Impact of devolution on cross-border commerce

Aidan Gough and Eoin Magennis (InterTradeIreland)

IBIS seminar, 6 February 2009

“cold denying silence” that descended on this island for too long in the past century and resulted in a

process of “friction and frission”

Conor Brady

‘Unless you achieve economic transformation,

you can’t have a stable society.’

Sir George Quigley (March 2007)

‘Economic progress is crucial to the

political forces that favour peace’

Portland Trust (May 2007)

Economics and Peacemaking

British Subvention to Northern Ireland

0250500750

1000

12501500175020002250

1970 1975 1980 1985 1990 1995 2000 2005

British Subvention toNorthern Ireland

British Subvention to Northern Ireland

Employment in the Public Sector

90

100

110

120

130

140

150

160

170

1970 1975 1980 1985 1990 1995 2000 2005

Employment in thePublic Sector

Employment in the Public Sector

Participation Rates in Further and Higher Education

Unemployment Rate

50

100

150

200

250

300

1970 1975 1980 1985 1990 1995 2000 2005

Unemployment Rate

Unemployment in Northern Ireland

Total Troubles - Related deaths

50

150

250

350

450

550

650

1970 1975 1980 1985 1990 1995 2000 2005

Total Troubles -Related deaths

Troubles Related Deaths

“A Body to exchange information and co-ordinate workon trade, business development and related matters, in areas where the two administrations specificallyagree it would be in their mutual interest.”

The Belfast Agreement, 1998.

Six Cross-Border Bodies

InterTradeIreland

Institutional Arrangements

Northern IrelandAssembly & Executive North-South

Ministerial Council

Irish Government

InterTradeIreland

Department of Enterprise, Trade &

Investment

Department of Enterprise, Trade &

Employment

InterTradeIreland

Political Economic

Cross Border All Island

Trade Competitiveness

1998NOW

Cross-Border Trade Statistics

Cross-Border Tourism Statistics

0

100

200

300

400

500

600

700

2000 2001 2002 2003 2004 2005 2006 2007

Year

Vis

ito

rs

Going North

Going South

Cross-Border Traffic Volumes

0

5000

10000

15000

20000

25000

2001 2002 2003 2004 2005 2006 2007 2008

Years

Nos

of v

ehic

les M1/N1 at

Ravensdale

N2 at Aughnacloy

Cross-Border Bus and Rail Travel Statistics

0

200

400

600

800

1000

1200

1999 2000 2001 2002 2003 2004 2005 2006

No

s o

f p

as

se

ng

ers

(,0

00

s)

Going North

Going South

Cross-Border Student Flows

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Year

Nu

mb

er

of

Stu

den

ts

North - South

South - North

Cross-Border Public and EU Investment Flows

0

50

100

150

200

250

300

350

400

450

500

2002 2003 2004 2005 2006

Years

€m

EU programmes

Operational Programmes

North/South Bodies

Areas of Co-operation

Public Sector Co-operation

TOTALS

• Create gains in trade and investment;

• Generate economies of scale;

• Deliver more efficient and effective public services;

• Promote wider economic benefits

• Reduce market failures

• Open new or ‘missing’ markets

• Deliver more balanced regional development

Cross-Border Opportunities in the Current Economic Climate