Confidence high that Assembly will deliver

Business news

Monday, May 21, 2007

By Robin Morton

More than 80% of businesses in Northern Ireland are confident that the new Assembly will deliver a stronger economy, according to data published today.

A survey of 118 local businesses showed that 58% of respondents were " quite confident" and 23% were "very confident" that the Executive could produce an economic upturn.

The research indicated a split, though, as to whether Gordon Brown will better the terms on offer for an economic package.

While 52% believed there was scope for an enhanced package, 40% felt that the Chancellor was unlikely to improve the deal.

The telephone survey, of a cross-section of business, was conducted by Perceptive Insight Market Research on behalf of Belfast-based professional services firm Goldblatt McGuigan.

Michael Clarke, director of management consultancy at Goldblatt McGuigan, said the new administration should take heart from the confidence placed in it by the local business sector.

He said: "It is clear, however, that business leaders have high expectations for delivery by the Executive and clear views on the agenda that needs to be followed."

Mr Clarke said the jury was out on the possibility of the Executive securing a better deal as regards the economic package.

But, he added, there was a generally high degree of confidence in the ability of the new ministers to make a positive difference to the economy."

The feedback showed that 67% of businesses were confident that the Assembly would lead to opportunities for economic development.

Respondents were also invited to list their key priorities for the Executive and Assembly. The top three were:

- create stability (18%);

- cut corporation tax (17%);

- boost investment (16%).

Mr Clarke admitted it was significant that existing firms were focused on the need to cut corporation tax and to increase inward investment generally.

"There is a clear recognition that an expansion of the business sector, particularly in the form of international businesses setting up locally, would have a positive impact on the existing business base, as well as bringing benefits to the economy as a whole.

"There is also a strong feeling that investment in infrastructure is required to service any inward investment opportunities."

One of the participants, Hugh Cormican, of Andor Technology, said the Executive should focus on the long term, not the short term.

And Patrick Stapleton, of Hilton Hotel, urged that consideration should be given to improving incentives for new business start-ups.