Invest NI fearful over funding cuts

Invest NI has said it fears it could miss out on opportunities for inward investment because of a lack of funds brought about by public spending cuts.

The agency is bracing itself for reductions in its budget over the next few years.

There are already plans to trim £6m from its £208m budget.

Invest NI's chief executive Alastair Hamilton said the budget for 2010/11 was already almost 90% committed.

He said budget cuts could restrict the agency's ability to write new business.

"Potentially, if it gets really severe, it could eat into those contractural commitments to such a point I would have to go back and renegotiate with companies," Mr Hamilton added.

"As we emerge, hopefully, out of the economic downturn there are more companies both foreign direct investors and local companies who have projects around growth and growing the private sector which is the big thing we're trying to do in Northwern Ireland.

"We will have to draw the threshold in those projects that we support this year at a different level because of the availability of funds."

Invest NI has said it created 4,300 new jobs last year, down from 6,500 the previous year.

However, Mr Hamilton said as foreign investment dropped due to the economic downturn, Invest NI concentrated more on safeguarding existing jobs.

He said as a result last year about 2,200 jobs were were saved compared to 850 the year before.

"A lot of our efforts last year, and a lot of our funding last year, went into protecting companies in the downturn," he said.

"As soon as we see the upturn - and we're beginning to see a little bit of that now - those companies are ready to go and ready to drive forward."