Facing opportunities and challenges

As my time as CBI NI’s Chair draws to a close, it’s fair to say that it’s been a whirlwind – in which we’ve faced both opportunities and challenges.

If we think back to this time last year, there was the start of the hugely successful vaccine rollout in the UK. NI strained every sinew to bounce back and showcase its position as an attractive place to live, work and invest. We saw a welcome surge of economic activity, reflected in the official data, and things looked like they were on the up.

Yet for many firms supply chain challenges, labour shortages and energy prices have hampered their sustainable recovery, and once again we see the economy operating with one hand tied behind its back.

The CBI publicly pushed the UK Government to grip these short-term shocks. They responded by setting up the Supply Chain Advisory Group, giving business a direct forum to take their insight about the size of the challenges and what’s coming down the track straight into Whitehall.

Northern Irish companies continue to hold their own, but many are rightly expressing concerns about the new Covid-19 variant, Omicron. The CBI will ensure it works closely with the Executive, to provide them with the latest business insight direct from our members.

Public health must come first. Firms will, of course, continue to do all they can to protect their staff and customers, including being as flexible as possible to enable employees to get their boosters. Policymakers in turn should ensure there is good forward guidance to support business adaptation and a commitment from the Executive to prioritise free, mass rapid testing and prevent mass self-isolation.

This is so important not only for public confidence, but because together public and business confidence are crucial for maintaining momentum in our economy. Despite the challenges, there have been reasons to be cheerful and we must not lose this momentum now.

Recent official data showed the value of trade between NI and the Republic has rocketed. The value of exports from NI surged by 60% in the first nine months of 2021 – to €2.8bn (£2.37bn). Trade between Ireland and NI has also increased, with a 48% rise in exports, bringing the total value of trade to €2.57bn for January to September 2021.

In that same period, foreign direct investment in NI has also seen a real boost. From Ardagh Group’s $200m investment in a new facility near Belfast to Almac Group’s 1,800 jobs announcement in Craigavon, to name but a few. Meanwhile, the mergers and acquisitions market in NI has returned to pre-pandemic levels.

Many would say that this is thanks to the unique advantages coming from the NI Protocol. But there’s no denying issues remain for moving goods between GB and NI, particularly for consumers. Which is why building trust and normalising relations between the EU and UK, remains a key priority.

Both sides – the UK and EU – continue to listen and engage with business on many of the technical solutions. But listening must turn to action. At a time when the economy desperately needs investment to put growth back on track, all efforts should be made to avoid a lose-lose escalation of tensions between the UK and the EU.

In partnership with business, both sides must seek ambitious and durable solutions to the NI Protocol. This is the only way to deliver certainty for businesses and communities in NI and place us on the front foot to grasp the opportunities ahead. It’s undeniable that there’s real competitive advantage for the NI economy if agreement on the Protocol is reached quickly.

Despite the known unknowns that come with the NI Protocol and potential new Covid variants, I do remain optimistic for the year ahead.

Next year must be the year that’s about going for growth. We need to unlock a wall of investment that can drive NI’s net zero transition and a more innovation-rich economy. Business investment is the engine for growth, and we now need a UK-wide campaign to invest and grow. The private sector wants to deliver but needs bolder plans from policymakers, both in Stormont and Westminster. Stormont also needs to get on with the job of transforming our health and education systems, and building the infrastructure we need for a prosperous economy.

It’s within our collective power to change the course of the tide – to reset the conversation, get to work, and make 2022 a year of real progress.

A message from the Editor:

Thank you for reading this story on our website. While I have your attention, I also have an important request to make of you.

In order for us to continue to provide high quality and trusted local news on this free-to-read site, I am asking you to also please purchase a copy of our newspaper whenever you are able to do so.

Our journalists are highly trained and our content is independently regulated by IPSO to some of the most rigorous standards in the world. But being your eyes and ears comes at a price. So we need your support more than ever to buy our newspapers during this crisis.

With the coronavirus lockdown having a major impact on many of our local valued advertisers - and consequently the advertising that we receive - we are more reliant than ever on you helping us to provide you with news and information by buying a copy of our newspaper when you can safely.

You can also enjoy unlimited access to the best news from across Northern Ireland and the UK by subscribing to newsletter.co.uk

With a digital subscription, you can read more than five articles, see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Visit https://www.newsletter.co.uk/subscriptions now to sign up.

Thank you