NI firms considering RoI option as Chamber repeats '˜tired plea'

Uncertainty about the outcome of Brexit, inflation and difficulties recruiting staff are key issues facing business and why politicians must return to the Executive, according to the Northern Ireland Chamber of Commerce and Industry.
By The Newsroom
Published 1st Aug 2017, 19:40 BST
Updated 12th Sep 2017, 10:55 BST
NI Chamber CEO Ann McGregor with Brian Murphy of BDO and Maureen OReilly, economist for the QESNI Chamber CEO Ann McGregor with Brian Murphy of BDO and Maureen OReilly, economist for the QES
NI Chamber CEO Ann McGregor with Brian Murphy of BDO and Maureen OReilly, economist for the QES

Publishing its Quarterly Economic Survey, produced with business advisors BDO, the business organisation said that while business in the province was robust, there were threats to stability, employment and growth that must be addressed.

As it emerged that several businesses have already established operations in the Irish Republic in readiness for Brexit, Chamber CEO Ann McGregor said it was crucial politicians reach agreementsoon and start takling the issues facing the whole of province.

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“There are major issues for the local economy to face – the lack of an Executive at Stormont is becoming increasingly frustrating.

“In what is becoming a tired plea, we ask that our parties resume talks and reach a positive outcome as soon as possible.”

Although this quarter’s results indicate continued business growth, she said inflation and recruitment both threatened to unsettle any progress.

A full 81% of manufacturers and 71% of services businesses taking on staff said they had difficulty recruiting for positions in the second quarter of this year.

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“In terms of inflation, pressure on prices are likely to keep rising in the coming months as the recent sizeable increases in the cost of raw materials and other overheads filter through supply chains.

“Hiring staff with the right skills continues to be a major problem for businesses with one in four saying it had resulted in lower productivity.

Low productivity has been a persistent feature of the economy for many years and despite a number of economic strategies to try and address this, the gap continues to widen.

“Brexit is another concern for businesses who are unable to prepare for what lies ahead because no firm direction has been given on how future relations between the UK and the EU will work. They are effectively shadow boxing in an atmosphere of uncertainty which, for many, means putting plans for growth on hold.”

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Brian Murphy, a partner at BDO Northern Ireland said: “Companies have set up companies in the Republic as a precaution, we don’t want to see that precaution turning into a reality.”

“We need to nip that in the bud. We need a functioning government that will fight our corner.

“At the minute we just seem to have nonsense exchanged back and forth.”

Related topics:UncertaintyBrexit