1.1.1 The Alliance Vision is a high-growth, hi-tech, dynamic and sustainable Northern Ireland business economy, integrated into the European and global economy, which contributes to a socially just and prosperous society.

1.1.2 Alliance believes that a successful economy and prosperity are essential to creating the favourable conditions for the development of a shared, non-sectarian society, and giving people a stake in the consolidation of peace.

1.1.3 The Good Friday Agreement and its implementation hold out the prospect of Northern Ireland putting in place the first two prerequisites for a favourable environment in which businesses can operate -- peace and stability.

1.1.4 However, nothing can be taken for granted. Deeper problems that remain within Northern Ireland society must be tackled. The Northern Ireland economy has to adapt to the new realities of the European and global economies, and to be competitive in the hi-tech future of the emerging 'new economy'. Economic Development policy must be one of the main priorities of the new Assembly

2.1 Strengths

2.1.1 Our people are of world-class quality.

2.1.2 There is enormous international goodwill towards Northern Ireland, but it is time-limited.

2.1.3 A devolved regional Assembly and Administration gives Northern Ireland the scope for policy experimentation, and policy adaptation in order to address local needs.

2.1.4 Northern Ireland benefits from its membership of the European Union and the Single Market.

2.1.5 With English becoming increasingly regarded as the world's lingua franca, Northern Ireland has a significant comparative advantage.

2.1.6 Northern Ireland benefits from a relatively youthful population.

2.1.7 There are many very highly educated and skilled people within the population.

2.1.8 Northern Ireland offers a quality environment and a relatively low cost of living.

2.1.9 Within the EU context, Northern Ireland has comparatively flexible labour markets, and light regulation.

2.1.10 There is a good telecommunications infrastructure.

2.2 Weaknesses

2.2.1 Northern Ireland has an over-dependency on a number of declining industries.

2.2.2 Similarly, there is too much dependency on low-growth, lowwage, and/or low-added value industries.

2.2.3 The manufacturing base is too small.

2.2.4 Northern Ireland has too small a base in new hi-tech, knowledge-based industries.

2.2.5 We have spent comparatively less on Research and Development as a portion of GDP than all our neighbours and most European competitors. Innovation therefore suffers.

2.2.6 There is a lack of an entrepreneurial/enterprise culture in Northern Ireland. There is an over-dependency upon the public sector for solutions. 2.2.8 Northern Ireland suffers from the lack of control over fiscal and monetary policy.

2.2.9 This contributes to an over-dependence on grants rather than tax-breaks and incentives for attracting inward investment. The types of inward investments attracted tend to be low-wage and based in traditional, declining industries.

2.2.10 The local economy suffers from the current high value of Sterling against the Euro.

2.2.11 Northern Ireland suffers from significant long-term unemployment, and social inequalities. There is a substantial unskilled population. Too many people have poor skills and education. Not only the people themselves but society as a whole suffers from the absence of their contributions.

2.2.12 Our divisive education system runs counter to the 'Can Do' philosophy we wish to promote.

2.2.13 There is a significant skills mismatch between employer needs and the skills that many unemployed people can offer.

2.2.14 The tertiary level education sector is comparatively small. There is a major difference between the supply and demand of university places. Too many people, especially those with the greatest level of potential, leave Northern Ireland.

2.2.15 Energy costs are comparatively high in UK context.

2.2.16 There is insufficient competition in the transport sector.

2.2.17 Local economic development initiatives are relatively fragmented.

2.2.18 Transport quality and transportation costs are a barrier to the free movement of people (including tourist visitors) and our exports and imports.

2.3 Opportunities

2.3.1 Northern Ireland has the potential for significant economy growth and improvement provided the correct policies are pursued.

2.3.2 Building upon its comparative advantages in skills rather than labour costs, Northern Ireland has the potential to compete and prosper within a global economy. European enlargement can be seen as an opportunity rather than a threat.

2.3.3 In particular, there is major potential for growth in the tourist sector.

2.3.4 Northern Ireland has the bonus of six further years of EU Structural Funds.

2.3.5 There are significant opportunities within the development of a Green economy, in the development of new environmentally-friendly products, savings from waste minimisation and the more efficient use of resources, and making economies more aware of the negative externalities on the environment that they produce.

2.3.6 The significant community base of the Social Economy must be encouraged and strengthened.

2.4 Threats

2.4.1 With devolution, Northern Ireland's neighbours are becoming increasingly competitive.

2.4.2 The Republic of Ireland, already with a substantial lead over Northern Ireland in hi-tech and high growth industries, benefits from greater control over fiscal policy (with the ability to offer taxincentives in preference to grants to attract inward investment); presents a more attractive location for investment through membership of the Euro-Zone; places education as a priority; and has a successful economic and social partnership.

