Helen Alexander interview: making smart choices
The Executive and businesses in Northern Ireland have to get on with making difficult decisions and Northern Ireland’s residents must be “ambassadors” for the region, CBI President Helen Alexander tells Meadhbh Monahan.
Speaking before the Comprehensive Spending Review (CSR) announcement, Helen Alexander told agendaNi that the cuts were certain to have an impact on Northern Ireland therefore “it’s increasingly important that the difficult decisions are made; everyone has to get on with it.”
Whilst in Belfast for the annual CBI lunch, the former managing director of the Economist Intelligence Unit told delegates that the Chancellor was “very sympathetic” to the CBI’s submission that infrastructure, knowledge assets and human capital should be prioritised in the pursuit of growth.
The Executive has called on the Coalition to consider Northern Ireland’s ‘unique position’ with regards the history of conflict and high levels of deprivation. However, Alexander told agendaNi that while “of course” the history of conflict is in the background, “the province has moved on and the people in business are the first to be optimistic and forward looking about how you can make the most of what’s there now.”
The CBI’s ‘Time for action’, report recommends turning some public services such as custody, debt collection and parts of health and social care into markets.
“There is definitely the potential to use competition for better procurement,” Alexander reiterated. “Better procurement is not something you just achieve overnight; it’s something you work at forever really. And also you’ve got businesses and businesspeople who have experience at these things and could really be brought in to help.”
She predicted that government investment will fall to just 1.1 per cent of GDP by 2014-2015, below the 1.25 per cent inherited by the Coalition Government and “way below” the 2.25 per cent the CBI thinks is needed as a medium-term target.
The fact that the World Economic Forum ranked the UK thirty-fourth in the world for the quality of its infrastructure, despite it having the sixth largest economy, is “a long way short of good enough,” Alexander explained to her audience.
Alexander believes that all public sector transport projects must undergo value-for-money assessments and told agendaNi that “it is well proven that investment in transport and infrastructure has massive long-term benefits.”
Knowledge assets are also important. According to Alexander, the Government needs to help businesses find growth opportunities and public investment in R&D and innovation. “Getting this right in Northern Ireland could have a big impact,” she insisted.
Human capital, otherwise known as ‘skills’, must be used properly, Alexander contended. “We particularly want to see a focus on STEM, and funding allocated to meet skills needs in STEM-related industries. And we want to see an increase in the number of employer-led apprenticeship places,” she told delegates. Building up the knowledge base would, in turn, boost competitiveness.
Alexander compared the months between the emergency Budget and the CSR to a ‘phoney war’ “with the air-raid shelters going up but the bombs yet to fall.”
“Smart choices” have to be made so that the private sector can “pick up the slack” from the public sector, Alexander told attendees.
If government improves efficiency, increases competition, improves procurement and “tackles” public sector pensions, public finances will be put on a “more secure footing”, Alexander continued.
During her two-day trip to the province Alexander visited the Northern Ireland Science Park, Wrightbus and Harland and Wolff. She claimed that as a capital city, Belfast’s value is as “a current and future hub for culture, as well as education and business.”
In conclusion, she told agendaNi: “One of the important things about Belfast is that it has got an extraordinary quality of life. There are some great opportunities and I’ve seen for myself that the target to double tourism revenues over the next decade is an ambitious but achievable one, but people can sometimes take that for granted.”
Alexander urged the business community and the public sector to tell people how much there is to see and do in the region, saying: “I think we are all ambassadors now – not just me having come briefly – everyone in the business community, journalists and everybody else are all ambassadors for Northern Ireland.”
