Northern Ireland Assembly
Tuesday 9 October 2001 (continued)
Safeguarding Industries in Northern Ireland
Mr McClarty:
I beg to move
That this Assembly, realising the full extent of international terrorism, resolves that the Executive should re-double its efforts to safeguard existing industries in Northern Ireland and give maximum support to agencies responsible for the generation of new national and international investment.
I am painfully aware that the announcements of job losses and cutbacks in the past fortnight could be the tip of the iceberg. That gives me all the more reason to feel disappointed that the Benches are so empty this afternoon.
We all recognise the pain of unemployment. We all know people who have had their dreams shattered virtually overnight. We all know entrepreneurs - many of them self-made people - who wait anxiously to see how their enterprises will fare in the coming turbulent months.
The real tragedy is that Northern Ireland had been performing so impressively before the onset of global slow-down and the horrendous events of 11 September. It is worth reminding the House of the achievements of the local economy. In the past three years the IDB has promoted a total of over 21,000 jobs, of which 16,200 were with externally-owned companies and almost 4,000 with companies that are locally-owned.
From 1995 to 2000, the figures are even more impressive. In that period Northern Ireland attracted over £300 million in new foreign direct investment, and a further £1·6 billion from overseas firms already located in the Province. Almost 40,000 new jobs were promoted and sustained by foreign direct investment.
Rising productivity and consistent growth in overall competitiveness are features of a modern, progressive and outward-looking economy. Our performance has easily outstripped that of the rest of the United Kingdom. In the year to March 2001 output rose by 8·1%, compared to the UK average of 1·2%. Output in techology-led sectors such as electrical and optical equipment increased by 229% in the past five years, while the UK figure stood at 41%.
Our export performance has been nothing short of remarkable. Even with difficult sterling exchange rates, exports were up 14·2% in 1999-2000. In the year to June 2001, export markets outside the European Union jumped by 20% to represent almost half of Northern Ireland's exports, now accounting for 39% of our total sales.
We are succeeding, but the task is far from complete. Global slowdown and the prospect of a full-blown recession will mean retrenchment, economic hardship and the prospect of only modest growth. If nothing else, the economic indicators that I relayed to the House tell us that we are, perhaps, better placed to meet whatever crisis arises. As the Minister of Enterprise, Trade and Investment acknowledged last week, we must brace ourselves for further job losses, gloomy news and economic reversals that threaten our manufacturing and service sectors.
We need a co-ordinated, joined-up approach to counter the threat. We need Government Departments to work under the direction of the Department of Enterprise, Trade and Investment to plot a course that will see us able to offer assistance to safeguard jobs and businesses, and we must redouble our efforts to attract new national and international investment. We saw the first signs of that last week when Sir Reg Empey told the House that he had suggested a range of measures to Downing Street and the Department of Trade and Industry to alleviate the problems at Bombardier Aerospace. In the case of B/E Aerospace (UK) Ltd, Kilkeel, specific, speedy and practical help was extended to protect employment in a TSN.
As far as the crisis facing the aerospace industry is concerned, the Administration made representations to British Airways and Aer Lingus, who announced their decisions to withdraw from Belfast International Airport's Heathrow and Shannon routes. Other companies in that hard-pressed sector should be encouraged, particularly British European and Easyjet. This morning, British European announced the addition of two daily services from Belfast City Airport to London City Airport. British European's managing director, Mr Jim French, confirmed the company's takeover of the Belfast City to Newcastle route following the demise of Gill Airways. British European flies about 800,000 passengers per year to and from Belfast, a figure that will rise due to the latest developments. If Easyjet gets its way, the route from Belfast International Airport to Heathrow will be safeguarded, and I was pleased to note British Midland's decision last week to operate four daily services from Belfast International Airport to Heathrow.
In this unfolding and fluid situation, some companies are clearly suffering and, at the same time, there are companies that are poised to exploit a commercial advantage or fill a gap in the marketplace. These airlines are demonstrating enterprise, and, in British European's case, the commitment made today is timely and welcome.
My constituency, East Londonderry, has not been immune to the recent economic downturn. Coleraine's largest manufacturing employer, AVX Ltd, has had to lay off approximately 200 people in recent months. Although it has experienced a slight improvement in recent weeks, it is still much too soon to gauge the effects of the global slowdown and the events of 11 September on that sector of the market. The textile industry in my constituency has also suffered adversely with many redundancies and closures.
