Ambition Issue 9 (Mar/Apr 2015) by NI Chamber of Commerce and Industry

MAGAZINE OF NORTHERN IRELAND CHAMBER OF COMMERCE AND INDUSTRY

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MARCH/APRIL 2015 ISSUE 9

MarCH/APRIL 2015

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CONTENTS

March/April 2015 | ISSUE nine

94 08

NEWS

Columnists

BUSINESS TOURISM ON THE MAP

LIFESTYLE

08 Moy Park tees off as Irish Open sponsor 10 Students get chance to show business spirit 12 New Gulf office for Ulster Carpets 13 Randox in major expansion

32 Getting into top gear 34 Checking out hotel room demand 36 Opening the door to business tourism

22 Angela McGowan 24 Ian Rainey 66 Maureen Oâ&#x20AC;&#x2122;Reilly 96 Jim Fitzpatrick

92 Up in the air - James Stinson 93 Culinary delights - Carl Johannesson 94 Parallel lines - Rebecca McKinney

48 FEATURES

48 Doing business in the US 68 Bright young business brains 72 Finding ways to cure absence at work 74 Helping fund retirement Cover story - page 52 The Ulster University Business School celebrates forty years of shaping futures.

Editor: Adrienne McGill Publisher: Chris Sherry Advertising Manager: Catherine Patton Editorial Assistant: Ashleigh Addis Email addresses: adrienne.mcgill@northernirelandchamber.com c.patton@ambitionni.co.uk Websites: www.northernirelandchamber.com, www.ulstertatler.com Addresses: Northern Ireland Chamber of Commerce and Industry, 4-5 Donegall Square South, Belfast, BT15JA Tel: 028 9024 4113 Publisher: Ulster Tatler Group, 39 Boucher Road, Belfast, BT12 6UT Tel: 028 9066 3311 Printed by: W&G Baird, Antrim NI CHAMBER PATRONS

2 NI Chamber

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[editorial]

driving ambition Busy times ahead T

here’s the merest hint that Spring is on the way as snowdrops break through the ground creating a carpet of white, the days have got longer and the evenings brighter. It hasn’t got much warmer though with a winter chill still in the air and the odd snow flurry descending – just as well then that the price of oil continues to fall meaning consumers in many importing countries are paying less to heat their homes or drive their cars. In this issue, columnist Ian Rainey examines the rapid fall in the oil price – mainly due to weak demand in many countries with insipid economic growth coupled with surging US production and he assesses how countries across the globe are reacting. Also falling is the level of inflation in the UK which is likely to dip further in the coming months – a topic which is debated by economist Maureen O’Reilly. As always, NI Chamber is busily engaged in organising events and initiatives and in the Chamber Chief’s

update, Ann McGregor gives an overview of what’s coming up (the calendar features in this issue) as well as looking back at some recent highlights. On the subject of pensions for your employees we ask are you ready for auto-enrolment? We look into why businesses need to be prepared. Our special focus this time is about putting ‘Business Tourism on the Map’. It is an important high yield sector which can deliver significant economic benefits. As two-thirds of business travellers extend their business trips for pleasure when they can, there is enormous potential in this market. Business tourism is expected to be one of the hottest growth markets for travel industry providers in the years ahead. We cover how Northern Ireland is developing the market and expanding revenues with a focus on the individual business traveller and the meetings and conventions market. We also hear about the new development at Belfast’s Waterfront Hall which will seamlessly

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04 NI Chamber

integrate with the existing facility and see its conference facilities double in size. In addition, Tourism Minister Arlene Foster details the strategy to make tourism a £1billion industry by 2020. Two new columnists join Ambition –Trevor Bingham writes about what companies and governments are doing to combat cyber attacks while Carl Johannesson, Head Chef at the Bar + Grill at James Street South in Belfast sizzles up the perfect steak. In our lifestyles section, James Stinson puts his foot down in the Jag F-Type while our fashion expert Rebecca McKinney tells us that the star is in the stripe for Spring fashion. Yet again – it’s an issue brimming with interest and relevance for our members. Enjoy the read and as always we’d love to hear from you if you have a story you’d like to share. Adrienne McGill Editor, Ambition

[editorial]

