Going for Growth:
Last week I participated in the “Going for Growth: Time for Radical Change” debate in the Riddel Hall at Queen’s University. The surroundings of the debate in this beautiful building was in itself an inspiration, acting as a signal that rejuvenation is possible even in this current economic climate. The new facilities provide a fantastic creative space for business and education collaboration and in addition, Riddel Hall is a stark reminder of what can be achieved when we have solid partnerships between the public and the private sectors, as the funding for Riddel Hall’s restoration came from both sectors.
Last Tuesday’s debate agenda was designed to explore a range of economic topics, from factors restricting local economic growth potential to identifying practical steps, actions or change that can support local growth. Almost 300 business representatives turned up on an exceptionally wet and dark winter’s evening, which gives the reader some idea about just how determined the local business community is to revive our economic growth.
Everyone knows that the status-quo in Northern Ireland is not acceptable. High inactivity levels, over dependence on welfare, high youth unemployment and low economic growth cannot continue. The local Executive has ambitions to rebalance and rebuild the economy and of course when money is scarce, the challenges appear even greater. But transformation can happen - it can and does happen at the firm level and it also happens at the macroeconomic level when the determination and the correct strategies are in place.
For transformation we require a vision of where we want to be ten or twenty years from now. My own vision for Northern Ireland would be to work towards creating an economy which is in the first instance ‘knowledge-based’ because it is widely recognised that knowledge will be our competitive edge in the future. We can no longer compete on a ‘low-cost’ production basis as emerging economies have taken that spot and so ‘human capital’, i.e. people, will be our most valuable resource in the 21st century. Our desire to increase levels of innovation and creativity will be increasingly fulfilled as we focus on creating the right conditions for a knowledge-based economy. International evidence shows us that such economies create wealth and jobs but we have a lot of work to do before we get there. The Northern Ireland Science Park CONNECT report published in late October demonstrated just how much Northern Ireland needs to up its game if it is serious about becoming a competitive player in the global economy.
Radical change in a number of areas will be key to our transformation. Last Tuesday’s debate raised issues such as skills, education, public sector reform and aversion to risk, finance for business, government support for business and new enterprise as well as cultural change and self-reliance. There is certainly plenty to be changed- we could have talked all night on this subject- but coming up with radical solutions is of course more difficult. Nonetheless, it is always good to put proposed actions on the table for consideration. The Queen’s debate was the start of this process and event hosts Clarendon Executive and BBC Business and Economics Editor Jim Fitzpatrick are determined to keep this debate a live one which will both underscore the need for change and ensure all ideas, whether radical or not, get heard. For my part, I will take this opportunity to throw out some ‘wild cards’ for consideration which readers can openly debate on the Clarendon Executive Linked-in site or follow on Jim Fitzpatrick’s Twitter (@jimfitzbiz).
- To create a culture of innovation and change and reduce risk aversion in the public sector. Heads of Departments should also be appraised on the number of new initiatives that they considered or implemented during the course of the year. This drive for new and better approaches to service delivery or waste reduction would quickly filter down to all staff.
- We cannot achieve an equitable society or knowledge-based economy without resolving under-achievement in schools. So let’s create a “Tackling Educational Underachievement Taskforce” made up from voluntary members. This taskforce will co-ordinate university students for mentoring and tutoring in homework clubs for underachieving children in deprived areas. Students who engage in four hours per week for 32 weeks should receive a 30 per cent refund on their university fees.
- Introduce an education voucher scheme similar to that introduced in Sweden in 1992. Let parents have the choice of where they will spend their voucher and let the money follow the good schools.
- Segregate children in school on their learning style and age-cohort only. Use the evidence from Fingerprint learning and the Institute of Fiscal Studies to ensure that children are taught in the manner which allows them to reach their full potential.
- Recognise the importance of new firm formation (entrepreneurship) as central to job creation and innovation in NI. Establish Local Enterprise Partnerships, led by Councils which will bring together the original resources of Invest NI, Enterprise NI and its local enterprise agencies, FE Colleges and other stakeholders. This would move central government resources to local government and the community and voluntary sector when it comes to enterprise policy.
- Focus on two or three core sectors in the way that Singapore or the Republic of Ireland has done and actively build up clusters of firms in these sectors around our two main universities.
In summary, I think at this stage most of us know what has to be done, so in the words of the European Commission President Jose Barraso last week, “bring solutions not problems” and that is what the “Going for Growth” debate is all about.
Angela McGowan
13th December 2011
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