Manufacturing is not the only sector that is suffering. No economic sector has greater potential in Northern Ireland than tourism. In recent years, we have witnessed a steady increase in the number of visitors to the Province. However, the figures still fall short of the potential that could be achieved. There is little doubt that, if the current global war on terrorism continues or escalates, it will have an effect on the number of tourists who are willing to cross the Atlantic to Ireland and Northern Ireland. We may suffer a significant downturn in our North American and, to some extent, European markets. In recent years, we have welcomed international hotel chains, such as the Radisson Hotel in my constituency, to Belfast and other parts of the Province. We must safeguard these trends.
As the supply side continues to increase, we must work on the demand side. The vagaries of our weather dictate that we must encourage demand for a shoulder season and off-peak and event-led tourism. We have excellent hotels, conference and sporting venues as well as a great outdoors. Those should all be adequately marketed to a national and international audience in order to encourage their investment in our tourist product. Running parallel to that is the necessity to address key issues in the sector such as hospitality training and recruitment challenges, as well as providing efficient transport and infrastructure networks.
Retaliation against international terrorism began on Sunday and, as we meet today, it is being prosecuted vigorously. Undoubtedly, there will be consequences for the Northern Ireland economy - some good, some adverse. Terrorism - either of the home-grown variety or in the form of the Taliban - must not be allowed to succeed. Northern Ireland needs stability more than anything. It needs the opportunity to advance on the basis of the gains already made. I appeal to the Members of this House by saying that the stability we need must come in the form of decommissioning. I make no apology for saying to Republicans directly: "Decommission now, not only for your own sake, but for the sake of the entire community as we try to protect our manufacturing and business base against a slow-down or a recession that is likely to test our ability to the limit." I trust that the motion will attract unanimous support from all sides of the House.
Dr McDonnell:
I am pleased to support the motion because it is timely and useful. The events of 11 September 2001 will turn out to be pivotal for our immediate and future economic state. When those events occurred. I was trapped with the proposer of the motion and others in Brussels airport en route to Denmark to look at some of the major energy issues facing us. I could not help thinking that the events in New York made our work seem out of context; that if those events were to realise their full impact, energy might not be the major issue we thought it was.
Everything changed that day - some things will never be the same again. However, the downturn had already begun; over the previous 18 months we had seen evidence of it through the demise of some dot-com companies. That downturn has accelerated.
The first clear message that the House should learn from the events of 11 September is that we have a global economy. Within hours of their taking place, the events in New York led to the threat - and in some cases more than just the threat - of insolvency for numerous American and European airlines. The proposer went into detail about that. The downturn in those airlines, and the financial crisis that they found themselves in, rapidly reduced the need for new aircraft and aircraft parts. In turn, jobs were threatened in Kilkeel, County Down. That is not something that we would have envisaged on 11 September. Nevertheless, the spiral of decline has continued, and there will be an ongoing knock-on effect on our economy.
Another clear message we received is that we can all do well when things are going well; however, in bad times we will all be affected. Even the Minister of Enterprise, Trade and Investment's tremendous skills cannot protect us from the chill winds that are now beginning to blow.
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The events of the 11 September 2001 and their fallout have rapidly taught us just how much influence and leverage we have over indigenous local industry, which has nowhere to run to. It is quite easy for big multinational operations with a headquarters in Toronto, Chicago or Boston to cut back on what, for them, could be a relatively insignificant subsidiary or branch in Belfast. It is much harder for a local company to cut back if its base and headquarters are here.
Perhaps we are all Nescafé instant experts on how to get jobs and generate an economy. The events of the last month show clearly that the prosperity, growth and economic well-being put together brick by brick, by slow, steady slog, can be taken away at a stroke.
The motion seeks a redoubling of efforts to safeguard existing jobs. That is a desirable objective, and we have a clear window of opportunity to assess our indigenous businesses fully, including the small businesses that are often neglected. Those small and perhaps not-so-small businesses may be able to exploit opportunities that perhaps have lain stagnant for some time. Perhaps some event has had a stranglehold on them and held them back. We may now be able to focus on some degree of growth, expansion and job creation in our indigenous industry.
I have often heard cries from local industry that it is neglected and taken for granted. This is due to its perception that large packages of considerable financial clout were offered to foreign investors here while local businesses were rarely granted the same favour. I am not saying that that did happen. However, it is a perception that we now have an opportunity to deal with.
Furthermore, there is an chance to dramatically expand some niche markets for local industry and, in particular, to avail of a range of life and health science opportunities. Mr McClarty is well experienced in the advances that are being made by the University of Ulster at Coleraine - I only wish that similar advances were being made in the Belfast region. A range of medical and bio-medical opportunities exists within the context of expanding niche markets.
Moreover, we must be honest with ourselves. There has been much waste, padded bureaucracy and inefficiency under the guise of research and development (R&D). I hope the Minister will take the opportunity to find out what happens to the substantial research and development funds in the Department of Health, Social Services and Public Safety budget. I have long been dissatisfied with the amount of money that is put into R&D and the lack of any product from it. There is a tremendous opportunity to create between 3,000 and 5,000 jobs in a short period in the complex employment network that bridges enterprise, trade and investment and our health capacities.
