:Paying our way

Friday, July 9th, 2010
2010’s second budget makes a start on cutting the deficit but, as expected, proves unpopular. Supporters see it as a necessity but detractors warn that it will punish the poor. All parties agree on the need to cut the UK’s deficit, totalling £149 billion in borrowing for this financial year. The dividing lines, though, appear over the method needed to fill the country’s fiscal gap. This was clear in the initial comments from the Northern Ireland Secretary and Finance Minister, and further demonstrated as local parties sent in their views. Closer to the coalition, the UUP and Alliance...[full story]

:Robert Skidelsky

Friday, July 9th, 2010
Keynes’ biographer Lord Robert Skidelsky is to address this year’s Northern Ireland Economic Conference. agendaNi profiles the professor of political economy. Lord Skidelsky is Emeritus Professor of Political Economy at the University of Warwick and is perhaps better known as Keynes’ biographer. His three-volume biography of the economist John Maynard Keynes received numerous awards. The financial sector crash brought Keynes back to life. In the 1970s, Keynesian policy became somewhat obsolete. He was seen as the great economist of the Great Depression of the 1930s but he had little...[full story]

:Going for broke

Friday, July 9th, 2010
With the emergency Budget looking to cut the deficit, Owen McQuade looks at the risks of such deep cuts in stalling the economic recovery. The UK’s emergency Budget of 22 June aims to deliver a severe fiscal retrenchment equal to 6.3 per cent of GDP by 2014-2015. Three-quarters of the adjustment will come from spending cuts and the balance from raising taxes, with £113 billion per year knocked off the deficit by 2014-2015. Government spending will fall from 47 per cent of GDP in 2009-2010 to under 41 per cent and borrowing will fall from 11 per cent to 2 per cent. The cyclically adjusted...[full story]

:Businesses on the Budget

Friday, July 9th, 2010
Businesses have been largely welcoming of George Osborne’s Budget, particularly the paper into rebalancing Northern Ireland’s economy. The reduction of corporation tax to 24 per cent over the next three years is a positive element of the Budget, but should go further according to local business. “Even after the four years of reduction, our corporation tax will be 6.5 per cent higher than the Republic; a position that is simply not sustainable and any paper which fails to address this point will have little or no impact,” commented Francis Martin, President of the Northern Ireland...[full story]

:Esmond Birnie Q&A

Friday, July 9th, 2010
How hard were the hard choices? On 22 June 2010, just 90 days after Alistair Darling warned in his final Budget speech that “there are tough choices ahead”, his successor, George Osborne, told a packed House of Commons: “I will not hide hard choices”, and he didn’t. Esmond Birnie, Chief Economist with PricewaterhouseCoopers, reads the Budget tea-leaves to see just how hard those choices really were. George Osborne described it as the “unavoidable Budget”. Was it? Not exactly – this was a Budget of choice, but it wasn’t much of a choice. Osborne had to send a message...[full story]

:Churches make fair banking call

Friday, July 9th, 2010
Northern Ireland’s banks will meet church leaders after their claim that financial institutions were profiteering at the expense of small businesses. Poor lending, increased charges and unfair treatment of customers were among the accusations made by the leaders of the four main churches. Businesses had approached the Church of Ireland’s Archbishop of Armagh, Rev Alan Harper, who led the initiative. His call was supported by Cardinal Seán Brady, Presbyterian Moderator Dr Norman Hamilton and Methodist President Rev Paul Kingston. “I and my colleagues have been collecting examples...[full story]

:Moving off the comfort funding

Friday, July 9th, 2010
Northern Ireland must use EU funds as a ‘springboard’ not a ‘sofa’, according to Economic and Social Committee member Jane Morrice. Since September 2006, Jane Morrice has been one of Northern Ireland’s two members on the European Economic and Social Committee. The committee (see page 108) represents Europe’s civil society, and she sits in its ‘various interests’ group. Having been a North Down MLA from 1998 to 2003, Morrice explains that, rather than a political role, committee membership means being part of the “wide-ranging variety of expertise” across the EU. Her...[full story]

:NAMA looks north

Friday, June 4th, 2010
The Northern Ireland NAMA Advisory Committee has begun its task of protecting the value of the region’s property and assets that are due to be taken into the National Asset Management Agency. Meadhbh Monahan looks at the role of the ‘bad bank’ in the province. An estimated £4.6 billion of Northern Ireland assets will be transferred to NAMA, the asset management agency which was established with the aim of transferring key property-related exposures from the balance sheets of the participating financial institutions in return for Irish Government-guaranteed securities. Initially...[full story]

:A modest recovery

Thursday, June 3rd, 2010
Economic recovery will be “sluggish by historic standards”, according to Ian McCafferty. Speaking at the annual CBI economic briefing, McCafferty reminded delegates that recovery induced by a financial crisis tends to be “twice as deep and lasts longer” than a recovery that is brought about through government policy or decisions. Economies across the world are currently showing “upbeat signals”, he said. “It was only a year ago we were talking about a free-fall in the global economy.” However, inter-bank rates have normalised, falling to rates “not seen since before...[full story]

:Quinn cuts

Thursday, June 3rd, 2010
Over 900 redundancies have been announced at Quinn Insurance following three months of turmoil at the company. Meadhbh Monahan reports. After it was taken out of control of the wider Quinn Group and placed into administration following “serious and persistent breaches” of the solvency rules in March, Quinn Insurance Ltd (QIL) was ordered to stop writing policies in the UK. They have since been allowed to re-open to all private motor drivers in the UK, but on 30 April the company announced the redundancies saying: “although regrettable and painful for the employees and their families,...[full story]