BELFAST BRIEFING: Significant capital investment projects have not been signed off because of the political stalemate

THERE IS a potential collector's item just waiting to be snapped up today in the Assembly shop in Parliament Buildings at Stormont in the North. On sale at £5.95 (€7.60) is a genuine, pristine Northern Ireland Assembly business card holder.

Why does this rather nondescript little silver sliver rank as a potential collector's item? Because not only is it the closest the North's Assembly will actually get to having anything to do with the world of business this week - if the current political stalemate continues at Stormont, it is going to consign any potential the North's economy may have had to the history books.

Northern Ireland is in the grip of one of the worst global economic downturns in living history, with increasing unemployment, rapidly rising living costs and plunging house prices.

Never before has Northern Ireland needed its own elected representatives to step up to the mark and take decisive action to stem what could be an economic catastrophe.

New research released this week shows the level of business activity in the North has dropped at its sharpest rate for more than six years. The latest Ulster Bank Northern Ireland Purchasing Managers' Index outlines how conditions in the private sector continued to "rapidly deteriorate" last month.

For the tenth straight month in a row, output fell in the North's private sector while employment also fell for the seventh consecutive month. The construction sector in Northern Ireland has been one of the hardest hit because of the economic slowdown.

It has seen significant job losses and could, according to John Armstrong, managing director of the Construction Employers' Federation (CEF) in the North, face thousands more.

Armstrong says the Northern Ireland Executive has a crucial role to play in supporting the local construction sector at this time. He says there are significant capital investment projects which have not been signed off because of the political stalemate at Stormont.

Armstrong believes it is time for politicians in the North to make "urgent decisions" if local construction firms stand any chance of survival. "We need urgent decisions to be taken on a wide range of capital projects. We have seen a significant downturn in the construction sector in Northern Ireland and lots of redundancies taking place in the industry."

The CEF estimates that the construction sector directly employs approximately 85,000 people and is one of the biggest industry sectors in the North. But it has shed thousands of jobs.

"The spin-off effect has been that people are not spending money in the local economy. Estate agents are being laid off, as are solicitors," Armstrong added.

"What is happening in the construction industry is having a cascading effect in Northern Ireland and we believe the Executive needs to meet urgently to take decisions that will help local people."

Armstrong believes that any further delay by the Northern Ireland Executive in reaching agreement on important investment projects could jeopardise more jobs in the local construction sector.

He says the Executive needs to commit to spending its full annual construction budget and it needs to bring forward major infrastructure projects to bolster the North's construction industry.

The Northern Ireland Executive has not met since before the summer. If it does not convene as it is scheduled to on Thursday, there is a real possibility it will not meet again before Christmas. There is a growing concern among senior business figures in the North about key political figures.

Privately, many wonder whether certain politicians in Northern Ireland have the capacity to put personal and political prejudices aside and concentrate on the business of government.

Key business bodies are publicly warning that the Northern Ireland economy will suffer if the Executive cannot resolve its differences. The Confederation of British Industry (CBI) says "strong political and business leadership" is essential at a time of great uncertainty and financial volatility.

"We have expressed our view that, while Northern Ireland cannot avoid the global economic slowdown, we can, and indeed we must, seek to outperform other regions and nations.

"But that can only be achieved if we have strong political leadership, direction and timely decision making. We need to build confidence that the necessary steps are being taken to help underpin the economy and we must press ahead with our investment strategy."

The CBI says there is no doubt that significant decisions need now to be taken by the Executive.

"CBI members believe it is essential that the Executive does meet in the near future to both reassure investors and consumers that they are putting all the people of this province at the top of their agendas, and not party interests."

Joanne Stuart, chairwoman of the Institute of Directors in Northern Ireland, believes that the current deadlock not only delays decisions but it also sends out "all the wrong messages" to the international investment community.

"Our politicians have come a long way in agreeing a devolved government and putting the economy as their first priority. It is vital that Northern Ireland does not retrace its steps back to the bad old days of political paralysis.

"We need a functioning Executive now. That's the view of our members throughout business in Northern Ireland and we believe it is what the vast majority of people want," Stuart said.