Infrastructure capacity constraints affecting economic growth

Northern Ireland’s infrastructure capacity is the issue that keeps the boss of Invest NI up at night.

Kieran Donoghue was speaking as the organisation published its end of year results for 2024/25.

He said water and wastewater capacity constraints, as well as land availability and access to skills were the biggest challenges to economic growth.

It comes after a scathing independent review of the organisation by Sir Michael Lyons in 2023.

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

The review found “relationships at senior levels within Invest NI are damaged and are harming the performance of the organisation”.

It concluded that the organisation needed urgent improvements in leadership, operations and public accountability.

In response, Invest NI published an action plan, and it has now completed the first year of its three-year plan, including internal organisational and cultural change.

Mr Donoghue, who has been in the role for 18 months, said he did not want the organisation to be defined by the review.

Invest NI supported £631m of investment into the Northern Ireland economy this year – that is 22% more than the previous year.

In response to criticism that the organisation has been too Belfast-centric, it almost hit its 60% target for investments outside of the Belfast Metropolitan Area, with this making up 59% of investments.

Two thirds of assistance went to locally owned firms.

Mr Donoghue said: “These investments by local and external companies will see 3,020 new jobs created across the region, with support from us.

“In a volatile, uncertain and complex global environment, we must focus on making the long-term investments that will increase the productive capacity, capabilities and competitiveness of our economy.”

Invest NI surpassed the majority of its targets for the year, with one exception being the amount of investment in low carbon and the green economy, which came up short.

Mr Donoghue warned the budget shortfall Invest NI is facing could mean that they would not be able to deliver on their three-year plan.

He said that could potentially cost the Northern Ireland economy £150m in lost investment.

By the end of this year, the organisation aims to have completed 32 of the 35 recommendations highlighted in the Lyons review.