Unemployment rise highlights need to re-balance economy

11.45.00am GMT Thu 17th Jan 2008

Alliance Party Economy Spokesperson Cllr Ian James Parsley

Alliance Party Economy Spokesperson Ian James Parsley has said a sharp rise in Northern Ireland unemployment highlights the need for the Executive to take far more radical action to re-balance the economy.

The North Down Councillor stated: "A rise unemployment from 29,000 to 35,000 in a single quarter, accompanied with the highest economic inactivity rate in the British Isles, shows the size of the challenge facing the Executive.

"This also highlights why economists and business organisations are fearful about the Executive's failure to match talk with actions in the draft Programme for Government and Budget. What is required is not a meek acceptance of our place among the poorer UK regions, but a radical change of direction on economic policy to deliver prosperity. The Executive must tackle social segregation, move on from old practices and industries, and vastly improve health, education and housing provision in order to enable more people to access high-quality jobs and slash the inactivity rate.

"Firstly, the Executive cannot continue to ignore the costs of division. The current policy consists of ignoring the appalling impact of social segregation on our economy, shelving the 'Shared Future' policy, and taking no heed of the government's own reports indicating the costs are as much as £6 billion over an Assembly term. The restrictions imposed on labour mobility and access to training by this segregation are one of the primary reasons that so many adults in Northern Ireland are left out of the labour market.

"Secondly, the Executive must take radical steps to move on from direct-rule policy, which consisted of consigning Northern Ireland forever to the periphery. Even motions in the Assembly from Executive parties are all about maintaining old work practices and old industries which are totally inappropriate for a global economy in the 21st century. So far the Executive has continued with the same old 'begging bowl' politics, going abroad looking for money rather than seeking out new markets for our companies. Small wonder so many of our people are forced to rely on benefits than seek out employment.

"Thirdly, the Executive needs ambition not only for the economy, but for public services too. Without a sharply increased quality of life, we will remain on the economic scrapheap. Nearly half of those economically inactive in our society have mental health problems. Our workforce is the worst trained and educated in the British Isles, and too many people cannot access high-wage jobs as a result. Many people are trapped in the housing bubble which leaves them unable to work. The Programme for Government contains not a single measure that constitutes a new approach on any of these core issues.

"If there is an advantage to our current system of government, it is that the four parties in government collectively could take the courageous and sometimes unpopular decisions required to deliver the step-change in economic policy we need. They cannot be allowed to get away with such a lack of ambition for our people. We have the skills here, if properly used, to generate as much wealth as anywhere else. The mock political debate about how we redistribute wealth is pointless until we have some wealth to redistribute."

ENDS