North's Finance Minister in warning about economic development

The North's Finance Minister Sammy Wilson used a keynote speech in the Republic today to warn that his government has not done enough to develop its economy.

The DUP representative told an all-Ireland investment conference in Dundalk that Stormont ministers had worked hard to ease the burden of the economic downturn on families, but he signalled that they had yet to produce enough pro-active policies to create jobs.

Mr Wilson branded the delivery of long-term economic growth as "disappointing", claimed it was difficult to find any new policies over recent years, and said more needed to be done in the future.

In a signal to the North's ministers, some of whom have already complained at cuts to their budgets, Mr Wilson warned of a need to redirect funding towards economy boosting projects.

"Our Programme for Government was published over two years ago and I believe that when you look at the progress we have made in developing our economy's long term growth potential since then, the outcome might be judged rather disappointing," he said.

"If I ask myself what we have achieved as an Executive in terms of policies to promote economic growth, I can point to a number of short-term demand-side focused initiatives.

"We have frozen domestic rates, we have delayed water charges, and we have introduced fuel subsidies for poor households.

"These measures have served as an immediate stimulus during a difficult time and demonstrated the Executive's ability to act swiftly in response to the economic downturn."

But he added: "I would argue, however, that we have not done enough to advance long-term economic growth. We need to ensure that we do not lose sight of the importance of improving the supply-side of our economy."

Mr Wilson said: "The Executive will soon begin to develop our new Programme for Government. Our current number one priority is 'growing the economy' but I worry about how we have actually delivered on this.

"It is difficult to see any significant change in policy focus toward economic growth over the last few years."

Political opponents claimed that the Executive should have redrafted its budgetary and economic plans at an earlier date to respond to the international financial crisis.

Independent economists also accused the North's government of focusing on vote-grabbing measures such as the introduction of free prescriptions, and the delay of the introduction of domestic water charges, which they said have benefited the rich as much as the needy.

The Ulster Unionist Party Health Minister Michael McGimpsey and the SDLP's Housing Minister Margaret Ritchie have also complained that their departmental budgets have already been cut, despite their claims of the importance of the health service, and the potential economic boost of house building.

But Mr Wilson told the All Island Infrastructure Investment Conference that more policy initiatives need to emerge that will actively promote economic growth.

"It is imperative that we invest in a manner that generates enduring and tangible economic returns - this includes areas such as Research & Development and innovation, mathematics and technology skills, physical infrastructure, and the lessening of regulatory burdens," he said.

"In developing our new Programme for Government, in a tighter financial environment, the Executive will need to take some difficult decisions about economic policy - which may mean moving resources from other less important areas.

"Rest assured however, that I personally will do all I can to ensure that the economy remains firmly as the number one priority in Northern Ireland."

The conference was also attended by Minister of State Martin Mansergh.

The Government is funding infrastructure projects in the North, including multimillion-pound investment in a road link between Derry and Aughnacloy, plus improvements to the Belfast/Larne route.

Mr Wilson highlighted the importance of infrastructural developments to economic growth.

The DUP representative said: "Government has a responsibility to invest public money in the right areas to deliver a modern and prosperous economy in the future.

"This is how we can maximise returns from tax-payers investment. I firmly believe that investment in infrastructure and economic growth are intrinsically linked."