Fix ‘frictions’ in different north-south systems to benefit economies, SDLP says

There is a need to fix “frictions” between systems north and south in order to boost the all-island economy, the SDLP has said.

The party said efforts need to begin now to create a “more resilient” all-island economy as it launched a policy paper in Dublin.

The party said that while the debate around a united Ireland “inevitably focuses on the fiscal subvention”, Northern Ireland’s current fiscal position should not be projected “forward as if it were fixed in perpetuity”.

The SDLP launched the policy, Success by Design – Preparing for a New Ireland, at the Merrion Hotel in Dublin on Thursday.

It recommends a series of so-called “no-regrets actions”, including a joint infrastructure fund, an all-island rail review, a targeted graduate return scheme to “reverse brain drain” and an all-island economic taskforce.

It also said further preparatory work was needed, such as an independent economic assessment that would analyse a fiscal “transition” and look at the implications of different governance models.

It said the legacy of the Troubles had “deterred private investment” and “distorted public spending priorities”, putting an emphasis on stability and managing risk.

“As a result, Northern Ireland emerged from conflict with many of its underlying structural weaknesses unresolved,” the paper said.

“This contrasted with a more deliberate focus in the south on productivity, enterprise development, export growth and increased foreign direct investment. Over time, these different approaches compounded, producing the divergence evident today.”

The policy points out “frictions” between the CAO and A-level education systems, and “weak” transport connectivity.

It said better alignment of skills systems and labour markets, a co-ordinated approach to enterprise and innovation, and more deliberate regional development are needed to benefit people north and south of the border.

“Crucially, this is not a conversation that can be deferred to some future constitutional moment,” it said.

“The steps required to build a more resilient, productive and inclusive island economy are needed now.”

SDLP leader Claire Hanna said a united Ireland “cannot simply be about absorbing one system into another”.

“It must be carefully designed to raise living standards across the island and to unlock Northern Ireland’s unrealised potential as a contributor to a stronger and more resilient economy. Northern Ireland’s current position is not fixed.

“With sustained investment and deeper co-operation, we can create better jobs, stronger communities and real opportunity for people across this island.”

She added: “We won’t be able to answer every question about what the future will look like but we need to start having those conversations now.

“That’s why the SDLP has brought forward serious proposals around a ministry for a new Ireland in the Irish Government and an economic vision that allows us to take those important next steps.

“This paper is an invitation to plan responsibly, to think boldly and to build an economy that works for everyone who calls this island home.

“The SDLP is ready to realise that ambition and work with others to make it a reality.”