Murphy unveils drive to bring regional balance to NI economy

A plan which aims to increase regional balance in Northern Ireland’s economy has been launched by Conor Murphy.

Stormont’s Economy Minister said £45 million will be available for councils to distribute through new local economic partnerships over the next three years.

The plans include the restructuring of Invest NI, Stormont’s business support agency, to increase staffing numbers in its regional offices.

The sub-regional economic plan highlights a number of economic challenges facing Northern Ireland, which it said are more pronounced at local level.

It highlights that labour productivity in Belfast is 31% higher than in Derry City and Strabane, and median wages in Belfast are 44% higher than in Ards and North Down.

The plan says the employment rate in Mid Ulster is 10 percentage points higher than Derry City and Strabane while export intensity in Newry, Mourne and Down is 11 percentage points higher than both Antrim and Newtownabbey and Ards and North Down.

The rate of employees stating they were in secure employment in Mid and East Antrim is five percentage points higher than in Causeway Coast and Glens

Mr Murphy said: “Councils will be asked to establish partnerships, which bring together central government, the business community, universities and colleges, local enterprise agencies and civil society.

“These local economic partnerships will identify the main barriers to economic development and the priority interventions that will build the region’s value proposition.

“I intend to support these partnerships with dedicated funding of £45 million over the next three years.”

The minister outlined that Invest NI will put a new focus on regional balance and will be a driving force within local economic partnerships.

He said: “Staff numbers in the Invest NI regional offices will be increased by an initial 40%.

“These offices will assume responsibility for managing local clusters and businesses with a turnover of up to £2 million.

“Property specialists will be recruited to develop land and property for business use.

“Invest NI headquarters will support the regional offices, providing specialist advice and expertise.”

Mr Murphy said:  “Invest NI will support this drive towards regional balance and direct 65% of its investments outside of the Greater Belfast area.

“Consequently, the whole of Invest NI, not just regional offices, will be re-orientated towards developing local economies.”

Kieran Donoghue, chief executive officer of Invest NI, said: “I very much welcome the publication of the minister’s sub-regional economic plan and the key role of Invest NI within it.

“We are committed to working in partnership with the Department for the Economy and other key stakeholders to support the achievement of the minister’s policy priority of increased regional balance.

“Our forthcoming new three-year business strategy has made regional development a key objective and will provide further detail on our overall approach.”

Alliance Party MLA Kate Nicholl said the plan had a “a distinct lack of detail around key elements”.

She said: “It also references the importance of the City and Growth Deal projects, and so it is crucial that the UK Government now urgently lift the pause on the Causeway Coast and Glens and Mid-South West Growth Deals in particular, as important drivers of sub-regional economic growth.”