Foster urges new department to tackle North's economy

THE NORTH’s Enterprise Minister has called for a new super department to focus solely on the Northern Ireland economy.

Arlene Foster believes her Department of Enterprise, Trade and Investment (DETI) should be merged with the Department of Employment and Learning (DEL) in a radical shake-up of economic development policy in the North .

The proposals, outlined yesterday in the Assembly, form part of a plan to deal with criticisms laid out in a recent review of current economic practices.

The review, commissioned by the Minister in 2008, was headed by Prof Richard Barnett, vice-chancellor of the University of Ulster.

The Barnett review put forward 58 recommendations. It advocated that all core economic functions in Northern Ireland should, for the first time, be brought under a single Department of the Economy.

Ms Foster has said that many of the recommendations outlined in the Barnett review will be “implemented” by her department “as soon as practicable”.

She said the “root and branch review” would set Northern Ireland on “the course for economic growth and ultimately deliver higher living standards for everyone”.

Ms Foster said there were four key areas of work which it would initially concentrate on: “co-ordination of economic policy in Northern Ireland; assistance to industry from DETI and Invest NI; autonomy, flexibility and decision-making and policy development and monitoring”.

Ms Foster has given ministerial support to the suggestion that a new Executive committee should also be established to “prioritise cross-departmental action on the economy” involving the DETI, the DEL and the Department of Regional Development, as well as the Office of the First Minister and Deputy First Minister and the Department of Finance and Personnel.

Such a powerful subcommittee could actively deliver a “joined-up government” approach on key economic issues which many of the Executive’s critics say has been missing in the North.

Ms Foster said she agreed with the Barnett review’s conclusion that this committee “should drive the development of an economic strategy for Northern Ireland”.

Invest NI, the North’s regional economic development agency, came under intense scrutiny in the Barnett review.

It stated that although Invest NI had spent in the region of £1 billion (€1.15 billion) since it was established, it had not succeeded in raising productivity levels in the North.

Ms Foster rejected any suggestion that resources had been wasted, but agreed with Barnett that Invest NI should try to offer broader support to a much wider business base.

The Minister said: “I have asked the chief executive of Invest NI to review how the organisation could develop a tiered portfolio of support across the wider business base to accelerate innovation, RD and export growth.

“Within a tighter public expenditure environment, we must prioritise support and also recognise the importance of advisory and other forms of assistance.”