Northern Ireland Brooke/Mayhew Talks 1991-1992

WORK IN PROGRESS - IN THE FINAL STAGES OF EDITING A series of talks launched by Peter Brooke, Secretary of State for Northern in Ireland, which began in April 1991, and were carried on intermittently by Brooke and his successor, Patrick Mayhew, until November 1992.

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Session 11445: 1992-03-02 09:30:00

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Conclusions of Meeting to Discuss Economic Development 2 March 1992

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Conclusions of Meeting to Discuss Economic Development 2 March 1992

Mr Loughran said that his aim was to present some of the issues, problems and opportunities facing the economic development agencies:

- The Department of Economic Development was organised in a way which was designed to maximise the contribution which it could make to the promotion and support of economic activity within the Province. In particular a new research and technology unit was being established as an agency devoted to innovation, with the hope being that it would obtain the same status as the Training and Employment Agency and the Local Enterprise Development Unit.

- Mr Loughran said that there were four parts of the agenda for employment creation: inward investment, home industry, local enterprise and the development of workforce skills.

- While Inward investment continued to be important, there was heavy competition from other areas for inward investment and the other three areas all had a significant part to play. It was particularly important to improve the competitiveness and performance of home industry in a way that lead to growth and job creation. The policy of "backing winners" was designed to facilitate this.

- Mr Loughran and Mr Hewitt referred to the central role of the Training and Employment Agency, which was the largest part of DED, consuming £160m of its budget.

- The figures suggested that Northern Ireland still had a long way to go in getting the productivity of its employees up to the level of the West Germans. Some of this was a matter of improving the management effectiveness of firms, as was evidenced by the fact that productivity tended to be higher in foreign owned companies operating in Northern Ireland. But much of the improvement turned on enhancing the skills and qualifications of the workforce.

In discussion, Mr Hume shared his thoughts:

- In selling Northern Ireland to potential foreign investors it was important to quote the higher productivity figures which some companies in the Province under foreign ownership were already achieving. It was also important for all of the parties to work positively with the IDB.

- It was sensible for each of the parties to be involved in helping the IDB market the Province overseas: in some areas he would have a role to play, in others it would make more sense for the other party leaders to be involved.

- Mr Hume said it was also crucial that local Northern Irish companies were well briefed about the likely affect of the Single European Market. Dr Paisley said he very much agreed with this. With Mr Hume and Dr Paisley agreeing that the guidance material produced by the DTI was inadequate, it was agreed after discussion that officials would consider further what might be produced.

- Mr Hume said that the party leaders could play a particularly useful role in helping companies to spot opportunities for international cooperation which they might not spot themselves. In discussion there was agreement that greater diversification and a concentration on more value added products by farmers and food processors was needed.

In further discussion, other points were addressed:

- Dr Alderdice shared his thought that that there was an important role for party spokesmen to play, and that it was also necessary for workers and employers to come together so that a clear and united voice could be given to those interested in investing in the Province. This was endorsed by Mr Molyneaux and Mr Hume.

- Responding to the Secretary of State's question on whether the party leaders thought that the parties themselves were doing enough to help, Mr Hume said that it was the responsibility of the Government to draw up an overall plan and then to invite individual parties to make their own particular contributions.

- Dr Paisley and Mr Hume said that another respect in which

Government could help would be to re-examine current planning requirements.

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