The motion also requests maximum support for agencies responsible for the generation of new national and international investment. No one could disagree with that. I will gladly support those agencies, but I want to be sure that they want my support. I need to be sure that they are operating with a maximum of efficiency and effectiveness. In the past I have not been sure that some of our agencies have been as inclusive and user-friendly - not just to clients but also to local government officials, local councillors and others - as possible. Though some of us may not have been as enlightened, well-informed or well-heeled as they were to deal with some of the issues involved, our intentions were nevertheless honourable and our commitment genuine. As we move forward, we have to get everyone who can contribute into the tent. We have to be as inclusive as possible.
I do not want to drag on, but I do have some other brief points. I want to be sure that we reduce duplication. I am thinking of our various local enterprise agencies. It is no secret that we have a whole web of people and organisations trying to create jobs - or so they tell us. It appears to me that, at times, they spend more money on, and put more effort into, surviving and competing with each other than actually creating wealth. We have to find some mechanism, subservient to our main agencies, where they can fit in - underneath the skirts or umbrella of the main agencies - and play a constructive and creative role. There will have to be some considerable amalgamations, and perhaps a fivefold reduction in the number of organisations.
I am aware that with the present restructuring of IDB, LEDU, IRTU and others, we are reorganising ourselves for the twenty-first century. However, in that reorganisation we have to be sure that we develop a strong structure, with the right attitude. We have to create a can-do and will-do situation - a sort of "Bob the Builder" role. Perhaps, Mr Deputy Speaker, you are not familiar with Bob the Builder, but through domestic circumstances I have become extremely familiar with Bob the Builder in the last few months. [Interruption] Bob the Builder cannot say no; he can fix anything, and we are asking the Minister to be a sort of Bob the Builder - a will-do and can-do individual.
Joking aside, we need to be as creative as possible. In our new agency we need to get as far away from bureaucracy and process as possible, and to focus on results. Process is necessary when public accountability is involved, but we cannot allow the process to smother the product.
In redoubling our efforts we cannot allow any of the hard-won gains of the last 10 years to slip away easily, and I urge the Minister not to allow that to happen. I urge too that the men and women of the small business community be listened to. In the past we have found that the whole generation of the last surge in the American recovery was driven by small businesses.
I do not want to hog this debate, but I want to briefly mention the possible role that local government can play. I urge that we look at sectors where we have strength, such as food and agribusiness - even though the latter has taken a battering in the last few years. The proposer mentioned tourism, and I do not want to dwell on that, or indeed on the transport connections that I think are vital.
I want to mention e-business, e-government, and the whole opportunity afforded by the downturn. We need to get our act together in a much more efficient way. We should cut out the bureaucracy and make things work. We now have an opportunity to gear ourselves up for the next upturn. For years we were struggling behind, but we have made tremendous gains in the last 10 years. We would much prefer that we did not have a downturn, but with the downturn we can take advantage. There are opportunities in the downturn for us to position ourselves and ensure that we advance on the next surge at the front of the field.
Mr Poots:
I support the motion, and I recognise its import. To take it to its natural conclusion would mean providing more financial support for the Department of Enterprise, Trade and Investment, if that were called for. Last year's Budget did not provide a significant increase in that Department's budget, and the same is true of the current draft Budget. Those decisions were right at the time because the economy was strong, and it cost less to attract inward investment. However, in recent months there have been signs of economic change, and that change became ultimately more dramatic as a result of the events of 11 September.
The first line of the motion states that the Assembly realises the full extent of international terrorism. There is probably no political body in the world better placed to realise the extent of international terrorism than this Assembly. For 30 years so-called freedom fighters have used arms from eastern Europe and Czechoslovakian Semtex supplied by Col Gaddafi in the Middle East.
They have trained with the Palestine Liberation Organisation (PLO), with the Revolutionary Armed Forces of Colombia (FARC) and with ETA, and they have carried out a campaign in five different countries in Europe - but in particular, in our own country. We fully know and understand the extent of international terrorism in our own country. It has decimated every opportunity that Northern Ireland's tourism industry has had to create jobs. It has stopped the tourism industry here from realising its potential.
Our geography, weather and other factors are similar to those in the South of Ireland and Scotland, yet both those countries can attract enough tourists to represent 7% of their gross domestic product, while we can manage only 2%. The role that terrorism had, and continues to have in destroying our tourism industry is clear.