PRESIDENT’S PERSPECTIVE

Sustaining a special relationship

a shared desire to foster economic links in a bid to financially underpin the political process. That has manifested itself in multiple economic and investment conferences, inward investment visits which have been facilitated by the State Department and an open door policy on Capitol Hill and in the Whitehouse. Indeed the access our local politicians have had to senior American officials and elected politicians, including the President, has been the envy of many of our neighbours. We must sustain that relationship and make it work for our people and our economy. The NI Bureau in Washington has done sterling work over the last decade, reinforcing our standing on Capitol Hill and ensuring that Northern Ireland remains high on the agenda, notwithstanding the competing pressures from other regions. The team at the Bureau will be working at full speed around St Patrick’s Day later this month when NI Chamber joins other business and political representatives at the White House in Washington DC as a guest of President Barack Obama for the annual St Patrick’s Day reception. We will once again work together to persuade US businesses that Northern Ireland is open for business and worthy of consideration as a viable destination for foreign direct investment. This year our message will be enhanced by the fact that we have finally won the argument over the devolution of Corporation Tax. I sounded a note of caution last month that our Executive parties must maintain the momentum on this crucial issue; securing the power was a milestone step and it needs to be moved forward quickly if we are to maximise the potential impact. Investment decisions have very long lead in times but what we as a business community require is a date for the new tax rate, and the rate at which it will be set. With this ‘date and rate’ to hand, our message to America Inc is much more effective. That is where we need agreement and a public commitment. We are with our politicians as they work towards that goal. Kevin Kingston President Northern Ireland Chamber of Commerce and Industry

orthern Ireland and America; it has been a long and important relationship which endures to this day and in fact could be said to be more important now than at any time in the past. The political leadership in Washington stood shoulder to shoulder with Northern Ireland

06 NI Chamber

during critical phases in our fledging peace process in the early and mid 1990s, the most demonstrable example of that support being when President Clinton came to Belfast on 30 November 1995 in the wake of the 1994 ceasefires. Coming out of that political alliance was

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[news]

Bank adds new jobs to contact centre Ulster Bank is creating 350 new jobs at its Danesfort call centre in south Belfast. Customers from the wider Royal Bank of Scotland Group and NatWest will be dealt with at the facility. Ulster Bank already handles calls and webchats from its own customers there. RBS and Ulster Bank are investing £300,000 in additional office space at the Direct Customer Contact Centre. The centre has been identified by RBS as a centre of excellence and this, along with a high quality pool of

local talent, was instrumental in the banks’ decision to expand the Belfast operation. Welcoming the announcement, First Minister Peter Robinson said: “The Ulster Bank Contact Centre is a shining example of what can be achieved in Northern Ireland to secure this type of investment amongst intense global competition.” Deputy First Minister Martin McGuinness said the jobs would offer people an opportunity to learn new skills and increase their knowledge and expertise in a highly competitive sector.

Moy Park Tees Off as an Official Sponsor of the Irish Open Leading UK food company, Moy Park, has become an Official Sponsor of the 2015 Irish Open hosted by the Rory Foundation, which takes place at Royal County Down Golf Club from May 28-31. This will be the fourth year that Moy Park has been an Official Sponsor of the tournament, having launched its successful partnership with the event at the 2012 Irish Open at Royal Portrush. Alan Gibson, Moy Park UK and Ireland Director, said: “The Moy Park brand is Ireland’s number one poultry brand and we are one of the largest companies in Northern Ireland, so we felt it was important to support such a prestigious event.” This is the first time the Irish Open is hosted by Rory McIlroy’s Foundation. The World Number One and reigning Open and US PGA Champion will be joined by two fellow Major winners from Northern Ireland, Graeme McDowell and Darren Clarke, as well as a host of other world class golfers. James Finnigan, Commercial Director of the Irish Open said: “With the number one golfer in the world headlining the 2015 player field on one of the world’s iconic golf courses, it is going to be a very special Irish Open Championship at Royal County Down.” Alan Gibson, Moy Park UK and Ireland Director; James Finnigan, Commercial Director Irish Open and Andrew Nethercott, Moy Park Director of Brand Marketing.

08 NI Chamber

Les Matheson, Chief Executive Personal & Business Banking, RBS; First Minister Peter Robinson; Ellvena Graham, Head of Ulster Bank Northern Ireland; Jim Brown, Ulster Bank Chief Executive; Deputy First Minister Martin McGuinness and Richard Donnan, Managing Director Retail Banking, Ulster Bank at the announcement.

Professor Tom Moody.

Almac Group Announces £4.6m Investment

The Craigavon-based Almac Group has announced a £4.6m investment in a research and development collaboration with Queen’s University, Belfast supported by Invest Northern Ireland in the area of biocatalyst discovery and development. The three year groundbreaking project is intended to find new platforms and products which can be used in applications as diverse as developing new synthetic routes to active pharmaceutical ingredients, flavours, fragrances, agrochemicals and fine chemicals. Biocatalysis is the application of enzymes to perform chemical transformation

under mild conditions. These enzymes have the potential to lower the cost of chemical manufacture, simplify supply chain and, as they are environmentally friendly, produce significantly less waste than traditional methods. Head of Biocatalysis at Almac Group, Professor Tom Moody, said: “The biocatalyst is the future for scale-up chemistry as it provides efficient, clean and robust processes. The multi-million pound research and development investment demonstrates Almac’s continued commitment to biocatalysis, supporting further growth in our expertise and capabilities in biotechnology.”

