Ilex costs soar

And the annual amount paid by the OFMDFM to Ilex - just to pay running costs - has more than trebled over that period.

Last year Ilex cost OFMDFM 3.721million. Total funding provided to Ilex by OFMDFM increased in each of the last five financial years.

In 2005/6 it cost the Department 1.092million, rising to 1.233million in 2006/7; 1.857million in 2007/8; and 2.274million in 2008/9 before breaching the 3million threshold last year.

OFMDFM advised the figure for 2009/10 was provisional as the Departmental Accounts for the financial year 2009/10 have yet to be published and these estimates have not yet been confirmed.

But local economist Paul Gosling - once highly critical of the firm charged with sparking economic growth in the city - insists Ilex is pivotal to Londonderry's future prospects.

He said overall expenditure was not the issue rather what has been achieved by Ilex since its foundation in 2003.

"I don't feel that the issue is expenditure - it is about what has been achieved," he told the Sentinel. "I wrote a report for the North West Public Sector Review Group - you can read it at www.northwestpublic.org - in which I said - in 2007 - that Ilex should provide some 'quick wins'.

"This should have included fast action to improve the quality of the river front on the city side by taking out the car parks and providing a riverside park and by making some urgent improvements to the urban environment within the walled city.

"This was not a priority and the failure to take this action had the effect of not providing the confidence boost in Ilex that could have been achieved. In addition, some early staff appointments proved to be unfortunate. Together they have ebbed confidence in Ilex," he said.

Critical of the company's early record Mr Gosling said the challenging economic environment made Ilex's job more difficult now than seven years ago when it was set up.

He did, however, cite the Ebrington project, the Peace Bridge and the UK City of Culture 2013 bid as significant achievements.

"The challenge is much tougher today because of the worse economic conditions, so it is a shame that more was not done sooner. But, having said that, we need Ilex and we need it to deliver a proper and ambitious regeneration plan," he commented.

"Without that plan, and a delivery vehicle, it is very difficult to see how Derry-Londonderry can have economic growth that will deliver the necessary improvement to the quality of life, average incomes and economic activity - jobs - that is necessary.

"An important report was published this week which concluded that quality city development required three conditions: an airport, other high quality transport links and a strong university presence.

"I would strongly agree with this analysis and it is one which the city and the civic leadership - which includes Ilex - has to constantly reflect upon," he added.

Ilex was established in 2003 to promote the physical, economic and social regeneration of Londonderry and has specific responsibility to manage and re-develop two former military bases of Ebrington (26 acres) and Fort George (14 acres).

Mixed-use development is envisaged for both sites and revitalisation of the riverfront is a key objective.

The company is also behind the Peace Bridge currently under construction at the River Foyle.