Rioting and political inertia a turn-off for possible investors

BELFAST BRIEFING:NORTHERN IRELAND'S recent impromptu summer camp for underage rioters could seriously undermine efforts to drum up enthusiasm for the next US-NI Economic Conference, according to senior business figures.

Four nights of what one heavyweight referred to as “mindless violence” on certain streets in North Belfast could deter potential US investors considering the North as an investment location, several local business leaders have warned.

The North will have to foot the bill for the financial cost of the rioting. But there is another hidden cost which is not easily calculated. A lot of people, particularly Declan Kelly, the US economic envoy to the North, have been working hard behind the scenes to persuade senior US executives to take a fresh look at Northern Ireland.

The US-NI Economic Conference, scheduled to take place on October 19th in Washington, aims to showcase the business case for investing in the North. Securing the attendance of “leading executives from targeted sectors” can only become more difficult with images of children firing stones at riot police crisp in their minds?

The real cost of those four nights of rioting will become frighteningly real if the conference fails to live up to its potential. Kelly has promoted the advantages of the North at length – from its well-educated workforce to its high-speed connectivity and low operating cost environment. And he has been vocal in highlighting that it has one of the most competitive wage environments in Europe.

But let’s face it, in the current economic environment, potential investors can probably lay down any wish list in any location. It is doubtful if any will have “annual riots in July please” pencilled in.

In one sense, it is hard not to feel sorry for Kelly, special economic advisor to a region apparently bent on self-destruction.

Perhaps, before the conference, a few self-help classes might be in order. Among the first to attend should be the Executive’s subcommittee on the economy.

Set up in May, with a remit to “develop an economic strategy for the North” and chaired by Arlene Foster, the Northern Ireland Minister for Enterprise, it boasts the Ministers for Finance, Regional Development, and Education as members.

Foster says the committee has “made good progress” in agreeing a framework for an economic strategy but against the backdrop of a deteriorating local economy, there appears to be little urgency to confront the key problems facing the North.

Foster says it intends to have a new economic strategy “significantly developed by the end of this year and published by March 2011”. But in the meantime what is going to happen to the local economy? What measures will be put in place to safeguard jobs? Who will lead the charge in securing the economic recovery which the region so desperately needs and who is directing the response to the recession which is crippling local firms?

There have been plenty of talking shops convened by politicians to try and find solutions. But there have been few if any really helpful suggestions or decisions taken which have had any real impact on the ground.

Take for example the North’s First and Deputy First Minister’s own cross-sector advisory forum which consisted of 30 members, nine Ministers and two Junior Ministers.

The forum met four times and produced specific recommendations for “priority actions”.

Have any of these produced one result, saved any jobs, safeguarded any companies? The jury is out – but it has few fans – aside from its members in the North.

What NI needs now is a new champion for the economy. Perhaps Declan Kelly, who has a genuine enthusiasm for creating a better and improved economic future for the North, might consider adding this to his brief.