[news]

UNIVERSITY STUDENTS OFFERED CHANCE TO SHOW BUSINESS SPIRIT Final year business students are being encouraged to reveal their entrepreneurial flair as the Ulster University Business School opens entries for this year’s Entrepreneurial Spirit Award in partnership with NI Chamber. The award is a Postgraduate Bursary up to the value of £9,000 which includes a mentoring programme, giving students the opportunity to boost their futures with a cutting edge Ulster University Business School Masters Programme, while also meeting with a mentor from a Northern Ireland business for six months. In addition, the winning student will gain essential business skills such as networking techniques, presentation skills and management styles, not to mention learning the responsibility of arranging and preparing their own mentor meetings while gaining an appreciation of entrepreneurial spirit. Pauric McGowan, Professor of Entrepreneurship, Ulster University Business School and Chair of the judging panel said: “This award scheme aims to act as an incentive to our students to maximise their talents and nurture their entrepreneurial flair.” Ann McGregor, NI Chamber Chief Executive said the business organisation was delighted to be working in partnership with the

Ian Jeffers, Regional Director with The Prince’s Trust; Karen Blair, Managing Director of Cleaver Fulton Rankin and Ryan Shaw, Young Ambassador.

Professor Pauric McGowan, Ulster University Business School and Ann McGregor, NI Chamber.

Ulster University Business School in order to promote the vast array of business talent, entrepreneurial spirit and innovation that exists in Northern Ireland. Applications will comprise a 500 word essay outlining why the applicant deserves to win the Award and should be submitted by 30 April 2015. Shortlisted candidates will be interviewed in May and the winner will be announced in June with the selected course of study beginning in September 2015.

Law firm on the ball for The Prince’s Trust Leading Belfast law firm Cleaver Fulton Rankin hit the jackpot recently after raising over £22,000 for The Prince’s Trust. Employees hosted a range of fundraising events including a bingo night ‘Bingo Belles’ and the Brains of Belfast Quiz. The firm also provided vital ‘in kind’ support to disadvantaged young people through mentoring, interview skills

advice and work placements. Karen Blair, Managing Director of Cleaver Fulton Rankin said: “We have closed off a great twelve months of fundraising for The Prince’s Trust and each member of our staff is so proud to know that their efforts will make such a direct and tangible contribution to local disadvantaged young people.”

CIPD NI AWARDS 2015 LAUNCHED The Chartered Institute of Personnel Development (CIPD) has launched its Northern Ireland Awards 2015. The awards which recognise excellence across the Human Resources and Personnel Development profession will be presented at the gala celebration at Belfast’s City Hall on 14 May 2015. Recruitment specialists Brightwater are the headline sponsor. Individuals, teams and organisations in the private, public and voluntary sectors are eligible to enter the awards which will be presented in 10 categories. Entries are now being sought in the categories of best Employee Engagement; Health and Wellness Initiative; Change Management

10 NI Chamber

Programme; HR Team; HR Professional; Outstanding HR Student; Building HR Capability for the Future; Learning and Development Initiative of the Year and Consultant of the Year. In addition, the CIPD Chairman’s Special Achievement Award, chosen by the Executive Committee of CIPD NI, will once again recognise an individual, team or organisation who has contributed in a significant way to the HR profession in Northern Ireland. * For full details of how to apply visit www.cipdniawards.co.uk. The closing date for entries is Friday 20th March 2015

Launching the CIPD Awards 2015 at Belfast City Hall are Stephanie Mulholland, Team Leader with Awards Headline Sponsors recruitment specialists Brightwater and Donna Magee, Treasurer CIPD in Northern Ireland.

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[news]

LORD RANA HONOURED BY APPOINTMENT Lord Rana, a former President of NI Chamber, was installed recently as the Honorary Consul of India to Northern Ireland at a ceremony in Belfast. Lord Rana, who is serving his second tenure as Honorary Consul, was conferred with a letter of installation signed by the President of India which was presented to him by the High Commissioner of India to the United Kingdom, H.E. Mr Ranjan Mathai. Those attending the ceremony at the Ramada Plaza Hotel, which is part of the Andras House Group of which Lord Rana is Chief Executive, included national and international business leaders,

government and political figures and a range of other invited guests. Lord Rana, who was NI Chamber President 2004-2005, said: “I am indeed honoured by this appointment and will be happy to continue contributing in promoting Northern Ireland and in particular, the business sector. From my regular visits and ongoing contacts with business people in India I know that there is an enormous opportunity for Northern Ireland to develop a mutually beneficial partnership with India.” Lord Rana, was born in India and has lived in Northern Ireland since 1966.

Honorary Consul of India to Northern Ireland Lord Rana with the High Commissioner of India to the United Kingdom, H.E. Mr Ranjan Mathai.

New Gulf Office for Ulster Carpets Carpets made by Ulster Carpets adorn the luxurious five star Sofitel in Dubai.

