Report on the Economic Challenges facing Northern Ireland

Part of Committee Business – in the Northern Ireland Assembly at 2:00 pm on 12 September 2006.

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Photo of David McClarty David McClarty UUP 2:00, 12 September 2006

Members will agree that the Northern Ireland of 2006 is a far better place than that of 1996. Fortunately, we have relative peace and a growing tourism industry. We can also agree that we have one heck of an international football team — except perhaps those of us who have a Spanish background. However, our economy is struggling. There are many reasons for that, most notably the mishandling of the Northern Ireland economy by direct-rule Ministers and the fact that our entrepreneurial private sector is much smaller than in other UK regions.

I commend the subgroup for compiling this extensive report. It highlights many important points and is a platform on which a future Northern Ireland Executive can work. Fundamentally, our economy will only receive the attention that it deserves when a stable, accountable and fully functioning Assembly is operating here at Stormont. As a unionist, I watch with great unease as the British and Irish Governments prepare Plan B in case the 24 November deadline should pass without a deal being done. No one in the Chamber knows exactly what is in store for the Province should that happen. However, we can surmise how the Northern Ireland economy will be managed. We got an indication from the Secretary of State almost a year ago, when he told a New York newspaper that the Northern Ireland economy was:

“not sustainable in the long term” and that:

“the island of Ireland should be marketed as a single entity.”

That was a disgraceful statement from a Minister of the Crown. What kind of message does it send to potential investors in Northern Ireland? It was neither reassuring nor positive. How can we market this country when our Secretary of State runs down our economy? That is the threat to Northern Ireland plc should devolution not be restored. The Plan B model of greater co-operation between Dublin and London will only inject confusion, uncertainty and instability into the Northern Ireland economy. With the Labour Government in turmoil and the Irish Republic preparing for a general election, does anyone in the Chamber really believe that our economy will be anywhere on London or Dublin’s priority list? The answer is an unequivocal “no”.

Of course, the economy must be our priority. If we want to build a strong, prosperous and peaceful Northern Ireland for our children and grandchildren, we must build a strong and prosperous economy. To do that we need this place to work. We know that there are difficulties and obstacles, but it is imperative that we resolve them as soon as possible. If we can get this place up and running, we can give the economy the attention that it merits.

Just think what a local Assembly could do almost immediately if power were restored. We could address the obvious structural weaknesses of the Northern Ireland economy, which have been correctly identified as the four drivers in DETI’s ‘Economic Vision for Northern Ireland’ — something that is also stressed in the subgroup’s report. We could also address the crucial issue of increasing rates and energy costs for our manufacturing sector. The direct-rule Admin­istration’s treatment of Northern Ireland manufacturing is costing our economy massive job opportunities.

Furthermore, a devolved Administration could address the rates burden on small businesses in Northern Ireland — something that my colleague David McNarry raised in the subgroup. I wholeheartedly agreed with his assessment that, although most taxation issues are reserved matters, a fully functioning Assembly could act on aspects of the tax burden for potential and existing SMEs.