30th Apr 2008
Varney II is a pat on the back
Varney II is out. On a preliminary skim over the executive summary I am far from overwhelmed. He endorses all the good bits of existing Executive policy and calls for its implementation, something nobody will disagree with, and then adds a few of his own favourites just for completeness. The best one is the call for the privatisation of the Driver Vehicle and Licensing Agency, hardly the magic bullet to solve our competitiveness issues but in the report none the less.
Sir David was asked to look in a considered way at the structural issues impacting on the competitiveness of the Northern Ireland Economy. He wrote and academic analysis, 90% call for implementation of existing policy 10% recycling of existing GB programmes.
The lobby groups are reflecting this in their initial responses. The Institute of Charted Accountants in Ireland has said:
“Sir David Varney’s findings are in marked contrast to his disappointing review of Northern Ireland tax policy published late last year. On that occasion, he seemed to find that nothing was wrong with the Northern Ireland economy, and in particular that no changes to tax policy were required, a position which ICAI strongly contests.
While on this occasion he has supported review and reform, the issue of taxation, a key component in assessing Northern Ireland’s competitiveness, has again failed to feature, and this remains a significant shortcoming. This is particularly so in that the role of tax in offering a competitive edge is gaining widespread currency, not just in the context of the Northern Ireland economic debate.”
In a week when the Treasury is under siege from big business moving to the Republic he has failed to really recognise the North’s potential as an FDI location or a potential special region within the UK. This report, like it’s predecessor will disappear onto the shelf quickly. Our local Minister’s will put on a brave face and claim the better bits. This is not their report and not their analysis and it would be very unfair to hold them responsible for it. We have very many talented economists on this island in the public and private sectors. Next time we need some advice I think we should ask one of them.
Leave a Reply