2.4.3 The current Sterling-Euro imbalance and differing tax regimes cause major problems for retail business, close to the frontier with the Republic of Ireland.

2.4.4 Globally, many regions and countries will be able to undercut Northern Ireland if its comparative advantage is based upon lower wage costs.

2.4.5 EU Regional Support Funds will be prioritised for Southern and Eastern Europe in the future.

3.1.1 Alliance favours a mixed economy, in which a primacy given to market solutions is balanced by a government and public concern for social justice.

3.1.2 Alliance believes primacy should be given to market solutions and an open and liberal trading regime. Economic growth should be driven by the private sector. Entrepreneurship and wealth creation should be encouraged by society.

3.1.3 Alliance believes that the role of government, especially with the onset of the 'new knowledge-driven economy' should be to provide the right framework conditions for a dynamic and high-growth economy.

3.1.4 Government should provide the appropriate macro-economic policy and tax-regime to give incentives for enterprise and investment.

3.1.5 Government should make the necessary investment in training and education, and infrastructure, plus research and development to the benefit the entire economy or particular sectors in preference to company-specific subsidies.

3.1.6 Government should prevent market failures, such as the emergence of monopolies; correct negative externalities such as pollution; and provide public goods and common civic space.

3.1.7 Alliance stresses individual autonomy and personal responsibility. Choice, diversity and competition serve the interests of the individual consumer. A prosperous society is a condition for empowering people.

3.1.8 Alliance believes that the development of the hi-tech, knowledge-based 'new economy' is a progressive force leading to increased productivity and higher incomes.

3.1.9 Alliance believes that the provision of equality of opportunity and the tackling of social exclusion are fundamental prerequisites to maximising the economic potential of a society through the efficient use of human resources arising from the development of the skills of every individual. It is crucial that talent is not wasted. This principle includes free third-level education.

3.1.10 Alliance believes that the Northern Ireland economy should be more closely integrated into the European and global economies. Alliance supports the European Single Market, the Euro, and the Social Chapter. We should promote and seek to take advantage of the positive aspects of globalisation, while avoiding and minimising its negative aspects.

3.1.11 Alliance believes in full employability, investing in training and education to ensure that every person is skilled and sufficiently adaptable to play a full role in a competitive and dynamic economy.

3.1.12 Alliance believes that in exchange for flexible labour markets and job mobility, employers should provide a quality working environment. Alliance supports the Social Chapter and the Minimum Wage, and believes the latter should be standardised from the age of 16 upwards.

3.1.13 Alliance stresses the importance of sustainable development. We endorse the Brundtland Commission' dictum that society should 'meet the needs of the present with out compromising the ability of future generations to meet their own needs'.

3.1.14 Alliance stresses the importance of social partnership. Businesses, trade unions, and the rest of civic society should work in conjunction with the government to forward common goals for the benefit of society. This co-operative community planning process has proved itself in Germany since the 1950s, and the Republic of Ireland during the 1990s.

3.1.15 Alliance stresses the importance of stakeholding. Business should be conscious of the economic, social and environmental context in which they operate.

3.1.16 Alliance stresses the importance of the social economy for empowering local communities to undertake business and development initiatives for themselves, leading to the creation of local employment and action against social disadvantage and exclusion.

3.1.17 Alliance believes in joined-up government. Policies on the transport infrastructure, investments in training and education, the provision of equality of opportunity, the tackling of social exclusion, and the maintenance of public health along with many others are integral to economic development

4.1.1 Alliance supports the accelerated consideration and implementation of the recommendations within the Strategy 2010 document.

4.1.2 Alliance endorses the targets set in Strategy 2010 for the economic development of Northern Ireland, namely:

4.1.3 Alliance advocates the international benchmarking of the devolved regions of the UK, in addition to states, in for example in the OECD's and World Economic Forum's Competitiveness Indices.

4.1.4 Alliance believes that additional indicators of economic performance to GDP should be used to: (a.) to take into account the economic costs of pollution, and the economic benefits from environmental improvements; and (b.) to measure quality of life and human development, considering factors, such as education, environment and public health, using the approach of the United Nations Development Programme Human Development Index.

