The North's Deputy First Minister, Mr Seamus Mallon, has welcomed the publication of "Strategy 2010", a report on the development of an economic strategy devised by a steering group of 12 leading Northern industrialists as "innovative" and "bound to stimulate debate".
"This report will be one of the first priorities for an Assembly and enshrines a number of concepts I believe to be central to stimulating economic development. In particular, I welcome the fact that it is based on the partnership approach and is anchored on the principles of equality of opportunity and social inclusion," Mr Mallon said.
Mr Mallon also welcomed the context within which the report was set. "The overall strategy is to be set in a positive outward looking European approach. Transport and energy investments are to be made on an island of Ireland basis. Consequently, the Belfast-Dublin road route is highlighted for priority," Mr Mallon added.
Mr Seamus Close, the Alliance Party deputy leader, said his party was "delighted" that the report recommended the introduction of a special rate of corporation tax in the North. "Alliance of course welcomes and supports the specific recommendation for a special rate of corporation tax in Northern Ireland and also the prospect of further tax raising/varying powers. As the party which has consistently argued for such powers, we are delighted that this idea is still on the table".
The North's Economy Minister, Mr Adam Ingram, who presented the review, called on members of the Assembly to implement its more than 60 recommendations "as soon as possible". "The report provides a basis for debate. On the other hand, we must be careful not to debate it ad infinitum but start putting its proposals into action."
One of the report's chief recommendations is the introduction of a new low rate of corporate tax to encourage foreign investment and help Northern Ireland compete with the Republic where the manufacturers' and financial services' rate is 10 per cent. In the North, it currently stands at 30 per cent. The new rate will need the approval of the European Commission as well as the British Treasury. Mr Ingram dismissed suggestions that it could meet strong resistance from other British regions. "Other UK areas will be arguing for similar things," he said. While a devolved Scottish assembly would have the right to vary taxation, such a provision was not written into the Belfast Agreement, Mr Ingram said.
The report also stresses that grant aid should not be quite so readily available for existing inward investors and established companies. "It is important to create a new ethos which will be less dependent on straight-forward government grants," said Mr Ingram. The proposals would provide greater flexibility on the usage of subsidies and redress the balance between an "overweight" public compared to a relatively small private sector, he added.
Other aims are the setting up of a competitive energy industry and the creation of an "island of Ireland energy market".
The steering committee, which gathered the views of over 300 people when compiling the report, also recommends the appointment of a "Minister for Europe" and the establishment of a new economic development forum. The Industrial Development Board is to be merged with LEDU, the Local Enterprise Development Unit, thus creating a new "super economic agency".
Asked whether the time-scales for the implementation of certain proposals were not "a bit too ambitious", bearing in mind that the Assembly was not even up and running yet, the chairman of the Confederation of British Industry, Mr Chris Gibson replied: "Our time-scales are targets. They can be moved. But let's not forget that the rest of the world will not wait for Northern Ireland to catch up with it."
