Transcript More Government, Less Governance

Population: 1.84 million
 Area: 5,345 sq. miles
 GDP / inhabitant: £15,800
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Simplify access to
funding for SMEs
 Promote access to
finance through local
loan programmes
 Establish a business
networking e-platform
 Organise high profile
events to promote
different
entrepreneurial sectors
where entrepreneurs
DECIDE what is best for
them
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Develop
Entrepreneurial ecosystem that maps out
opportunities for
young entrepreneurs
Establish a physical
and cultural
environment
conducive to
economic growth and
business creation.
Reduction in Corporation Tax from 2016 will
not cure our economy on its own (66%
public sector)
 Present Programme for Government and
Economic Strategy refer to micro businesses
and local economies as vital but few
bottom up interventions
 Start a Business Scheme supports start up
but what about the conditions for
enterprise, e.g. Retail / Artisan improvement
zones (Lowell, Massechusetts)
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Reduction in Corporation Tax in NI from
2016 will keep more profit within SMEs
 UK = 20%, IRL = 12.5%, NI = ??
 State Aid Rules means Cost is £200-300
million p.a.
 SMEs need infrastructure, local
authorities and regional government can
create the conditions and the places
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Source: NICEP/HMRC
Graphics: JPR
Source: HMRC
Graphics: JPR
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Northern Ireland Assembly and Civil service
undergoing reform.
20,000 public sector posts to go over the next 5
years
Lowest Business start rate in UK
Reduction of the number of Government
Departments – Budget cuts
Local authorities have just been merged from
26 to 11and have additional functions
Northern Ireland’s economy is too reliant on
public employment...but change is coming
and businesses want it.
New Council Community Plans: All partners
must align their priorities to that of the area
community plan.
 NILGA plays a crucial role to bring closer
the two tiers of government and avoid
duplication and complexity
 NILGA is lobbying for simplification of
process with EU Managing Authorities to
ensure that the end user gets the benefits of
financial assistance, not the timeconsuming administration/auditing of
projects
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Devolution of functions to local authorities are
going to simplify processes for the end-user
BUT local authorities need to ensure that their
reporting responsibilities will not be
burdensome.
The 11 Councils should provide a framework
where people who make decisions on business
are entrepreneurs themselves.
The 11 Councils need to create a networking
platform representing entrepreneurial interests
to government and other public bodies to
allow partnership & cooperation and to foster
relationships based on PRAGMATISM & TRUST.
De-institutionalise from the top. It must be a
political imperative
 De-categorisation of businesses: ALL small
businesses should be given broadly the
same opportunities (from stall holders to
small exporters).
 Although technology is seen as the
panacea for growth, we need to
remember traditional industries and “hand
down” skills before they are lost or
forgotten. “the life so short, the craft so long
to learn” - Hippocrates
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The Small Business Act – Make Public
Administration responsive to SME needs – Think
Small First – Create the right environment for
SMEs
Direct statutory link between tiers of
government and agencies, performance
managed, using business growth drivers, not
public sector data
Create actions underpinned by the SBA
Learn from – but compete with - others
Some answers lie in the Cities and Regions
(Lowell, pop 103,000, 6,000 jobs and 2000 SMEs
in 20 years through City reinterpreting Federal,
& State “Red Tape”
Competing and duplicating campaigns like
Living / Minimum Wage, Corporation Tax
and VAT Tax reductions, Strategies for Skills,
strategies for technology like Broadband,
should be depoliticised
 Cities and regions with autonomy to
compete will mean “universal growth” is a
panacea – it will be partial
 NI is a medium sized City = Self Help is Key
(Roads, Technology, Infrastructure,
Competitive Region, Tourism, GVA drivers)
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.'Business is the most powerful institution on
earth today. It is more powerful than
politics. Business serves us very well in some
ways, but it doesn't serve us as fully as it
should; it doesn't serve us fully as
people.' Michael Rennie, Director, McKinsey
& Co.
 If we govern well / simplify our relationships
with business and create conditions for
growth, then sustainable prosperity is
achievable for many
 Avoid growing inequality
 Avoid creating public sector solutions
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