£400m expenditure = 5000 lost jobs

The latest performance report of Invest Northern Ireland has shown that despite £400m of investment underpinning further investment of £1.5 billion, a 12.5% growth in exports, 70% of clients developing their products, 8,800 individuals offered support for new businesses and a growth in entrepreneurship, the total number of people employed by INI clients dropped by almost 5,000. The drop was blamed on the decline of INI clients in the manufacturing sector, particularly textiles. Full report here.

Leslie Morrison, the Chief Executive of INI, said:
“Invest NI cannot take credit for all the positive consequences associated with our activities, just as we cannot take full responsibility for addressing all of the economic difficulties faced by Northern Ireland.”

Surely a quote to remember when they have good news to report.

  • George

    Interesting figures on where the investment has come from in the last three years:

    Great Britain: 79 million
    Irish Republic: 53 million
    US and Canada: 343 million

    Also on where Northern Ireland is selling to:

    10% drop in sales to Great Britain since 2002 to 5.7 billion but still accounting for 43% of the total. Irish Republic up 37% to 1.2 billion.

    Checked out the IDA in the Republic which “secured” 760 million euros of investment in 2005. It still lost 9 thousand and created 12 thousand jobs in 2005.

    However, 40% of new jobs have pay in excess of 37k, which is important.

    More important, is the fact that IDA corporate companies paid 2.5 billion in tax. I’m sure the InvestNI companies also pay tax.

  • Good a relevant comparison George, as while the IDA concentrates on high value jobs INI seems from its public pronouncements to concentrate on chicken coop call centres, when the proverbail blind man on galloping horse can see these are, in most cases, low value jobs with poor prospects for long-term endurance. When the Indian sub-continent produces more graduate level mathmeticians and software engineers than the entire European Union it is clear that INI needs to think more carefully about what its targets are. Can I recommend to them Thomas Friedman’s book – The World is Flat (http://www.amazon.com/exec/obidos/ASIN/0374292795/ref=amb_link_974142_2/104-5202531-1039956)as a guide to where these high value jobs are going.

    And I wonder how many jobs have been created by that bloody massive, towering aberration of a headquarters that INI have in the Bedford Street, Belfast!

  • FD, in fairness to them we shouldn’t be comparing INI’s performance (-5000 jobs) to a counter-factual situation where no jobs were lost, but to a counter-factual situation where INI didn’t exist at all. From what I can read from the report (there’s a graph on page 58) INI participated in the creation of about 9,700 jobs.

    So, without INI, your headline might have read £0 investment = 15000 lost jobs.

    Moreover, according to page 44, over half of new jobs created and 66% of jobs created from first time inward investment projects were above NI’s median income.

    In other words, even if they could do better, we’re probably better off with INI than without.

  • Aaron McDaid (was Occasional Commentator)

    These jobs were lost because of InvestNI, not despite them. InvestNI claiming to have ‘participated’ in job creation makes as much sense as the suppliers of the stationery claiming credit because they have some indirect connection.

    InvestNI does no more than encourage the grant application industry and it discourages real jobs because real entrepreneurs won’t bother going up against the form-fillers. InvestNI should be wound up and the money used to actually encourage real jobs via genuine infrastructure investment or tax cuts or education spending or something that might make a real job.

    Note: Any InvestNI story on Slugger should link to these stories about conflicts of interest in InvestNI: 1 and 2

  • Yokel

    Young Aaron there is pretty much right. INI is a bit of a joke. I know of them of making large expenditures in buying telecommunications equipment for client companies in order to help said companies win contracts only for the jobs to go again within months.

    Invest NI is here to help inward investment and entrepreneurship not to prop up jobs and companies that could nt survive without its input, i.e. they aren’t good enough in the first place. It’s entire existence, however, is driven by publicity. I know this because I was told so by a representative of INI. The people at the top live on announcements of jobs.

  • Butterknife

    We go back to the old chestnut of having no assemby ergo a moral political vacumn. Maybe this is why no one is willing to invest here.

  • Bemus e d

    Failed sick county statelet anyone???

  • Yokel

    It has feck all to do with any political vacuum failed this or or that other than failed Civil Servants.


  • investor

    “…The people at the top live on announcements of jobs…”

    You’re right. The amount of cash they spend on promoting their own existence is mind-boggling. The “Go For It” mega ad campaign backfired because they hadnt enough cash to support the people who responded to the campaign and who wanted to start their own businesses. All revenue to client businesses was cut.

    I have heard that one of the senior board members fancies herself as an advertising genius and drives through her own ideas, regardless of their ad agency’s advice.

    Not so much InvestNI as WiseUpNI