Dr McDonnell made some salient points. Promoting jobs is not so difficult when the world economy is good. It is a different task altogether when the world economy is in recession. In a sense, the Minister of Enterprise, Trade and Investment had an easy ride. I am not saying that he has an easy job by any stretch of the imagination, but he did have an easy ride in attracting inward investment, because world economies were going well.
America could not get enough people for the jobs in its own country, so it was looking at other areas where those jobs could be carried out. In the new era of electronic communications, the option of moving to the other side of the Atlantic was much more realistic than it might have been in the 1970s, when a similar American situation prevailed. In the light of those factors, the Minister's job was not so difficult. In the current circumstances, however, we are going to see what he is made of.
Shorts have indicated that they are laying off 2,000 workers. In my constituency, Shorts have a base in Dunmurry that employs 680 workers; that is just over 10% of its workforce. It appears, therefore, that some 200 of those workers could lose their jobs. That is not all. Many of my constituents travel to work in Newtownabbey, Queen's Island and the other Shorts bases.
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It is likely, therefore, that more than 200 jobs will be lost in the constituency. In addition, EM-Solutions (Electro Mechanical Solutions), a successful company that has delivered a great service to the local economy, has recently made 90 workers redundant. That would have had an impact on the economy before 11 September, but the events of that date could further exacerbate the problems.
The loss of 160 at British Airways, located in the adjacent constituency of South Antrim, will also have an impact, because it is likely that some of its former employees came from Lagan Valley. Many of the firms that supplied equipment and carried out subcontracting work for Shorts were based in the Lagan Valley constituency. Those events will have a devastating impact on my constituency.
The impact is not confined to the manufacturing industry; it feeds right through to the service sector where many will feel the pinch as a result of what has happened. For a long time I have maintained that the manufacturing base is by far the most important element of our economy. While I like to hear of the creation of service jobs, I much prefer to hear of new manufacturing jobs being created, because if the manufacturing base is in place, the service industries will flow from it. It is therefore essential that we concentrate on ensuring that our manufacturing base is consolidated.
"Consolidation" is the key word at this time. Companies might have to downsize by paying off employees, and, while we must do our best to try to avoid that situation, it is much more favourable than the complete closure of a company. If, during a world economic recession, a company pays off some employees, and does not close, it will have the opportunity to increase its staff levels when the economy recovers. If companies are allowed to close down altogether, no base will remain. It is therefore important that the Minister of Enterprise, Trade and Investment and his Department seek to consolidate jobs and companies as far as possible so that companies do not close.
I hope that the Minister succeeds in preventing the closure of the factory in Kilkeel, because it provides essential work for an area that is not well located to attract fresh manufacturing jobs. My Colleague, Jim Wells, has been encouraged by the support that he has received from the Minister in that regard.
The Department needs to set up an early warning system. It must look at what companies are likely to suffer or to be hit as a result of a downturn in the world economy. It must at an early stage identify the weak areas and implement contingency plans to assist those companies that are affected.
Having said all that, I am happy to support the motion. As I said at the outset, it is essential that we have a strong economy. If necessary, we should divert money from other Departments to retain that strength. The other Departments will suffer as a result of a weakened economy, and they will benefit from a strong one. It is essential that in this situation we look after the Department of Enterprise, Trade and Investment.
Mr J Kelly:
In normal circumstances, the Ulster Unionist Party's motion would be laudable. However it is slightly surreal that Ulster Unionist Party members should call on the Executive to redouble their efforts to support local industry in the very week that their party leader has announced his intention to collapse these institutions. It is clear that any progress, particularly on economic development and safeguarding existing industries, relies on the Assembly's continued functioning.
Reg Empey has displayed a degree of competence and energy that recalls the late Brian Faulkner; there is no better compliment that any Nationalist could pay him than that. It would be a pity to lose such energy, enthusiasm and commitment to the creation of the kind of economy that would sustain the North of Ireland. Everyone wants to see the institutions continue; no one more so than we on this side of the House - [Interruption]. It is those who are laughing who least want to see the institutions coming down.
I do not want to rehash yesterday's debate, but I must say that the leadership of Sinn Féin has made - and continues to make - a genuine effort to resolve the outstanding differences that impede the further progress of the institutions. Martin McGuinness and Bairbre de Brún have played an outstanding role and have demonstrated their ability to use the fruits of the peace process or the political process to help not just their own community, but the community at large in the North of Ireland.
It would not be helpful to introduce bitterness or vindictiveness into the debate, but we should consider a recent survey by PricewaterhouseCoopers, which said that the suspension or collapse of the Assembly would cause 88% of companies to reduce their investment plans for the North of Ireland. That gives us an indication of the likely economic effects of any political downturn. What would be the effect of such a reduction in investment and such a diminution of confidence in the peace process?
