The Province’s long established dependence on the public sector – which has now swallowed up almost one third of the workforce - is not helping to build a more potent, pro-active economic base for the future, with more emphasis needed on developing commercial life.
Robin Newton, east Belfast MLA and Belfast City councillor believes that to achieve this innovation and entrepreneurship in an increasingly global economy, many things need to happen, including the forging of better partnerships.
“If we can get together and agree on the broad shape of the economy this would achieve a much more potent voice in the lobbying and negotiating necessary to protect the regional interest of Northern Ireland,” he said.
“Closer cooperation between government, educationalists and business entrepreneurs is one factor, with training tailored to the needs of the manufactures and companies. This would have a dramatic impact,” he continued.
Also, to get a stronger private sector manufacturing base a fairer rate of corporate taxation is required.
Suggesting a future ‘kick-started’ by Government, the MLA said: “I believe that the creation of a business culture which is infused by the spirit of innovation will be more easily achieved with a reduction in corporate tax to 12.5%, or better – to 10%. We need to become competitive with the RoI.
“This one factor – immediately attracting greater levels of inward investment – could achieve a great deal in economic growth and should be central to any strategic and political planning,” he said.
“We also need better targeting of funding in the commercial and educational sectors and have to recognise that Research and Development (R&D) is weak, with existing availability of R&D support for firms poorly utilized. We need to encourage and reward – not penalise – companies that invest in R&D,” he said.
“There should also be a shift in emphasis which redirects the lion’s share of support to firms that focus on innovation and, in partnership with the universities, to reinforce attempts at hi-tech business incubation opportunities and to reassess how private investors can be encouraged to take a greater role in financing businesses in Northern Ireland.
“The business support agencies, under the umbrella of Invest Northern Ireland since 2002, have a huge role to play in achieving this. There needs to be a greater willingness to risk financial support for new start up businesses, the level of bureaucracy reduced and most important of all, the time needed to come to reach a decision needs to be shortened,” he said.
Also, renewed attempts at gaining inward investment, especially from the 10 European Union accession nations is also one of the DUP MLA’s recommendations for progress: “These countries offer tremendous opportunities for development into Northern Ireland, as does various untapped areas in the Far East, such as China – which boasts the world’s largest population.
“Such investment is long overdue here. That we have a mere two percent economic growth here is bad enough, but taken against the reality that more than half of this recent figure was in fact attributed to the public sector alone, makes it dismal news indeed.
“It is a fact that we are creating what financial intelligence reports refer to as ‘a veneer of economic prosperity’, which is hardly a healthy state for the economy.”
That’s not to say that it’s all bad news. Much needed jobs are being created in the major unemployment ‘black spot’ of east Belfast where the arrival of the Swedish retailer, IKEA will be a tremendous boost.
The MLA uses this to illustrate what he thinks could be used as a model of how closer cooperation on skills training would help to make a huge difference locally - as in this instance - and more widely if expanded upon.
“I believe that that the Department for Employment and Learning (DEL), in partnership with the Belfast Institute of Further and Higher Education (BIFHE) should be providing training for potential IKEA staff right now, not in a year’s time when the store is ready to open.
“Such pre-emptive partnership working between sectors could then be applied wherever it is required across the whole of Northern Ireland.”
Looking then to another very immediate strategy, the MLA said that the expected announcement this month of measures to address lack of investment and poor social and educational infrastructure throughout working class unionist area of Belfast while important, must offer a coordinated strategy, not just a ‘quick fix’.
“In fact, the views of east Belfast business people have already been heard on this matter, when the Minister for Social Development, David Hanson MP, heard our ideas to not only kick start regeneration but also to incorporate a longer term element,” said Mr Newton.
“The Minister’s positive response to an overall set of proposals, which included actual on-the-job training places within the companies concerned, was very welcome.”
Meanwhile, as a councillor, and representative on Belfast City Council’s Development Committee, the MLA said that more can be done in making the city itself more attractive to investors.
“Well managed projects could target specific niche areas in which there is proven or anticipated scope for expanding either existing entrepreneurship, or to build new sectors that are as yet unexploited,” he explained.
“Northern Ireland’s knowledge-based economy needs to grow so that any further blows to traditional industries are felt to a lesser degree than might otherwise have been the case,” he continued.
On specific ideas, he said IT is a potential area of growth: “More development of call centres, which have already brought employment and investment and even more work focused on other IT sectors will be important too in future regeneration and development, so long as we are pro-active and focussed.”
Specifically, the MLA said it is clear that the Titanic Quarter is where such investors could excel by locating new businesses.
“The new Titanic Quarter must be more than luxury housing and leisure facilities. I want to see a drive to ‘sell’ the multi-skilled, talented and versatile workforce of Belfast – that after all built the greatest, most luxurious liner in the world – to these investors.
“We must create the conditions in which ‘wealth creators’ can prosper and not underpin one where entrepreneurial spirit is stifled and the public sector – already representing 60% of our GDP – prevails.
“As in the glory days of Harland & Wolff - Belfast’s human resources would not be found wanting,” Mr Newton concluded.
