Empey warns of tough times ahead for North

Northern Ireland must be prepared to suffer further job losses as a direct result of the terrorist attacks on the US, the North…

Northern Ireland must be prepared to suffer further job losses as a direct result of the terrorist attacks on the US, the North's Economy Minister has warned.

Sir Reg Empey, Minister for Enterprise, Trade and Investment, yesterday told the Northern Ireland Assembly that the North was "facing its stiffest economic test in over a decade".

Since September 11th, Northern Ireland had been holding its breath, hoping the economy could survive the worst impact of the terrorist attacks.

"Last week, we witnessed the fall-out. First, Bombardier Aerospace, then British Airways followed on Friday by Aer Lingus. Aircraft manufacturers and airlines have been the first to suffer. At its bleakest, this will mean the loss of more than 2,200 jobs.

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"I have to inform the House that there is a strong likelihood of more bleak economic news on the way," Sir Reg added. Hundreds of people who work in "downstream" businesses such as suppliers or contractors were waiting to see how they would be affected, he said.

"If the downward momentum isn't arrested, the expectation must be that number of economic casualties will grow. What we must try to do now is seek out ways of averting further decline, as well as ways of cushioning the blow," the Minister added.

He had expressed his concern to the British Prime Minister and to Ms Patricia Hewitt, the Department of Trade and Industry Minister, about the situation facing Northern Ireland.

"I emphasised that the loss of 2,092 jobs to the Northern Ireland economy would be the equivalent of up to 70,000 jobs in Great Britain," Sir Reg added.

The Minister said he had also proposed two ways to help Bombardier in Northern Ireland.

"I have suggested the deferment of payment of launch-aid assistance to the aerospace industry next year, a measure worth almost £2.5 million which would provide some alleviation.

"I have also pressed the Government to consider 'soft' financing to help airlines purchase aircraft, and kick-start demand," he added.

Sir Reg said that the Department of Regional Development in the North was also in discussions with British Airways and the UK Government regarding the airline's decision to axe its Belfast to Heathrow routes. He said there was grave concern about the message this would send to potential investors, particularly North American-based companies.

Job fears have also been raised at BE Aerospace, a Co Down firm that manufacturers aircraft seats for American airlines.

Mr Jim Wells, a Democratic Unionist Party assembly member, said he had been informed that a number of orders have now been postponed as a result of the terrorist attacks on the US.

The Kilkeel-based firm employs 300 people but Mr Wells said if further orders were cancelled it could jeporadise the factory.

Francess McDonnell

Francess McDonnell

Francess McDonnell is a contributor to The Irish Times specialising in business