Northern Ireland’s economic recovery could be hampered by the slump in the Republic, it was claimed today.
Assembly member Alasdair McDonnell raised concern ties between the states could affect the bounce-back north of the border. There are collective efforts in areas like promoting tourism and trade and business development.
Some economists have forecast a return to modest growth by 2010, Stormont's Enterprise, Trade and Investment (ETI) committee heard today.
Committee member Mr McDonnell asked: "My anxiety is that... if the Irish economy doesn't begin to lift as quickly or struggles can that trap us for a longer period? If that doesn't pick up do we lag behind, that is something we need to be more aware of."
In September the Irish economy went into recession for the first time since 1983.
Around 20,000 jobs could go this year in Northern Ireland, Employment Minister Sir Reg Empey has warned, with construction particularly hard hit. Committee member Simon Hamilton also raised the relationship with the Republic.
Dr McDonnell, SDLP MLA for south Belfast, asked officials from the Department of Enterprise, Trade and Investment (DETI): "It was the oil prices that triggered the slump, the energy prices surging, how vulnerable are we to another oil surge?"
An official said Northern Ireland's economy was more diversified now than it was in the past and added the workforce was being upskilled.
Committee chairman Mark Durkan called for the speed at which major government work contracts, like special needs units at schools, were processed to be speeded up.
"Surely the sky can't fall in if somebody finds projected money for worthy projects and can say 'yes, you can go ahead and do the tendering and have the work ready to go'?" he said.
He wants the preparation to be carried out before the year for which the spending is allocated.
David Sterling, head of policy group at the department, said: "There's a lot of desire to streamline all these processes.
"Part of the problem is it is all very well saying you will bring forward projects quickly, that requires that all the planning is in place, all the statutory processes have gone through.
"A lot of these big projects are like oil tankers, it is hard to shift them in direction. I think there's room for more flexibility and I am agreed with that."
PA