Drumcree factor costing Northern economy millions in lost business

Ulster Unionist, SDLP and Sinn Fein ministers have expressed concern at the losses being endured by the Northern Ireland economy due to the violence and disruption connected to Drumcree.

Deputy First Minister Seamus Mallon said the annual stand-off was costing millions of pounds while the small business and tourism sectors also warned of the implications for their interests.

Mr Mallon said that the money being lost was "crucial to the decisions that we have to make on a daily and weekly basis in relation to the economy".

A visit to Northern Ireland by a US trade delegation led by the US Ambassador in London was called off last week. The Minister for Enterprise, Trade and Investment Sir Reg Empey said that the visit would have paved the way for possible investment and that the violence was undermining the efforts of the Executive to market Northern Ireland as a good place to do business and make money.

"We have been successful to a large extent," he said. "But this coverage sets us back and there is no point in trying to deny it." The violence has also been accompanied by attacks on individual businesses. These included an arson attack on a Catholic-owned business in north Antrim. Damage, estimated at thousands of pounds, was caused at Dougan's Electrics, in Church Street, Ahoghill, when the store was gutted in an early morning blaze last week.

It has also been revealed that the cost of policing the Drumcree protest has exceeded £28 million over the last three years, according to figures released by the Northern Ireland Office. The NIO said that the price of maintaining law and order during Drumcree exceeded £10 million last year. It was £11 million in 1998, and £7 million in 1997. This does not include additional costs such as compensation for criminal damage. The figures contrast with the £6.2 million earmarked in the recent spending package announced by the Northern Ireland Executive for the improvement of school buildings, and the £5 million aimed at reducing hospital waiting lists.

In addition, more than 500 families have been made homeless over the past four years as a result of trouble during the months of July and August.

According to the Northern Ireland Housing Executive, during that time it has spent £27.5 million buying the homes of families who have been forced to leave because of threats and intimidation. While these millions are being spent on additional security and compensation, other departments are finding money increasingly difficult to come by. A report by the head of the Northern Ireland audit office has said that funding for road maintenance in Northern Ireland has for many years been below the level required to maintain the network in a satisfactory condition. The report says that the funding has been consistently lower than in England, Scotland, Wales and the Republic, and that, due to underfunding, the Roads Service may have to abandon any attempt to maintain hundreds of miles of rural roads.

Mr Bill Jeffrey of the Northern Ireland Small Business Association, said that the events of the past week had cast a cloud of depression over the business community.

"It has cut down sales and sales opportunities. A large number of businesses are closing early to avoid trouble. Many visitors are leaving Northern Ireland, and many others have decided not to come here, because of what is happening. It negates all the work that business people have done over the past few years to build up business since the ceasefire."

The head of the Northern Ireland Tourist Board, Mr Roy Bailie, said that the violence had undermined Northern Ireland's tourism potential for the next two years.

"The reality is that this will cost jobs," Mr Bailie said. "There will be a huge loss of confidence in Northern Ireland as a tourist destination and an investment location."

One tourism company, Travel Break in north Belfast, said months of effort building up trade in the north-west of England had been wiped out in just a few days. Marketing director Mr Dermot Kearns said that the company had spent a lot of time, money and effort in promoting Northern Ireland to UK visitors.

"Since the start of the trouble people have been phoning up to say they are afraid to come over."

He said that around 50 cancellations had been received last week. "It's all the more frustrating because we had a great year last year," he said. "This year was also looking very good. In April and May we ran a promotion to the Causeway Coast and it was very busy, with hundreds of people coming over. The new route from Heysham to Belfast was proving a very good link, but now people are very wary about bringing their car over but not being able to reach their destination."

Mr Kearns said he was confident lost business could be retrieved, but only if there was a resolution to the Drumcree problem soon. Sir Reg Empey, whose department is responsible for the tourism industry, said the violence promoted a very negative image worldwide.