No one could disagree with the motion. There has been agreement in the Health and Education Committees about the need to improve health or education services or to improve the lot of the unemployed, the young and those who are finishing education and seeking employment at home, so that they can rear their family here. We all have an obligation to them. Perhaps, some of us who are getting on a bit look at our grandchildren and wonder what kind of society we will leave to them. We must create a better and more secure future, one in which we can all share.
Mr Deputy Speaker:
I call Mr Neeson, who wishes to speak in a private capacity rather than as Deputy Chairperson of the Committee for Enterprise, Trade and Investment.
Mr Neeson:
In the circumstances, it is better that I speak as an individual, although much of what I have to say will be endorsed by other members of the Committee.
I welcome the opportunity to speak on the motion. It is an important one, bearing in mind the circumstances in which we now live. It is almost exactly four weeks ago to the minute that we witnessed the terrible events in the United States. Dr McDonnell was correct when he said that things would never be the same again. It is somewhat ironic that we are debating this issue today, when we consider the implications of yesterday afternoon's debate.
What are those implications? At this point, we face the collapse of the institutions. By allowing that to happen, we are handing all of our responsibilities over to the street politicians. We have seen marches through Belfast in recent days. Does that provide stability? I do not think so.
I am sorry that Mr John Kelly did not remain in the Chamber. We are involved in a process. Many of us - not all - signed up to the Good Friday Agreement. We signed up to it in the hope and expectation that it would be implemented in full. It is to be regretted that the paramilitaries, both Republican and Loyalist, have failed to live up to their responsibilities. That is why I am sorry that Mr Kelly is not here.
It is not just the Ulster Unionist Party, the DUP or the other parties that are calling for decommissioning to take place. With the events of 11 September, the discovery of Republicans in Colombia and the almost daily violence from Loyalist quarters, the world is now demanding that international terrorism should be brought to an abrupt end. I entirely agree with that. The onus is on all those involved to live up to their responsibilities so that the institutions can move forward. However, it is regrettable that the leader of the Ulster Unionists is going to carry out his proposal to withdraw his party's Ministers from the Executive.
The benefits of devolution are recognised by the vast majority of people in Northern Ireland. Devolution has worked in the areas of enterprise and the economy. After Nortel's recent announcement that it was going to cut 20,000 jobs worldwide, Sir Reg Empey immediately got in contact with the company. His intervention, along with other circumstances, meant that Northern Ireland did not suffer the impact that many dreaded. That shows the importance of devolution and of having someone on the ground to deal with such issues. That was clearly seen last year when, at times of difficulties for Bombardier Shorts and Harland & Wolff, Sir Reg Empey was there.
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Direct rule is not good for Northern Ireland. Despite the good intentions of the various NIO Ministers, we have all come to realise that during the period of direct rule we had almost 30 years of gross underfunding in our public services, such as education, transport and schools.
Most Members have acknowledged that the downturn in the economy began before 11 September. Northern Ireland is very much a part of the global economy. We cannot ignore that, nor the difficulties that we will face in the days ahead in trying to attract inward investment from overseas. It is going to be very difficult. However, our economy has a very strong indigenous base. We have over 80,000 small businesses, the vast majority employing less than 50 people. That is something that needs to be built upon and encouraged. We need to concentrate mainly on the strong base that we have.
We need to encourage more companies to avail of the research and development facilities that exist and will be created in Northern Ireland, not only through the science parks but also through the universities. It is vital now to develop marketing, to encourage exports and to create greater competitiveness within the industries of Northern Ireland.
There is also the issue of the development of the European market. I look forward to the enlargement of the EU. It will provide a challenge, but it will also provide major opportunities for many companies in Northern Ireland. It is up to businesses to take up the challenge. It is also up to the Assembly and the companies to avail of the new facilities of the Executive office that we have now in Brussels. In the same way, we are at present developing our own office in Washington. It is important to develop IDB, which will become Invest Northern Ireland.
A big danger on the horizon for Northern Ireland is the danger of isolation. We have witnessed the proposals by British Airways to withdraw from Belfast International Airport. Any other air carrier that wants to take up the slots that British Airways will not be using at Heathrow should be granted them. We knew that Sabena was withdrawing, but its recent announcement was also a bitter disappointment. With regard to direct links with America through Aer Lingus, I was talking at the weekend to one of my predecessors, John Cushnahan, MEP for Munster, and the two of us hope to work together to try to retain at least some of the services from Belfast to Shannon. It is a very important link. However, there are serious dangers there.
This afternoon I received a letter from the Northern Ireland Hotels Federation warning of the same dangers. The tourism industry has had a difficult year, first with the foot-and-mouth disease crisis and now with events following 11 September.
