Oireachtas Joint and Select Committees

Tuesday, 25 October 2016

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Economic Impact of Brexit: Discussion (Resumed)

5:00 pm

Dr. Tom Healy:

Such a strategy is crucial. Northern Ireland has suffered over a very long period from a run down of manufacturing industries. That is a long-term trend. They have been major cyclical shocks, some of it related to energy prices and to jobs losses in companies like Caterpillar and others. There is a concerted campaign now in Northern Ireland involving Manufacturing Northern Ireland which represents manufacturing enterprises and a number of unions, in particular, the Unite trade union. Underpinning that is an indepth analysis of the role and potential of manufacturing. I emphasise manufacturing, which while it accounts for only 10% of the workforce in Northern Ireland, is a crucial part of economic recovery there in whatever will be precise outcome of Brexit. Manufacturers and exporters in the food sector are very vulnerable. They are exporting to the Republic. It may be that currency volatility is working to their advantage at present but there are long-term downsides and risks.

An enterprise strategy for Northern Ireland needs a number of elements. It needs a strong emphasis on infrastructural development and investment. Northern Ireland is very behind in terms of key infrastructural investment. This is evident with respect to roads and public transport and also in other areas. A second aspect is energy costs which are quite high on both parts of the island, especially in Northern Ireland. They need to be tackled. A third aspect is workforce skills and training, and equipping companies and the workforce to perform at a much higher level. There is evidence that productivity shortfalls especially impact on more traditional manufacturing companies outside the food sector within Northern Ireland. All of that calls for a strategic input and co-operation, including from the Northern Ireland Executive, notwithstanding the limitation of powers, but there is a continuing role for an all-island perspective and co-operation. This is why it is crucial in this debate on Brexit that all the complexity is recognised and that there is not a falling back in terms of that particular importance.