Permission to SucceedPermission to Succeed

Declan Billington

Chairman CBI Northern Ireland

The (NI) Economy is not really very sustainable; there’s not a strong enough business community and that needs to be reformed and structured

Peter Hain, Secretary of State 8th May 2007

The (NI) Economy is not really very sustainable; there’s not a strong enough business community and that needs to be reformed and structured

Peter Hain, Secretary of State 8th May 2007

Peter Hain, Setting the ScenePeter Hain, Setting the Scene

Current State of the economy – The spinCurrent State of the economy – The spin

• NI GDP growth levels, at 2%-3% above GB

• Employment is at a record high

• Unemployment at a 26 year low

• NI’s GDP growth is currently the fourth fastest-growing of the 12 UK regions

• Property price boom

But… here’s what’s really happening

• over dependence on the public sector

• (NI public sector employs 1 in 3 of all workers and 60% of all females in employment)

•an annual subvention from GB £6.8bn. 31% Deficit pa hardly the sign of a successful economy..

NI GDP growth levels, at 2% - 3% above GBNI GDP growth levels, at 2% - 3% above GB

Dependency growing

Driven by Public sector spending growth (approx 5% pa

Underdeveloped private sectorUnderdeveloped private sector

• 89 per cent of local firms employ fewer than 10 people

• Only 65 companies employ more than 500 workers

• 10 companies account for 50% of all NI exports

• NI has second-lowest level of business formation of the 12 UK regions

• NI has second-lowest level of business growth in the UK

Society IssuesSociety Issues

• NI has the highest level of both long-term unemployment and youth unemployment in the UK

• NI has amongst the best - and the worst - qualified working populations (with 2 or more A-levels)

• Some wards in Belfast and Derry have amongst the highest levels of deprivation in Europe

• Approx 44,000 children here live in extreme poverty

• We need to create up to 140,000 jobs next decade (last decade we created 85,000 jobs)

Over 530,000 people (41% of working -age population) not economically active

Falling unemployment masks rise in benefit claimants (hidden unemployment)

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Unemployed (Sept)

Claimants

97k

141k

Lack of opportunity drives Brain Drain (30 - 35% leave NI)

And what of the Westminster endowment?And what of the Westminster endowment?

The RealityThe Reality

• £50Bn package

• In reality estimated to be £100m extra from Treasury.

• £ 78m to avoid water charges

• £20m for first year funding of innovation fund

• Hanson’s Regional Economy Strategy

• By 2015, Wage gap (75% of GB private sector) and Gross Value added (80% of GB average) have closed by 0.5% hardly transformational.

Conclusion: We can no longer look to others to solve our problems.Conclusion: We can no longer look to others to solve our problems.

• We need Leadership for change from within Northern Ireland.

• From our politicians

• underpinning peace with prosperity

• putting the economy top of the priority list

• Making the tough choices

??

“The Executive must seize this moment and

begin to build a society, underpinned by a strong local economy.”

Well, it’s a start

Will Business step up to the challenge:Will Business step up to the challenge:

Who in Business must step up to the mark and lead the economic change needed?

Economy

You!!

What is our potential?What is our potential?

We only need look at the original celtic tiger….

• The Year is 1900.

• The UK’s third largest city (Belfast) dominates globally in the industries it is in:

•Ship building – The finest ships in the world

•Textiles – Dominating trade globally

•Heavy engineering

This is our pedigree!

How did we do it before?How did we do it before?

By using only the natural drive and talent of local people ,

we became the industrial Workhorse of the British Isles

Ask not what your country can do for you-

-ask rather what you can do for your country."

Ask not what your country can do for you-

-ask rather what you can do for your country."

Finally, in the words of JFK.Finally, in the words of JFK.

Its our futureIts our future

Its time to take the lead