The Economic Development Forum was set up in November 1999 as follow-on from the Strategy 2010 recommendation 9.41. The members of the Forum, whilst subscribing to the vision and key principles as set out in paragraphs 8.1 to 8.3 of the Strategy document, have not at this time discussed and come to total agreement on all the points or recommendations contained within Strategy 2010.

  Membership of the Forum includes representatives of private sector industry and commerce, the trade unions, the voluntary sector and farming in a social partnership alongside representatives of Government.

  To avoid any potential conflicts in the duties of Government representatives to respond separately to the Committee's invitations to give evidence and given that the Forum acts in an advisory role to the Minister as Chair, the following submission was developed by members of all the social partners. Government members did not participate in its preparation.

  The terms of reference of the Committee's inquiry and the questions on which the Committee has invited evidence are broad and raise complex issues. The Forum does not have available to it the resources or the level of analysis, which would be required to provide in-depth answers to the questions raised, nor would such an analysis have been possible in the timescale for this submission.

  The Forum set up a sub-group to discuss and co-ordinate a response to the Committee and would like to record the following views:

(i)  Inward investment will continue to be a vitally required component of an overall economic strategy for the creation of a thriving regional economy. This is notwithstanding a proper continuing emphasis on the accelerated development and strengthening of indigenous enterprise;

(ii)  While a vital component of an overall economic strategy, inward investment can be no more than one issue to consider in a complex mix. The question of whether it is correctly focused can only be answered in the context of the overall strategy. It should be recognised also that its focus must change as a natural consequence of change in the economic environments internal and external to the region, particularly as such changes reflect the changing priorities in UK, European and global investment environments;

(iii)  An overall economic strategy properly should describe a vision for the general thrust of economic and social development. Strategy 2010 has defined such a vision in the following terms:

"A fast growing, competitive, innovative, knowledge-based economy where there are plentiful opportunities and a population equipped to grasp them."

  We believe that the vision for a knowledge-based economy in its broadest sense as set out in Strategy 2010 has received widespread acceptance:

(iv)  The absence of a continuity in political leadership has meant that conclusions on a viable economic strategy have been long delayed, a situation which can only be detrimental to the community's interest. A key underpinning for any such strategy is political stability. It is only in the context of an agreed economic development strategy that a fully effective inward investment strategy can be constructed. It is important that this strategy contains elements to address all the comparative and competitive issues facing our region taking into consideration all our future requirements within a rapidly changing world;

(v)   A primary concern must be the make-up of the incentive package available to attract inward investment in this highly competitive global investment environment. In this regard, the strength of position of the Republic of Ireland due to the incentive package based on low Corporation Tax must be an important element for consideration. This must be addressed in such a manner as to ensure that a competitive position exists for all potential inward investment whilst concurrently maintaining the integrity of a United Kingdom fiscal model within the new devolved arrangements. This is recognised as being a difficult issue. However we believe it is not impossible to develop an arrangement where nominal rates of taxation are maintained whilst within the actual application within Northern Ireland tax incentives can be focussed to assist with competitiveness for investment alongside the Republic of Ireland. Examples are listed within the Strategy 2010 report;

(vi)  Similarly, the effectiveness of an inward investment strategy may be only secondarily a function of the mechanisms for implementation, although on the question of the institutions for inward investment, we take note of the Strategy 2010 recommendation for review. Developments of arrangements need to meet the changing and increasingly competitive environment for mobile inward investment locally within Europe and worldwide;

(vii)  The interaction between inward investment projects and existing business is vital in the development of both the supply and creation of goods and services. Within the strategy currently being developed increased activity in the Research and Development areas of future viable areas of economic activity are an important component;

(viii)  We believe that alongside the fiscal package and its mechanism for implementation by Government all other aspects, which can be impacted surrounding the inward investment climate and environment, should be supported and promoted. Particularly we suggest targeting vocational and skills training towards developing economic opportunities. We include developing technological capabilities and infrastructure projects, which improve our competitiveness. All need to participate in "a joined up" approach to future economic progress;

(xi)  Finally we believe that the Government's effective participation and support both in setting the context for and participating in the sustainability of long term economic activity are important components of a modern democracy.

  This response has been formulated directly by the following Forum members:

Dr Christopher D Gibson OBE Dr Patrick Haren Mr Jim McCusker Ms Patricia McKeown Mr Alasdair MacLaughlin Mr Miceal McCoy Mr Seamus McAleavey Mr Mick O'Reilly	C.C.I. Viridian Group plc and Growth Challenge NIPSA and ICTU Unison and ICTU UFU NIAPA NICVA ATGWU and ICTU