Response to Global Pharmaceuticals decision

Padraig Canavan, President of Londonderry Chamber of Commerce, said:

"The announcement by Global Pharmaceuticals that it has chosen Tralee in County Kerry over Derry-Londonderry for the location of an investment project that brings with it 300 jobs is very disappointing news for the North West.

"Global Pharmaceuticals has said that the decision was made, primarily, because the Corporation Tax rate in the Irish Republic is significantly lower than in Northern Ireland. This is a significant handicap for Northern Ireland, and the border counties in particular. It is incredibly difficult for us to compete for inward investment with the Republic. We need to be competitive with the Republic on Corporation Tax.

"But there are other factors which also need to be addressed to encourage greater inward investment. These are our skills base and our accessibility through our transport infrastructure.

"Despite having a high proportion of bright young people, Northern Ireland does not generate or retain sufficient numbers of graduates - especially in the most relevant core skills - because it exports them. That is why the Chamber has been so vocal in calling for the substantial expansion of the University of Ulster's Magee campus, with more students and more courses in the science, technology, engineering, maths and creative industries subjects. It is essential for the economic welfare of Northern Ireland and specifically the North West that Magee expands and does so quickly. This is why the expansion of the Magee campus is at the heart of the city's regeneration plan - the ONE Plan.

"It is also essential that all schools and colleges in the region provide the basic and advanced skills needed for the modern economy.

"We must not overlook the weak state of the transport infrastructure. The A6 link with Belfast has long been unfit for purpose and its upgrade remains the single most urgent and important transport project for the region. The need for the upgrade of the Derry-Londonderry to Coleraine train line is also necessary and has rightly been the focus of much recent commentary.

"To improve the attractiveness of the North West region to inward investors, all these factors need to be addressed, and urgently. If they are, the region will become economically successful. This will generate tax revenues that benefit the Northern Ireland Executive and the UK Treasury. These investments are intended to be self-financing and to reduce the subsidy paid to the North West, which will serve everyone's long term interests.

"The Chamber of Commerce will continue to make this case to government ministers over the coming months, as key investment decisions are being made by the Executive. We would encourage all interested parties to do likewise."