Private investors may part-own ILEX schemes: plan finished next month

Asked at Stormont if venture capitalists - private investors who fund start-up firms in return for part ownership - may be used to help finance ILEX’s plans for Londonderry, Chairman Roy McNulty replied “absolutely” adding that all legitimate and respectable capital options would be considered.

He told members of the Stormont OFMDFM Committee that the plan would be finalised in March during an evidence session in Belfast recently.

He told the Committee: “Absolutely. We are clear in Derry what we want to achieve, and any legitimate and respectable way of finding the finance to do those things has to be considered.

“Earlier, we heard the First Minister and deputy First Minister emphasising the opportunities in Europe, and maybe further afield. We have to look at every conceivable avenue.”

Sir Roy also gave the Committee members a brief overview of the regeneration proposals telling them consultation has now been completed and the plan will be finished in March.

He stated: “We have quantified it as possibly 12,500 net additional jobs by 2020, or £165 million more going into the local economy each year. It could reduce the economic deficit that Derry currently represents to the Northern Ireland exchequer by around £200 million a year.

“By the time we finish the plan in March 2011, it will have a robust delivery and investment strategy behind it. We will have a programme management set-up in place.

“In particular, we are focusing on the investment strategy. Obviously, in the current climate, that is not without its challenges. We are working with various Departments and Derry City Council.

“Experts Grant Thornton are helping us to learn from some of the ideas that are emerging on the mainland as to how to generate enough finance in the current, extremely difficult, public-sector finance climate.

“We will all have to be open to new approaches and things that have not been done in Northern Ireland previously. However, we believe that the potential for that is substantial. We can come up with a plan that has a credible source of investment behind it.”

Sir Roy said an equality conference will be held this month to discuss the plan but that ILEX is waiting for dates from Ministers to confirm that.

“It will be a chance to have a thorough discussion with a lot of people in the community.

“That is where we are at in the regeneration plan, and Dr McGinley will talk about the sites and developments,” he stated.