| Economy speech at UUP Conference on 24 October 2009 |
Let us not beat about the bush – Northern Ireland is facing a very uncertain period of fiscal and economic uncertainty. In all modern economies there is a strong link between Government actions and economic success. However, Gordon Brown, the so-called prudent Chancellor, has wasted billions of pounds on public spending that ended with the crescendo of the credit crunch, the resultant recession and the mountain of public debt.
In going on a public sector spending spree post 2003, Gordon Brown created an illusionary boom throughout the UK. Increased public spending without equivalent tax returns resulted in an ever increasing public sector debt. Couple to this an overheated housing market and unacceptable levels of personal debt, add in the credit crunch and you get the worst recession Britain has faced in living memory. We are now face with the prospect of a faltering Government and economy due to the mountain of public debt, which stood at £77.3billion pounds for the first six months of this financial year alone.
Gordon Brown is quick to blame the banks … but the banking crisis has laid bare years of flawed thinking and policy by Gordon Brown and the Labour Party.
What does this mean for you and me and Northern Ireland? Like the rest of the UK our private sector has been hit hard by this recession. Unemployment has risen sharply, businesses have gone under and Foreign Direct Investment has nearly dried up. However, there is potentially worse to come.
As we all know Northern Ireland is overly reliant on public sector spending with some estimations placing public spending at 77.6% of our GDP. This means that more people are directly reliant on public spending for jobs and more businesses are indirectly reliant on public money for economic activity than anywhere else in the UK.
The reality is that the next Government of the United Kingdom is going to have to seriously examine public spending. To ensure the stability of the UK Government and the recovery of the economy, this is a necessity that cannot be ignored – it simply has to happen. However, this will have serious ramifications for Northern Ireland. As public sector spending reduces we face the prospect of being hit by the double whammy - a reduction in private sector business and public sector spending.
What then is the answer, what should the Northern Ireland Executive be doing? Whilst the detail may seem daunting, whilst the future is definitely uncertain the answer I believe is simple. To use a very clichéd line we must face the music and dance.
For too long we in Northern Ireland have placed all our eggs in the public spending basket. Yes, our economy suffered because of the Troubles, but we can no longer use this as an excuse for our politicians not delivering the goods.
Northern Ireland needs a clear and deliverable vision for an economy driven by the dynamism and innovation of the private sector. At present Arlene Foster has not given us that vision. We need to be bold and confident in our decisions. Currently Arlene Foster has not taken those decisions. And we need to have a coordinated approach at Executive level. The DUP and Sinn Fein can barely coordinate an Executive meeting never mind the economy.
Whilst recognising the recession and the difficulties that people across Northern Ireland are facing, there will be opportunities ahead. However to take advantage of them, we need new and more dynamic policies. I strongly welcome the Independent Review of Economic Policy which has looked at Invest NI. It is correct to say that we need to focus more on innovation, it is correct to say that we must become more entrepreneurial and it is correct to say that we must increase productivity by focusing on SMEs. As the New York Stock Exchange investment in the Wombat proves, if we become world leaders we will attract and retain high value added business to Northern Ireland. Invest NI can no longer maintain decades old industrial development style policies.
The Minister for Enterprise Trade and Investment must grasp the opportunity this report presents her with, and deliver.
We must also not miss out on global trends. The Green new Deal in America, Europe and the UK has the potential to create tens of thousands of jobs. In Northern Ireland we have excellent Universities and an excellent engineering and manufacturing history. But when it comes to green technology, we need to be building on the outstanding example seen in those Northern Ireland companies that are true world leaders. We cannot let such opportunities slip.
Equally with tourism, energy, and infrastructure development we need to become much more innovative. This means having more co-ordinated Government that provides the spring board for our economy and not a Government that provides the income for our economy.
Our electoral pact with the Conservative Party offers us a fantastic opportunity, to have a Government that is committed to real economic progress in Northern Ireland, rather merely relying on old fashioned public subsidies. I welcome the commitment of our two parties to making Northern Ireland an enterprise zone; it is needed and will provide fantastic opportunities for Northern Ireland plc.
With the forthcoming fiscal reality of reduced public spending, if we do not get this right and take bold action now to grow our private sector we will face a difficult future.
Northern Ireland has a strong history of innovation and entrepreneurial spirit. That spirit is still alive and well. We do have countless thriving and successful businesses. But we must face the reality that Gordon Brown got us into this mess, and take the opportunities that a future Conservative Government will offer, to help put Northern Ireland plc back on track. This also requires our Executive and Assembly to work with the next Government to ensure that Northern Ireland’s private sector grows and flourishes. I support the motion.
