AMBASSADOR Robert Holmes Tuttle
Speeches, Remarks & Events
24 May 2006
Speech (as prepared) to the Newry Chamber of Commerce & Trade and InterTradeIreland
Narrow Water Castle, Warrenpoint, Northern Ireland
Good afternoon, and thank you for giving Ambassador Kenny (U.S. Ambassador to the Republic of Ireland) and me the opportunity to make a long overdue joint appearance here in Northern Ireland.
We hope that by being here today we underline the support of the U.S.Government for businesses to build a strong and prosperous economy for all the people of this island.
We also support the efforts being made, as we speak, to revitalize the assembly in Stormont. We wish you all Godspeed in this important journey.
I am acutely aware that no one is better qualified than you to talk about economic prosperity and the practical benefits of an all-Ireland economy.
The 2,500 small businesses located in the Newry area represent the highest per capita ratio of small businesses in Northern Ireland (though perhaps fewer petrol station owners than were here not so long ago.)
Local entrepreneurs like Fearghal McCormack are the best illustration to Americans that Ireland, north and south, is an attractive place to do business.
Some of you have successfully lobbied for improvements in transport infrastructure, others for "city status" in Newry.
Many of you have pioneered successful cross-border initiatives, such as the Newry/Dundalk Business Linkages Programme, numerous steering committees, and the local authority-led East Border Region Committee.
Examples like these are more than anecdotal.
They represent a business culture that is already overlooking political borders and administrative jurisdictions to help stimulate economic progess.
Your approach mirrors increasing recognition in the United States that political, social and geographical boundaries are becoming less and less relevant in economic terms.
The award-winning New York Times columnist, Thomas Friedman, explains the impact of such issues in his book, "The World Is Flat."
Friedman suggests that businesses can no longer compete exclusively in their own vicinity, because today, even small businesses can compete with firms throughout this "flattened" world.
And the important truth is that, from global economics to local industry, economics is not a zero-sum game.
The United States benefits when other nations prosper - and other nations benefit when the United States prospers.
Your own experiences are no different, as you build on the inter-dependent nature of cross-border economics, and the multiplier effect of progress.
You can see how a new factory in Dundalk might generate business for Northern Irish suppliers, while increasing spending in the shopping malls of Newry.
You have also observed how a vastly improved political climate in Northern Ireland helps border counties in the Republic of Ireland.
So, despite the imposing beauty of the Mourne Mountains and Carlingford hills here in Warrenpoint, your world is "flat" in all the best ways!
However, I am aware of the unease in some quarters about the idea of an all-Ireland economy.
Years of mistrust have meant that terms such as "cross-border cooperation" or "all-Ireland bodies" sometimes carry pre-conceptions that are automatically linked to partisan politics.
But business needs to look forward -not backward.
Restoring devolved government will not be easy, but we will be counting on local politicians to show leadership, because political stability and economic progress go hand in hand.
For example, just since the ceasefires of the mid-1990's, the number of U.S. companies here has increased by 150 percent.
Foreign investment has created 31,000 new jobs since the Good Friday Agreement, and U.S. investment alone has created 20,000 new jobs since 1994.
Tourism has increased four-fold since the height of the troubles. Last year, U.S. visitor numbers grew by 20 percent - to 100,000. That number can only increase as Continental Airlines prepares to go into their second year of direct flights to the United States.
The fact is that Northern Ireland cannot remain dependent on the U.K. Treasury, E.U. subventions, or public-sector employment if it is to emulate the economic miracle enjoyed by its neighbors in the south.
Some statistics underline just how far Northern Ireland is missing out:
- There are 324,000 entrepreneurs on this island. Only 71,000 are based in Northern Ireland.
- Around 10,000 new jobs were generated in Northern Ireland in 2005. An encouraging increase, but far short of the 90,000 jobs created in the Republic.
- Between 1996 and 2004, there has been a 10 percent growth in VAT-registered companies north of the border.
Another positive sign of the peace process, but still far short of the 76 percent growth seen in the Republic over the same period.
I do know that efforts are being made.
The strategic initiatives of bodies such as "Invest Northern Ireland" and "InterTrade Ireland" (right here in the Newry area) are to be commended.
- I know that one local pharmaceutical business, Norbrook Laboratories, now exports to 97 different countries.
- Another firm not far from here, the Florida-based B/E Aerospace, is making around 8,000 seats each month for the world's largest airlines.
- I also learned that the Northern Ireland Chamber of Commerce has recently helped 15 Northern Irish companies bid for contracts with procurement decision-makers of the Dublin City
Council.
Equally, I understand that obstacles remain.
A devolved government in Northern Ireland, based on the principals of power-sharing, could be:
- Delivering comprehensive strategies that augment mutually beneficial cross-border relationships.
- Addressing complex issues like corporation tax, while providing a collective voice for the benefit of the business community.
- Nurturing policies that bolster investor confidence, stimulate competition, and allow entrepreneurship to flourish.
Frankly, the economic world will not wait for parochial differences to be reconciled, and your future depends largely on how decision-makers will respond to current challenges.
So what about U.S. support?
Much is said of the indisputable solidarity between the people of these islands and the United States, our long-standing cultural and historical ties, as well as our economic links.
The facts bear this out.
For example, in terms of export, North America is a key market for local manufacturing companies, and account for 22 percent of manufacturing exports. This is valued in the region of 1.6 billion dollars.
Today, there are approximately 100 American companies in Northern Ireland, making the United States its largest foreign investor.
In Derry, or Londonderry, the three largest private sector employers are American - Dupont, Seagate and Stream.
But I believe these bonds - however enduring - may have a decreasing weight in the hard-nosed decision-making process of corporate America in this global economy.
Similarly, it is not our role to micro-manage issues that some feel are impediments to further prosperity here.
Issues like fiscal harmonization and corporation tax are best addressed by those directly affected by it.
Despite this, the United States is heartened by the cooperative spirit in which the British and Irish governments are addressing matters of mutual interest.
And we stand ready to help where our contributions can be more tangible.
Specifically:
– We will continue to highlight the attractions of the region when American businesses look overseas -- especially small and medium-sized exporters.
Ambassador Kenny will speak more about the American businesses that are thriving in the Republic, but we will maintain that this island, north and south, is a place where our companies can prosper.
– Through the Department of Commerce, we will investigate areas of collaboration and business partnerships.
We will assist local firms who are interested in representing U.S. companies through joint ventures and licensing agreements.
– Our $450 million aggregate contribution to the International Fund for Ireland, our trade missions, and our cultural programs will also continue to cultivate a healthy environment for transatlantic relationships and business opportunities.
– And our Consulate in Belfast will maintain its unique role as a facilitator and impartial broker.
Our "Danesfort Dialogue" sessions for example, will continue to provide a neutral forum where local business leaders and policy-makers can engage.
I know that this region bore the brunt of 35 years of political unrest, and many of you have helped bring about a vastly improved quality of life to your communities.
It is particularly heartening that many of you were working tirelessly on building cross-border relations long before the signing of the Good Friday Agreement.
I pay tribute to your initiative, foresight and dedication to corporate excellence.
You are truly the "economic pivot" between the north and south of Ireland, and ample proof of the benefits of marketing this island on an all-Ireland basis.
Thank you again for inviting us here this afternoon.
| 
Speeches, Remarks & Events