Robinson calls for long view on economy
SHORT-TERM solutions are not the way to handle an economic crisis, Peter Robinson told a Dublin audience last night.
Addressing a gathering of accountants, the first minister praised the Republic’s avoidance of “simplistic” measures in handling its grave financial difficulties.
Speaking against the background of the economic crisis in Greece, he said such solutions are “no substitute for the difficult, long-term measures that are being taken”.
Mr Robinson acknowledged that Northern Ireland had its own problems, including an over reliance on public sector employment.
The DUP leader also said that strong informal ties and good infrastructure will make for a better working relationship between Northern Ireland and the Republic.
Mr Robinson said a good road, favourable exchange rate, a successful rugby team and a good speed dial contact with a ministerial colleague will do more for relations than any amount of North South Ministerial Council meetings.
In other comments in the speech, he said that the Northern Ireland economy is expected to grow by around one per cent this year and by two per cent in 2012.
“That may not be impressive but it is at least a positive statistic in these challenging times,” he said.
In a speech delivered last night to the Chartered Accountants Ireland, Leinster Society the First Minister also praised the UK Government’s £7billion loan to the South as “not just good for the Republic of Ireland, but made sense for Northern Ireland too”.
In a warm address, Mr Robinson said the economic difficulties experienced by the Republic has also impacted the Northern Ireland economy.
“An economy which was known as the Celtic Tiger for many years has not lost the fundamentals upon which it was based,” he said. “It’s not my place to advise you or your government on how to deal with the economic problems faced here, but I am sure that your government is right in avoiding short term simplistic solutions.
“They are no substitute for the difficult, long term measures that are being taken.
“While our public spending in Northern Ireland is constrained in the next few years, we have been somewhat insulated by being part of the United Kingdom Public Expenditure system.
“Our job in the executive is to take the decisions which will build our economy in the longer term.
“The world economy is currently in a state of volatility and uncertainty, due to multiple economic shocks.
“The UK economy has weak economic growth and rising unemployment, requiring a further round of quantitative easing.
“The Republic is one of our key markets for exports and tourism, and it is in our interests, as neighbours and trading partners, to strengthen those economies, recognising what works and taking a pragmatic approach to guide us through these difficult economic times.”
Mr Robinson said that top of the Northern Ireland Executive’s priority is its economic strategy.
“Our economic strategy will represent a fresh approach for Northern Ireland,” he said.
“It is the first to be developed and delivered by local people and has a very firm focus on sustainable, export led economic growth.
“It will drive the executive and its agencies, the wider public sector, and all stakeholders, towards the achievement of this single goal.” Mr Robinson used the example of Harland and Wolff as a company changing with the global economy from building iconic ships to today assembling giant wind turbines.
“And the land around the docks is becoming a hub for financial services and the creative industries. If ever anyone needed proof of the fundamental, structural changes in the economy, this is it,” he said.
The First Minister said skill levels are central to growing employment and productivity,
“This is the rationale for our £80 million Social Investment Fund which we have established to tackle those multi-generational problems of worklessness and deprivation that blight some communities,” he said.
“It is also the rationale for our £12 million child care fund which will allow more parents to return to the work place, while also ensuring that children gain the early development they need to form the basis of future skills.”
Mr Robinson said the Executive has developed a major Investment Strategy and claimed that to the first three years of its last strategy up to March 2011, the Executive has delivered a record level of investment - twice what it had been under Direct Rule.
He said the most important decision the executive will face will be the question of devolving corporation tax.
“The UK Government consultation on this closed in early July, and we now want to move this work to the next stage as quickly as possible,” he said.
“We are happy that the government has announced a working group to take this forward. We know from your experience what a key role a low rate of corporation tax can have on encouraging economic growth. We want to have all possible policy levers available to us.
“Corporation tax is a crucially important factor for companies in deciding where to invest. The experience of the Republic is there for all to see. Creating the most competitive tax system in the G20 is not the first element of the UK’s growth strategy for nothing.”
Mr Robinson said the rate of air passenger duty in Dublin has also been a major influence for Belfast, and said he wants to abolish it for transatlantic flights.
“The Northern Ireland APD rate was reduced to £12 and £24 for our flight to the United States,” he said.
“When the power is devolved to the Northern Ireland Assembly, it is my hope that we can abolish APD for transatlantic flights, offering the potential to attract even more tourists and investment from North America.
“We know that we cannot compete with fast growing economies such as China, India and Brazil solely on the basis of cost or scale. We can only compete in terms of excellence and innovation.
“The good news is that, despite all of the challenges that we face, we have choices. They are not easy choices and they are not without consequences. But we have a menu of policies and initiatives which can and will make a difference and it is up to us as leaders to take the next step.
“Through these actions, we will make Northern Ireland more competitive, we will grow our private sector and we will build on relationships on both sides of the border for mutual benefit.”
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Weather for Belfast
Tuesday 29 May 2012
Today
Sunny spells
Temperature: 12 C to 21 C
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