From the president
Accepting an honour and a challenge
by Francis Martin, president of the Northern Ireland Chamber of Commerce T Chamber Patrons
aking over the presidency of the Northern Ireland Chamber, the regionʼs biggest business body, for the next two years is a great honour and also a tremendous challenge because of the economic difficulties that lie ahead. We are all well aware that the cuts that face us will result in even greater pain for everyone and, largely because of the sovereign debt crisis, a hazardous future. The current economic challenges are certainly unprecedented and have made life very difficult for a large number of Northern Ireland businesses. The financial crisis has also underlined larger structural problems in the Northern Ireland economy – our over‑reliance on the public sector, below average productivity, gaps in training and skills and limited export activity all mean that our ability to compete internationally is reduced. I look forward to working with colleagues in the Chamber, business community as well as public representatives and policy makers to ensure our economy is fit for the challenges and demands of the 21st century, and I am confident we can meet those challenges. What the Northern Ireland Executive must do is to develop a new economic agenda particularly with business that builds on our strengths. Support for entrepreneurs, innovators and exporters, especially manufacturers, must continue to be at the core of this approach.
They are the key drivers of added value in the economy and must be encouraged to create the additional wealth that Northern Ireland needs to fund essential services. Cutting back on support for these drivers will undermine prospects of recovery particularly in the short‑term.
The sharp decline in manufacturing – over 14 per cent and over 9,000 jobs from early 2008 to the end of last year – is deeply disturbing. Without radical action, this trend will continue.
Manufacturing in Northern Ireland is now weaker than ever before. We need to be focusing resources on advanced technology manufacturing.
Business services and finance have also seen a decline of around 30 per cent. These figures have increased our already unhealthy dependence on the public sector, which increased employment from 217,900 to 222,300 over the same period.
A critical concern in the months and years ahead is that, where practical, incentives and policies should be focused on restoring a growing Northern Ireland, as well as wider UK, economy.
Following the General Election and the cuts announced by Chancellor of the Exchequer George Osborne, the main business organisations have an important contribution to make in assisting Executive Ministers, particularly Enterprise minister Arlene Foster, in reshaping policies and imaginative local actions to support the economy here. Difficult decisions will certainly have to be taken and implemented including the introduction of water charges and higher rates.
Central to these actions must be a commitment to place wealth creation at the heart of our economic strategy. It is essential that investments in infrastructure, transport, energy, environmental technologies continue and are focused on supporting this overall strategy.
There may well be an opportunity, for example, to press the case for greater consideration of the devolution of fiscal incentives including the power to reduce Corporation Tax and the possible impact of such a development on the block grant. There has also been a suggestion that the private sector across Northern Ireland could be stimulated by the creation of an enterprise zone here. This could involve exemption for employers, for a defined period, from, for instance, national insurance for a business with an expanding labour force especially in manufacturing industries and a more extensive investment initiative through the Strategic Investment Programme. We need to encourage and support higher levels of research and development that results in innovative products and services, a significant improvement of our skills base to enhance productivity, stronger links between business and academia, and an even sharper focus on expanding exports.
Executive ministers should see the crisis as an opportunity to enlist the support of business, the unions and the wider community to create a more progressive economy that will, in time, ensure greater opportunities for people throughout Northern Ireland.
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