A MAJOR survey of the Northern economy has proposed privatisation of major public assets, an examination of pay scales and benefits, and closer liaison with the Republic.
The report, commissioned by the British government and carried out by Sir David Varney, follows his recommendation in a separate report last year that Northern Ireland should retain British levels of corporation tax, in the face of widespread calls for it to be cut to the Republic's level of 12.5 per cent.
His second report, released in London yesterday, details recommendations aimed at boosting the private sector and uses the Celtic Tiger boom in the Republic as a role model.
Sir David calls for the privatisation of Belfast Port and notes the benefits in Britain of placing some transport services and the vehicle testing service in the private sector. His report also calls for the formation of a northern equivalent of the Republic's National Competitiveness Council, to be known as a Competition Analysis Board, to advise the Stormont Executive on a regular basis.
He further calls for a review of development agency Invest Northern Ireland's functions and for closer liaison between it, the IDA and its British counterpart, UK Trade & Investment.
Sir David's report also dwells on the pay gap between the public and private sectors in the North. He calls for the public sector premium over the private sector to be reduced over time.
Addressing the North's high rates of economic inactivity, his report addresses the benefits system, calling for greater implementation of the Pathways To Work programme.
Skills and training ought to be a primary goal for the Executive, he says, and he calls for targets on functional literacy and numeracy levels to be set.
Echoing a point made in his first report, Sir David called for the existing research and development tax credit scheme to be better promoted and for Invest NI to improve take-up rates for the scheme.
Welcoming the report in London, Northern Secretary Shaun Woodward said: "There must be a rebalancing of the economy here with the emphasis on developing a dynamic private sector with new investment opportunities for business.
"With a stable and effective local administration in place committed to delivering greater prosperity for all the people of Northern Ireland, I have no doubt that the potential of a hugely talented and determined people, hungry for success, will be realised.
"The government will be delivering its response to the Varney report soon."
Speaking in the House of Commons, incoming DUP leader and first minister-designate Peter Robinson called on Gordon Brown to issue his response to the report in advance of next week's key US-Northern Ireland investment conference in Belfast.
He also pressed the prime minister to honour commitments to transfer unused military bases to the Stormont Executive.
SDLP leader Mark Durkan said the Varney report was more a description of current problems than a recipe for economic success.
For the Alliance Party, Stephen Farry said Sir David had "little appreciation of what is now the reality of an all-island economy, in which the Republic continues to outpace Northern Ireland. Northern Ireland is at a distinct competitive disadvantage".
