ACCA Ireland offer top business priorities for new Assembly
Association of Chartered Certified Accountants
Ahead of the Northern Ireland electorate going to the polls on 2 March 2017, ACCA (the Association of Chartered Certified Accountants) Ireland has put together a wish list for the top priorities facing the incoming Executive.
Liz Hughes, Head of ACCA Ireland says that all major parties will need to work together to reach an agreement in order to establish a new assembly which will confront the challenges posed by Brexit and a changing global economy.
For ACCA, the top priorities are:
- Skilling-up the workforce
‘Northern Ireland is already feeling the effects of a limited skills force, with 19% of vacancies caused by skills shortages, this needs to be addressed.
‘It’s also key to act now to avoid any brain drain in the eventuality that jobs open up elsewhere. This means developing the knowledge economy within Northern Ireland, offering individuals the opportunity to build on their existing skills and take on new capabilities to progress in their careers.”
‘Ulster University’s Northern Ireland Skills Barometer report highlights that while there is a potential of ‘over supply’ for the low skill roles, there is a shortage of supply for mid-tier and graduate roles. It is forecasted that by 2020 over half of the local workforce will require higher skills, with shortages particularly acute in the Science, Technology, and Engineering and Maths (STEM) disciplines. This skills shortage will constrain current growth and future development for Northern Ireland business community.”
‘While it is encouraging that levels of unemployment in Northern Ireland fell to 5.3% in the last quarter of 2016, it is important to remain vigilant to downward pressure on wages leading to a very bottom heavy skills market with no ‘routes to the top.’
- Access to the Global Economy
Despite Brexit anxieties riding high, Northern Ireland’s export market has grown 6% in the past year, far ahead of the UK average of 0.2%.
Liz Hughes comments: ‘A key priority for Northern Ireland must be the protection of the growing export market. While the fall in Sterling has boosted exports for many businesses in Northern Ireland, the Republic of Ireland remains its largest export market and so more must be done to ensure that relationships with other markets in the global economy are strengthened for Northern Ireland businesses.
‘With confirmation that Westminster will not be required to seek approval from devolved administrations to trigger Article 50, it is more important than ever that a new Executive is formed quickly to ensure that Northern Ireland has the greatest possible access to the single market so that it protects and develops its growing export market.”
- Attracting business to support economic growth
‘The most recent Global Economics Survey (GECs) carried out by ACCA found that business confidence in the UK is at its lowest since 2011, with 55% of respondents to the survey viewing Brexit as more of a risk than an opportunity. It also reported that other political uncertainties including US trade agreements with China and Mexico, has had a significant impact on global business confidence.
‘UK Prime Minister Theresa May recently commented that the UK could possibly cut corporation tax rate quickly in order to have the lowest rate in the G20. Northern Ireland’s competitiveness rate of 12.5% in April 2018 will therefore not have the level of impact on attracting businesses that was originally intended.
‘Northern Ireland must therefore also position itself as an appealing location for foreign business, separate from the rest of the UK highlighting its benefits such as lower costs of housing, office rental and a great education network including university ties with business and low student fees.
‘Without this, a highly skilled workforce and awareness of the many benefits both social and economic, Belfast and Northern Ireland could struggle to fight off international competition for its excellent financial services centre and technology businesses. Northern Ireland must therefore become more proactive in attracting foreign investment by enhancing local skills and developing upon infrastructure.
‘Northern Ireland also faces a unique opportunity to prepare a skills pipeline that will attract businesses, create more highly skilled jobs and in turn, increase tax revenues. While the level of funding from the apprenticeship level is yet to be announced, the Executive must ensure the placements that are delivered offer routes in to the highly-skilled professional careers that can draw in businesses and offset any negative impact caused from the UK’s departure from the EU.’
