Kelvin, City of Culture spin-offs and out-of-town shops no replacement for sustainable industry

Thus was the verdict of Londonderry trade unionist Liam Gallagher who said taking 4billion pounds out of the Northern Ireland economy will do untold damage to the prospects of working people in the North West.

The Unite chairperson in Londonderry said the North West will be badly affected under the budget proposals and that those suggesting Project Kelvin, City of Culture 2013 and out-of-town retail jobs as a panacea to swingeing spending reductions were deluded.

"In the North West every Public Sector job loss and pay freeze will impact on local spending and will cause further unemployment," said Mr Gallagher.

"Every pound withdrawn from capital spend will mean less construction work. To suggest, as some have, that the Kelvin Project, small numbers of proposed retail jobs out of city centre and the City Of Culture spin off will offer us hope is to delude ourselves," he said.

"It may get MLAs elected for the next four years but it will not address our urgent need for sustainable work.

"We need to oppose any attempt to down size the Public Sector when there is nothing there to replace it.

"We need to grow private sector employment by prioritising the growing of sustainable manufacturing work and looking beyond trips to America.

"We need interim measures to help the unemployed and graduates to develop skills in programmes that will value them and give them decent remuneration."

Mr Gallagher said he believed the Draft Budget accurately analysed the economic problems that we have.

But he said it offered no credible solution to the economic malaise we find ourselves in and pointed out the "shocking statistic" of 34,330 job losses between March 2008 and June 2010 and 8,920 job losses in manufacturing alone since March 2010.

"Added to that is the complete melt down in construction work and the growing trend of those categorised as economically inactive," said Mr Gallagher.

"The Budget talks about the need to rebalance the economy and move away from an over dependence on the Public Sector which accounts for 32 per cent of direct employment and contributes indirectly to 27 per cent of Private Sector employment.

"There is a recognition that the North's economy is 93 per cent dependant on the Block Grant from Westminster and has lagged behind the UK and Republic for the last 30 years in economic growth," he continued.

The Londonderry trade unionist said the budget offered no "credible solutions" to our problems other than "suggestions for limited tax raising through regional rates, a plastic bag charge and the old chestnut of considering reducing corporation tax which will not create one new job but will help give Multi Nationals another tax loop hole."

He commented: "The fact is that given all of the universally acknowledged economic problems that we have, four billion pounds will be taken out of our economy at a time of dire need for investment and far from rebalancing the economy this budget will set back any prospect of economic regeneration for another 30 years.

"It will send unemployment up into double figures and grow more dependence on the state instead of diminishing it."