UUP economic proposals
The UUP’s economic proposals are based on its belief that Northern Ireland will take longer than other UK regions to work free of the economic crisis. agendaNi examines the plan.
The Executive must respond to the spending review by agreeing a budget, growing a competitive economy and investing in the future, according to the Ulster Unionist Party.
Its economic proposals include pushing the coalition government to publish its policies for making Northern Ireland an enterprise zone and to consider devolving the power of reducing corporation tax. A pay freeze in the Northern Ireland Civil Service for the next two years for all those earning above £26,000, is also suggested.
Economy
In order to “grow the economy” the manufacturing industry must be supported by the rates relief and tax reductions that come with enterprise zone status.
DETI should bring forward proposals on an enterprise strategy in conjunction with an agreed budget. In addition, because “selective financial assistance” is to end, the UUP proposes that Invest NI “rebalances its work load to promote exports as well as investment” and suggests that DETI produce an export strategy. The Executive should also ensure that SMEs have the capacity to
compete for and win Government procurement contracts.
With the Green Investment Bank set to replace the £2 billion per year spent through the Carbon Trust, Energy Saving Trust and Marine Renewables Development Fund, it is “of vital importance that local manufacturers and businesses are prepared and able to tap into this funding stream as early as possible.” DETI must provide incentives to tap into this funding stream, the UUP states.
Cuts
In the long-term, the Executive can function with a maximum of eight departments, according to the UUP. The number of MLAs should also be reduced considerably to reflect Northern Ireland’s population.
The UUP believes that OFMDFM’s 30 per cent budget increase since 2007 is “unwarranted” because of the department’s “limited performance”. It suggests the department’s budget be reduced by £22.9 million.
Because the St Andrews Agreement review into North South implementation bodies and areas for co-operation has been in progress for nearly three years the UUP calls for it to be completed within three months, “paying particular attention to Foyle, Carlingford and Irish Lights Commission, the Food Safety Promotion Board and the Language Body.”
A reduction in public sector sick leave to private sector levels would save approximately £45 million per annum, the party points out. And, a reform of the Civil Service management structures is needed, with people from the private sector enticed into senior management positions.
Revenue
The rate arrears of £113 million are “completely unacceptable” therefore the DFP must introduce a robust and targeted action plan to reduce rate arrears by £45 million by 2012 and a further £45 million by 2014. In addition, a 2 per cent increase on the regional rate would bring £50 million into the Executive.
“Significant savings” can be made by privatising the MOT test and by charging £5 a week on car parking spaces in the Civil Service. The latter would raise between £10-15million and the disabled would be exempt, the UUP suggests.
The Executive should create a single asset register and begin the process of strategically selling off capital assets and water charges should be considered.
The UUP notes that Forest Service land is worth over £150 million whilst the timber growing business is worth over £100 million. It believes that the current model of being commercial owner and regulator of forests is “imperfect” and propose that the Forest Service estate begins to be privatised, creating “considerable income” for the Executive.
“A genuinely shared future is critical for our economic and social success,” the party states. Therefore, the Programme for Cohesion, Sharing and Integration must be rewritten; an early year’s strategy implemented to tackle problems in health, education, youth justice and regeneration; and health and social services and education and skills should be priortised in the budget.