Portadown-based Ulster Carpets has opened a new office in the Gulf Region. The new premises based in the Jumeriah Lakes Towers, Dubai, is the result of highly successful trading in the region over a number of years. High profile clients in the area have been attracted not only by the company’s luxurious carpets but also by the added advantage of having a local sales team, providing timely customer service and a comprehensive knowledge of the market. Ulster Carpets is world renowned for the quality of the carpets it produces at its manufacturing facility in Portadown. The company has produced carpets for some of the Gulf Region’s most prestigious venues and hotels, such as the recently completed, five star Sofitel Dubai Downtown. The move to new premises marks a commitment to further advancement in the Gulf Region and is just one example of the firm’s current plans for expansion and growth. It recently began the first phase of a £30 million investment into infrastructure and technology at its Portadown headquarters, involving the construction of a new Dyehouse and Energy Centre. The Dyehouse will feature state of the art dyeing equipment whilst the Energy Centre will significantly improve the efficiency of the whole plant.

Software firm set to grow client base

A London-based software company is setting up an operation in Belfast which will create jobs and support its continued growth in the UK and Republic of Ireland markets. Arkk Solutions, backed by a £45,000 Invest NI grant, is establishing the centre to replace its existing operation in India. The company manufactures software, which is used by HMRC in the UK and the Office of the Revenue Commissioners in the Republic of Ireland, that acts as a “computer language” for the electronic transmission of business and financial data. Arkk Chief Executive Richard Metcalfe said the Belfast move will allow it to operate within the same time zone as the rest of its

12 NI Chamber

business and grow its client base. “The support from Invest NI was essential to our decision to move the operation from India to Northern Ireland,” he said. “We’re looking forward to developing our Belfast team and to date have been impressed with the availability of local skills.” Bill Montgomery, Invest NI’s director of international investment, said that Arkk has “huge potential to grow” following its steady growth over the past four years. Arkk Solutions was set up in 2009 and employs 20 staff in London. It has a blue chip client base that uses its proprietary Richard Metcalfe, CEO of Arkk Solutions with Bill software and outsourcing services. Montgomery, Invest NI’s Director of International Investment.

[NEWS]

Missed calls costing firms money Missing an important phone call because you’re out of the office can cost a business dearly and a new survey of small businesses in Northern Ireland has put a price on being out of touch. According to the research for BT, nearly a quarter of the businesses estimated the potential financial loss associated with their staff missing an important call from an existing or potential customer, at between £1,000 and £5,000, while 16 per cent said it could cost up to £1,000. Some firms believed the penalties could be even worse – 6 per cent estimated the cost at between £5,000 and £10,000 and 7 per cent said it might even be more than that. BT said the survey underlined the benefits of BT Cloud Voice, its cloud-based phone system that enables businesses to integrate mobile and office phones on to one single number via a handy app, keeping them connected even when they are out of the office. According to Paul Convery, Head of BT Business, BT Cloud Voice is an important business tool that will help to equip local business for success. “Small and medium sized companies in particular can benefit from the system because it is easily scaled up and adapted as the business grows.”

Paul Convery, Head of BT Business.

CIPR Council member Chris Love, CIPR NI Chair Samantha Livingstone & CIPR President Sarah Pinch.

NEW CHAIR FOR PUBLIC RELATIONS INSTITUTE

The Chartered Institute of Public Relations in Northern Ireland has elected a new executive committee for 2015. Samantha Livingstone, Managing Director of Rumour Mill PR was voted in as Chair at the CIPR NI AGM held at Clifton House in Belfast and is tasked with leading the committee over the next year. Samantha takes over the chain of office from Chris Love, Managing Director of Love PR who will represent Northern Ireland on the CIPR UK Council until the end of 2016. Commenting on her new role Samantha said: “This is a great time to be taking the helm of CIPR Northern Ireland as we mark ten years of Chartered status. I have been involved with the CIPR for almost five years and I am delighted to be selected as this year’s Chairperson and to be working with a highly experienced committee from different disciplines and skills who will contribute to serving our membership.” The CIPR NI group has over 350 members and represents members with all levels of experience and from every sector of the PR industry across all counties in Northern Ireland.

Randox in major expansion Medical company Randox has announced the creation of 540 new jobs. It is redeveloping the former Massereene army base in Antrim, into a manufacturing and research facility in an investment totalling £161 million. Randox develops medical tests and makes diagnostic equipment used in labs in more than 145 countries. Randox bought the Antrim site in 2013. It will be renamed Randox Science Park. It will be redeveloped to become the firm’s prime manufacturing site, alongside facilities in Britain, Ireland, India and the US. The new jobs, which will be created over the next 4 years, are in several fields – scientific, engineering and manufacturing positions, as well as sales and marketing. Randox, which is headquartered in Crumlin, is a family-owned business employing more than 1,300 people. Its founder and Managing Director, Dr Peter Fitzgerald, said: “We must continue innovating, through our people, through our

Deputy First Minister Martin McGuinne ss, Randox Managing Director Dr Peter Fitzgerald and First Minister Peter Robi nson

knowledge and through our technology. Randox Science Park gives us the platform we need to do this.” First Minister Peter Robinson and Deputy First Minister Martin McGuinness made the announcement during a visit to the site. Invest NI is providing a £4.7m grant towards the redevelopment.

