Economy of Derry City

Even though the city provides cheap labour by standards in Western Europe, critics have noted that the grants offered by the Northern Ireland Industrial Development Board have helped land jobs for the area that only last as long as the funding lasts. This was reflected in questions to the Parliamentary Under-Secretary of State for Northern Ireland, Richard Needham, in 1990. It was noted that it cost £30,000 to create one job in an American firm in Northern Ireland.

Critics of investment decisions affecting the district often point to the decision to build a new university building in nearby (predominately Protestant) Coleraine rather than developing the University of Ulster Magee Campus. Another major government decision affecting the city was the decision to create the new town of Craigavon