Government must take swift action

Sep 29 2009 by Sarah Green, The Journal

THE CBI yesterday put forward a 12-point agenda setting out what any new Government should do to help put the economy on a path to sustainable growth.

Whichever party wins the next general election, the administration should act quickly and establish clear timetables for implementing the 12 points within 100 days of taking power.

The plan particularly emphasises the need for a new Government to commit to getting the public finances balanced by 2015 with a clear and credible plan for doing so.

This target year would require a new explicit commitment by the main political parties.

The CBI has launched the plan, titled New Government in Action: The Business Agenda, amid the party conference season that precedes the next election, which must take place by June.

The 12 priorities range from tackling youth unemployment to developing a stronger banking system.

Any new Government will have a lot to do in its early days, but the economy must be central to its plans, especially given the state of the public finances and the global downturn. Our proposals make clear what the priorities should be to help put our economy on the road to sustainable growth.

The major political parties really need to focus on the public finances, even though this requires tough decisions.

The North East business community recognises that in the short-term this could cause additional pain for our region due to the strength of the public sector.

We also emphasise the need for speed. A new administration should act quickly and decisively. This will not only put the right priorities in place quickly, but also help win confidence.

Some of the priorities may surprise people. Not everybody expects youth unemployment to be a particular priority for business, but we know from previous recessions that it can scar generations.

There are huge prizes for those countries that drive innovation in the low-carbon markets. If Government ensures the right framework to incentivise the transition to low-carbon products and services, North East businesses in conjunction with our universities are well placed to maximise this opportunity.

Similarly there will clearly need to be a focus on energy security which will help spur the development of the offshore wind market creating opportunities for our subsea and manufacturing sectors.

Sarah Green is regional director of CBI North East