Press Release
26 January 2004

ECONOMIC DEVELOPMENT FORUM REVIEWS PERFORMANCE

Employment levels continue to rise, earnings are on the increase and Northern Ireland is catching up with the UK in terms of some skill levels.  These are some of the positive findings of the first review of progress against the targets set in June 2002 by the Economic Development Forum.

But the news isn’t all good.  The review process has also demonstrated that much more needs to be done if the Forum’s vision of significantly strengthening the Northern Ireland economy by the year 2010 is to be achieved.

Commenting on the results published today, Ian Pearson, MP, Minister with responsibility for Enterprise, Trade and Investment, and Chairman of the Forum, said, “When the Forum published its priorities and targets for the Northern Ireland economy, members recognised that partnership would be vital to success.  But partnership has to be genuine, and true partners don’t only tell you what you want to hear.

Today’s statement by the Forum highlights some fundamental weaknesses that must be resolved if our shared vision for the Northern Ireland economy is to become a reality.  This presents some real challenges for employers, for politicians, for society in general and indeed for those of us in Government.  Working under the EDF umbrella provides a mechanism for genuine partnership and I am grateful to all members of the Forum for their continued commitment and determination to make a real and lasting difference.”

While acknowledging the positive results, Nigel Smyth, CBI, warned that there is no room for complacency, “We need to see increased productivity and more high value-added jobs if Northern Ireland GDP per head is to be increased.  Northern Ireland manufacturing exports have declined for the second year in a row and expenditure by Northern Ireland businesses on research and development has declined by 1.7% in real terms, compared with a UK increase of 3.3%.  Urgent action is also needed to remove the barriers faced by local businesses, including reducing red tape, the complexity of compliance requirements and the excessive costs of insurance and energy.”

Denis Rooney, of the Institute of Directors, said, “High on the list of priorities to improve the regional economy is the need to create the stable political environment that is vital to support indigenous business, encourage entrepreneurship and attract high-quality inward investment and tourism.  The Northern Ireland economy also has an unsustainable reliance on the public sector.  The size of the private sector needs to be increased significantly while, at the same time, safeguarding effective and efficient public services.  Low interest rates and easy access to credit has resulted in very high levels of consumer debt in Northern Ireland which is a major cause for concern.”

The Forum’s targets were published in Working Together for a Stronger Economy when members gave a commitment to regularly review progress.  Speaking about the review process, Seamus McAleavey, Director of NICVA, explained:  “When we published the priorities and targets, the Forum gave a commitment to undertake regular reviews on progress.  Today’s results present the findings of the first such review and the process will be repeated at regular intervals from now until 2010.  Performance, good and bad, will be assessed and changes made where necessary.  The Forum’s Action Plan, published in March 2003, describes the additional steps currently being taken by Forum members to increase the likelihood of achieving the agreed targets and work to review the effectiveness of the specific additional actions will get underway within the next few months.”

Speaking on behalf of the Irish Congress of Trade Unions, Peter Bunting said, “Poverty levels in Northern Ireland are appalling and unacceptable – the findings of the recently published Bare Necessities report make disturbing and uncomfortable reading.   The gap between the richest and the poorest in our society has been growing and must be reversed as a matter of urgency.  The Trade Union movement in Northern Ireland believes this issue can be addressed by improving the skills levels of all citizens affected.”

Today’s statement by the Forum also highlights some concern about the potential impact EU enlargement may have on Northern Ireland; calls for all employers to help reduce the economic cost of work-related injuries and ill-health and to invest in energy efficiency measures; wants robust research into economic performance that provides an effective warning system and allows for early interventions and highlights the need for stronger linkages between the business and education sectors.

The Forum’s full statement, including details of performance to date against each of the targets set, has been posted to the EDF website www.edfni.com.

NOTE TO EDITORS