I welcome the interdepartmental approach that Sir Reg Empey is prepared to take on many issues. He and Seán Farren have worked closely together. Infrastructure is important, but ultimately the stability of these institutions is vital for the future.
Several months ago the Committee for Enterprise, Trade and Investment brought forward its report in response to 'Strategy 2010'. It was a good report and, if anything, is more relevant now than ever. I hope that many of the major recommendations - particularly those relating to small businesses, which the Minister knows I have a deep interest in - contained in the report will be implemented as far as possible to ensure that the interests of the economy are safeguarded.
Edwin Poots mentioned the need for extra money. While there may be a small reduction in next year's Budget, it is important - and this was outlined to the Committee last week by departmental officials - that there is flexibility in approaching it. I am sure that the Minister would agree with me on that.
I support the motion. I meant what I said about the institutions very sincerely, because it has been shown that the Assembly works. It is important that Members be allowed to continue that work.
Ms Morrice:
I support the motion. Given the state of the world economy in the aftermath of the 11 September attacks and what might become of the economy, and given what the Minister of Enterprise, Trade and Investment said to the Assembly last week about the potential fall-off in foreign direct investment - and Members are aware of that serious possibility - the Minister must urgently consider a serious rethink of the direction of Northern Ireland's economic policy. It should not be a knee-jerk reaction to what is going on but a reassessment of our priorities in light of the global circumstances.
There must be a new focus, as Mr McClarty said, on rescuing those industries that are feeling the immediate effect of the 11 September events. Unquestionably, companies such as Bombardier Aerospace, and the airline and tourism industries, will need special attention, and we do not know whether other industries will join that list. The need for funding to rescue, to help and to divert the skills of those people into other valuable areas is important. I welcome the fact that the Minister of Enterprise, Trade and Investment is working with the Minister for Employment and Learning on those immediate needs.
As each Member has said today, greater support is also needed for local indigenous industries, on which the economy will become more dependent as the weeks, months and - I predict - years go by.
I have figures from the IDB for funding inward and local investment. I was not surprised to see that IDB support during the years since 1995-96 for inward investment compared with its support for local investment has been at a ratio of almost 5:1. The IDB has put approximately £500 million into attracting foreign investment to Northern Ireland and just over £100 million into supporting local industries. The ratio will have to change.
For a period during 1995-96 it was costing Northern Ireland £23,619 per job for the IDB to bring in foreign investment. The cost was high. The cost has reduced, and we welcome that. Much of the policy has worked, and we have had good, healthy investment in Northern Ireland, particularly in recent times. However when one takes the global context into account there needs to be a volte-face. The money that has been put into attracting foreign investment must be put into local industry because there will be much less foreign investment available, at least in the coming year. The Minister knows that I have been suggesting this for some time, but since 11 September it has become more important.
I want to focus on three sectors that I think merit specific attention. First, there is the manufacturing industry. In the housing market it is said that price is dictated by three things; location, location, location. In a shrinking global market, I say that what matters for our industry is reputation, reputation, reputation. In Northern Ireland the reputation of the textiles industry is second to none. Irish linen, for example, is of the highest quality and is a superb product that we can export throughout the world; to the tables of Presidents and the fashion centres of Milan. However, I do not believe that we are marketing it enough. We should be doing more to market it locally and globally.
We have been watching our textiles industry shrink. We have such special skills in textiles; and we know that people have to be clothed throughout their life. Why should we allow competition from the Far East to reduce our market? Why do we not push harder? I appreciate that work is being done using experts from Denmark to examine the textiles industry. However, I am impatient; I want things to happen faster, and I want us to get there faster. Northern Ireland and our textile industry are worth it.
Northern Ireland has a worldwide reputation for shipbuilding. Why is it being allowed to disappear? Think of the skills that are being lost. There is one contract left at Harland & Wolff, or so the television reports tell us. The workforce has fallen from 30,000 to 1000. It is a superb industry employing skills that should be valued, supported, rewarded and helped.
I visited the research and development office in the Industrial Research Technology Unit (IRTU). Their computer screens show stretched aeroplanes and all of the new technology that is making the aircraft industry work so well. Why is this technology not being applied to the shipbuilding industry, and particularly to Harland & Wolff? It should be allowed to move away from shipbuilding and into areas such as offshore wind energy, a pet subject of mine. Something like that would be valuable to Harland & Wolff.
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We have a superb reputation for producing excellent, clean, green farm products. Why do we not push organic produce? We have a healthy product that can be sold in these islands and beyond. We need to expand the export market and provide more support for indigenous industry.
