High costs hit business in North - CBI

Northern Ireland is struggling to compete against other economies because of high running costs for businesses, employers have claimed.

The Confederation of British Industry's (CBI's) Northern Ireland chairman, Mr David Dobbin, urged the British government to make the North's economy more competitive by reducing costs in areas including energy, transport and waste disposal.

"The continuing company closures and job losses across the manufacturing sector in particular are a real concern to everyone. We simply are unable to compete against other regions in western Europe - never mind the low-wage economies such as Asia and eastern Europe," he said.

"To succeed, Northern Ireland businesses need to significantly increase their rate of investment but high costs and low profitability mean that companies have no money for reinvestment or no prospects for a reasonable return on investment."

Earlier this month, there were fears that east Belfast stationery firm Victor Stationery would lay off 100 people following the relocation of its manufacturing arm to Estonia. There have also been concerns about the future of Nortel's factory in Monkstown, Co Antrim, which makes telecommunications transmission equipment.

Mr Dobbin was speaking at the launch of the CBI's response to a government cost comparison study. The report said CBI research conducted in August 2003 showed energy costs were much higher in Northern Ireland than in other parts of the UK, with large users paying 50 per cent more than their British counterparts.