HC Deb 28 October 1998 vol 318 cc324-6
5. Mr. Ian Pearson (Dudley, South)

What progress has been made towards strengthening the economy in Northern Ireland. [54765]

8. Mr. Brian White (Milton Keynes, North-East)

What progress has been made in promoting a strong and sustainable economy in Northern Ireland. [54768]

The Minister of State, Northern Ireland Office (Mr. Adam Ingram)

The Northern Ireland economy is performing very well. Unemployment continues to fall and is at its lowest level since 1980. Manufacturing output is outpacing the United Kingdom average. The Chancellor's economic package announced in May offers major benefits, and the current north American investment tour has attracted significant interest. These measures will greatly assist us to exploit the economic opportunities presented by lasting peace and stability.

Mr. Pearson

I spent time working in Northern Ireland in the late 1980s encouraging enterprise. The business climate is now transformed and the economic prospects are far better. I welcome the north American investment tour. What indications are there of its success? What other measures are planned to ensure that more Northern Ireland companies do more business in our European home market?

Mr. Ingram

It is too early to say what the outcome of the 11-city tour, or north American investment tour, will be. We have attracted more than 1,000 business interests from the cities that we have visited. We have had a high-quality input from the business community in north America and we have had a high level of endorsement from existing United States investors in Northern Ireland. I pay tribute to everyone who participated in that north American tour, including the right hon. Member for Upper Bann (Mr. Trimble), and the hon. Members for Newry and Armagh (Mr. Mallon) and for Lagan Valley (Mr. Donaldson).

Clearly, the whole of Europe is an important marketplace for the Northern Ireland economy. It is for that reason that we are targeting that market as well, through a number of initiatives. I can advise the House that all the Assembly Members have been invited on, and most of them will participate in, a visit to the European Union next week so that they can get up to speed on this important issue.

Mr. White

I left Northern Ireland at the age of 18 because of the lack of job prospects. Does the Minister agree that structural unemployment is one of the key issues facing Northern Ireland, and will he outline the success of the new deal in Northern Ireland, with particular reference to the environmental task force and community and voluntary groups?

Mr. Ingram

My hon. Friend has touched on an important range of matters. He is right about structural unemployment, which is an endemic and deep problem within Northern Ireland's economy. One of the initiatives we have taken is a £40-million package announced by my right hon. Friend the Chancellor earlier this year, which is to be targeted on long-term unemployment among those aged 25 and over. That will provide schemes covering up to 30,000 unemployed people and will go a long way toward redressing much of the structural unemployment-causing imbalance inherent in the Northern Ireland economy. The scheme represents one third of the total UK schemes for the 25-plus group. It sits alongside other initiatives covering 18 to 24-year-olds and the new measures the Government are taking through the targeting social need initiatives.

Mr. Ken Maginnis (Fermanagh and South Tyrone)

Does the Minister agree that strengthening the economy requires long-term planning? Will he tell the House what long-term plans were made in respect of prison officers who, inevitably, would be made redundant as a result of political progress in Northern Ireland? Will he tell us how many prison officers are likely to be made redundant over the next two years; and what efforts have been made to put in place fast-track retraining facilities to deal with those officers who are likely to be thrown on the scrap heap of the unemployed?

Mr. Ingram

My feeling is that many of the prison officers who enter the employment market will not be thrown on the scrap heap of the unemployed, if we can increase the level of job opportunities in Northern Ireland. To achieve that, we need to have peace and stability. The number of prison officers who are likely to be made redundant is rather indeterminate, depending as it does on the pace of prisoner releases and changes in the approach taken toward the whole prison regime in Northern Ireland. A review is currently taking place of the long-term needs of the prison regime as it serves Northern Ireland's interests. In addition, through the Prison Service, we have entered into negotiations with prison officers to look at some of the issues—indeed, all of them and more—the hon. Gentleman raises.

Mr. Malcolm Moss (North-East Cambridgeshire)

Given that the agri-food industry is the largest industry in Northern Ireland and that farming faces its biggest crisis this century, with farm incomes down 50 per cent. in two years and agricultural bank debt increasing to £500 million, when are the Government going to act to prevent a major collapse in the rural economy; or is that yet another price worth paying in the fight against inflation?

Mr. Ingram

To hear any Conservative Member bleating on behalf of farmers is a bit rich, given what the Conservatives did to the farming community during the many years they were in power. The Government have set out to deal with the problem of BSE that we inherited; to return confidence to the meat and livestock markets; to take new initiatives to give support to the farming community; and to ensure that a local purchasing approach is taken within Northern Ireland's economy. That last measure is important, because farming is an important part of the overall economy in Northern Ireland. We have grasped the issue firmly and we are making progress. [Interruption.]

Madam Speaker

Order. The House must come to order. We can barely hear what is being said.