Northern Ireland Economy

[SSNomadic]

Hey doom and gloom spreaders, wasn't it fantastic news to see 500million pound investment in northern Ireland. Seems our wee country isn't such a bad investment after all, when you consider that with citibank accouncement last week, all in all it would appear there is a bit of faith in Belfast.

[S S]

Hey doom and gloom spreaders, wasn't it fantastic news to see 500million pound investment in northern Ireland. Seems our wee country isn't such a bad investment after all, when you consider that with citibank accouncement last week, all in all it would appear there is a bit of faith in Belfast.

Seems like good news to me.

I was in Ballymena today shopping (cloths and stuff), It seems to me that although the price of everything is increasing (if you believe the media), every shop had a sale of 40%-75% off.

I was also pricing 8x4 polyiso insulation on Friday and the rep said "don't worry about the 20% increase we wrote to you about I'll be able to do it for the pre increased price. When I said "I'll price around" he said "let him know if you get it cheaper and I'll see if I can match it".

It seems that you may want to increase prices because of increased costs (oil/transport), but if nobody is buying the stuff theres no point in stocking it. A lot of the builders merchants aren't stock materials their bringing it in as they get it sold.

[S S]

Could you give us a link for the 500 million investment please?

http://www3.u.tv/news/localNews/index.asp?...=90069&pt=n

try this link.

[wayoutwest]

Hey doom and gloom spreaders, wasn't it fantastic news to see 500million pound investment in northern Ireland. Seems our wee country isn't such a bad investment after all, when you consider that with citibank accouncement last week, all in all it would appear there is a bit of faith in Belfast.

I'm not sure who you are addressing as doom and gloom spreaders. Most posters here are happy with how house prices are moving. The raison d'etre of this site.

The investment is excellent news for the local economy and the workers at Shorts whose jobs are being 'sustained'.

And the £155 million used here can't be used by government to bail out developers or re-inflate the property bubble.

However, why is there never a significant project or investment without a substantial cash input from the taxpayer? Also there are no news jobs guaranteed with this project.

[Sogy]

However, why is there never a significant project or investment without a substantial cash input from the taxpayer?

Because NI is a thoroughly Socialist country at the moment, businesses always expecting subsidies, and the money for the latter coming from outside NI.

We even have a (Nationalist)-Socialist government (in the Stormont Castle) at the moment, the peculiarity being that this is a coalition of 2 like parties: one for the Protestants, another for the Catholics. I think no other country ever had it like that!

[Ulidia]

Hey doom and gloom spreaders, wasn't it fantastic news to see 500million pound investment in northern Ireland. Seems our wee country isn't such a bad investment after all, when you consider that with citibank accouncement last week, all in all it would appear there is a bit of faith in Belfast.

Yes - it is good news. However, the longer-term prosperity of Northern Ireland is dependent upon new job creation not being dependent upon the public purse and, given InvestNi's track record, the jury remains out on whether NI can retain inward investment once the subsidies and incentives come to an end.

That said, this is the type of employment that NI needs - as our manufacturing base has dwindled and is continuing to do so.

[HPCwhen?]

It's great news and should be warmly welcomed. This is the type of investment that builds capital and makes our society wealthy. It's the antithesis of the grabbing, speculative 'investment' that has characterised our housing market of late. We won't get rich by selling ever more expensive houses to one another - just more and more indebted. Finally it seems people have woken up to this fact.

[blofield]

I dont see the £500M investment. This is Bombardier making parts for.....Bombardier! What is good for northern Ireland here other than PAYE and sustainment of jobs?

The UK Government has also agreed in principle to provide £52mn to the project, part of a wider £155m government investment package in Bombardier.

I make that £345M

Mr McGuinness said: "This announcement concludes the successful joint lobby of Gordon Brown by the First Minister and myself."

"The C series aircraft is a product of global significance and of strategic importance to this region."

"Production of component parts for this aircraft here will generate in excess of 800 jobs at Bombardier in Belfast and many further jobs in the supply chain."

Are they doubling their workforce or is he an idiot.

Supply chain my @ss. The parts will be brought in from china, same as every other factory.

Are we in Northern Ireland now the 3rd world of Europe? Why do you think Bombardier have sourced their Labour here and not India Or China? (beside the fat handout they are getting from the government, which we pay for)

[blofield]

Yes - it is good news. However, the longer-term prosperity of Northern Ireland is dependent upon new job creation not being dependent upon the public purse and, given InvestNi's track record, the jury remains out on whether NI can retain inward investment once the subsidies and incentives come to an end.

That said, this is the type of employment that NI needs - as our manufacturing base has dwindled and is continuing to do so.

Bang on. Production brings prosperity. Fawk the banks, all hands on deck making stuff or educating on how to make stuff, let the financial sector eat itself like it desreves to

And may i add that we are completely dependant on energy, what happens if there is shortages there.

