Northern Ireland is facing a very promising future if some key objectives can be met, one its most prominent businessman believes.
Sir George Quigley, chairman of Bombardier Shorts and Ulster Bank, former director of NatWest Bank, the Northern Ireland Economic Council, member of numerous Downing Street and local committees and one of the most enthusiastic proponents of cross-border trade, is a firm believer.
According to Sir George, the economic foundations are good. Unemployment is dropping and growth is picking up. But there are also challenges, particularly in the labour market.
There are question marks over what the people who were employed by the security services will do when they join the job market over the coming months. The other main pressure is the textile and clothing sector, which is still extremely large.
He says there is little point in firms in this sector trying to compete on the basis of cheap labour. They must move further up the value chain. "There is no point in these firms simply banging their heads against the wall and hoping to match the low cost countries."
In common with other observers, he says that boosting the skills base and further education and training are vital to develop the economy. Companies also need to play their part in moving to more modern systems, such as total quality management or business excellence, as well as shifting strategy to product development.
The role of the Assembly is also vital, he says. Without that, it is impossible to set targets. But he also points out that, in the Republic, there has been an almost obsessive drive for growth backed by very active political leadership. The lesson, he says, is that all political parties have to be growth minded, adopt consistent policies on investment and provide a business-friendly environment.
He also believes that, in time, the North may challenge the Republic for inward investment. "The North is going to have to build up that same kind of density of investment, helped by developing close linkages. Hopefully the North-South implementation body will be able to accelerate momentum. By feeding off each other, we can benefit the whole."
But for now, the tilted playing field on taxation remains to the Republic's advantage. Northern Ireland should have a serious tax incentive which would give a tremendous boost to the economy, he says. He believes this should be backed by the British Treasury. "No other part [of the UK] has had to contend with the difficulties Northern Ireland has had to. The UK has been on a roll as far as inward investment is concerned. Maybe now we could be more relaxed about having special incentives as well."
A former civil servant, he is dismissive of excuses that the Treasury would not wear such a move. "One should never accept anything on the basis that Treasury would not like it; Treasury never likes loss of revenue.
"The North ought to emulate the Republic in its drive to be global. Small states have to fully integrate into the global economy even if they incur risks as well as benefits. That is living in the real world."
