back into the pot.

We must recognise that if we have a strong economy, the other Departments will benefit. Equally, if we have a weak economy, other Departments will suffer. There is a proven link between health, education, et cetera and a strong economic base. I have been able to retain the baseline levels for next year because we have been performing better. We have had a deliberate policy of trying to drive down the cost per job, and we were therefore able to pass some money back into central funds last year. Certainly that might have been the expectation this year up until this point. But, as Mr Poots rightly asked, who now knows?

He also took the opportunity to raise the question of consolidation. That is a good point, because consolidation will be the name of the game. Mr Poots cited Kilkeel as a site of consolidation. Mr Wells is now in the Chamber; I know that he and others have been working hard in that area.

Photo of Jim Wells Jim Wells DUP 3:45, 9 October 2001

Does the hon Member accept that the American board of directors of B/E Aerospace, the parent company of the Kilkeel plant, was extremely impressed by the work of both his Department and IDB in bringing together the funding package? No decision has yet been issued, but everything that could have been done in Northern Ireland has been achieved. Now the decision is entirely with the American parent company.

Photo of Reg Empey Reg Empey UUP

I am grateful to the Member for his comments. I hope that we will be successful in that. It is out of our hands now, but if there is anything that we can do, we will certainly try. It is important to try; one cannot just sit back and allow these things to happen.

Mr John Kelly seems to have made a bit of smash- and-grab contribution, because he has gone. As soon as he made it, he went. He talked about the suspension of the Assembly and so on; Mr Neeson and a number of other Members also mentioned that. None of us here wants to see the institutions suspended.

I want to be able to continue to do my job if I am permitted to do so. However, that is all very well, but people must understand that the basis on which we are here has several component parts to it — a number of foundation stones. Sadly, one of those parts has been severely weakened. There is the question of understanding the arrangements that were entered into. In business, as in politics, if those arrangements are not honoured, everything else is undermined. That is the issue. I took the opportunity, in an intervention in yesterday’s debate, to make the point that there is no desire on my part to see devolution concluded — far from it — but there must be movement from those who possess weapons. The use of weapons during the past 30 years has created many of the economic difficulties that we now encounter. People must get that into their heads.

Mr Neeson talked about the Heathrow situation. I have referred to that and to the vacuum that may be created. I fully understand that, and Mr Neeson knows what the solution is.

Ms Morrice seems to be on a bit of a roll with the euro. I am focused on the need to assist indigenous industry. She must understand that the figures can be misleading. Companies that may have originated overseas and have subsequently reinvested over the years, such as DuPont and others, may appear in those figures. It all depends on how you define those companies — are they indigenous if they have been here for 40 years or are they blow-ins? However, the point has been made, and I understand what the Member is saying.

Dr Birnie referred to research and development. Dr Farren and I are working closely on that, and we have written to our ministerial Colleagues, Ms Rodgers and Ms de Brún, who have a specific role in research and development. We are trying to work together, and we hope to arrange a meeting to discuss how we can improve not only the amount of money available for research and development, but its performance. That is the key issue. I can assure Dr Birnie that it has always been my intention to ensure that research, development and innovation are at the core of the new agency being formed. I hope that that will be achieved, given that we are not putting enough into research and development. That has to be addressed. However, it is not simply a matter of money; it is also about targeting and quality.

Joe Byrne talked about consumer demand, energy costs and exchange rates, which are all major issues. Ms Morrice also raised the issue of energy. Kirk McClure Morton has done a report on wind energy throughout the shores and coastal areas of the whole island. Mrs O’Rourke, the Minister for Public Enterprise in the Republic, and I are working closely on that, and we intend to bring forward new proposals. We in Northern Ireland are committed to creating new proposals for sustainable energy. We have an ambitious target of 10% of our supply of electricity coming from renewable sources in the next few years. It is a jolly good idea, but first we must address the high costs that we have now. As the year progresses, I hope that proposals will be made on how to do that. There will be gnashing of teeth when they are made, because it will not to be cheap to buy our way out of the contracts.