NI Chamber 13

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Chamber chief’s

From networking events to meetings with government ministers and in-camera dinners with leaders in business, the hectic round of activity spearheaded by NI Chamber for the benefit of members never stops. NI Chamber Chief Executive Ann McGregor gives a taste of what’s taken place recently with a picture gallery over the following pages.

s always, NI Chamber has a cascade of exciting events and initiatives planned, and with the release of our calendar of events for the first half of 2015, the range on offer is as extensive and dynamic as ever. From Meet the Minister to Minister on the Move, from cross-border networking initiatives to Meet the Buyer events and from in-camera dinners to conferences – all of which are attended by titans of industry – NI Chamber has developed a kaleidoscopic schedule of events to help members grow their businesses, take inspiration from each other and learn from the best in business. Coming up on May 18, there will be the annual Growing Something Brilliant (GSB) conference at Titanic Belfast which will focus on the theme ‘ingenuity, ambition and growth’ and will include a meet the expert session with industry leaders from a range of sectors. GSB is a campaign by NI Chamber that aims to inspire local business people to grow their business, employ new people and find new markets. NI Chamber believes that by growing something brilliant we will develop our economy. Meanwhile, NI Chamber’s Annual Lunch, supported by BT and Tughans, at Belfast City Hall on 18 June promises to be the event of the year with Champion Jockey AP McCoy, who is recognised as the greatest

jump jockey of all time, sharing the story of his unrivalled success on the racecourse. Turning to NI Chamber’s activities so far this year, in January at the Ulster Museum, the GSB Leadership series in partnership with the Ulster Bank got underway with the President of Concentrix Chris Caldwell giving an insight into what it’s like to head a billion-dollar corporation that employs 54,000 people – including 1,800 in Northern Ireland. Business services giant

We welcome the comments he made at the event when he reiterated his party’s position that it will not oppose, and indeed will facilitate, the present Government’s freshly tabled bill to devolve Corporation Tax powers to Stormont before the election. At a recent in-camera dinner with the Department of Justice, held in partnership with SSE Airtricity, around 50 leading members of the Northern Ireland business community had the opportunity to engage with Justice Minister David Ford.

Chris Caldwell

Concentrix is part of the Fortune 500 family whose parent is the Synnex corporation which grew revenues in 2014 to $13.8 billion. Jointly with Cooperation Ireland, NI Chamber was delighted to host a business networking reception for Labour Leader Ed Miliband at Titanic Belfast in January.

AP McCoy

Ed Miliband

David Ford

The dinner at Belfast’s Merchant Hotel was also attended by the Permanent Secretary at the Department of Justice Nick Perry, PSNI Chief Constable George Hamilton and Assistant Chief Constable Stephen Martin. Networking is a key component of NI Chamber and feedback from members highlights how important this is with many telling us they have won new contracts on the back of the connections they have made. As a result, NI Chamber will hold a new series of 9 networking events across Northern Ireland as a major part of the 2015 calendar of events.

Chamber chief’s update We are therefore delighted that First Trust Bank, headed by Des Moore, has agreed to partner NI Chamber in the 2015 series. Events will take place across Northern Ireland in regional towns with a well-developed business base. The events will be hosted by businesses that are already members of NI Chamber and the host will have the opportunity to make a short presentation.

Des Moore

The first one took place recently at the Holiday Inn, Belfast and guests were addressed by guest speaker Feargal McCormack of PFK-FPM Accountants.

and broadcaster, explored ways of how the delegates could leverage their Gateways to Growth experience in order to stand out in a crowded market place. Gateways to Growth is a collaborative EU Interreg IVA funded cross border initiative. Increasing the number of exporters remains an issue of vital importance. Northern Ireland still lags behind the rest of the UK with regard to the number of active exporters and this figure continues to decline. Key to progress in this area will be the Export Action Plan currently being developed by the Department of Enterprise, Trade and Investment (DETI) and NI Chamber is consulting with the Department on this. NI Chamber is also providing evidence to the ETI Committee, chaired by Patsy McGlone, on the inquiry into ‘Growing the Economy and Creating Jobs with Lower Corporation Tax’ and will present to the Committee on 14 April. Finally, NI Chamber is delighted to have received record approval from members with 90 per cent rating satisfaction levels as excellent or good and 92 per cent saying they would recommend membership. That’s according to the latest membership satisfaction survey which shows that networking is cited as a key service while lobbying government is also rated highly.

