The North's Minister of Enterprise, Trade and Employment, Nigel Dodds, yesterday issued differing responses to a proposal from Ulster Bank Group chairman Alan Gillespie that the IDA should merge with its Northern equivalent, Invest NI.
Initially, Mr Dodds described Dr Gillespie's proposal, put forward in yesterday's Irish Times, as an "interesting contribution" to the economic debate although he was "not convinced" a merger would best serve the North's economic interests. But just a couple of hours later, Mr Dodds said the proposal was a "distraction" and "deeply unhelpful".
Dr Gillespie argued that a merger would serve the interests of the economy on an all-island basis, would not disadvantage the IDA, and would not undermine UK sovereignty. He suggested that Tourism Ireland, marketing Ireland on an all-island basis, set a form of precedent for his idea.
In his first reaction yesterday morning, Mr Dodds issued a statement saying: "This is an interesting contribution to the debate on how to stimulate economic development in Northern Ireland. I agree that there is scope for targeted co-operation with the Republic. However, I am not convinced that Northern Ireland's interests would be best served by a merger of Invest NI and the IDA. The reality is that, in respect of foreign direct investment (FDI) at least, we are competitors."
But speaking on BBC Radio Ulster's Talkback programme before lunch, Mr Dodds said: "This sort of idea if not helpful. I think it skews the debate. It is not going to happen," he said. "This distraction by Dr Gillespie is something that is deeply unhelpful," added Mr Dodds.
Invest NI comes under the responsibility of Mr Dodds' department. He said: "Let me make it absolutely clear as the Minister responsible that there is absolutely no prospect whatsoever of any merger between Invest NI and the IDA."
Yesterday evening, Mr Dodds issued a third statement: "While we have derived mutual benefits from co-operating with our southern counterparts in areas like trade the fact remains that in many areas of FDI we are in direct competition," it read.
Dr Gillespie made the case that a merger would be attractive to "decision-makers at the top of the world's multinationals" as they decide on FDI ventures, and that even the euro/sterling Border difference could be turned to an advantage. The idea has sparked a lively debate in the North.
Sinn Féin's finance spokesman, Mitchel McLaughlin, said: "It makes sense that if we accept that our future is bound up in a single-island economy - and most economists agree that it is - then rather than North and South competing, there should be a collaborative effort to attract inward investment," he said.
SDLP finance spokesman Declan O'Loan welcomed Dr Gillespie's proposal and hoped it would prompt a productive debate. Ulster Unionist Assembly member Basil McCrea however said despite Dr Gillespie's comments that his proposal would not affect sovereignty, there was a political dimension to his idea. "I think that if we were to take what he suggests that people would conclude that we were heading headlong into a united Ireland," he said.
Minister for Enterprise, Trade and Employment Micheál Martin made no comment on the proposal yesterday. Representatives of business lobby Ibec were also unavailable for comment.
