THE North's Department of Economic Development (DED) is studying a report by British MPs which accuses the Northern Ireland Tourist Board and government officials of "astonishing" lapses and "sheer laxity".
The DED funds the tourist board and the report, by the House of Commons Public Affairs Committee, examined a tourism development scheme offering financial support to providers of accommodation and amenities.
MPs were disturbed that in one case the level of grant-aid offered "may have constituted a breach" of a British government promise in 1985 that there "must be at least £l of private sector investment for every £1 of government assistance".
Commenting on two assisted projects which subsequently went into liquidation, the committee said the tourist board and the DED had not carried out adequate appraisals. It highlighted that in one project there were "serious failures in supervision and management" by both. The two projects, involving a new hotel and a hotel extension, failed within two years.
The DED said it had noted the report's comments and would be making its response, after consultation with the tourist board within the next two months.
A spokesman added that many of the criticisms in the report had already been identified by the board and action had been taken on them. A spokeswoman from the tourist board said it would not be commenting on the report until it made its official response along with the DED.
The tourist board's chairman, Lord Rathcavan, ends his term of office in three months. The report has prompted speculation that the North's Economy Minister, Baroness Denton, may implement new structures before he leaves.
In its conclusion, the committee states: "It is clear that, in introducing the tourism development scheme, the department - and subsequently the board - operated with sheer laxity in relation to their own guidelines. The early projects show an astonishing range of failures of supervision and management.
The committee thought it was entitled to expect officials to ensure that "many important lessons raised by previous investigations were applied.