Northern Ireland should strive for regionally balanced economic growth - Robinson

A report on Workplace 2010 and the Location of Public Sector Jobs, due soon, will outline the Executive’s proposals and ensure efficient and sustainable frontline public services.

Finance Minister, Peter Robinson MP MLA, told delegates attending a business breakfast organised by Omagh Chamber of Commerce this morning that this was a strategy which supports a range of existing Government policies including the Regional Development Strategy which has the objective of promoting a balanced spread of economic development across the province. He said:

“You might be interested to note that, of all the travel-to-work areas throughout Northern Ireland, Omagh has the highest number of public sector jobs per 100 economically-active people, with 31 people in every 100 economically-active being employed in the public sector.

“The working age employment rate and median gross weekly earnings are also lower than the Northern Ireland average. While claimant count unemployment has decreased over the past year in Omagh it has done so at a slower rate than the Northern Ireland average.”

Mr Robinson said that a similar trend applies to the growth rate in employee jobs in Omagh, of which the town has a notably higher proportion of employee jobs in the construction and health and social work industries, and a lower proportion of employee jobs in the real estate, rent and business activities industry.

“This poses a question as to the role of the Executive in respect of changing the employment composition and improving the economic performance of areas such as Omagh.

“My view is that it is important to ensure that the physical infrastructure is such that it reduces cost constraints in sectors such as transport and communications. It is also important to ensure that the skills base within the region meets the needs of business.”

The Minister said that innovation and R&D intensity in Northern Ireland is poor by UK standards, which is itself poor in international terms. These should be key target areas for Executive support. However, he also sounded a note of caution:

“The scope for intervention by the Executive is highly constrained. At best we are talking about creating an environment conducive to economic growth and development.

“Effectively all fiscal instruments are controlled by HM Treasury, with the exception of minor revenue raising facilities on rates and water. Even the power to offer direct financial support is now heavily constrained by EU State Aid limitations.

“Many of you will be aware of the Executive’s exasperation at these fiscal constraints. The ongoing Varney Review on taxation and the local economy announced by Gordon Brown is scheduled to report next month. We await this report with interest.”

The breakfast meeting was also attended by a wide cross-section of representatives from the business and voluntary & community sectors.

Notes to Editors:

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