‘There is no crisis in Invest NI’ interim chief tells Economy Committee

Invest NI’s interim chief executive has insisted that the business support body is not in crisis.

The business development agency suspended fresh offers of financial support to investors because of ongoing budget uncertainty as a result of the collapsed Executive at Stormont.

While giving evidence to the Stormont Economy Committee, Mel Chittock said Invest NI had received an indicative budget allocation for 2022 in recent days but that did not mean it was ‘business as usual’.

Accompanied by Invest NI chair, Rose Mary Stalker and executive leadership colleagues, Mr Chittock said: “The shape of economies all over the world has radically changed in the last couple of years. Northern Ireland’s economy is no different.

“In response to this, Invest NI has to change too. This change is positive. It is not a response to internal crises. Or to failed delivery. It is a change for the good, to ensure we meet the new needs of Northern Ireland.”

As part of the Committee meeting, Mel updated the Committee on Invest NI’s budget position and its pause on issuing Letters of Offer.

Mel continued: “We had to take the decision to pause issuing Letters of Offer – it would have been irresponsible to commit to projects we might not have had sufficient budget to support. This was not unique to Invest NI. Other Departments and Arm’s Length Bodies were also asked to pause writing new business.

“I am pleased to advise, however, that earlier this week we received an indicative budget allocation. This is to help us plan while the Department awaits its final budget. We thank the Minister and the Department for providing us with this so we can plan for the year ahead.

“I would like to stress, this does not mean it is business as usual. In support of 10X, and in light of continued budget pressures now and in future years, heightened by loss of ERDF funding, we will not be continuing to support businesses in the same way that we have in the past.”

Speaking about the speculation of a crisis within the agency, Mel responded: “There is no crisis.”

He confirmed that for a short period nearly 300 staff had been diverted to work on the High Street Scheme, to process applications quickly and support the Department to get vouchers and the money flowing into the economy.

Mel said: “They did an amazing job. There was no knock on impact to our business. This was down to the amazing effort of our team. They pulled out all the stops – just like they did to support delivery of the Covid schemes. I am immensely proud of them for what they did.”

Mel also advised the Committee that Invest NI has received notification of legal proceedings from a group of staff which joined the organisation under TUPE in 2020. As this is a legal matter the details were not discussed.

“What I can say, with full conviction”, added Mel. “Is that there has been no knock on impact to our work to secure investment from GB, Europe or the US.

“We still have a team in Europe, we still have a team in GB, and we still have a team in the US. Our investment pipeline remains strong and we continue to attract inward investment projects comparable to levels in previous years.”

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