One of the most important areas that we need to consider is energy. The Committee for Enterprise, Trade and Investment is conducting an energy inquiry. In the aftermath of 11 September, we need to rethink our energy policy, especially our reliance on imports. We have a perfect opportunity to meet our energy needs with local supplies, particularly renewable energy supplies. It has been said that Ireland's potential for wind energy equals that of Saudi Arabia's for oil. Why are only a few windmills dotted around Northern Ireland? We recently visited Denmark, which has many windmills. There is no need for us to destroy our wonderful landscape in the process - we can consider offshore wind energy. That option has been taken up elsewhere. We have the potential to reassess our energy policy and look at renewable sources such as water, waves, solar energy, biomass and recycling. Those could change our approach and make us more self-sufficient in energy, which is vital to our economy.
Mr Neeson mentioned small businesses, the backbone of our economy. Dr McDonnell said that there was much more support for indigenous industry, especially niche markets and creative industries - things at which we excel. I refer to support for life and health sciences, and for the film industry. It is vital that we enter those areas using new technology. People are moving into the new sector of social economy that we need to support, similarly, we need to support socially-responsible business because that is to the fore globally. Business must put something back into the community as well as take from it.
The Minister has heard my plea many times before. It is now more poignant and important than ever. We have a worldwide reputation for excellence. Please let us push that. We have so much to do - not just to make Northern Ireland normal, but to make Northern Ireland great in world terms. We have far too much to lose if we stop now.
Dr Birnie:
I congratulate Mr McClarty and Mr Ken Robinson. The motion is vital, and it is regrettable that attendance is so low.
The motion refers to economic development agencies, and one crucial issue in that context is research and development. Nothing can contribute more to economic growth than research, development and the associated training of human capital. That is not something for which my party has responsibility, but if we are at the point at which the Assembly is to be paused, it is a good time to evaluate progress under devolution on certain fronts.
Mr Neeson referred to the particular importance of cross-departmental work. To take the Executive as a whole, there has not been much interdepartmental work in the past couple of years. The Executive programme funds have had only a limited effect. However, one favourable exception is that the relationship between the Department of Enterprise, Trade and Investment and the Department for Employment and Learning seems to have been close and fruitful.
I commend the Minister of Enterprise, Trade and Investment and his Colleague at the Department for Employment and Learning on their work to promote a regional research, development and innovation strategy. I urge them to complete that as soon as possible and to conduct an audit of the R&D effort across the entire economy, including the public and private sectors and the universities.
The Committee for Employment and Learning has already made recommendations on such a strategy as part of the consultation. The Committee tends to favour the 1999 recommendation from the Northern Ireland Economic Council that there should be a single unit in Government that could bang together departmental heads to achieve a greater output from Northern Ireland's R&D spend. Dr McDonnell made some interesting points on that. Perhaps such a unit could be based in the Office of the First Minister and the Deputy First Minister; perhaps it could be aligned with the Economic Policy Unit.
It is interesting that both the Minister of Enterprise, Trade and Industry and the Minister for Employment and Learning have proposed that the management or co-ordination role for public sector R&D should lie with the Industrial Research and Technology Unit (IRTU). Is that appropriate, given that IRTU will form part of the new single agency, Invest Northern Ireland? Will that new role fit with its industrial development role?
Regardless of the institutional architecture, it is more important to raise the total amount of R&D in the local economy. That currently stands at 0·6% of GDP, which puts us almost at the bottom of the western international league. We should be reaching at least 1%, as the Irish Republic has achieved in recent years. It is a matter of regret that from the perspective of employment and learning, the block funding for university-based R&D in Northern Ireland declined during the 1990s, whereas in Great Britain it grew by about 30%.
The economic agencies must encourage overseas marketing. They need to encourage preparation for or adaptation to the introduction of the European single currency in January 2002. Even whether one thinks, as I do, that the balance of economic arguments alone stands against the United Kingdom joining the single currency, our companies must be prepared to deal with it.
Finally, much work on R&D and related issues has drawn on the research of the Northern Ireland Economic Council. There is an ongoing review of independent economic advice and research for Government in Northern Ireland. It is important to get the right information in order to form a sound basis for policy.
At present, we have the Northern Ireland Economic Council and the Northern Ireland Economic Research Centre, each of which differs in its own way. There is a role for both types of research in the future, although whether those units should merge or not is another issue. It is important to strengthen the Economic Policy Unit so that we can have strategic oversight of all Departments in order to promote higher economic competitiveness and productivity.
I wish to refer to some of the remarks made by the Sinn Féin Member, Mr John Kelly, who, unfortunately, is adopting an abstentionist policy at this point.