Business Services Corporate AV Hire Elucidate Consultancy First Stop Shop G4S Secure Solutions (UK) Ltd Lumen Financial Planning Ltd North Financial Management LLP Practical People Solutions Ltd UK Energy Concepts Working Time Solutions Charity Keep Northern Ireland Beautiful Construction Teague & Sally Ltd Creative Industry iCON Creative Electrical Engineering IPCE Ltd Hospitality and Tourism CityNorth Hotel Rademon Estate Distillery Limited ICT Cirrus IT Systems Ltd. Coding Fury Limited Flint Studios Ltd Ignite . IT Novosco Limited WiFi SPARK

Feargal McCormack

Meanwhile at the final Gateways to Growth cross border networking event over 100 delegates gathered at the Grand Opera House, Belfast to hear from keynote motivational speaker, Yanky Fachler. Yanky, who is author of a range of entrepreneurial books, motivational speaker

NEW MEMBERS Accounting Elliot Financial Services Harbinson Mulholland HNH Group

Manufacturing Kosnic (UK) Limited SAM SpecDrum Engineering Patsy McGlone

A busy time lies ahead but I look forward to members gaining the most from what’s lined up in the coming months.

Professional Services Aggreko Ireland Ltd Environmental Efficiency Out of the Box | consulting Training Diversity NI Ltd Ingeus UK Transport IFS Global Logistics Utilities Flogas

Yanky Fachler

NI Chamber 17

FIRST TRUST BANK PARTNERS WITH NI CHAMBER IN 2015 NETWORKING SERIES

Ann McGregor (Chief Executive, NI Chamber) with Des Moore (Head of First Trust Bank).

Simon Marks (WPA); Paul Oâ&#x20AC;&#x2122;Donnell (Dialogic Telecomunications); Cathy Moran (Dialogic Telecommunications); Barry Kirwan (Dialogic Telecommunications); Orlagh Gillespie (PFK-FPM Accountants).

Guest speaker Feargal McCormack (PFK-FPM Accountants).

Judith Aiken (First Trust Bank); Andrew Ward (Randox Health); Noelle Mullen (First Trust Bank).

Gareth Williamson (NI Chamber).

Adam Coulter (Enterprise Rent A Car); Anna McCluskey (Spirit Health Club); Daniel Ryder (Enterprise Rent A Car).

NI CHAMBER AND COOPERATION IRELAND HOST LABOUR LEADER ED MILIBAND

Kevin Kingston (NI Chamber); Ann McGregor (NI Chamber); Ed Miliband; Christopher Moran (Cooperation Ireland); Peter Sheridan (Cooperation Ireland).

Ed Miliband.

Paul Kenna (Grafton Recruitment) with Ed Miliband.

Gerry Carlisle (Evolve) with Ed Miliband.

Ed Miliband; First Minister Peter Robinson; Cooperation Ireland Chairman Christopher Moran; Head of the Northern Ireland Civil Service Malcolm McKibbin. Ed Miliband with Ray Farley (nvizible).

IN-CAMERA DINNER WITH THE DEPARTMENT OF JUSTICE

Quintin Oliver (Stratagem); Ann McGregor (NI Chamber); Justice Minister David Ford. Justice Minister David Ford meets guests.

Colin Hamill (BT); Dave Clements (Fujitsu Services); Katherine James (Danske Bank).

Guests attending the dinner.

Justice Minister David Ford.

Nick Perry (Permanent Secretary, Department of Justice); Stephen Martin (PSNI Assistant Chief Constable); Katherine James (Danske Bank); David Manning (SSE Airtricity); Justice Minister David Ford; George Hamilton (PSNI Chief Constable).

EVENTS CALENDAR MARCH-JUNE 2015 MARCH

12 MAY, 9.30AM - 2.00PM

5 MARCH, 5.30PM - 8.00PM In Camera: Head of NI Civil Service and 4 Permanent Secretaries Hilton Hotel, Belfast Members Only £40+vat

25 MARCH, 8.30AM - 12.00PM Connecting for Growth - Flagship Cross Border Networking Event Titanic Belfast This event is FREE to attend

For further information and to register for events, please visit www.northernirelandchamber.com

26 MARCH, 9.30AM - 12.30PM Danske Bank Export First: Meet the Minister with the Department of Employment and Learning at Devenish Nutrition Limited, Clarendon Road, Belfast Exporters and potential exporters

31 MARCH, 8.00AM - 10.00AM NI Chamber Networking Event Malone Lodge Hotel, Belfast This event is FREE to attend

APRIL 16 APRIL, 10.30AM - 1.00PM Minister on the Move: Department of Enterprise, Trade and Investment Caterpillar (NI) Limited, Larne Members Only FREE

CONNECT

GROW

28 APRIL, 8.30AM – 1.00PM Spring Networking Conference Europa Hotel, Belfast Members Free, Non Members £35+vat

MAY

ACCESS

PROGRAMMES

EVENT KEY

6 MAY, 12.00PM - 2.20PM In Camera: Department of Health, Social Services and Public Safety Europa Hotel, Piano Restaurant Members Only £40+vat

