Sun could set on Ilex by 2016 says report

The 94-page report - compiled by consultants BDO on behalf of Ilex’s sponsor departments, the Department of Social Development (DSD) and the Office of First and Deputy First Minister (OFMDFM) - suggests a further review take place in 2014 with the possible inclusion of a “sunset clause” earmarking 2016 as the year to wind it down.

The report’s authors say that despite spending £21m from 2003/4 to 2009/10 (£15.5m in revenue expenditure and £6.2m in capital expenditure) Ilex has yet to demonstrate value for money although it does believe the firm has upped its game under the current Chief Executive Aideen McGinley and Chair Roy McNulty.

It outlines 22 key actions. including prioritisation of the development of Fort George and Ebrington, a further review after UK City of Culture 2013, a “sunset clause” for 2016 and the delivery of the regeneration plan. It blames a lack of delivery in Ilex’s earlier years on an absence of continuity.

“Significant flux across political, departmental and organisational environments - including changes to key leadership positions - coupled with the substantial regeneration challenges evident in Derry-Londonderry, contributed to a lack of traction until the current Chairman and Chief Executive assumed their positions in 2007 and 2009 respectively,” the report concludes.

The review found the ongoing development of a new draft Regeneration Plan and Ilex’s contribution to last year’s successful UK City of Culture bid as both “welcome and significant” and suggested “a real springboard for action and results through Ilex now exist.”

But it also acknowledges progress has been limited at Fort George and Ebrington and that criticism of the firm’s financial management, corporate governance and its lack of delivery in terms of physical regeneration is valid.

The authors state: “The organisations has been the subject of criticism from a variety of stakeholders since its establishment. This has encompassed project and financial management, the need for more effective corporate governance, and the lack of progress with regard to physical regeneration within the city, etc.

“Our review has tended to support these criticism, but recognises the positive momentum of the last couple of years.

“We are clear that the current window of opportunity for further improvement must be grasped fully by Ilex URC and that the consequent regeneration outcomes desired by all key stakeholders must be achieved.”

The report says it is reasonable to expect progress along these lines within the next three to five years on the basis of the stability provided by the current organisational leadership.

“This will require a galvanised, focused and capable Ilex addressing the areas of improvement identified within Section 9 or our report, and working in a ‘joined up’ manner with its sponsoring departments, Derry City Council and other key local stakeholders to deliver fully on its objectives,” the authors state.

Section 9 of the report says Ilex should “urgently complete and sign-off the delivery strategies for the two sites and the current Regeneration Plan.”

It should “improve the alignment of project/financial management and further consider the organisation’s resource and skills base in order to ensure rapid progress of business cases and approvals through government accountability requirements.”

“Further organisational development to augment capability to deliver and organisational governance,” should be carried out.

And Ilex needs to “enhance corporate planning and reporting regimes across Ilex and the OFMDFM and DSD and “build further the relationship with the private sector in Derry-Londonderry and beyond.”

Ilex Chairman Roy McNulty said the report contained some helpful recommendations but due to its detail would require a considered response.

“We will take time to study it, working closely with our sponsor departments, before sending our response to Ministers,” he said.

“We welcome the recommendation that Ilex should continue to take the lead in pursuing an ambitious agenda of change and are committed to delivering effective, measurable and tangible regeneration.

“The final Regeneration Plan, complete with an Investment and Delivery Plan, will be launched by the end of March and the eleven catalyst projects outlined in it are already being worked up. On June 25th the Peace Bridge will be launched and Phase 1 of the Parade Ground at Ebrington will be open to the public.

“As the urban regeneration company for the Derry City Council area, Ilex is pursuing a challenging agenda aimed at delivering economic, physical and social renewal. We will continue to work in partnership with the private, public and community sectors to achieve the long-term transformation of the city. “