THE MAIN Northern Ireland investment body and some aspects of the Stormont Executive are “not fit for purpose” in boosting the economy, a report has concluded.
An investigation ordered by Industry Minister Arlene Foster has concluded that InvestNI has not delivered the required levels of value-added employment despite receiving some £1 billion (€1.09 billion) in public funds since 2004.
Recommendations made by the Independent Review of Economic Policy include the merging of two Stormont departments, including Ms Foster’s, in an effort to clarify economic policy and delivery.
The review, chaired by Prof Richard Barnett of the University of Ulster, said efforts at attracting inward investment, promoting high-wage employment and closing the productivity gap between Northern Ireland and Britain were not working.
His review has made a series of recommendations that could alter dramatically the face of the North’s investment drive.
Insisting that “the status quo is not an option”, Prof Barnett said it was lamentable that productivity was stuck at about 75-80 per cent of the UK average, not counting the south-east of England.
He said InvestNI had succeeded in attracting some jobs but added that too many of these were in the low-wage sector and were highly internationally mobile.
Investment made by the agency could be better targeted, and he pointed out that just 10 companies had received one-third of the total invested since 2004.
The review emphasised the need for much greater focus to be placed on innovation and on research and development projects, which, in turn, would promote greater additional business activity throughout the region.
Prof Barnett also cited regional imbalances within Northern Ireland and suggested that rural areas were put at a disadvantage by the private sector and that government strategies were adding to this problem.
Pointing out that InvestNI had not performed any worse than other comparable inward investment bodies, he said its spending decisions did not match the declared policy aims of the Executive included in its programme for government.
It was “still trying to be everything to everybody”, had “a plethora of programmes” and ought to be more independent of government.
Rationality was urgently needed, he added.
There was confusion over the formulation of economic policy, and responsibility should lie with Ms Foster’s Department of Enterprise, Training and Investment (Deti).
Politicians should give InvestNI three-year programmes and “let them get on with it”.
He also called for reforms to the workings of the venture capital market, claiming it was not working fully.
Specifically, Prof Barnett called for a single department for the economy and suggested the merger of Deti and the Department of Employment and Learning.
This should be matched by the First Minister and Deputy First Minister summoning a special committee to focus on economic development and prioritise action.
In addition to being more autonomous, he said InvestNI should be “more entrepreneurial”.
The education system should be more closely linked to the needs of industry and he called for fresh emphasis to be put on core subjects such as English, maths and technology subjects.