Let us not beat about the bush – Northern Ireland is facing a very uncertain period of fiscal and economic uncertainty. In all modern economies there is a strong link between Government actions and economic success. However, Gordon Brown, the so-called prudent Chancellor, has wasted billions of pounds on public spending that ended with the crescendo of the credit crunch, the resultant recession and the mountain of public debt.
In going on a public sector spending spree post 2003, Gordon Brown created an illusionary boom throughout the UK. Increased public spending without equivalent tax returns resulted in an ever increasing public sector debt. Couple to this an overheated housing market and unacceptable levels of personal debt, add in the credit crunch and you get the worst recession Britain has faced in living memory. We are now face with the prospect of a faltering Government and economy due to the mountain of public debt, which stood at £77.3billion pounds for the first six months of this financial year alone.
Gordon Brown is quick to blame the banks … but the banking crisis has laid bare years of flawed thinking and policy by Gordon Brown and the Labour Party.
What does this mean for you and me and Northern Ireland? Like the rest of the UK our private sector has been hit hard by this recession. Unemployment has risen sharply, businesses have gone under and Foreign Direct Investment has nearly dried up. However, there is potentially worse to come.
As we all know Northern Ireland is overly reliant on public sector spending with some estimations placing public spending at 77.6% of our GDP. This means that more people are directly reliant on public spending for jobs and more businesses are indirectly reliant on public money for economic activity than anywhere else in the UK.
The reality is that the next Government of the United Kingdom is going to have to seriously examine public spending. To ensure the stability of the UK Government and the recovery of the economy, this is a necessity that cannot be ignored – it simply has to happen. However, this will have serious ramifications for Northern Ireland. As public sector spending reduces we face the prospect of being hit by the double whammy - a reduction in private sector business and public sector spending.
What then is the answer, what should the Northern Ireland Executive be doing? Whilst the detail may seem daunting, whilst the future is definitely uncertain the answer I believe is simple. To use a very clichéd line we must face the music and dance.
For too long we in Northern Ireland have placed all our eggs in the public spending basket. Yes, our economy suffered because of the Troubles, but we can no longer use this as an excuse for our politicians not delivering the goods.
Northern Ireland needs a clear and deliverable vision for an economy driven by the dynamism and innovation of the private sector. At present Arlene Foster has not given us that vision. We need to be bold and confident in our decisions. Currently Arlene Foster has not taken those decisions. And we need to have a coordinated approach at Executive level. The DUP and Sinn Fein can barely coordinate an Executive meeting never mind the economy.
Whilst recognising the recession and the difficulties that people across Northern Ireland are facing, there will be opportunities ahead. However to take advantage of them, we need new and more dynamic policies. I strongly welcome the Independent Review of Economic Policy which has looked at Invest NI. It is correct to say that we need to focus more on innovation, it is correct to say that we must become more entrepreneurial and it is correct to say that we must increase productivity by focusing on SMEs. As the New York Stock Exchange investment in the Wombat proves, if we become world leaders we will attract and retain high value added business to Northern Ireland. Invest NI can no longer maintain decades old industrial development style policies.
The Minister for Enterprise Trade and Investment must grasp the opportunity this report presents her with, and deliver.
We must also not miss out on global trends. The Green new Deal in America, Europe and the UK has the potential to create tens of thousands of jobs. In Northern Ireland we have excellent Universities and an excellent engineering and manufacturing history. But when it comes to green technology, we need to be building on the outstanding example seen in those Northern Ireladn companies that are true world leaders. We cannot let such opportunities slip.
Equally with tourism, energy, and infrastructure development we need to become much more innovative. This means having more co-ordinated Government that provides the spring board for our economy and not a Government that provides the income for our economy.
Our electoral pact with the Conservative Party offers us a fantastic opportunity, to have a Government that is committed to real economic progress in Northern Ireland, rather merely relying on old fashioned public subsidies. I welcome the commitment of our two parties to making Northern Ireland an enterprise zone; it is needed and will provide fantastic opportunities for Northern Ireland plc.
With the forthcoming fiscal reality of reduced public spending, if we do not get this right and take bold action now to grow our private sector we will face a difficult future.
Northern Ireland has a strong history of innovation and entrepreneurial spirit. That spirit is still alive and well. We do have countless thriving and successful businesses. But we must face the reality that Gordon Brown got us into this mess, and take the opportunities that a future Conservative Government will offer, to help put Northern Ireland plc back on track. This also requires our Executive and Assembly to work with the next Government to ensure that Northern Ireland’s private sector grows and flourishes. I support the motion.
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| Category: Press Release |
| Date Published: 26 October 2009 12:08:47 |
