15 September 2016

Private sector ready to deliver growth in Northern Ireland

The second CBI Question Time event with Northern Ireland Ministers took place today, this time with the Finance Minister, Máirtín Ó Muilleoir MLA holding the mic. The discussion covered spending on infrastructure and health, questions about business rates and Corporation Tax.

More than 100 senior business leaders attended an exclusive CBI breakfast briefing with the Northern Ireland Finance Minister, Máirtín Ó Muilleoir MLA, this morning (12 September) to discuss his vision for the NI economy and how business can help the NI Executive achieve its economic aims. The event took place at the Stormont Hotel Belfast, and included insights from Michael Hall, Managing Director, EY.

David Gavaghan, CBI Northern Ireland Chair, said:

"We are entering a crucial period for the regional economy. In recent years Northern Ireland's economic growth has been consistently lower compared to both Britain and the Republic of Ireland. The current trend is unlikely to change markedly in the future albeit there were many encouraging signs in the first half of this year. However there is greater uncertainty following the outcome of the EU referendum on the 23 June 2016. Establishing a new economic paradigm is fundamental - we cannot afford a decade of lethargic economic growth.

"The commitment by the Executive to reduce Corporation tax to 12.5% from April 2018 is a critical step but more must be done:

• promoting globally the capability and expertise of our people and maximizing the full suite of incentives that are available to doing business here,
• reducing the burden of non-domestic business rates,
• ensuring that the Region receives its full share of the proceeds of the Apprenticeship Levy,
• developing a strategic and comprehensive public service reform strategy with a focus on new models of service delivery.  This could include:

1. implementing revenue raising measures across the whole range of our publicly owned asset base which will in turn enable new sources of funding to be sourced
2. supporting our higher education sector by allowing universities to increase tuition fees
3. reducing the size of the public sector estate 
4. reviewing the transfer of ownership of publicly owned assets which could include co-operatives and mutualisation
5. driving the growth of our principal cities and working in partnership with the Councils and the private sector to create vibrant cities that attract talented people
6. improving infrastructure delivery by establishing a new centralised procurement and delivery agency."

"As highlighted at today's session with the Finance Minister, local business is very keen to work with the Executive to drive our economy. The CBI recognises that the private sector will deliver the new jobs that our society so urgently needs and is committed to do its utmost to help create 50,000 jobs over the next five years at a time when major challenges lie ahead."

Finance Minister, Máirtín Ó Muilleoir MLA, said:

"My long term vision is one where we have a robust economy, prosperous society and first class public services. Importantly, I also want to see equality and inclusion for all. I am committed to working with my Executive colleagues and businesses to ensure we are getting our support mechanisms right and targeting investment that will create opportunities across society."

Michael Hall, Managing Partner, EY, said:

"As we continue to weather a period of uncertainty in Northern Ireland following the referendum, it is important to remember that little can be drawn from short term volatility in the market, as negotiations are expected to continue over the next two years and it is not clear what, if any, trade deals may emerge. Businesses should continue to trade as normal, but ensure they remain resilient and agile so that they can adapt to the shifting landscape in both the short and long-term.

"We all have a common goal which is to ensure that trade between the EU and the UK as well as trade between Northern Ireland and the Republic of Ireland continues to prosper, however navigating this period of change has the potential to be unsettling and new territory for many businesses in Northern Ireland, therefore it is essential that leadership teams have strategies in place to prepare for and manage the challenges that may emerge, as well as the myriad of opportunities that it will no doubt present. This market knowledge and scenario planning will ensure businesses in Northern Ireland can stay ahead of the curve and thrive against a backdrop of unprecedented change."

The Minister for Finance, Máirtín Ó Muilleoir MLA participated in a Question Time session with CBI members on 12 September at The Stormont Hotel, Belfast. He is pictured (above) with Michael Hall, EY (sponsor) and David Gavaghan, CBI Chair.