Textiles industry was badly hit by job losses

A �50m development fund for areas facing economic problems has been announced by Northern Ireland Office minister Ian Pearson.

A �2m investment was also announced as part of Londonderry's urban regeneration development over the next 18 months.

The minister also revealed details of a commitment of �60m over the next three years from the development agency Invest Northern Ireland for the north west region.

Mr Pearson, who travelled to Londonderry on Friday to meet local representatives, said he was keen to support existing business, but there needed to be diversification too.

He said: "We are keen to see that we continue to support new jobs in the business and textile sectors. But we need to do more as well.

NIO minister Ian Pearson announced �50m funding initiative for the north west region

"We need to look at new business start-ups, supporting suitable development projects by existing companies. We need to attract inward investment as well.

"I anticipate something like �60m could be available over the next three years to assist the economic development of the area."

Meanwhile, a cross-party delegation is to ask Mr Pearson to transfer a significant number of civil service jobs to Derry.

He will be asked to classify the city as an economic development priority.

Businessman Garvan O'Doherty said the city needed public sector jobs urgently.

"We have lost 6,000 jobs in the last six years and we desperately need 10,000 more just to match the average Northern Ireland employment rates," he said.

"Our core textile industry has taken such a battering we need a replacement strategy and part of that must be decentralisation of the civil service from Belfast."

Job losses

Continuing pressures on profit margins due to cheaper labour costs in the Far East have been blamed for the loss of hundreds of jobs in the textiles industry in the area.

Desmonds, who employ almost 2,000 people in the province, announced in January that 315 of its employees were to lose their jobs.

It said clothes would no longer be made at its Springtown plant in Derry, with 170 factory workers and support staff losing their jobs at the firm which makes clothes for Marks and Spencer.

The company announced it would close its Dungiven factory with the loss of 133 operative and support staff jobs.

Saville Row shirt makers in Castledawson confirmed in February that it would lay off 65 of its workforce.

The company makes shirts for a number of upmarket retailers including Thomas Pink.

CV Furnishing in Maydown announced in February that it was to close at the end of March with its workforce of 180 all losing their jobs.

In the same month, Dunnes Stores announced the loss of more than 60 jobs with the closure of its food section in Foyleside shopping centre in Derry.