At least, or at the very best, his party is ambiguous about the use of violence to "break the British connection", as Sinn Féin would say. Somewhat hypocritically, Sinn Féin also wishes to see more money squeezed out of the imperialist British Treasury, as it would term it, to underwrite some of its economic notions. I am reminded of Gerry Fitt's remark about getting the Brits out but asking them to leave their chequebook behind. That is not the way forward. There must be a decommissioning of weapons and of mindsets. I support the motion.
Mr Dallat:
I am not sure what efforts the Executive can make to safeguard existing industries or to attract new industries, given the arrangements for the orderly transfer of responsibility to direct rule. Mr Trimble said that he was preparing a soft landing for the Executive and the Assembly. Let us hope that there is progress on decommissioning from everyone, and an understanding by Mr Trimble that the Assembly is not his property but that of the people who voted overwhelmingly for it.
Since the democratic institutions came into being, we have been told that the greatest single contribution to sustaining economic activity is the retention of those institutions. However, there seems to be an obsession with doing away with them. That makes no sense whatsoever - not now and not ever. The very institutions that can instil confidence in the business world and create the potential for inward investment have been undermined continually by those who have caused their suspension on more than one occasion.
The violence of the past 30 years has cost tens of thousands of jobs. No one would deny that fact, given that the reasons for murdering industrialists, burning out factories and warehouses, and generally causing mayhem were to undermine the economy and to cause widespread unemployment. I hope that that aspect of our lives is in the past and has gone for ever. One would have hoped that, given our relative stability and that the political institutions were working well, there would be opportunities to rebuild what had been destroyed or neglected during the past 30 years of direct rule. However, I am pessimistic.
David McClarty, a mover of the motion, knows as well as I do that there is enormous potential for the generation of new international investment. He has been to the United States on several occasions and knows that the one fundamental question that is asked relates to political stability and the evolution of the peace process.
I shall travel to Pittsburgh and Washington later this month to renew and advance relationships that both Mr McClarty and I have helped to build in the past few years. I shall be supporting the University of Ulster and shall do everything possible to influence industrialists to take advantage of the ultra-modern research and development facilities at the university.
Years of effort have gone into the science parks that were created on the back of a stable society in which politicians were expected to sort out their problems without pulling down the political institutions. Surely we owe it to the people who placed their confidence in us to ensure that the present crisis is resolved in a way that does not penalise the very people who helped to keep the economy of this country going while others were pulling it down.
We need look back no further than a few months ago, when the foot-and-mouth epidemic threatened to ruin our tourist industry, for evidence that the Assembly can manage the economy, protect jobs and do what Governments are expected to do. Through the Department of Enterprise, Trade and Investment, and in co-operation with Coleraine Borough Council and local hoteliers, it was possible to put together a rescue package that shielded the tourist season from the worst effects of that crisis, and saved many jobs and businesses. Sir Reg Empey has, of course, been in my constituency on many occasions, where he has promoted jobs, opened new premises, and generally encouraged economic growth and job creation. He could not have been better. He is an outstanding Minister who is doing a good job.
His Colleague, Seán Farren, who has responsibility for employment and learning, has transformed the entire approach to further and higher education and widened access for people who previously had no hope of a vocational or academic education. The problems of illiteracy and innumeracy, which were not only personal injustices for employees but a real difficulty for them in the changing world of new technology, are being tackled so that Northern Ireland will no longer be three times more illiterate than some of its European competitors.
Let us hope that common sense will prevail in the days ahead and that those of us who were elected to the Assembly to help to improve the standards of life for everyone will be allowed to get on with that job. Let us hope that we do not have a repeat of 1974, when political institutions were pulled down by hooded men and ordinary decent people were consigned to 30 years of misrule called "direct rule".
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Many did not survive, because a political vacuum creates opportunities for men of violence who have no interest in protecting industries or in creating jobs.
I have no doubt that we can create full employment, attract new industries, lift our labour force to new heights and earning capacity, and educate our youth to compete with those in any other part of the developed world. There is no better part of the world; the ordinary people here have hearts of gold. We owe it to them and to the next generation to create stability, to build confidence, to forget about political chess games and to get on with the job in peace and in partnership.
I worked with David McClarty for many years. I know that he and his Colleagues on the Ulster Unionist Benches are sincere, and I have no difficulty in supporting the motion. I only wish that their party leader were singing from the same hymn sheet - or at least taking singing lessons. However, we must look on the bright side and assume that common sense will prevail. We must believe that the rights of ordinary people are greater than the survival of private armies. We must also hope that our politicians will accept that they are no more than the servants of the people. They must develop the confidence and self-esteem to allow them out of their trenches and on to the middle ground, where partnership, friendship, trust and co-operation are the cornerstones on which to build new jobs and to protect existing ones. Rather than put out the lights in the Assembly, we should radiate hope and prosperity for the future. Industrialists here and abroad have told us that, and they know.