Jamie Delargy's UTV Business Blog - Economists back in their box?

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Economists back in their box?

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Jamie Delargy
Business
Arlene has spoken. She has accepted the Barnett Report, broadly speaking.

But it's not that simple. While most of the Barnett recommendations have been approved by the Industry Minister, some of the most radical proposals have not been.

And these are the ones that would have shaken up the way Invest NI does its business.

Arlene Foster does not accept the Barnett analysis that half the money spent on job creation by Invest NI has been wasted.

So it's no surprise that she does not follow through with their recommendation that these grants in the future are largely directed towards research and development. A period of economic weakness was not the right time for drastic change.

But it's more than just timing. The business community didn't want the radical changes in business support advocated by Barnett. It got its way.

The economists who comprised the Barnett team have been rebuffed on a key aspect of their plans. They are out of the driving seat. The business leaders are back in control.

That's why Arlene Foster's reaction to Barnett has been welcomed by the IoD, the CBI and Invest NI itself.

Change is coming but at a glacial pace.

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