Business

Cutting university places will affect investment into north

Queen's University, Belfast is expected to reduce places following Stormont funding cuts
Queen's University, Belfast is expected to reduce places following Stormont funding cuts Queen's University, Belfast is expected to reduce places following Stormont funding cuts

CUTS in university places brought about by reduced Stormont budgets will harm the north's ability to attract foreign investors, the Northern Ireland Chamber of Commerce has claimed.

The organisation said the issue would undermine other measures to encourage economic growth such as reducing the rate of corporation tax.

Its president Stephen McCully said 2016 was "certainly not the time to reduce the number of students in our universities" amid efforts to increase the size of the north's workforce.

"To attract quality overseas investment we have to be able to offer quality employees in the right quantity," he said.

"We have worked with a range of incoming companies to Northern Ireland and we know that the mix and ability of our employee pool is absolutely vital to them. This will require an on-going liaison between higher and further education and the business community."

Mr McCully was speaking as the chamber set out a range of priorities for the year ahead.

Others included increasing the provision of top grade office accommodation, increasing exports and improving transport links.

"As we begin another year, it is an appropriate time to look ahead at what is possible, or achievable, in the 12 months to come," he said.

"At Northern Ireland Chamber of Commerce and Industry there is a real belief that we can be positive about 2016, with the convergence of a variety of economic and political factors meaning that the foundations for sustainable economic growth could finally be in place.

"The Chamber shares the view of the wider business community in regard to the political settlement reached late last year. The 'Fresh Start' Agreement provides the prospect for the kind of political stability required to foster economic growth, and allow our member businesses to plan growth with the assurance that our institutions are settled."

The chamber welcomed clarity over plans to reduce corporation tax to 12.5 per cent from April 2017 in a move which he said "will help to attract new high-end foreign investment".

But he said the reduced tax was "not the whole answer to fostering business growth".

"It is essential that we start with sufficient budget allocated to (Stormont business support agency) Invest NI so it has the resources to market the new inward investment proposition in relation to the devolution of corporation tax and to continue to support high value job promotion," added Mr McCully.

Meanwhile, in his new year message, the head of Northern Ireland Independent Retail Trade Association (NIIRTA) Glyn Roberts said reforming business rates was "the next big issue".

"With a consultation on business rates due to close later this month, radical reform is urgently needed to make to make rates fair, cost effective and fit for purpose in a rapidly changing economy," he said.

“In 2016 our local retail and service sector as a whole is facing a perfect storm of cost, such as rates, auto enrolment pensions, national living wage, energy as well as the ever growing burden of red tape and regulation”

“It is the cumulative impact of all these costs and red tape which narrow margins and restrict their growth potential. A number of our members have indicated that expansion plans for their businesses are being put on hold as they struggle to afford to pay these crippling costs.

“Unless the issue of high costs is addressed, the creation of jobs and new investment will be reduced at time when government needs to doing more to support our private sector."