Accelerating prosperity: Declan Kelly
A strong economy can only be achieved if the private sector takes risks and creates change, rather than waiting on others, according to Declan Kelly. Peter Cheney reports on the economic envoy’s visit.
Northern Ireland’s businesses must grab the opportunity facing the province before it slips by. That was the hard- hitting message from US Economic Envoy Declan Kelly as he addressed the Northern Ireland Chamber of Commerce in Belfast.
“I think the Northern Ireland economy today finds itself at a tipping point: a push in the right direction and it will keep moving forward, a tip in the wrong direction and it may stumble,” he remarked.
“You, the leaders of business in Northern Ireland … hold that delicate balance in the palms of your hands. The question is: ‘Do you realise it?’”
He later stated: “The decisions you make in the next two years will determine what happens in this economy in the next two decades.”
Despite the tumult and crisis, Kelly emphasised that they were living through the greatest opportunity that they would ever see in their careers, yet he consistently came across pessimism.
“Every time I’m interviewed in this place or any meeting I have, every conversation starts with a negative: ‘Why aren’t we doing this? Why aren’t we doing that?’”
Kelly advised: “In the midst of all of this doom and gloom, ask yourselves: ‘Are we really spending enough time together focusing on the fact that, at this time in the world when many nations are struggling to compete, you have some of the greatest advantages anyone could ever hope [for] and possess.’
“Or ask yourself a different question: ‘If you can’t take advantage at this time, when you are at your peak, when will you be able to do so?’”
Leadership
“Real growth in a region of this size and profile must be driven by the private sector,” he stated. The time to act is now, not because of the crisis but the “unbelievable opportunity that stands in front of you, if you can only grasp it, if you can grasp it together.”
Businesses everywhere complained that they weren’t getting a fair deal from government, the banks or the unions.
“We could talk about this for a long time. It doesn’t really matter. Everything going on behind you is passing you by right now. It’s time to stop talking. It’s time to start acting.”
Change brought about by government is slow, regardless of who was in charge or how hard they worked. This was especially true where its institutions were new, as was the case in Northern Ireland.
“History all over the world – and I challenge you to find a place where this is not true – has shown that long-term growth and the seismic change in economic profiles of the magnitude we’d like to see happen in Northern Ireland can only take place when the private sector plays a pivotal and dominant leadership role,” Kelly continued.
For any other country in the world, the key question would be: “How can we fail?” However, he described Northern Ireland’s attitude as: “How can we make it happen? And who’s going to do it for us? That’s got to end, my friends.”
Local unemployment was set to rise as, in his view, government had “no choice” but to cut public sector jobs. It was up to business to replace those jobs.
“There’s no doubt in my mind that there may be severe consequences if you do not take matters into your own hands, as the private sector. You need to start trying to reverse the negative economic trends. You cannot wait for change to happen in and of itself,” he warned.
“Political change will not move quickly enough in any developed economy to meet the demands or the opportunity that presents itself today. It doesn’t matter who’s in power. It doesn’t matter how many seats you have in Parliament. It doesn’t matter whether you have political stability or instability. It’s not going to move as fast as change itself.”
It was also time to “stop beating up the banks” which were by definition in business to make money, not to be charities.
“If you bring a proposition to a banker that’ll show him or her how the interest return on your investment is going to make money for the bank, in getting back the capital, they will lend you the money,” Kelly explained.
“The reason they don’t is if they don’t think your business profile is appropriate, your idea isn’t a good enough one, or that you’re not going to be able to pay the money. If that’s the case, you better go back to the drawing board and rethink it, because it’s the same wherever you go.”
Risks
The courage to take risks was essential. He called on his audience to “bet” on the province’s young people, its culture, and the values that sustained Northern Ireland for 35 years.
“Believe in the opportunity because it’s there for you if you want it. If you don’t, it’s going to pass you by in the click of a finger. I promise you that, and it’s happening as we sit here today. Right now.”
His office had worked for over a year to bring people who would listen to Northern Ireland’s case at last October’s investment conference. On the day, the guests in the room represented $1 trillion of investment. Fortune 500 CEOs such as Tom Wilson (Allstate) and Steve Luczo (Seagate) told them of their positive experiences in Northern Ireland, especially the quality of its young people.
“That’s who you have supporting you. No other place in the world has this but it’s going to go away eventually because people will get tired of saying the same old thing,” he stressed. “Goodwill only lasts so long.”
According to the Wall Street Journal, the wealthiest people in the world i.e. those with over £1 million in investable assets, are hoarding over $10 trillion since the 2008 financial crisis. That reluctance is likely to change soon.
“Now is the time to invest,” he insisted. “If you’re not out there, pounding the streets, investing in your future at a time when the rest of the world is putting all of its money into your space, you’re in trouble.”
In his own career, he started off with a mobile phone in his car. Many people wrote him off. Four years later, that business was sold for $342 million, with a 900-strong workforce across 28 countries.
Commitment
Kelly restated his personal commitment to the province: “I’d do everything I can to support this region every day of my life. Seven days a week. It’s become a passion and almost a religion for me.”
That morning, he had visited the East Belfast Mission, involved in inner city regeneration, which brought home to him the importance of employment.
“Do everything you can to give people the dignity of a job. Do everything you can to take a risk on other people because they’ll work 10 times harder than someone who’s had none [no work] for 10 years. And I will do anything, anything to help you do it.”
Concluding, Kelly referred back to John F Kennedy’s inaugural address, asking Americans to think what they could give back to their country. A decade of innovation followed, leading up to the first moon landing.
“Do not take the easy path. Do not withdraw and wait for the storm to pass. Do not expect others to do it for you. Ignore the obstacles in front of you for they are many. You can overcome them all. You’re a shining example to rest of the world in so many other ways. Now is your chance to take that one step further.”
Perceptions
The Republic’s economic crisis is not impacting Northern Ireland’s image at all, Kelly told agendaNi afterwards: “Believe it or not, most people at this point, which is one very positive thing from Northern Ireland’s standpoint, understand that it is two different locations run by two different governments and it’s a fully devolved administration.”
Investors saw Nama’s impact on the property market as a domestic matter that will be resolved.
He again highlighted the importance of job creation: “All these people want is the opportunity to be given the chance to do something. And part of the reason why they’re not getting that opportunity is that most people don’t know what they have to offer.”
Kelly states that he is in favour of any pro-business policy but will not be drawn on corporation tax, to avoid getting involved in domestic politics. Reduced tax “certainly strengthens your argument” but most companies “look at the entire basket of goods that you have to offer”.