4.1.5 Alliance supports the United Kingdom's entry into the Euro at the earliest appropriate opportunity. Membership of the Euro could bring net benefits to local businesses through greater economic certainty and confidence, lower interest rates, lower inflation, a more favourable climate for investment, greater price transparency, competition and efficiency, more efficient use of resources, reduced transaction costs, and the elimination of risk associated with unstable and fluctuating exchange rates.

4.1.6 The Northern Ireland Assembly should be given tax-varying powers. This will allow for tax incentives to be used to attract inward investment. This will alter the balance in favour of more hi-tech, higher value-added, hi-waged, and more profitable industries.

4.1.7 The use of tax-breaks should be used to attract investment to designated disadvantaged locations. A new concept of Targeting Social Need (TSN) should be developed that recognises smaller pockets of deprivation not acknowledged under the existing policy.

4.1.8 The use of tax-credits should be considered to encourage export profits and fiscal policy to target the development of several clusters for growth.

4.1.9 Alliance supports the enlargement of venture capital for small start-up companies and higher risk projects.

4.1.10 With the creation a single development agency for Northern Ireland, Alliance believes that it is important that it is structured so that it can give high-quality advice and support to indigenous industries and companies, in particular start-ups, without having an undue focus upon inward investment

4.1.11 Economic support agencies of Northern Ireland and the Republic of Ireland should remain separate as they are primarily in competition with each other. They should increasingly share and alternate staff, and create joint promotional literature and trade missions.

4.1.12 A larger share of resources should be devoted towards 'softer' forms of financial assistance. Selective Financial Assistance should be refocused away from existing firms in tandem with the implementation of other proposals in this document.

4.1.13 Alliance supports the creation of a regional economic development office in Brussels for Northern Ireland to co-ordinate efforts.

4.1.14 Alliance advocates the further development of European and international networks by local companies, in order to develop export opportunities.

4.1.15 An all-Ireland marketing strategy should be developed for produce.

4.1.16 Alliance advocates the creation of Information Technology Commission. This should focus upon identifying opportunities in software, electronics, information technology and communications, plus also biotechnology. It should engage in benchmarking and monitoring.

4.1.17 This Commission should establish a special Task Force to promote the development of e-commerce in Northern Ireland firms. It should particularly work with SMEs.

4.1.18 A Green Economy Task-Force should be created to make local businesses aware of the true economic and environment costs of their actions, to illustrate the potential savings from the more efficient use of resources and the minimisation of waste, and to show the potential of new markets for environmentally-friendly products.

4.1.19 There should be changes in planning service and system to facilitate accelerated consideration of planning applications with economic development potential.

4.1.20 Alliance supports a five-year moratorium on out-of -town retail developments, and a strong strategy to strengthen town and city centres which makes good infrastructure cheaper and more costeffective.

4.1.21 Alliance believes that the Civic Forum should be used to develop a social partnership approach to governance. An Economic Development Forum, proposed in Strategy 2010, should be created to develop and monitor economic issues.

4.1.22 The Economic Development Forum should draw up a Small Business Charter as a code of practice for small businesses to follow, addressing matters such as the prompt payment of bills in order to aid cash flow.

4.1.23 Strategic Transport routes, including road, rail, air and sea, should be addressed in the context of the North-South Ministerial Council, and the British-Irish Council, and developed as a matter of priority.

4.1.24 Alliance supports substantial investment in quality public transport in order to assist labour mobility within Northern Ireland.

4.1.25 Alliance supports the creation on an all-island energy market to achieve economies of scale and competitiveness, and wants to see the extension of the Natural Gas Interconnector to the Northwest.

4.1.26 Alliance welcomes the establishment of the Northern Ireland Science Park. It is particularly important that closer links are built between Science and Engineering in our universities, and business and industry.

4.1.27 Alliance advocates the creation of extra university places and the elimination of university tuition fees. This is integral to retaining the skills of our talented young people within Northern Ireland, especially in this emerging knowledge-based economy.

4.1.28 Alliance believes that we must strengthen our education system and its services for all pupils and students. Primary, secondary and tertiary education should focus upon the anticipated businesses and jobs of tomorrow. There should be a joint educationindustry strategy with clear agreed targets. Entrepreneurship and enterprise should be an integral part of the curriculum in schools.

4.1.29 Alliance praises the strong record of the Northern Ireland food producing and food processing industries. This will continue to be a hugely important sector in the life and economy of Northern Ireland. In the context of growing fears over food safety throughout Europe, we propose that serious consideration be given to a North- South agricultural strategy that would promote natural, pure green food as a brand for food producers throughout Northern Ireland and our fellow producers across this island.