Speech by Tánaiste and Minister for Finance Simon Harris at launch of new annual ESRI shared island report on 'Assessing Economic Trends in Ireland and Northern Ireland'

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It is a pleasure to be here with you all this morning at the home of the Economic and Social Research Institute at Whitaker Square.

I am very pleased to launch this, the 17th, report under the ESRI Shared Island research programme, and the first report in a new annual research series, to monitor and analyse economic trends across the island of Ireland.

As Minister for Finance, this work is of particular interest, as the government works to support the further growth and benefits of the all-island economy, which has raced ahead in recent years, with the most recent figures for the total value of North/South trade at an all-time high of over €14 billion per annum.

The research is also most instructive as we continue to shape economic policy to meet the demands of a changing international environment and indeed of our changing configuration in economic and social terms, as set out in the Future Forty report published by my department last month.

Future Forty identifies and considers the long-term impacts of global megatrends and other structural shifts on Ireland’s economy and public finances over the next forty years.

The report illustrates how factors such as an ageing population, combined with a slowing economic growth and the cost of tackling climate change will have considerable impacts on our public finances.

There are opportunities to address future economic and fiscal challenges by:

Future Forty’s analysis also shows that the next ten years offers us a window of opportunity to take action and mitigate the potential negative effects from both global and domestic economic, environmental and social trends.

These trends make all the more apparent the scope for, and the value of, more strategic collaboration to harness the full economic potential of both jurisdictions on this island, to benefit people both North and South.

So, I warmly welcome today’s report, and I want to congratulate the authors - Professor Alan Barrett and Dr. Adele Bergin - on their publication.

I know it is not by any means a first for either Alan and Adele, as respected and prolific researchers and contributors to thinking on economic policy in Ireland.

Thank you for giving your time, attention and expertise to this report series on the crucial all-island dimensions of economy and society, which are so central to understanding we are at today, North and South, and how we can work together to build a shared, prosperous future for all in the time ahead.

Today’s report builds on previous ESRI work this year under the Shared Island research programme which provided a high-level comparison of economic factors across the island.

The series will now build on that, looking at broader and deeper data comparisons and economic indicators to yield insights and food for thought.

I know that, with the benefit of this analysis over time, Alan and Adele are also planning to explore key themes and trends in the island economy each year, and the series will also inform more in-depth research on specific themes - all adding to our understanding of economic dynamics across Ireland and Northern Ireland.

Already, today’s report highlights that there were broadly comparable economic growth and employment rates, North and South, in the first half of this year, and looks at the different factors driving these headline rates.

It also highlights important and sustained areas of divergence, North and South, such as on sectoral structure, labour market participation and overall rates of education attainment.

These are the kind of vital economic and social metrics that we need - up-to-date and authoritatively analysed - as we work to develop and deliver more strategic all-island cooperation, that is matched to the economic challenges and opportunities of our time.

Today’s report also identifies policy priorities that are common to both Administrations, including on Productivity, Competitiveness and Decarbonisation, as well as supporting more R&D and SME scaling and enhancing the Skills-base.

These are all key areas that have tended to be less prominent in cooperation agendas over the years. I agree that they all hold strong potential for future work by both Administrations - be that through sharing of experience, policy cooperation, or coordinated and joint investment on an island-wide basis.

Developing the agenda in this way and in these and other areas of common interest has been a core focus for the government’s Shared Island Initiative over recent years.

For instance, through the Shared Island Enterprise Scheme - InterTradeIreland, Invest Northern Ireland and Enterprise Ireland are now working together in more ambitious ways than ever before to promote women’s entrepreneurship; develop all-island clusters; and, to help businesses meet their sustainability goals.

Similarly, in terms of decarbonisation, we are working with Northern Ireland counterparts on a number of new programmes, including on bioeconomy demonstrators; research centres on climate, biodiversity, water and food sustainability; as well as on peatlands and nature restoration. I am clear that there is much more we can do in these and other areas.

On 18 November, the government announced over €50 million in funding for 10 new Shared Island projects over the next five years, including on transport connectivity, research commercialisation, and improving information on accessing the all-island labour market.

The government also published as part of the National Development Plan review an investment plan on our Shared Island priorities.

This sets out how we will deploy the €2 billion Shared Island Fund and other resourcing, across virtually all sectors, to invest for a more connected, sustainable and prosperous island for all communities.

To date, Government has allocated over €600 million from the Shared Island Fund to meet those objectives.

We are firmly committed to bringing island-wide cooperation to an even more strategic level in the time ahead, working with the Northern Ireland Executive and the UK Government, and as a co-guarantor of the Good Friday Agreement.

So:

- the all-island economy is growing in size and sophistication;

- the all-island labour market is an important and growing asset for workers and employers and economy-wide; and,

- the government has confirmed strategic resourcing and an ambitious agenda to bring beneficial all-island investment and cooperation to a higher level than ever before.

It with this context of success and of opportunity - and recognising also that there are challenges and there are divergences in our economy and society, North and South - that the new ESRI research series will engage - mapping, analysing, informing and spurring debate.

That is exactly what we need to help inform and deepen the cooperation agenda and indeed a wider island-wide conversation.

Because it is also work that will shape understanding of how the island’s economy is configured, how it is changing, and how we can work to enhance our shared home place together, building shared future with all communities.

I commend today’s report to you all and I look forward to the insights we will gain as the series continues in the years ahead.

Thank you.