ECONOMIC DEVELOPMENT FORUM PUSH FOR PROGRESS
Members of the Economic Development Forum (EDF) are determined to work together, and pool their collective resources, to strengthen the local economy, Ian Pearson, MP, NIO Minister for Enterprise, Trade and Investment said this morning at the 18th meeting of EDF.
Mr Pearson was attending today’s meeting which was hosted by the Northern Ireland Council for Voluntary Action (NICVA) at their offices in Duncairn Gardens, Belfast.
Top of the agenda today was a report on the work of the Forum’s Enterprise Sub-group which is chaired by Ian McMorris, Chairman of the CBI. The Sub-group was set up in July 2003 to take action on a number of specified enterprise issues where the collective influence of the partnership might be brought to bear.
Speaking at today’s meeting, Mr Pearson said: “Northern Ireland must have a competitive advantage if the Forum’s vision of significantly strengthening the local economy by the year 2010 is to become a reality. In recent months, the Enterprise Sub-group has examined a number of specific enterprise issues, including the need for differential fiscal incentives for Northern Ireland; research into the extent and impact of shadow economy activity in Northern Ireland; and proposals for hosting a major business summit in Northern Ireland during 2004.
As I made clear in my speech to the Institute of Chartered Accountants in Ireland, my view is that a ‘one size fits all’ policy in tax terms is not necessarily appropriate and we should be discussing regional tax breaks, including differential regional company tax rates, as potential mechanisms for stimulating enterprise and growth. I am therefore very pleased that the Forum has commissioned research to examine the feasibility of tax incentives in areas ranging from R&D, training, marketing and product development,” he added.
The Forum also recognises the important role to be played by local politicians in championing the needs of the local economy. Members will continue to engage with representatives of the local political parties to emphasise the real advantages regional tax breaks would bring and to encourage politicians to seek to secure such incentives as part of any wider political settlement in Northern Ireland.
At today’s meeting, Ian McMorris advised members that the Sub-group’s research into the extent and impact of the shadow economy suggests that, in relation to a number of key indicators, such activity appears to be more prevalent in Northern Ireland than in the UK as a whole. He also explained the Forum’s plans to support legitimate businesses and to help them avoid falling foul of regulations / compliance requirements.
He said: “There are a number of common pitfalls or traps which many legitimate businesses fall into, often through a simple lack of understanding or not knowing where to turn to for help, which results in their failing to comply with statutory requirements. Work is underway to produce a short information leaflet to highlight the dangers that individuals and companies may unwittingly become exposed to through non-compliance. The Forum’s leaflet will also signpost sources of information and advice.”
Mr McMorris also outlined plans to take forward one of the key actions identified in the EDF Action Plan, published in March 2003, when the Forum gave a commitment to arrange a high-quality business summit for Northern Ireland, linked to a high profile awards ceremony. Members of the Enterprise Sub-group will continue to work with InterTradeIreland over the coming months to arrange a business summit to be held in Northern Ireland during 2004 and to undertake a review of existing awards schemes with a view to seeing how best the vast array of existing awards might be rationalised.
Among the other items discussed at today’s Forum meeting was the Research, Development and Innovation Structure in Northern Ireland. Professor Fabian Monds, Chairman of Invest Northern Ireland, presented a paper which provided members with an overview of the structures currently in place and highlighted a number of challenges still to be faced if Northern Ireland is to improve research and development capacity and encourage local company expenditure on R&D.
Also at today’s meeting, members heard presentations from the Department for Employment and Learning (DEL) on the Review of Further Education and the Essential Skills Strategy and received updates on the implementation of the Regional Transportation Strategy and the work of the Employability Taskforce. A representative from the Department of Agriculture and Rural Development (DARD) also presented a paper on the Mid-term Review of Common Agricultural Policy.
Notes for Editors
Key findings of the EDF Sub-group’s research revealed that, while Northern Ireland accounts for approximately 2.2% of the national economy:
| - | the Inland Revenue yield from enquiries into tax evasion during 2002/03 was £7.9m, i.e. some 3.8% of the UK equivalent figure of £208.1m; | |
| - | the value of total revenue evaded in 2001 from smuggling of fuels and legitimate cross-border shopping amounts to £370m – 24% of the UK figure; and | |
| - | during 2002, seizures of counterfeit goods in Northern Ireland had an estimated value of £7m. The Organised Crime Taskforce in its Threat Assessment 2003 estimates that the actual Northern Ireland counterfeit goods market may be worth some £135.4m – £80 per head of population. |
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