Photo of Jim Wells Jim Wells DUP

On a point of order, Mr Deputy Speaker. I understand that the Business Committee met today. There is some confusion over whether the Assembly will meet next Monday. Can you confirm whether the Assembly will meet next week or not?

Photo of Sir John Gorman Sir John Gorman UUP

You may discuss the matter with your Whip.

Photo of Sammy Wilson Sammy Wilson DUP

Further to that point of order, Mr Deputy Speaker. Do you realise that you have prevented Mr Wells from being the last Member to speak during this session?

Photo of Sir John Gorman Sir John Gorman UUP

This is the second time that he has tried to do that.

Photo of Ken Robinson Ken Robinson UUP

Thank you, Mr Deputy Speaker, and well spotted. Mr Wells falls at the final hurdle.

I welcome the opportunity to wind up the debate. The contribution from many, if not all Members who spoke, has been mostly positive. I particularly welcome the presence of the Minister throughout the debate. He has a tight schedule, but he has remained here and taken note of the positive points that have been made.

When Mr McClarty and I decided to bring the matter to the House, we thought that it was a timely motion, and I am delighted to say that it seems to have achieved support from all corners of the Chamber.

Last week, Sir Reg Empey said that Northern Ireland was facing its stiffest economic test in more than a decade. It is somewhat ironic that after 30 years of terror inflicted on the Province, we are suddenly faced with the economic and human effects of international terrorism. Our purpose in tabling the motion was to draw attention to the stark realities that Northern Ireland now faces, and the Chamber must be mobilised to take responsibility for generating a favourable climate for future economic investment and expansion.

We all have a role to play in achieving that, but there is a particular onus on some groups who are absent today. For 30 years, our positive marketing opportunities were limited by terrorist violence. Now that our economy has picked up significantly in recent times, it is imperative that we do not allow the intentions of international terrorists or the intransigence of local terrorists, or, as Mr Durkan called them yesterday, the "obdurocrats", to damage our growing reputation as an advantageous investment location.

We are not immune to world economic conditions. The announcement during the past week of the loss of 2,200 jobs at Bombardier Aerospace and British Airways is a reflection of that vulnerability. It has left many families in shock and despair, including many in Newtownabbey in my constituency of East Antrim. Because Northern Ireland is a small economy, centred within the jet stream, as it were, of the world economic climate, we suffer the full effects of the economic winds from the west.

The events of 11 September have hastened and deepened an already unstable global economic position. The implication of those trends for Northern Ireland is alarming. We need not, however, be unduly pessimistic. As has been said by several Members, we have an opportunity. The IDB has created 16,000 from outside sources which means that 4,000 jobs have been created internally. There is a possibility, to which several Members referred, that we might find a way to retain jobs and to expand them. Two fifths of our exports are going outside the United Kingdom. In ordinary times, that would be very positive and something that we would seek to increase. However, I want to touch on a couple of sectors that will be hardest hit by the global economic downturn.

The aerospace industry has suffered dramatically, and the knock-on effects, as Mr Wells and others have mentioned, have gone far beyond the areas that are traditionally seen as the centre of the industry. It is a multi-sectoral industry: it contributes to aerodynamics, mechanical, electronic, software, science and technology bases. The industry has the most intensive research and development in the engineering sector. It is one that we must protect as far as we can. I thank the Minister for the efforts that he has already made.

It is imperative that the Department of Enterprise, Trade and Investment and the Department for Employment and Learning demonstrate their commitment to resolving the difficulties faced by the aerospace industry. It is vital that the workers who will lose their jobs are adequately advised, supported and re-skilled to meet the needs of tomorrow’s global marketplace, a marketplace that will inevitably experience growth in the future. Advice and support for the redundant workers at Bombardier Shorts on issues relating to self- employment business start-up should be forthcoming from agencies such as LEDU.

Recently, the Department of Trade and Industry produced a report that said that one million jobs would be created in the small-and medium-sized enterprise (SME) sector in the UK in the next decade. That is also the key to our future success. We must ensure that SMEs in Northern Ireland are the main drivers of economic growth and can produce the innovation and job creation that is vital for the future. Our ability to attract domestic, national and international SMEs will be crucial to the drive to ensure that the Northern Ireland economy is balanced and stable. There is no room for complacency in the Chamber or in our economy. We must recognise that the economy relies to a large extent on foreign direct investment and that it is, therefore, susceptible to global instability.

