Northern Ireland Chamber of Commerce and Industry (NI Chamber) has highlighted a number of key issues facing the business community in 2017.
Speaking on behalf of the business organisation, which represents over 1,200 businesses across Northern Ireland, employing over 100,000 people, Nick Coburn, President of NI Chamber, said: “There is a sense of optimism from businesses as they face into 2017 with determination and ambition. Consumer confidence remains in place, exports are increasing and Northern Ireland politicians continue to lead an investment drive with concentrated efforts in the USA and more recently in China.
“There are however a number of uncertainties around the Apprenticeship Levy, the living wage, Brexit and its fallout through sterling’s devaluation and increasing input costs. Addressing these areas are crucial for the delivery of ambitious targets set out in Programme for Government particularly the determination to create a strong, competitive, regionally balanced economy.”
On the EU …
“Whilst June 2016 will forever be known as the month the UK voted to leave the EU, 2017 will surely be the year when some detail finally gets put onto that decision. At the moment there is no clear direction of travel from the UK Government and that makes it difficult for the NI Executive to plan accordingly.
“It is crucial that whatever agreement is reached with the EU results in no ‘hard’ border with the Republic of Ireland. This would be a major setback in economic, social and political relations between the two jurisdictions. Being able to trade as freely as possible with the Republic of Ireland with limited bureaucracy and freedom of movement of people living and working on both sides of the border should be a top priority for government in any negotiations.
“Swift reassurance on the future status of EU employees is crucial to retention of skills. Facilitating free movement of people provides business with a wider catchment of workers with relevant skills at all levels.”
On the Programme for Government and Economic Strategy…
“NI Chamber has given broad support to the Programme for Government (PfG), both the process and the objectives therein. The outcome focused Programme, which is expected to be finalised and published at the start of 2017, has the delivery of a competitive economy as a priority and we fully support that aim. As important as the PfG will be the accompanying budget and the economic and investment strategies due to follow early this year. It is vital that these documents receive collective buy-in and a collective approach from Ministers across all Departments.”
On corporation tax …
“This year brings us ever closer to April 2018 and the date at which, all being well, the reduced corporation tax rate will finally kick in. NI Chamber has always said that prior to the actual point of having a lower tax rate than the rest of the UK, the imminent cut would be a strong sales asset for Northern Ireland. That is helping to attract fresh investment and throughout 2017 it will remain an important factor for us – and it is absolutely vital that nothing knocks that objective off course.”
On growth through exports …
“The commitment of the Economy Minister Simon Hamilton to highlighting, facilitating and supporting the drive for exports is very welcome. The Department of the Economy, Invest NI and NI Chamber, via its ‘Learn Grow Excel’ initiative, will work together to deliver an export strategy and to meet demanding targets for indigenous firms. Our recently launched ‘Learn, Grow, Excel’ programme which is a dynamic and powerful new suite of business support initiatives, recognises the commitment from the private sector to assist local companies to scale-up and maximise business growth and export opportunities throughout 2017.”
On investment in roads …
“Transport improvements have positive knock-on effects, as they open up supply chains, generate new contracts for businesses, as well as enhance access to labour and new markets. Road schemes such as the A5, A6 and York Street Interchange will do much to ease congestion on heavily trafficked roads in the region, helping businesses to move products and goods more efficiently and in the process reduce costs.”
On addressing energy challenges …
“Given that planning permission for the Southern section of the North South Interconnector has now been granted, we must now receive a positive decision from the Northern Ireland Planning Inquiry to be held in February 2017. The North South Interconnector is vital to ensure the effective operation of an efficient all-island electricity market, to exert downward pressure on electricity prices for business and domestic consumers throughout Northern Ireland, and to utilise renewable energy resources.”
On the introduction of the Apprenticeship Levy …
“The timing of the introduction of the Apprenticeship Levy from the UK government comes at a time when employers are facing a number of other government imposed costs through the National Living Wage and pension auto-enrolment. Also, the practicalities of the Apprenticeship Levy from a devolved perspective are unclear. How will businesses access the fund? How will it work for businesses that are multinational and train centrally or businesses that have staff working outside NI? Will the funds received from the levy in Northern Ireland be ring-fenced for apprenticeship/skills funding only? These are just some of the questions that still remain unanswered as we approach the Levy’s April 2017 implementation date.”
On the introduction of the National Living Wage …
“Most NI Chamber members already pay above the National Living Wage but for the others it comes at a time when businesses are already facing a myriad of other upfront costs and uncertainty about investment and recruitment. Research from the Chamber network shows that sharp increases in the National Living Wage will cause many firms to implement cost reduction measures, such as reducing recruitment and staff hours or increasing prices. It is therefore important that the UK government retains a flexible approach in line with economic conditions when setting rates between now and 2020 in order to protect businesses and jobs.”
