Primary gateway with static ip address not activating

Post the output of:

/ip route print

and of:

/ip address print

You seem to be using recursive for failover, and the behaviour has changed between 6.x and 7.x, you now need appropriate scope and target scope, check this post by anav:
http://forum.mikrotik.com/t/failover-routeros-v7/183285/1
http://forum.mikrotik.com/t/failover-routeros-v7/183285/1