COMMITTEE FOR REGIONAL DEVELOPMENT

Committee Office Room 402
Parliament Buildings
Belfast
BT4 3XX
Tel: 02890 521970
Fax: 02890 525927
Email committee.regionaldevelopment@niassembly.gov.uk

Independent Review of Economic Policy (DETI / Invest NI)
1st Floor
Waterfront Plaza
8 Laganbank Road
Belfast
BT1 3BS

27 February 2009

The Independent Review of Economic Policy (DETI / Invest NI)

Dear Sirs,

The Regional Development Committee noted your call for evidence and, at the meeting of 24 February 2009, decided to make the following general response to the Independent Review of Economic Policy (DETI/ Invest NI).

The Northern Ireland Executive has an impressive programme of infrastructure investment, as set out in the capital budget for 2008-11 and the Investment Strategy for Northern Ireland. The Committee has expressed its continued support for the Department for Regional Development in delivering on the road, rail, and water elements of this programme.

The Committee is aware that connectivity and location factors are important drivers in economic growth. A low cost, reliable and high quality public transport network is essential to making a pool of labour available to employers. Ease of connectivity to ports and airports, road network quality and journey times are key factors in determining transport costs for local firms. Both attractive public transport options for commuters, and efficient road journey time and rail freight options will go some way towards reducing Northern Ireland’s carbon footprint; an approach identified in HM Treasury’s Stern (2006) and Eddington (2006) reports as the pro-growth strategy.

Members are of the view that opportunities now exist, with the Review of the Regional Development Strategy, and the Review of the Regional Transportation Strategy to prioritise infrastructure investment that both reduces carbon emissions and supports growth and productivity.

The recent success by local infrastructure and transport firms in competitive tendering demonstrates that companies in Northern Ireland can and are world leading. In this context, opportunities may also exist to support and develop the competitiveness of local enterprises, through the provision of advice and practical assistance in identifying, building and developing strategic partnerships and knowledge / skills sharing. Information dissemination and a clear forward programme of public investment projects, as well as a steady deal flow are also essential if firms are to invest the often considerable sums required to bid for large public investment contracts, and train or recruit the staff necessary to deliver on these bids.

The Committee is of a view that such a significant investment programme could provide opportunities, through targeted and support training, to build, maintain and enhance the skills of the Northern Ireland labour force; a factor which is critical to retaining skilled professionals, enhancing Northern Ireland’s attractiveness to inward investment, and will underpin the ability of local firms and individuals to take advantage of the economic recovery when it comes. For those enterprises with an already high skill base, continued support for R&D, and facilitating firms in innovating and applying these innovations to improve productivity will strengthen the position of these firms in an increasingly difficult global marketplace.

At this challenging time for the global economy, and particularly for businesses in Northern Ireland, the Committee for Regional Development would encourage full, creative and joined-up consideration of ways in which infrastructure investment could, without jeopardising important value for money considerations or compliance with EU procurement and competition provisions, be harnessed to the widest possible benefit of the enterprises and people of Northern Ireland.

Yours sincerely,

Fred Cobain, MLA
Chairperson of the Committee for Regional Development