20/99
1 February 1999
NORTHERN IRELAND TACKLING THE PRODUCTIVITY GAP HEAD ON - BARBARA ROCHE
Northern Ireland is increasingly being seen as an excellent location in which to set up in business, Financial Secretary Barbara Roche said today.
Last year was a record year with over 0.5 Pounds billion of new investment flowing into the region providing for over 5,000 jobs. Speaking at the Interpoint Centre in Belfast at the Government's Productivity Challenge Roadshow, Mrs Roche said:
"In recent years Northern Ireland has grown quicker than any other region in the UK, but there is still a long way to go to meet the productivity challenge. All of us must learn how to work better and improve our skills so that we can adapt to meet the demands of a modern economy.
"The Good Friday Agreement and the Chancellor's 315 million Pounds initiative offer the stability businesses need to plan for the future. We must ensure that we grasp this opportunity and build a world class economy in Northern Ireland".
Throughout the 1990s the Northern Ireland economy performed well. GDP rose by 15.6% between 1989 and 1996, compared to 9.1% for the UK as a whole. Manufacturing output rose by 24% between 1990 and 1998, compared to the UK rate of 3.5%. Employment has grown while unemployment has been falling steadily.
Northern Ireland's economic strategy is currently being reviewed to take account of changing needs and a draft report will soon be presented to the new Assembly for its consideration. This strategy will be a major building block to improving local productivity and generating future prosperity for Northern Ireland.
While in Northern Ireland Mrs Roche also visited Fast Engineering and Randox Laboratories in County Antrim.
NOTES TO EDITORS
1. The Chancellor Gordon Brown announced a major economic strategy for Northern Ireland worth 315 million Pounds aimed at modernising the economy and underpinning political agreement, reached at Stormont on Good Friday (10 April). It was a two-pronged strategy aimed at encouraging new employment through support for enterprise and promoting investment.
2. The Chancellor's strategy was founded on Four Funds for Northern Ireland:
- Northern Ireland Employment and Skills Fund: 65 million Pounds;
- Northern Ireland Enterprise Fund: 100 million Pounds;
- and Investment Fund for Northern Ireland:
- 150 million Pounds of which 21 million Pounds is allocated to the NI Innovation and Tourism Fund.
3. The Northern Ireland Productivity Roadshow was held at the Interpoint Centre, Belfast. There have been similar regional events throughout the UK over the past few months, as part of the Government's consultation on the Pre-Budget Report. These events are designed to allow Ministers to discuss directly with local business people and other possible solutions for closing the productivity gap that exists between the UK and its main competitors, 40% with the US and 20% between France and Germany.
4. During the Productivity Roadshows, the Government has launched a number of policy initiatives including:
- proposals for widening employee share ownership schemes;
- the launch of the new Public Services Productivity Panel and the new Public Service Agreements to deliver modern, high quality public services;
- proposals to encourage large companies to provide support and investment to smaller businesses;
- and proposed tax incentives for research and development investment and how to make them more effective.
5. The Pre-Budget Report was published on 3 November. As well as setting out the steps needed to secure high and stable levels of employment, it forms the basis for a wide ranging consultation on the steps that need to be taken to address the UK's long-standing productivity gap.