Connecting for Growth Meet the Buyer Event, Armagh City Hotel Members Free, Non Members £35+vat

19 MAY, 8.30AM - 12.30PM GSB Conference Titanic Belfast Members Free, Non Members £35+vat

20 MAY, 8.00AM - 10.00AM NI Chamber Networking Event Adair Arms, Ballymena This event is FREE to attend

JUNE 3 JUNE, 2.00PM - 4.30PM Minister on the Move: Department of Finance and Personnel Fane Valley Dairies, Banbridge Members Only FREE

18 JUNE, 12.00PM - 2.30PM NI Chamber Annual Lunch Venue to be announced Members £50+vat or £500+vat per table of 10 Non Members £75+vat or £750+vat per table of 10

23 JUNE, 8.00AM - 10.00AM NI Chamber Networking Event Venue to be announced This event is FREE to attend

25 JUNE, 6.00PM - 8.30PM Danske Bank Export First: Roundtable Dinner with Dr Peter Fitzgerald, Founder and Managing Director of Randox Laboratories Cultra Manor, Holywood Invitation Only

WITH THANKS TO OUR PARTNERS AND SPONSORS:

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PATRONS

[columnist] angela mcgowan, chief economist at danske bank

Trading overseas needs to swell

Growing Northern Ireland’s level of exports continues to be a challenge as Angela McGowan explains.

side from the fact that Northern Ireland is a very small marketplace, there are numerous other reasons for local companies to consider moving into export markets. Many of the reasons for engaging in exports are at this stage extremely well documented. For example, export sales lead to increased turnover and company growth, exporting firms reduce risk through marketplace diversification and firms that export tend to be more innovative (as new markets require adaptations on products or services). At the macro level, economists like to see export levels grow because international trade tends to have a positive impact on the entire economy through increased revenue streams and job creation. Exports are an important source of growth, particularly when domestic demand is weak. Why are export levels not where we want them to be? Despite the push from policy circles and a commitment in Northern Ireland’s Economic Strategy to raise export levels, aspirations around our international trade activity have not been fully realised. HMRC data shows that the number of businesses from Northern Ireland selling goods outside the UK is only 2.4 per cent. So why have local export levels failed to thrive in recent years? Foreign Exchange In the first instance the strong pound currently does not lend support to local companies wanting to competitively sell their goods and services abroad. With foreign exchange playing such an important role in trade, it is difficult to see how regional policy makers can meet very specific export targets when they have no control over exchange rates. Small firms Northern Ireland’s economy is dominated by small firms and unfortunately micro businesses are generally much less likely to engage in exporting because of resource constraints. Accessing information about market data, customs clearance, import regulations, taxes and export licences can be extremely perplexing for the small business owner. Advanced production A further reason for our relatively weak performance in the exporting game is the fact that many of our exports rely heavily on price competition. However, some of the most successful exporting regions have an increasingly large proportion of their exports

22 NI Chamber

coming from ‘advanced products’ as well as knowledge-intensive services. Both rely much less on price competition. Instead they rely much more heavily on their main strength, which is closeness to the technology frontier. A good example is Apple products, which are expensive for the end user but in high demand due to their advanced technology. What will bring about a dynamic change to our export levels? The introduction of a lower rate of corporation tax after 2017 should certainly help to attract export-orientated manufacturers and knowledge-orientated service companies into Northern Ireland – assuming the appropriate skills and infrastructure are available. However, Northern Ireland would also benefit considerably from an active industrial strategy to ensure that we attract and develop specific firms in export-orientated sectors. Our industrial strategy focus needs to be on three or four key sectors that have synergies with the research and talent pool produced at local universities. A further sensible target for this industrial strategy would be to grow the local manufacturing base from the current 15 per cent of GVA to at least 20 per cent – similar to European targets. In addition, by ensuring that local export-orientated companies are not facing excessive cost burdens, local policy makers need to regularly monitor the cost competitiveness of Northern Ireland and take steps to remove or mitigate the cost barriers

“With foreign exchange playing such an important role in trade, it is difficult to see how regional policy makers can meet very specific export targets when they have no control over exchange rates.” where they exist. There also needs to be a much more tailored approach to growing the number of exportorientated service companies in Northern Ireland. Again policy should focus on a handful of key service sectors that are export-orientated and in which Northern Ireland already has a strong reputation. Success is already established in service sectors such as legal services, creative industries, health diagnostic services, tourism and third level education. By providing these sectors with policy support such as sector-specific export advice, trade missions, provision of skills, ongoing monitoring of their cost base and support for breaking into new markets, Northern Ireland Plc should be able to raise its game in the global trade race.

Plotting a new course in Litigation Millar McCall Wylie has developed a very specialist practice in Judicial Review.

