Co-operation and awillingness to learn are both key to developing a sustainable all-island economy. Northern Ireland, especially government departments and government agencies have much to learn from their counterparts in the Republic, who are pro business, pro sustainability and pro community. Thankfully, our representatives here fi nally realise that these three aspirations go hand in hand and are not mutually exclusive; indeed their success depends on each other.
While the differential in corporate tax rate is unfortunate, the recent IFSC announcement is encouraging and a demonstration that a creative approach can deliver the right solution. Also, international corporations are expert at managing tax exposure, and corporate tax was never going to the golden bullet that some suggested. What they’re more interested in is a highly educated and skilled workforce, which delivers high productivity. Ireland will continue to produce indigenous entrepreneurs and be an attractive location for multinational corporations as long as we keep our education and skills sectors competitive.

Economic Growth

Economies north and south have experienced strong growth over the last ten years, but in different sectors and there remains much to do in the North. Northern Ireland is still the lowest contributor of any UK region in terms of GVA, and also has one of the lowest average income of around £19K. It also relies heavily on the service sector, and while unemployment is low, we still have a very high economically inactive population who see little incentive to enter a low pay job market.
The story in the Republic is of course much different. A small and open economy, well hedged towards external markets and with fairly balanced (save construction) internal segmentation, it should be in a strong position to face the problems ahead. A government and civil service which understand the importance of developing sustainable business sectors, including finance, life science, has ensured an enterprise- friendly environment. The new Northern Ireland Executive can learn much from their Dublin counterparts.

Harnessing Cooperation

A sad legacy of a divided Ireland was the near non-existent levels of trade between North and South. While cities like Newry are somewhat ahead of the curve, there remains much to do. The ‘can-do’ attitude we see in the South, where opportunities are maximised, is not as widespread in Northern Ireland. Therefore, we have more to do in this regard to help Northern entrepreneurs realise the full extent of opportunities in the Republic.
Initiatives such as the InterTradeIreland Private Equity conference, hold much promise. More of these initiatives, operating at a sectorspecific level, such as life sciences and financial services, afford businesses the opportunity to meet and swap ideas, which will be of huge benefit to all concerned. Mutual respect understanding and a willingness to co-operate at all levels and in all sectors is central to all-island business and the two Governments must keep this to the fore as their main priority.

Strategy Implementation

Policy-makers in the Republic were always aware of the fact that low corporation tax was only part of a package which would attract foreign investment. A highly skilled and highly educated workforce, flexible labour laws, responsive and helpful government have all ensured that Ireland continues to bean attractive location for investment even as other European countries introduce low corporate tax rates. Hopefully the Northern Ireland Executive, in its efforts to strengthen the economy, will realise the importance of a wide-ranging strategy, and not focus entirely on securing a low tax rate.

Indigenous Entrepreneurship

A crucial part of any successful economic strategy is the development and encouragement of indigenous talent. An understanding of business is vital if we are to foster a higher number of Irish entrepreneurs.

"We need closer co-operation between

businesses and universities, more effective third level institutions"
Dr Gerard O'Hare, MD, Parker Green International

Many innovative approaches exist in other countries and should be used with school children from as low as primary level to help them understand the basic concepts behind running a business. As a long as these are kept relevant and fun, they would go a long way in bringing business and commerce to the classroom. For too long our education system has focussed on giving children the tools for life, instead of focusing on the tools and skills for life.
While dedicated programmes to start business are in operation, some of these have operated with varying degrees of success. Support and funding should be given to those with genuine skills and ideas and not just to those who ‘have a hunch.’
Collaboration between business and universities has been successful in some areas but not in others, and we should work to ensure the full potential of our tertiary education sector is realised. In many ways we boast a comprehensive education system but we need to ensure it remains competitive. We need closer co-operation between businesses and universities, more effective third level institutions right across the country and not just in big cities, and a culture where everyone can find a suitable skills path.

Global Competitiveness

The challenge of the two Governments is to harness the benefits to both economies in an effort to make the island more competitive on an international basis. We must encourage all entrepreneurs to think global and to be courageous enough to reach out to an international market – whatever their product service or skill.
The announcement that the IFSC will be outsourcing jobs to the north indicates a willingness from Dublin to ensure that Northern Ireland can share some of the benefits of the Celtic Tiger, although it is disappointing that this announcement came in 2008 and not 1998. The number of jobs is likely to reach the thousands, which, in a small economy of 1.5 million people, is significant. Northern Ireland is smaller than most of the larger European cities, and with further initiatives like this we can build a successful economy. It is also important that we move quickly to cement our relations with Dublin. While the current Fianna Fail-led administration has shown an incredible willingness to engage, this may not always be the case, so it’s important we move fast.

The Newry-based retail and property developer Gerard O’Hare has a portfolio of developments across Ireland, the UK, Central Europe and the USA worth over £450 million. A committed promoter of public–private partnerships, he is one of the most successful private sector businessmen.

"A crucial part of any successful economic

strategy is the development and encouragement of indigenous talent"
Terence O'Rourke Managing Partner, KPMG

His investments include The Quays Shopping & Leisure Centre in Newry and The Fairgreen Shopping Centre in Carlow, ROI. He is currently planning the development of a new multi million pound retail and leisure ‘Crystal Village’ in Waterford. In recent years he has established a growing international portfolio in Central Europe and the USA.
Dr O’Hare, through a commitment to good business practice, sound vision and proven ability, has won the respect of the business community throughout the island of Ireland. He was the catalyst in bringing together the winning consortium bid for Belfast’s Waterfront Lanyon Place in association with the USA Baltimore based Company, EIDC and Dunloe Ewart Plc in 1991.
Gerard O’Hare has been involved in all of the major developments in Northern Ireland throughout the period of accelerated growth in the 1990’s and has attracted many outside companies from the international stage to Northern Ireland.

All-island Trade

Last year he was appointed by the North/South Ministerial Council, to the Board of IntertradeIreland. Through his board membership, he is actively involved in enhancing the global competitiveness of the all-island economy to the mutual benefit of Ireland and Northern Ireland through measures such as the creation of knowledgeintensive, all-island trade and business development networks and the implementation of all-island trade and business development programmes.