This article by Eamonn Loughrey, Partner DPP Belfast, first appeared in the Belfast Telegraph on 26 August 2011.

The big issue facing MLAs and ministers when they return from the summer recess remains the non performing economy.  Times are tough and with the impact of public sector cuts starting to be seen, the question remains, what can be done to stimulate the economy further?

Northern Ireland needs to be able to better promote itself to its external markets.  An opportunity to do this is the lowering of corporation tax which would help increase inward investment.  However, if we assume that corporation tax is lowered, how will inward investors be accommodated?  How can we ensure the systems of getting business open and creating jobs as soon as possible are achieved?  A key component is the Regional Development Strategy (RDS).

The RDS is the umbrella document that sets out where growth should occur in Northern Ireland and how it will be supported by infrastructure.  It was drafted in 2010 but due to delays it was not published until early 2011.  The consultation period ended in March but there is no indication of how or when the RDS will be adopted.

One of the inevitable effects of the RDS, as it creates winners and losers in Council areas, is the partisan views between interested groups with localised agendas.  Few parties have considered the external potential of the RDS.  A regional statement of government intent combined with low corporation tax rates would be a significant marketing tool.  Government, councils and private sector companies could utilise this opportunity to attract new business to Northern Ireland.  It would marry business commercial reality with land use and locational considerations in terms of accessibility, labour and resource.

The debate on corporation tax has been led by industry but unfortunately the RDS, as it stands, has failed to recognise the corporation tax opportunity.  We need government policy to lead the way and not trail behind the private sector, otherwise opportunities can and will be missed.  When the Assembly returns, the economy will be at the top of the agenda and the potential of the RDS should be realised and properly integrated into the wider economic policy agenda.

Eamonn Loughrey is a partner in the Belfast office of independent planning consultancy DPP.