Amid the furore over the Republic's tax regime, it is unusual to hear the IDA, Enterprise Ireland, Bord Bia and Tourism Ireland referred to as the Champions League of industrial agencies. But that's apparently how they are viewed in the North.
Speaking at the annual policy conference of the Dublin Economics Workshop in Wexford, the North's Minister for Finance Máirtín Ó Muilleoir waxed lyrical about the Republic's ability to attract foreign investment, while noting the formidable challenge Northern Ireland faced in catching up.
"The IDA, Enterprise Ireland, Bord Bia and Tourism Ireland are Champion League performers when it comes to running sovereign budgets, while we are division B – scrappy with patches of excellence," he said.
To illustrate the gap between the two jurisdictions, he noted the Republic’s GDP per capita was now 132 per cent of the EU average while the North’s was 82 per cent.
Corporation tax
To make matters worse, Northern Ireland’s trump card now hangs in the balance. From 2018, it will be able to set its own 12.5 per cent rate of corporation tax – bringing it into line with the Republic.
However, for Ó Muilleoir the potential investment windfall could be cancelled out if the North finds itself outside the EU.
“Will it complicate matters, for the first time in 30 years, when I’m trying to bring in foreign direct investment that I have to say we’re no longer a gateway to the EU? Would that be a setback? Absolutely.”
“Whatever it means, from the benign to the most extreme, there is no economic upside to Brexit,” said Ó Muilleoir, who is scathing of the Brexiteers now running the show in London.
Another potential headache is the doubt that now hangs over EU funding for the peace process, worth €1.8 billion over the next five years. That’s no small chunk of change when you consider Ó Muilleoir’s budget for same period is €11.5 billion.
He believes the best answer to Brexit is increased North/South co-operation, highlighting that Ibec and the North’s CBI have led the way in embracing the idea of a single island economy.
High praise all round for the various agencies from a Sinn Féin Minister.
