Oireachtas Joint and Select Committees

Thursday, 13 July 2023

Joint Oireachtas Committee on the Implementation of the Good Friday Agreement

Finance and Economics: Discussion

Mr. Gareth Hetherington:

I thank the Cathaoirleach. There were quite a few comments. I have not disagreed with anything anyone said, so that is encouraging to start off with. Regarding FDI, there may be a benchmark issue here. The Republic of Ireland's FDI experience has been greatly successful relative to pretty much everywhere else in the world. When we compare Northern Ireland's FDI experience, then, we are comparing it with a very high benchmark. Relative to many regions in the UK, Northern Ireland performs quite well from an FDI perspective. I agree with much of what was said in respect of there being a valid question as to why Northern Ireland is not benefiting more from spillover effects from the South. This is certainly a valid question.

Turning to merging IDA Ireland and Invest Northern Ireland, there is significant merit in having a greater level of co-ordination and co-operation between the two organisations. Within Northern Ireland, though, Invest Northern Ireland receives much criticism from some parties in terms of where FDI tends to locate. It tends to be in the greater Belfast area. The suspicion is that Invest Northern Ireland is only interested in bringing FDI to the east of the province. If we moved to having a single FDI body, there would be similar if not magnified criticism that there was not enough of a great geographic spread in terms of where the projects were being located. Much more co-operation and co-ordination regarding how we can bring more businesses to this island to invest would be good, but there is a need for a greater emphasis, even in the North, around some regional economic development. I refer to spreading and having an equity to the investment coming here.

Moving to the education system, I will say a few words on further education, FE. I used to sit on a board of a FE college, the South Eastern Regional College. I would not be quite so down on the sector as some of what has been said. If I could make one change to the education sector in Northern Ireland, it would be to provide much clearer pathways for young people transitioning in the education system between the ages of 14 and 19.

It is about that transition from post-primary into tertiary education. For the brighter young people, the path is very clear. They do their GCSEs at the age of 16, do their A-levels at 18 and then go to university. That is clear, it is understood and employers understand that process. At the vocational level, however, the pathway is much more complex and more difficult to navigate. It is harder for young people, for their parents and for employers to understand in many respects. That causes significant issues around the decisions young people make for their future careers. As a result, this has meant there is a significant undersupply of what we would call mid-level skills around national vocational qualification levels 3, 4 and 5. This is somewhere between the leaving certificate and a degree. It is those professional trades and those types of qualifications. There is a very significant undersupply in the provision of those skills. This is having a real impact in constraining growth in the Northern Ireland economy.

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