THOUGHT LEADERSHIP
Have we forgotten why the economy matters ?
asks Angela McGowan , Director CBI Northern Ireland
January voting intentions survey carried out by local polling organisation
ALucidTalk revealed that the Health Service was the most prevalent factor uppermost in their minds when making their voting decision .
Jobs / Economy was only the fifth most prevalent factor – behind the Renewable Heat Incentive controversy , Education , and Equality . This result is extremely concerning and suggests a certain complacency regarding the importance of the economy amongst the wider population .
Yet the state of the economy truly matters . Richer nations can afford to allocate resources to education , health and infrastructure and raise living standards .
Investment is attracted to where there is potential for sustainable economic growth and where the macro economic climate is stable .
Indeed , the overall wellbeing and independence of individuals is hugely elevated when there is healthy economic growth .
Furthermore , it should never be forgotten that strong economies with highly educated populations tend to be more peaceful and tolerant and this should be the aspiration of everyone in Northern Ireland !
Businesses in Northern Ireland are committed to creating economic prosperity – and know their responsibilities go far beyond their employees and customers .
No company operates in a vacuum : they raise money for good causes and donate time to schools to inspire the next generation of business leaders .
However , they are affected by policy changes , or indeed a lack of policy change , at both Stormont and Westminster .
The lack of an energy strategy , the National Living Wage , and the Apprenticeship Levy all impact individual firm ’ s ability to grow – creating prosperity and jobs .
One of the policy changes with a significant potential effect on business is , of course , our exit from the EU .
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Over the past few weeks , the UK ’ s headline negotiating position has become much clearer – but for businesses , the details matter . It will likely be some time before many of those become clear .
How companies will be able to access the skills they need for growth remains an important concern .
In Northern Ireland , much our biggest productivity gains over the last two decades were achieved when migrant workers from Eastern Europe came to Northern Ireland to live and participate in our economy .
With a small population of only 1.8 million , professional , skilled and nonskilled workers have always been welcomed by the local business community because of the increased competitiveness and higher economic output that accompanies these immigrants .
The future of our trading relationship with the EU is the most important part of the upcoming negotiations – particularly for Northern Ireland . Today 54.6 per cent of Northern Ireland exports go to the European Union and 72.7 per cent of our imports come from the EU . Prices are lower for consumers because our arrangements are tariff and barrier free .
The Government has set out its ambition to secure “ frictionless ” trade through a Free Trade Agreement . This ambition is shared by businesses .
However , the Prime Minister has ruled out continued membership of the Single Market , which reduces our options for maintaining a barrierfree trading relationship with the EU . The pressure is now on to deliver these objectives and achieve a smooth and orderly exit . We think it ’ s particularly important to ensure there is no “ cliffedge ”, where businesses in Northern Ireland no longer have a preferential trading arrangement with the EU for a number of years .
At the CBI , we will make no apology for highlighting the complexity of the task currently facing the UK .
There is deep integration between the UK and the EU , and particularly between Northern Ireland and the Republic of Ireland ,
which goes well beyond any other free trade agreement .
Countries such as South Africa and South Korea have low or zerotariffs on trade with the EU , but our relationship is much more sophisticated : we share regulators and regulations on everything from medicines to aviation , chemicals to data flows .
The CBI and indeed all business body representatives have worked in partnership with government since the Referendum discussing issues of concern and providing as much information as possible .
We hope that the government now begins to share more information with the business community about some of the conclusions that it has drawn from that engagement .
The business community is particularly keen to see a clear plan on the practical actions that the government intends to take to ensure that the business community in Northern Ireland can keep creating jobs and prosperity as they are committed to doing now .
It is clear that the economy does matter . Providing the security of steady employment remains the best way to lift people out of poverty and reduce health inequalities – the key to solving many of Northern Ireland ’ s deep rooted social issues . We must give the economy the priority it deserves .
MOREINFORMATION
The challenges and opportunities facing the Northern Ireland economy will be discussed in detail at the CBI ’ s annual Economic Summit on Wednesday 15 March at the Hilton Belfast . To book , contact : ni . mail @ cbi . org . uk | www . cbi . org . uk