NI business leaders’ plan to avert economic meltdown

The strategy was published on Wednesday after Ulster Bank chief economist Richard Ramsey said the bank’s monthly business survey for March recorded the “steepest ever fall in activity”.

“The April survey will be the first full month that the UK, Northern Ireland and Republic of Ireland economies will be under full lockdown conditions. Therefore, the pace of contraction will accelerate further to fresh record lows,” Mr Ramsey said.

The ten proposals being put forward by the Institute of Directors (IoD) NI includes: introducing temporary flexibility in procurement rules; leveraging the expertise and skills of furloughed workers to fulfill essential roles, and maintaining a functioning planning system to allow continued investment.

IoD NI regional director Kirsty McManus said: “While we recognise that this is first and foremost a public health emergency, we are also working very hard to help IoD NI members navigate the major economic challenges arising as a result of the Covid-19 outbreak.

“This 10-point plan provides deliverable solutions that if enacted will provide much-needed assistance to the Northern Ireland economy in the weeks and months ahead.”

Ms McManus added: “It tackles a number of critical areas including procurement, support for local businesses and the importance of maintaining focus, where possible on aiding economic recovery and a return to competitiveness.

“We will be presenting this plan to elected representatives and officials in the coming days as we continue to support our members and the wider Northern Ireland business community during these unprecedented times.”

The 10-point plan also includes a proposal to “closely monitor banking activity to ensure businesses have access to support they need”.

Richard Johnston, deputy director of Ulster University Economic Policy Centre, described the economic impact of the coronavirus outbreak around the world as “unprecedented,” and added: “As we have seen in recent weeks, the speed at which the consequences have been felt is particularly concerning.

“The ten areas of focus highlighted today reflect the main challenges facing IoD NI members. If implemented, these interventions will help to sustain many businesses across Northern Ireland now and in the time ahead.”

The 10 proposals in full are:

1. Introduce temporary flexibility in procurement rules

2. Leverage the expertise and skills of furloughed workers to fulfill essential roles

3. Relax “value for money” requirements on public expenditure

4. Government support should target small enterprises with cash flow issues

5. Closely monitor banking activity to ensure businesses have access to support they need

6. Maintain a functioning planning system to allow continued investment

7. Accelerate capital projects to generate investment and economic activity

8. Continue to progress existing policy developments that will stimulate investment

9. Prioritise reliable evidence to provide targeted support for businesses

10. Plan now for Northern Ireland’s economic recovery and return to competitiveness