The Institute of Directors (IoD) Northern Ireland has issued 10 measures that, if introduced by the Northern Ireland Executive, will mitigate economic impacts of virus outbreak.
The 10-point plan has been developed by IoD NI with assistance from Ulster University Economic Policy Centre and consultancy firm Belmont Strategy; and is based on input from IoD NI members from across Northern Ireland.
If implemented, the proposed interventions will support businesses throughout the region as they attempt to manage the economic fallout of the pandemic, which has severely impacted almost every sector.
The 10 proposals to mitigate economic impacts of virus
Introduce temporary flexibility in procurement rules
Procurement rules should be temporarily relaxed to allow senior civil servants to procure goods and services that are a) essential for healthcare requirements to protect lives; and b) to support local enterprises that are manufacturing products or providing services for the healthcare sector.
Leverage the expertise and skills of furloughed workers to fulfill essential roles
A campaign to encourage furloughed workers to undertake “public good” activities. For example, delivering supplies to the healthcare sector, or essential goods to vulnerable people. Furloughed workers should also be mobilised to support the public sector in relevant roles such as logistics, procurement etc.
Relax “value for money” requirements on public expenditure
Value for money requirements on public expenditure should be relaxed until 30th June 2020 (and extended if necessary). This will enable quicker decision making. Civil servants should still be required to ensure reasonably good value for money during this time.
Government support should target small enterprises with cash flow issues
NI Executive should specifically target small businesses with precarious cash flows. Support could be in the form of short-term survival grants; interest free loans followed by a staged repayment; or signposting to other government initiatives.
Closely monitor banking activity to ensure businesses have access to support they need
Banks should be closely monitored in the time ahead to protect the most vulnerable businesses. The Department for the Economy should establish a team to work with businesses on issues such as changes & lending terms.
Maintain a functioning planning system to allow continued investment
Maintaining a functional planning system will provide economic benefits now, and in the months ahead. It will allow progress to be made on existing schemes and create a pipeline of consented schemes which will attract investment and create employment over the next 12 – 24 months.
Accelerate capital projects to generate investment and economic activity
Where possible, capital projects should be accelerated. This will help create employment and investment when needed most, while delivering new infrastructure in Northern Ireland.
Continue to progress existing policy developments that will stimulate investment
Continue to progress policies and legislation that will act as economic drivers. For example, it is vitally important that the new Energy Strategy is not delayed as it will help attract investment and create jobs over the next ten years.
Prioritise reliable evidence to provide targeted support for businesses
Government has reacted quickly to support businesses, which is very much welcome. We must now prioritise reliable evidence and a comprehensive survey of relevant organisations and individuals should be carried out across NI. This will allow a targeted approach to identify those who are most in need and design and implement an appropriate policy response.
Plan now for Northern Ireland’s economic recovery and return to competitiveness
Allocating resources within the Department for the Economy to focus on medium to long term measures will help to reestablish and recover, focusing on sustainable growth for the longer term. A dedicated team should be working with businesses and stakeholders now on measures that will stimulate economic growth and fast-track a return to competitiveness “post-COVID”.
Speaking about the proposed interventions, IoD NI Regional Director Kirsty McManus said: “Firstly, on behalf of IoD NI I want to pay tribute to all the key workers, including NHS staff, who are putting themselves in harm’s way to keep the rest of us safe from this devastating virus. Our thoughts are also with the families of those who have passed away with coronavirus.
“While we recognise that this is first and foremost a public health emergency, we are also working very hard to help IoD NI members navigate the major economic challenges arising as a result of the COVID-19 outbreak.
“We are speaking with members from across Northern Ireland every day to get an understanding of the issues they are facing. We also appreciate that government departments are under significant pressure, and we want to support them as they work to support us.
“This 10-point plan provides deliverable solutions that if enacted will mitigate economic impacts of virus and provide much-needed assistance to the Northern Ireland economy in the weeks and months ahead.
“It tackles a number of critical areas including procurement, support for local businesses and the importance of maintaining focus, where possible on aiding economic recovery and a return to competitiveness.
“We will be presenting this plan to elected representatives and officials in the coming days as we continue to support our members and the wider Northern Ireland business community during these unprecedented times.
Richard Johnston, Deputy Director of Ulster University Economic Policy Centre, added: “The economic impact of the coronavirus outbreak in Northern Ireland – and across the globe – is unprecedented.
“As we have seen in recent weeks, the speed at which the consequences have been felt is particularly concerning.
“The 10 areas of focus highlighted today reflect the main challenges facing IoD NI members. If implemented, these interventions will help to sustain many businesses across Northern Ireland now and in the time ahead.”
