North - south co-operation essential for global success - Robinson

Northern Ireland and the Republic of Ireland will benefit in the world marketplace from economic co-operation, Finance Minister Rt Hon Peter Robinson MP, MLA said this morning.

In a speech to delegates attending the Irish Taxation Institute Annual Stakeholders’ breakfast in Dublin, Mr Robinson pointed out some of the advantages of closer business ties:

“I believe there can be enormous potential for Northern Ireland to benefit from a new peaceful environment with the combined benefits of being a part of the wider UK economy and closer co-operation with the Republic of Ireland.

“Closer collaboration in areas such as improved workforce skills and productivity; better transport links and improved public sector infrastructure in other areas should benefit consumers in both countries.

“An obvious example is the Single Electricity Market. Similar plans are now being advanced to establish an all-island gas network. The creation of better transport links across both countries will facilitate trade and labour mobility and enhance our attractiveness to foreign investors.”

The Minister cited examples of how infrastructure upgrades in road and rail are reducing travel times between Belfast and Dublin and how the planned road upgrades to Londonderry, being taken forward as a joint initiative, are positive examples of economic co-operation.

He said that Northern Ireland has much to offer, but its potential must be developed:

“Northern Ireland has a great deal to offer. We have a relatively youthful population compared to Great Britain – similar to the population profile of the Republic of Ireland. Our school leavers generally perform better than the UK average both at GCSE and A level. We have a large pool of graduates – a proportion of which unfortunately still have to move to Great Britain every year to find suitable graduate jobs.

“This presents Northern Ireland with an enormous challenge, but also an enormous opportunity.”

Mr Robinson highlighted some of the interventions currently being considered by the Executive as part of its Budget process:

“We need to promote innovation. This may be done through direct financial assistance that will help to establish challenge funds and venture capital funds; and through investment in enhanced centres of excellence and technology competence centres. This can also be achieved by prioritising specialist skills such as science and technology; by increasing PhD places in our universities; and by supporting greater regional and international collaboration. This can bring benefits by promoting excellence, driving frontier research and by avoiding research duplication.

“We must encourage enterprise by supporting businesses within Northern Ireland. The emphasis of existing support programmes such as Selective Financial Assistance should move toward attracting better quality jobs, which can support higher salaries. This would help to improve productivity and prosperity within the local economy.

“The Republic of Ireland remains an important market for Northern Ireland firms and I would like to see more competition and co-operation between firms across both countries.”

Mr Robinson said that economic growth required better transport links, North and South:

“We need to upgrade our infrastructure. Implementing the revised Investment Strategy for Northern Ireland will help. We must ensure that key transport corridors are upgraded. Co-operation with our Southern neighbours is a crucial element of this ongoing work. It is also important that our ports and airports are capable of coping with increasing demand and can support a growing tourism trade.”

He also emphasised the need for greater investment in skills:

“Expert skills groups have been established on both sides of the border – and they will work together to make sure that policies are underpinned by sound evidence. Skills investment can be improved by implementing reforms that ensure that skills delivery programmes are focused on the needs of the local business sector. This will mean that the business sector becomes more closely involved in determining the curriculum in our FE colleges. We will also build on our already successful universities to deliver the kind of high quality graduate labour our economy needs.

“But these actions must be durable – they must deliver long-term benefit to the economy.”

Mr Robinson said that Northern Ireland was strong on supply, but needed to do more to generate demand:

“The key is to become more outward-looking; more innovative and more productive. As part of this, co-operation between Northern Ireland and the Republic of Ireland can be mutually beneficial.

“Of course there will be times when we are in competition, but in an increasingly competitive global economy, I firmly believe that both economies can prosper. We are well placed to take up the challenges facing us and co-operation between our two countries can only improve our position in the world economy,” he added.

Notes to Editors:

1. The Minister delivered the keynote speech at the Irish Taxation Institute (ITI) annual stakeholders’ breakfast this morning at the Radisson SAS Royal Hotel, Dublin.
2. The Irish Taxation Institute (ITI) is the leading representative body for taxation affairs in Ireland. It has a membership of 6,000, which comprises qualified tax advisers, accountants, barristers, lawyers, and other corporate and business professionals.
3. The Minister was greeted by Joan O’Connor (ITI President) and Mark Redmond (ITI Chief Executive).
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