The SDLP's policy document, Innovation, Investment and Social Justice - A Framework for Economic Development, adopted at last weekend's annual conference, recommends integrated education and training programmes, a decentralised economic policy and the establishing of development corridors, and an infrastructural programme to make up for recent "under-investment".
It notes that the development of the North's economy has been stunted by political instability and taken second place to security policy.
"A swollen public sector" has provided disproportionate employment and a ready market for the supply of goods and services. Almost 30 per cent of the workforce is directly employed in the public service, compared to 15 per cent in Britain and 18 per cent in the Republic. Subventions from the British Exchequer amount to 25 per cent of GDP, it notes. "Throughout that period, the outside world was moving ahead, sometimes with quantum leaps, creating gaps which we will find difficult to close without tremendous and concerted efforts," it states. The document, drawn up under economics spokesman, Mr Sean Farren, Assembly member for North Antrim, says the contrast between the Northern economy and the Republic's is an indication of the scope for development, and it looks to the social partnership model as one which might be adopted.
The unemployment rate is 7.6 per cent but 8.5 per cent of the 673,000 employed people are earning wages at or below minimum levels. Productivity levels in the Republic are almost 40 per cent higher than in the North. "Already there is evidence of skill shortages, especially in the high-technology sector. Such shortages could inhibit both new investment and expansions in existing enterprises if not urgently addressed."
A more favourable tax regime for new investments must be considered in view of the Republic's successful corporation tax strategy. "Evidence shows Southern locations for new enterprise being chosen almost exclusively on this factor alone." It stresses that in order to build an investment economy, companies involved in technology, transport equipment, engineering, electrical goods, chemicals and healthcare products and food processing must be promoted.
An all-island approach to research and development as part of a strategy to build more incubation units and science parks for technology companies is recommended. "The overall aim must be to establish a vigorous, highly competitive enterprise culture imbued with a strong sense of self-confidence and a determination to succeed."
But it is critical of past policies on inward investment which have been "costly". "Many enterprises have never achieved their promised goals either in financial or in employment terms; others have hardly remained in existence much longer than their public subsidies allowed."
The document states that Enterprise Ireland, which promotes the development of local companies in the Republic, is a model for a similar agency in the North.
Traditional agriculture, and textile and clothing enterprises are "under severe and constant pressure" and are in decline.
It points out that agricultural development lies in diversification and specialisation but depends on a common approach between the North and the Republic.
Tourism, it says, has "enormous" potential.