[pootle]

Are they doubling their workforce or is he an idiot.

He's an idiot ... or a politician at any rate. It is safeguarding 800 existing jobs, not creating 800 new ones.

[blofield]

He's an idiot ... or a politician at any rate. It is safeguarding 800 existing jobs, not creating 800 new ones.

Mmmm....just confirming hes not an exception, they are all idiots

[Traktion]

"The investment will also see the development of state of the art technology as well as developing the manufacturing and engineering skills of our workforce that will benefit our economy for years to come."

Aside from the Invest NI handouts, this sounds like it's providing skilled jobs, which is a good thing. I'm not certain why you would expect people to think otherwise?

BTW, on a related subject, I saw on BBC news that they had some "good news" in that Alliance and Leicester were being bought out by Spain's Santander. Shouldn't we be mourning the fact that the bank would have become insolvent if it wasn't for a foreign company buying it out? Why are we calibrating the failure of A&L to run their business well?

[yadayada]

He's an idiot ... .

You wouldn't mind if that was all he was.

[talksalot81]

Aside from the Invest NI handouts, this sounds like it's providing skilled jobs, which is a good thing. I'm not certain why you would expect people to think otherwise?

Skilled jobs but not cutting edge jobs. We need not forget that these are tasks which could be carried out elsewhere and are not relying upon our very most advanced minds.

[trebor21]

Skilled jobs but not cutting edge jobs. We need not forget that these are tasks which could be carried out elsewhere and are not relying upon our very most advanced minds.

They are skilled trades,building parts of new aircraft is pretty cutting edge to me! its actually a very good stamp of approval for the Workforce and N.Ireland that they arent moving the business somewere else.

Securing Jobs is just as important if not more important than creating new ones!

[blofield]

They are skilled trades,building parts of new aircraft is pretty cutting edge to me! its actually a very good stamp of approval for the Workforce and N.Ireland that they arent moving the business somewere else.

Securing Jobs is just as important if not more important than creating new ones!

I would agree with you if the components were being built here, they are not. Dont get me wrong i'm all for creating/sustaining jobs but you can train a monkey to rivit pieces of a wing together if he has the parts. My problem with the anouncement is that this is business as usual for Bombardier, people seem to be under the illusion that we are special here and thats why they have "chosen" (using their own factory) Northern Ireland to invest in. This is probably the same illusion that house prices only go up.

Incidently if a war kicks off in Iran you may find more investment in NI clicky

the thing is

The company also operates a remote facility in rural County Down, between Ballynahinch and Downpatrick where missiles are tested and stored.

Anyone from the area?

whoops wouldnt cut it!!!!

Edited July 14, 2008 by blofield

[Vespasian]

Should the headline not just read "Shorts not to close, thanks to taxpayer handout". Good news that jobs will be kept but this provides nothing new to the economy

[HPCwhen?]

Should the headline not just read "Shorts not to close, thanks to taxpayer handout". Good news that jobs will be kept but this provides nothing new to the economy

I think we can afford to be a little less cynical about things. According to articles I have read, the CSeries project will be financed partly by loans from Ottawa; the state government of Quebec; and us. Perhaps large industrial endeavours do require a little support from government. In fact, if successive govenments had shown more of an interest in supporting and nurturing industy here maybe we wouldn't have to stoke up bubbles in our housing market to create the illusion of wealth. Better spent on Shorts than on some f*cking community groups.

edit:typo

Edited July 14, 2008 by HPCwhen?

[Ballyk]

Just been on the www.investni.com website.

At 8pm on the day of the Shorts announcement there's not a word on the the Shorts investment. 'Latest News' has 4 announcements, including news of the Derry Dog Bowl Co's success in the US!

Not very on-the-ball, these guys, I think...

[trebor21]

Should the headline not just read "Shorts not to close, thanks to taxpayer handout". Good news that jobs will be kept but this provides nothing new to the economy

Helps to stabilise the economy, loosing shorts + all the smaller companys that rely on it may have been a big blow!

But Private sector jobs really dont seem to affect the economy to a large perctange anyway! The shipyard laid of thousands 7 years ago, and soon after house prices were soaring!

Edited July 14, 2008 by trebor21

[Ulidia]

Just been on the www.investni.com website.

At 8pm on the day of the Shorts announcement there's not a word on the the Shorts investment. 'Latest News' has 4 announcements, including news of the Derry Dog Bowl Co's success in the US!

Not very on-the-ball, these guys, I think...

However, investNi would be a BTL's dream, given that they have signed long-leases on a number of buildings that they no longer occupy ..... they have a lease until 2015 on one of the buildings that they moved out of a year or two ago

[Ballyk]

I reckon its not updated as investni is basically a part of the Civil Service, who are off today 14th and tomorrow 15th for public holidays, so the site will prob only get updated later this week, when the press office and IT side are fully back at work....

