Investment Strategy Presentation

1
Economic Development Forum INVESTMENT IN
PUBLIC INFRASTRUCTURE CONTRIBUTION TO IMPROVING
ECONOMIC DEVELOPMENT DAVID GAVAGHAN, CHIEF
EXECUTIVE Tuesday 6 December 2005
2
CONTEXT

• HELPING TO CREATE AN ECONOMIC AND SOCIAL
  INFRASTRUCTURE FIT FOR THE 21ST CENTURY

3
CONTEXT
Source Enterprise Strategy Group, Ahead of the
Curve Irelands Place in the Global Economy (2004)
4
CONTEXT
What a person has the actual capacity to
achieve is influenced by economic opportunities,
political liberties, social facilities, and the
encouragement and cultivation of initiatives.
These opportunities are, to a great extent,
mutually complementary, and tend to reinforce the
reach and use of one another. We do need an
integrated understanding of human freedom and
security. Amartya Sen, 1998 Nobel Prize in
Economic Science
5
CONTEXT
Productivity isnt everything but in the long
run it is almost everything. A countrys ability
to improve its standard of living over time
depends almost entirely on its ability to raise
its output per worker. Paul Krugman
1990
6
INVESTMENT STRATEGY FOR N.I.

• 10 Year view of public infrastructure investment
• Unprecedented level step change already
• Health, education, transport, environmental
• Cross departmental co-ordination critical
• Signalling the need for dedicated resources
• More detail on projects being provided
• Continuous process
• Active engagement with stakeholders

7
INVESTMENT STRATEGY FOR N.I. (2)

• Not an amorphous mass
• Focussed on societys civil needs
• VFM a fundamental pre-requisite
• Smart procurement - buy local?
• Joined-up thinking - all island 100bn
• Innovation prone region
• Mutually complementary

8
BENCHMARKS

• NDP (1994-1999) was 40 funded by EU
• Current NDP 10 by EU/ 90 by Irish Govt.
• Over 1st NDP infrastructure 7 to GNP
• 14 Rate of Return on 1st programme
• Awaiting information from PUK

9
HEALTH

• The mental and physical health and wellbeing of
  our population is not as good as it should be.
• The number of people dying from heart disease in
  Northern Ireland is amongst the highest in Europe
  and significantly higher than in England.
• Our survival rate from cancer is only in the
  middle range for European countries and is
  particularly poor for lung cancer and breast
  cancer.
• The number of accidental deaths here is the
  highest in the UK and our record on children
  killed in road accidents is particularly bad when
  compared to the European average.
• Breast-feeding rates are the lowest in the UK
  while the rate of teenage pregnancy is one of the
  highest in Europe.
• A Healthier Future A 20 Year Strategy (2004).

10
HEALTH INFRASTRUCTURE

• Urgent need for reform
• Political/public drive for change
• Organisational change - structural consolidation
  
• Infrastructure deficit - substantial
• SW Hospital (240m) Omagh Local (95m)
• Ulster (240m) Womens and Childrens 340m
• Primary Care 300m

11
EDUCATION INFRASTRUCTURE

• Urgent need for reform
• Nothing more critical - the prime fundamental
• Organisational change - structural consolidation
  
• Infrastructure deficit - substantial
• Education - More than 3bn over 10 years
• Scale - 1.5 times per childgt than England
• Complexity - A Shared Future - parallel
  schooling

12
TRANSPORT INFRASTRUCTURE

• Urgent need to improve road networks
• Enterprise a misnomer - 55mph!
• Road charging - Economic Strategy 2010
• Infrastructure deficit - substantial
• Like RoI, do we need bottlenecks - Austin
  Smyth
• Critical for FDI? Links to EU - rail, air and
  sea

13
ENVIRONMENTAL INFRASTRUCTURE

• Water and waste water - comply
• Waste - comply too!
• Sustainable environment
• Carbon Trust
• NI become world class?
• Renewable energy - a competitive advantage?

14
CAPACITY FOR DELIVERY

• Available marketplace
• Capacity - indigenous and external
• Balance - small, medium and large
• Skills analysis - basic trades to skilled profs
• N.I. Public Sector - step change required
• Joined-up thinking - mutually reinforcing
• Opportunity to export capability

15
DELIVERING A BETTER FUTURE
www.sibni.org