What the Executive, with widespread support, was proposing entailed a radical policy shift of the kind which has been successfully adopted by small countries all over the world which are seeking to get onto a new economic trajectory. It has worked for them and of course, particularly well for the Republic.

It seems to be the Treasury view, that for some reason it would not work for us, or is not needed by us, and that it is better to continue with what are largely existing policies.

The Review has prudently refrained from saying what these policies would do to close the wealth and productivity gaps between Northern Ireland and the rest of the UK because, on the Government's calculations this year, they would do virtually nothing to close those gaps.

The Report repeats the old mantras about developing the supply side of the economy. But the more one develops the supply of skills, for example, without also stimulating the flow of high quality jobs, the more one simply adds to the number of well qualified Northern Ireland people who are already having to go elsewhere for jobs commensurate with their qualification.

Improvements to the public sector, on which the report majors, are no substitute for action to stimulate and significantly expand the private sector.

Indeed, weakening what is a key driver of economic activity in Northern Ireland before steps are taken to develop the private sector would leave us worse off.

So Varney has failed to answer the question that Government itself posed two years ago: how can one address the unsustainability of the Northern Ireland economy, ie: the gross imbalance between the public and private sectors which makes it so heavily dependent on a public sector whose growth is going to be severely curtailed in future?

That was the question the Government urged the local parties to consider in the run-up to the formation of the Executive and it promised to examine seriously their response, however radical.

To deal with the Executive's very fully researched proposal, the Treasury would have had to think outside the box rather than repeat the tired old shibboleths. It has flunked the challenge.

The crucial issue remains. How does the North emulate the Republic's success in becoming the host export platform for the high value added goods and services of some of the world's most successful companies?

The Executive must ensure that the Prime Minister is not allowed to evade that issue any longer.

Sir George Quigley is chairman of the Industrial Task Force, which is spearheading the campaign for a cut in corporation tax in Northern Ireland from 30% to 12.5%, to match the Republic's rate