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Address in Reply to Her Majesty's Most Gracious Speech

My Lords, I am delighted to have the opportunity to address your Lordships for the very first time today. My grateful thanks to the noble Baroness, Lady Andrews, and the noble Baroness, Lady Byford, for their kind words. Since my introduction to your Lordships' House last year, I have enjoyed the experience of being part of what is surely the finest, the most knowledgeable and most influential second chamber in the world, whose deliberations are closely followed internationally. This historic Chamber, I am pleased to note, continues to make an important contribution to democracy in the United Kingdom, which has been my home for the past 40 years. I came to the UK from the Punjab in India in 1963 and was determined to work tirelessly to create a home and prosperity for my family. I soon settled in Northern Ireland. In Belfast I found opportunities, lasting friendships and respect, and I am proud to call Northern Ireland my home. I may also say that living and doing business there, during most of my years in Belfast, has been a challenging experience. It is, therefore, a tremendous honour for me to serve in your Lordships' House and to speak with particular reference to Northern Ireland. I fully intend to play a part in its work, in this Chamber, in its Committees and other activities. The subject of regional economic issues is a particularly appropriate occasion for my maiden speech. It is a topic close to my heart, especially in view of my business experiences in Northern Ireland and my present role as President of the Northern Ireland Chamber of Commerce and Industry, the region's largest economic body. For almost 30 years, Northern Ireland has suffered from civil strife. Through the peace process, the region has improved, but much more needs to be achieved. The pace of progress continues to gather momentum, but the region lags behind its counterparts in the United Kingdom. I am convinced that the process of progress is now irreversible and I believe that there will not be a return to the violence that wrecked so many lives, caused such devastation and tarnished our international image so badly. However, we need to end the political stalemate. I am convinced that we can accelerate the pace of change by focusing even greater attention on the economy—by making it the priority. I am not suggesting that the pursuit of an agreed political solution should be sidelined or shelved. What I urge is that the emphasis should be on economic progress. There is now a much greater opportunity and an urgent need to engage all political parties in a united action on economic issues. The best way to move Northern Ireland forward on all fronts is to increase the level of investment in economic development. This is also the best way of harnessing the commitment of the people of Northern Ireland to peace and the search for greater prosperity. Faster economic growth can become the engine that will, in time, drive political progress. Assisted by the peace process, Northern Ireland is now among the most improving regional economies in the United Kingdom. Industrial investment has been growing. For example, this year we have attracted projects from Microsoft, Oracle, Caterpillar and many other international corporations and tourism is also one of our growing industries. However, we still lag behind many other UK regions and we need to improve our industrial productivity, innovation and value added activities. Our tourism sector represents only 3 per cent of GDP, whereas in other regions, such as Scotland, the Republic of Ireland, or mainland Britain, tourism represents 6 to 7 per cent of GDP. Furthermore, investment in research and development is below the UK average and energy costs in Northern Ireland are the highest in the UK. Northern Ireland companies have higher transport costs. Long-term unemployment is higher in Northern Ireland. Unlike other parts of the UK, we have a land border with a competitor, the Republic of Ireland, which has substantially lower tax rates for investors and will continue to receive a much higher level of support from European Union funds. The competitive gap with the Republic of Ireland will widen with the Government's plans to end the derating of industrial premises and the introduction of water charges. These factors are enabling the Republic to attract high levels of business investment. Furthermore, there are indications that some Northern Ireland companies are now considering migrating to new locations just over the border in southern Ireland. There is a need, therefore, for a major "no strings attached" investment programme aimed at strengthening the Northern Ireland economy, enhancing our global competitiveness and ensuring greater opportunity for all our people. Substantial expenditure is needed in many areas, including in the infrastructure, which is showing the strain of a lack of investment over the past 30 years. We need to assist many more companies to add value to their products and services through research and development and other innovative activities and to engage in the global marketplace to a much greater extent. We need to create major tourist projects to attract higher levels of tourism, which will require significant pump-priming from the public sector. In conclusion, an imaginative investment package would, I believe, transform Northern Ireland by creating conditions that would bring politicians and the entire community together on initiatives that would be of enormous benefit to all. The prize for the Government and the rest of the UK is a more stable and progressive Northern Ireland. It is a prize that is now attainable.