Permission to Succeed Declan Billington Chairman CBI Northern Ireland

The (NI) Economy is not really very sustainable; there’s not a strong enough business community and that needs to be reformed and structured Peter Hain, Secretary of State 8 th May 2007 Peter Hain, Setting the Scene

Current State of the economy – The spin NI GDP growth levels, at 2%-3% above GB Employment is at a record high Unemployment at a 26 year low NI’s GDP growth is currently the fourth fastest- growing of the 12 UK regions Property price boom

But… here’s what’s really happening over dependence on the public sector (NI public sector employs 1 in 3 of all workers and 60% of all females in employment) an annual subvention from GB £6.8bn. 31% Deficit pa hardly the sign of a successful economy..

NI GDP growth levels, at 2% - 3% above GB Dependency growing Driven by Public sector spending growth (approx 5% pa

Underdeveloped private sector 89 per cent of local firms employ fewer than 10 people Only 65 companies employ more than 500 workers 10 companies account for 50% of all NI exports NI has second-lowest level of business formation of the 12 UK regions NI has second-lowest level of business growth in the UK

Society Issues NI has the highest level of both long-term unemployment and youth unemployment in the UK NI has amongst the best - and the worst - qualified working populations (with 2 or more A-levels) Some wards in Belfast and Derry have amongst the highest levels of deprivation in Europe Approx 44,000 children here live in extreme poverty We need to create up to 140,000 jobs next decade (last decade we created 85,000 jobs)

Over 530,000 people (41% of working -age population) not economically active

Falling unemployment masks rise in benefit claimants (hidden unemployment) 97k 141k

Lack of opportunity drives Brain Drain ( % leave NI)

And what of the Westminster endowment?

The Reality £50Bn package In reality estimated to be £100m extra from Treasury. £ 78m to avoid water charges £20m for first year funding of innovation fund Hanson’s Regional Economy Strategy By 2015, Wage gap (75% of GB private sector) and Gross Value added (80% of GB average) have closed by 0.5% hardly transformational.

Conclusion: We can no longer look to others to solve our problems. We need Leadership for change from within Northern Ireland. From our politicians underpinning peace with prosperity putting the economy top of the priority list Making the tough choices

? ? “ The Executive must seize this moment and begin to build a society, underpinned by a strong local economy.” Well, it’s a start

Will Business step up to the challenge: Who in Business must step up to the mark and lead the economic change needed?

Economy You!!

What is our potential? We only need look at the original celtic tiger…. The Year is The UK’s third largest city (Belfast) dominates globally in the industries it is in: Ship building – The finest ships in the world Textiles – Dominating trade globally Heavy engineering This is our pedigree!

How did we do it before? By using only the natural drive and talent of local people, we became the industrial Workhorse of the British Isles

Ask not what your country can do for you- -ask rather what you can do for your country." Finally, in the words of JFK.

Its our future Its time to take the lead