Border Fiscal Policy In Focus

There was disagreement this week over cross-border economic policies as the NI Enterprise Minister Arlene Foster 'talked up' the border's benefits to the Northern Ireland economy as the Euro continued to remain strong against Sterling.

While the Minister emphasised how the current strength of the Euro and other currencies give Northern Ireland's tourist industry and the retail sector a relative 'competitive advantage', a local MP and MLA insisted that she was 'missing the point'.

Speaking to members of the Newry Chamber of Commerce event in the Canal Court Hotel, yesterday Arlene Foster said: "Newry, along with other border towns and cities, is experiencing a welcome boost in the trade of commercial and retail goods with the arrival of shoppers from the Republic of Ireland.

"The recent Experian Footfall Index has shown that there was a consistent increase in the number of people shopping in Northern Ireland in 2008, than in 2007. The week commencing 22 December 2008 saw a 25.4% increase on the corresponding week in the previous year," she said.

However, commenting on the development, NI Executive colleague and the Sinn Féin MLA for Newry and Armagh, Conor Murphy, said that Arlene Foster 'missed the real issue of economic development'.

"When she commented that the current strength of the Euro, Dollar and Yen can give the north of Ireland a relative competitive advantage, the Minister for Enterprise, Trade and Investment, is missing the key points when she made reference to the North benefiting from the weakness of the sterling against other currencies.

"The main point is that currency trends tend to see one side of the border benefiting while the other declines economically. This is set to continue as long as we have duplication in our economies and no harmonisation of financial policies.

"What we currently have is a seesaw of trade with counties on one side of the border benefiting while the others suffer.

"This will undoubtedly affect Newry and other towns in the north when there is a reverse of the currency strengths.

"What we need to ask is, is this sustainable and how is it affecting long-term economic growth, especially for those in the border corridor?" he said.

(BMcC/JM)