For the foreseeable future, not many people will travel across the Atlantic from the United States. However, we are a European region, and we should turn our attention to the market in Europe, which is now larger than the American market. I have just returned from Poland, where I saw the impact that can be made if Europe extends its boundaries to the east. We could easily attract European visitors to Northern Ireland who cannot go to the United States. We have good, efficient ferry services in the North Channel, and the North Sea services improve each year. Before the new season, our tourist industry should investigate the growing European market.

The Programme for Government stated that the Executive would work to attract inward investment, improve efficiency in our economy, ensure that businesses and consumers have access to regulatory services of an international standard, and — importantly — increase Northern Ireland’s attractiveness to visitors. We have the potential to do something and do it soon.

I was particularly impressed by what Dr McDonnell said about the global economy and the opportunities for growing prosperity. Such prosperity can be slow to build up and can be taken away at a stroke. We have all learnt that in the past few weeks. Every Member who spoke said that small indigenous industries were the key; that is something on which we should major. Dr McDonnell referred to the opportunity to develop niche markets, such as bioscience, and that might create opportunities for growth.

Mr Poots made the obvious point that terrorism had stunted the growth of our tourism industry. Perhaps there is an opportunity for our friends from across the Chamber to do something positive and help us become a tourist magnet. He also suggested the creation of a departmental early warning system to identify weaknesses in our economy; that is vital. If we can identify the indicators, we can deal with the situation before it arrives on our doorstep. That way, we could head off some of the worse eventualities that might lie ahead.

Mr Neeson mentioned the indigenous industrial base and the opportunities for the EU. I am at one with Mr Neeson on that. He welcomed Sir Reg Empey’s interdepartmental approach, as do we all. Ms Morrice wanted us to consider economic policy. I agree with her that it is not a time to sit in the corner and moan, but to think about where we have come from, where we are now and where we might go in the future. She said that we needed a new focus; most of us would agree with that. She spoke about the Irish linen and shipbuilding industries et cetera, and her comments on those were welcome on this side of the House. We wondered about her dress code today; we do not know whether her suit is Irish linen, but we shall ask her after the debate.

Photo of Ken Robinson Ken Robinson UUP

That is good.

Dr Birnie spoke about research and development. We should invest more of our gross domestic product in that, and there should be an interdepartmental approach.

Dr Birnie also said that economic agencies needed to encourage overseas marketing and prepare Northern Ireland for the euro. I agree with him about the possibilities there.

Mr Dallat made some of the local — [Interruption].

Photo of Ken Robinson Ken Robinson UUP

No, I will not give way. Mr Dallat made some of the usual remarks about the wonderful places around the north coast and those remarks were replicated beside me. Mr Sammy Wilson said that the Northern Ireland economy was too reliant on the public sector — [Interruption].

A Member:

He has run away.

Photo of Ken Robinson Ken Robinson UUP

He has run away, but we want to move away from that.

I thank the Minister of Enterprise, Trade and Investment for attending the debate and for the positive remarks that he made. I also thank the Members who contributed to the debate.

Photo of Jim Wells Jim Wells DUP

On a point of order, Mr Deputy Speaker. I reject the scurrilous remarks made by the hon Member for East Belfast, Mr Wilson.

Photo of Ms Jane Morrice Ms Jane Morrice NIWC

On a point of order, Mr Deputy Speaker. Do you agree that that was not a point of order?

Photo of Sir John Gorman Sir John Gorman UUP

I have not dealt with the first point of order, but I am sure that the House will understand the point being made.

Question put and agreed to.

Resolved:

That this Assembly, realising the full extent of international terrorism, resolves that the Executive should re-double its efforts to safeguard existing industries in Northern Ireland and give maximum support to agencies responsible for the generation of new national and international investment.

Adjourned at 4.07 pm.