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COMMITTEE FOR REGIONAL DEVELOPMENT

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Varney Review of Competitiveness of Northern Ireland
Room 1/E1
HM Treasury
1 Horse Guards Road
London
SW1A 2HQ

29 February 2008

Varney Review of the Competitiveness of Northern Ireland

Sir David,

  1. Further to the Committee for Regional Development’s consideration of the call for evidence to the Varney Review of Competitiveness of Northern Ireland, the Committee is pleased to submit the following paragraphs to the review team.  
  2. Transport infrastructure is a key driver of economic development and provides the means for all citizens to access social and educational services as well as leisure facilities. A modern economy needs an efficient and low cost transport system in order to compete in the global market place.
  3. The Committee would accord high importance to the role of transport infrastructure in enhancing the attractiveness of Northern Ireland to businesses considering moving to Northern Ireland and supporting Northern Ireland businesses starting up and /or attempting to grow or sustain their growth.  
  4. In Northern Ireland, the road network carries 98% of freight and 87% of inter-urban public transport journeys (through Ulsterbus services). Of the five key transport corridors in Northern Ireland, with the exception of the M1 and M2 motorways into Belfast, the majority of these roads are single carriageway and many pass through towns and villages en route. This reduces connectivity (both in terms of journey times and reliability of trip) as well as reducing environmental quality in those towns ill equipped to deal with the traffic volumes on key transport corridors.  
  5. The recent Eddington Transport Study (December 2006) considered the economic impact of the UK’s transport system as a whole and the case for change. Applying the conclusions of the Eddington study to Northern Ireland, it appears to emerge that using the standard appraisal methodology (New Approach to Appraisal (NATA)) may miss out many of the wider economic gains that could arise from improved connectivity between the two main economic clusters in Northern Ireland, and between other urban centres on the key transport corridors.
  6. In addition, it is necessary to consider the growth in north-south and east-west commercial and leisure travel, and failure to improve public infrastructure in Northern Ireland will hamper the ability of Northern Ireland enterprises to start-up grow and compete successfully, and decrease the attractiveness of Northern Ireland as a preferred location for companies wishing to relocate.
  7. There are critical interdependencies between transport infrastructure investment and the operation of Northern Ireland’s gateways (ports and airports) in an efficient manner. Failure to invest in much needed road and public transport schemes linking Northern Ireland’s ports and airports to a high quality transport infrastructure network will mean that Northern Ireland based companies will face higher transport, import and export costs, making it more difficult for Northern Ireland’s products and services to compete globally.
  8. Improving the efficiency, cost and reliability of the public transport network is essential if Northern Ireland is to increase its GVA and economic activity rates. Cheap, efficient and reliable public transport facilitates access to education and training – a key component in increasing workforce skills and productivity – and the development of better links between universities and industry. Access to a reliable and cheap mode of transport to and from work is often presented as a barrier to employment. Improved public transport provision will go some way to addressing this barrier, facilitate women and other less economically active groups in taking up employment opportunities and contribute towards increasing Northern Ireland’s relatively low economic activity rates.
  9. Environmental costs will only become more significant, at the enterprise level as well as for regions and nations. Striking the right balance between public and private transport and investing in the infrastructure needed to support this balance is good for business and the community. Environmental quality is also a valuable source of competitive advantage for the tourism and leisure sectors – and this resource needs to be protected – a lesson which can be learned from recent experience in the Republic of Ireland.
  10. Finally, quality of life is an important factor in attracting and retaining high quality graduates and other skilled employees to work in Northern Ireland, both in encouraging those from Northern Ireland to return home, and in the decision making process faced by those from outside Northern Ireland to relocate here. Ensuring Northern Ireland has a ready supply of highly skilled labour will contribute to improving productivity, managing labour costs and enhancing the general competitiveness of Northern Ireland.
  11. The shortness of the timescale for the submission of evidence has necessitated a response from the Committee in general discursive terms, rather than a more detailed review of the body of evidence in each of the areas outlined above. The Committee thanks you for this opportunity to contribute to the review, and is happy to make itself available to the review team should the need arise.

Yours sincerely,

Fred Cobain MLA
Chairperson, Committee for Regional Development