Fair point

[YoungFTB]

Ulster Bank Northern Ireland PMI: Record falls in activity and new orders during June, while input cost inflation hit survey high

The Ulster Bank Northern Ireland PMI for June, which was produced Markit Economics, indicates the continuation of falling activity, as demand suffered in the face of the ongoing credit squeeze and rising inflation. Both activity and new business fell at survey record rates, while the decline in new orders meant that levels of work outstanding contracted markedly and further job losses were posted.

The Northern Ireland survey forms part of a series of regional surveys published by The Royal Bank of Scotland Group and Markit Economics, and is derived from the highly regarded national PMI surveys produced by Markit for the Chartered Institute of Purchasing and Supply.

Commenting on the latest survey findings, Richard Ramsey, NI Economist, Ulster Bank, said:“The latest survey indicates that NI's private sector has dropped down another gear in June with output hitting a new record low. However, the most noticeable change in June was the marked deterioration in UK private sector activity which, alongside the RoI, also plumbed a new survey low. Indeed all the UK regions bar one, the South East, reported a fall in business activity in June.

“What is most concerning in NI is the sharp decline in new orders alongside the rapid depletion of backlogs of work. This is expected to put further pressure on employment levels later in the year. Ten UK regions, alongside NI and the RoI, reported lower levels of employment in June.

“The weakness of sterling against the euro is also proving to be a mixed blessing for NI firms. While export price competitiveness has improved, the exchange rate is fuelling import price inflation and adding to the rising cost base. In the context of falling demand and rising inflation, the squeeze on corporate profitability is set to intensify in the months ahead.”

The main findings of the June survey were as follows:

Business activity down at record rate

Latest data showed that output in the Northern Ireland private sector contracted considerably in June and at a survey record pace. The decline was broad-based, with construction and retail posting the strongest rates of decline.

Underlying the seventh successive monthly contraction of overall activity was a similarly strong series record fall in incoming new business. Panellists commented that operating conditions were poor, reflective of the ongoing credit squeeze and surging costs, which are hitting budgets and hurting disposable income. Constructors commented on a downturn in the housing market and falling house-building requirements.

Cost pressures intensified

Input prices continued to increase during June, with the rate of inflation accelerating to a new survey high. Nearly 60% of the survey panel reported that input costs had risen, generally blaming the impact of surging crude oil prices on overall inflation. Companies also commented that rising import costs had been exacerbated by the weakness of sterling against the euro.

Despite facing deteriorating demand and competitive pressures, a number of companies signalled little choice but to raise their output charges during the month.

Backlogs contracted markedly; further job shedding

With incoming new business falling sharply, Northern Ireland companies were able to eat into their backlogs of work outstanding at a series record pace during the month. Panellists commented on a lack of pipeline projects and, with the current unfavourable trends in new orders and costs, a number chose to cut jobs or not replace leavers. The net result was another marked drop in overall employment levels.

http://www.finfacts.ie/irishfinancenews/ar...e_1014186.shtml

[talksalot81]

They are skilled trades,building parts of new aircraft is pretty cutting edge to me! its actually a very good stamp of approval for the Workforce and N.Ireland that they arent moving the business somewere else.

Securing Jobs is just as important if not more important than creating new ones!

Skilled trades perhaps, but they are little more than manufacturing. In the long term, this country cannot compete with the upcoming eastern nations in terms of manufacturing. So, whilst this news is unquestionably great, what we really need is investment where we are not struggling to challenge india and china. What we need is investment into research in science and engineering. What we need is companies like Andor, ICEMOS. The former is a world leader at they do but it has come from ultra high tech and research.

Ultimatel, manufacturing is something that we used to do well. We are now the old dogs struggling to keep up. This is what the whole concept of a 'knowledge economy' is about. Alas, even that has been destroyed by an unrealistic governement.

[trebor21]

Skilled trades perhaps, but they are little more than manufacturing. In the long term, this country cannot compete with the upcoming eastern nations in terms of manufacturing. So, whilst this news is unquestionably great, what we really need is investment where we are not struggling to challenge india and china. What we need is investment into research in science and engineering. What we need is companies like Andor, ICEMOS. The former is a world leader at they do but it has come from ultra high tech and research.

Ultimatel, manufacturing is something that we used to do well. We are now the old dogs struggling to keep up. This is what the whole concept of a 'knowledge economy' is about. Alas, even that has been destroyed by an unrealistic governement.

The fact that Shorts have invested here instead of taking production else were, actually says we can still manufacture in skilled areas! Im sure there is also more skilled engineering jobs at shorts as well as the simpler stuff!