NI infrastructure challenges are barrier to investment, MPs told

Infrastructure challenges in Northern Ireland present a barrier to economic growth, MPs have been told.

Stuart Anderson from the NI Chamber of Commerce and Industry said it is difficult to attract foreign investment if you cannot deliver planning approval or “flush a toilet” due to a wastewater crisis.

The Northern Ireland Affairs Committee held an evidence session as part of its inquiry into economic growth in the area.

DUP leader Gavin Robinson asked Mr Anderson if there is evidence that businesses in the area have been able to take advantage of dual market access offered by the Windsor Framework.

Mr Anderson: “I think we are always looking for any competitive advantage that we can get and I think whenever you look at the official objective figures for exports, you saw the figures for Wales, Scotland, other devolved nations fall through the floor in 2024, whereas Northern Ireland bucked the trend, albeit at a modest level.

“I think that it is a potential opportunity.”

Mr Anderson said trade frictions between Great Britain and Northern Ireland need to be “kept under constant review”.

He added: “Regulatory divergence is probably one of the single greatest challenges we need to consider when we think about GB being our biggest market.”

Mr Anderson said dual market access is predicated on the notion of the movement of goods, pointing out structural issues around planning and wastewater infrastructure.

He said: “The reality is when you look at the skills gap, 80% of our members saying they have persistent recruitment challenges.

“When you look at the fact that we have a gap of about 5,000 workers coming through every year, in terms of the skills deficit, we have over 600,000 economically inactive.

“That labour supply and skills issue is one (issue).

“But, actually, if you can’t get planning approval, if you can’t, dare I say it, flush a toilet because the wastewater infrastructure is not where it needs to be, you are not going to attract FDI and you are not going to attract the investment that we need to see.

“There is another challenge we have which is unique to Northern Ireland, it is the competitive position we have relevant to our nearest neighbours in the Republic of Ireland.

“When they are performing the way they are in terms of productivity, when their education rates of seeing school pupils go right through to the age of 18 is much higher than it is in Northern Ireland.”

He added: “I think some of our members who are on the ground in Northern Ireland are certainly benefiting from that barrier-free access to the EU and into GB, I think official data supports that.

“But in terms of actually attracting foreign direct investment, we have some serious structural issues to solve before that notion can be tested.”