Time to pull together

The political impasse in Northern Ireland could limit our ability to make the most of Brexit – both North and South. Paul Henry explains.

Northern Ireland, and the cities of Belfast and Derry in particular, should seize the opportunity presented by Brexit. We need to further develop the conversation between business and government as to how to drive the local economy towards growth and prosperity.

We have many of the raw ingredients for economic success including a location that facilitates access to market, competitive operating costs and a skilled and educated workforce that is smart, innovative and results-driven.

Dublin powers ahead of Belfast

Dublin appears to be developing at pace. We should grab the tail of the new Celtic Tiger and hang on for the ride! The Irish Times recently reported that 65 construction cranes were visible over the centre of Dublin – much of this is office development while site clearance is under way on numerous other sites.
The daytime skyline is swarming with activity and cranes are moving again. Belfast, by contrast, has 15 cranes moving. The new Ulster University campus will regenerate the North East quarter and bring new footfall to the area. The development of student accommodation will bring new vibrancy to the city centre, while Belfast Harbour continues to deliver much-needed high quality development at City Quays for offices and a hotel.

Compared with Dublin, there is a sharp contrast with Belfast office development – yet there is a positive differential in occupation costs. Prime office rentals in Dublin are reported to be in excess of €55 per square foot while comparable rates in Belfast would be in the region of €25 per square foot. This makes Belfast an attractive operational base.

A bold vision

Investment in infrastructure would greatly assist Northern Ireland in holding onto the Tiger’s tail and top of my wish list would be improved communications and linkages to harness growth. Reducing travel times would also provide increased access for the working population and a high-speed rail link between Dublin and Belfast would significantly improve access to market, especially for labour. Furthermore, the new Belfast transport hub would allow people to commute throughout Northern Ireland. Investment in our road network at the York Street interchange and the A5 Western Transport Corridor would significantly increase accessibility for all our people, and the Government should not be afraid to seek contributions for the direct financing of such investment – be it through tolls or other means. The infrastructure will create economic benefits, which can in turn be used to pay for the investment.

Education and the economy

Northern Ireland has a skilled workforce that can ease the ‘competition for talent’ constraint that faces business. Our two universities are internationally recognised and are key drivers in the knowledge and technology economy.

Recent success in attracting foreign direct investment has tended to be for support services, however. Looking ahead, the challenge is to further develop the region’s offering to attract front-line services. In that context, we can promote sectoral expertise in technology, cyber-security and financial and professional services.

The need for cooperation

As leading cities, Belfast and Derry can compete with Dublin but in my view, so much more could be achieved if we cooperate for the good of all on the island. The challenge is that, without local political involvement, we will miss opportunities and be left behind as the new Celtic Tiger bounds away.

Northern Ireland needs strong voices in the Brexit negotiations and the current impasse in our politics does us no favours at all.

Paul Henry FCA is a Director at Osborne King and a member of Council at Chartered Accountants Ireland.