Invest NI: Department responds to scathing independent review

The operations and organisation of Invest NI have been reviewed by a panel led by Sir Michael Lyons

Invest NI's focus will shift from job creation to overall productivity after a scathing independent review earlier this year.

A review panel, led by Sir Michael Lyons, found that "profound divisions" at the top of Invest NI were having a damaging impact on the organisation.

Invest NI is an arms length body of the Department for the Economy (DfE).

The department has published its action plan in response to the review.

It raised questions about a central plank of Invest NI's support for businesses which is known as the "client company" model.

It meant a sizeable amount of financial support is tied up in repeat assistance to a very small number of firms.

The department's action plan says Invest NI will develop and implement a new model for segmenting and engaging with the NI business base to reduce the emphasis on a traditional one-to-one relationship.

Colm McKenna, interim chair of Invest NI, said the action plan is "ambitious, transformative and measurable".

He said it is "a clear commitment for change by Invest NI and the Department for the Economy which will require changes to our leadership, structure, operations, culture, and strategy".

"Previously, the targets set were heavily focused on job creation," he added.

"Going forward our focus will pivot from an emphasis on supporting job creation to delivery of 10x and City and Growth deals and to raise the overall level of productivity in our economy."

'No quick fix'

The review had criticised communication between it and Invest NI on issues including strategy, policy and guidance.

The action plan says the relationship between the department and Invest NI will now be based on partnership and collaboration, after one submission to the review described the relationship as that of a parent and child.

The document says there is no quick fix, acknowledging transformation "will be challenging and will take time".

Sir Michael Lyons was previously chairman of the BBC Trust

Mike Brennan, Permanent Secretary at the Department for the Economy (DfE) said: "Invest NI, like all public bodies, must do more with less in the constrained budgetary landscape, and difficult decisions must be taken to ensure this plan is implemented."

During the independent review, the panel referred two potentially serious whistleblowing cases to the department.

One of these cases has been investigated and closed.

The other case is ongoing and "nearing conclusion".

Invest NI is in the process of recruiting a new permanent CEO.

The department's action plan is expected to be delivered between now and December 2026.