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Getty Images<\/span><\/div>\n<\/div>\nMore than \u00a340m of government grants are being made available to Northern Ireland food and drink manufacturers.<\/p>\n The \u00a346m scheme is part of the economy minister’s plan to boost poor productivity.<\/p>\n One aspect of Northern Ireland’s productivity problem is its relatively low rate of investment.<\/p>\n The new grants’ scheme aims to encourage investment by covering up to 35% of the cost of new equipment.<\/p>\n It should unlock around \u00a3300m of private sector spending over the next four years.<\/p>\n The scheme is being run by the economic development agency Invest NI.<\/p>\n<\/div>\n Its chief executive Kieran Donoghue said: “The aim of this new initiative is to improve the overall competitiveness of Northern Ireland’s agri-food and drink processing sector.<\/p>\n “To this end, we are particularly seeking projects which are innovative and demonstrate how they will improve the productivity and sustainability of the business.”<\/p>\n Productivity is a measurement of how much economic output is created by each job or each hour of work.<\/p>\n Over the long term, increased productivity is needed for an improvement in living standards.<\/p>\n Since the financial crisis of the late 2000s, the UK has suffered from weak productivity growth and Northern Ireland has usually been the least productive part of the UK.<\/p>\n The major drivers of productivity are workers’ skills, investment in the tools they need to work with like factory machines, and the adoption of the newest technologies.<\/p>\n<\/div>\n The Ulster Farmers’ Union welcomed the announcement. <\/p>\n President William Irvine said the grants would “put Northern Ireland on a more level footing” with competitors in Britain and the Republic of Ireland, and would “strengthen and further develop our local supply chain helping to ensure a bright and sustainable future benefiting our consumers and everyone involved in the industry”.<\/p>\n<\/div>\n Classic Mineral Water in Lurgan is an example of a business which has invested to grow.<\/p>\n Its owner and chief executive Liam Duffy has overseen \u00a310m of investment in new buildings and production equipment in the last four years.<\/p>\n He said that has allowed the business to increase its product range and win new business, as well as helping deal with the effects of a competitive labour market.<\/p>\n Unemployment in Northern Ireland is at a record low<\/a> and businesses are facing a struggle to recruit enough workers.<\/p>\n “There is a skills shortage,” Mr Duffy added. <\/p>\n “You have to invest in technology and automation to allow you to fill that gap.”<\/p>\n<\/div>\n<\/div>\nScheme to ‘improve competitiveness’<\/h2>\n<\/p>\n
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