When most people think of Judicial Review they think of high profile and expensive challenges made in court to the decisions of government, councils and regulatory bodies. However, the reality is that there are numerous smaller and less visible entities that can fall subject to the remit of Judicial Review. Quite often, the question of whether the entity falls within the remit turns on whether they are funded by the taxpayer. We would advise individuals and businesses who are working closely with such entities to closely monitor the way in which those public bodies do business. The reason being, if public bodies don’t follow their own rules then they can be challenged, often quickly and effectively. Millar McCall Wylie (MMW) have a strong heritage in challenging decisions of planning authorities, and in recent years they have been instructed in challenging procurement of government contracts. Indeed, the firm occupies quite a unique position in the field and the reason for this is two-fold: Firstly, it has recruited experts in this area, and secondly, it has established a connection to a world wide network of procurement lawyers through its recent affiliation to Multilaw, the world’s second largest association of law firms.

Through Multilaw, MMW have become part of a cross border procurement practice group, which, as Caroline Prunty, Head of Commercial Litigation explains “will provide an unrivalled resource to our clients.” Whilst judgments of the European Court of Justice are always readily available, a significant number of national judgments from individual European Member States rarely make it onto the UK procurement radar. Through this practice group, MMW will have access to English translations of judgments in national courts from across Europe. This will permit MMW to tap into a suite of highly persuasive law and commentary. “As a result, we can provide new solutions to our client’s procurement issues, and identify new areas of challenge.” If you are currently in the business of tendering for government contracts and wish to seek advice about how you can do this more effectively, or simply wish to clarify the rules, then MMW has a dedicated team made up of people with real industry experience.

Caroline Prunty Partner Millar McCall Wylie LLP Eastleigh House 396 Upper Newtownards Road Belfast BT4 3EY T: +44 28 90 200050 F: +44 28 90 474999 E: caroline.prunty@mmwlegal.com W: www.mmwlegal.com

[Columnist] Ian Rainey, Former International Banker

Slick moves There are winners and losers as the oil price continues to fall observes Ian Rainey.

t’s the biggest news in the global economy right now. Oil is cheaper than at any time since 2009 and the savings are reckoned to have contributed some $750 to every American household and is equivalent to a $125 billion tax cut. Two major factors are at play. The industry has been transformed by the innovations of small independent producers who have pioneered the development of shale oil by hydraulic fracturing. It has created the biggest land grab in the US since the Oklahoma Land Rush of 1889. As of September 2014 there were 185,180 producing wells – a 20 per cent increase since 2006. As a result, the State of Texas alone added 2 million barrels of oil a day in the past four years. But this has all been brought into question with the Saudis’ decision at last November’s OPEC meeting not to peg oil at $100 a barrel which it had been doing since oil peaked at $150 per barrel in 2008. Goldman Sachs projected in 2008 that oil could eventually hit $200 per barrel – it has now slashed its forecasts to $40.14 for 2015 and $70 for 2016. However, some traders are betting that oil prices could be as low as $20 by June of this year, a level not seen since 9/11/2001 when the US was attacked. The Saudi decision to keep production steady at around 30 million barrels per day was a milestone in the history of oil. After all, OPEC is a cartel and the whole point of a cartel is to control prices for the benefit of producers.

24 NI Chamber

But a cartel requires a virtual monopoly and for OPEC that’s increasingly no longer the case. Non OPEC countries, including the US, are now pumping some 2 million barrels of oil per day, which happens to be about the size of the global oil glut. It is often said that the cure for high oil prices is high oil prices and so it has proved. The other major beneficiary in this dog fight is China which is the world’s second largest consumer of oil and natural gas and which is predicted to be the world’s largest consumer by 2020. It has just recently signed a major Government to Government contract with Russia at an undisclosed price. Propping up Russia’s ailing oil and gas industry ensures China’s future oil and gas security comes at a relatively low cost. It is estimated that for every $1 drop in the oil price China saves $2.1 billion per annum. However on the downside, China is concerned that the slump in oil prices will be directly translated into deflationary pressures on China’s exports around the world particularly to Europe where the major economies are beginning to suffer from what the Financial Times calls ‘Chronic demand deficiency’. The Governor of the Bank of England, Mark Carney sees the halving in the oil price as “unambiguously positive for the global economy”. He envisages earnings growth in the UK to double to 3.5 per cent in 2015 and

he expects unemployment to fall back to its equilibrium rate of 5.2 per cent in the next 18 months. But there are major losers around the world. Countries like Iran needs oil at $140 per barrel to break even, while Venezuela has budgeted for oil prices at $120 per barrel in 2015 and is expected to be in a close race with Greece to be the first country to renege on its national debt in 2015. In the last few weeks Russia’s credit rating has been reduced to ‘Junk Bond’ status by the ratings agency Standard and Poor’s. Coming at a time when he is trying to distract his people’s attention by indulging in shenanigans in the Ukraine, double digit inflation means that real incomes will fall for the first time since Vladimir Putin came to power in 2000. Closer to home Alex Salmond has left it to Nicola Sturgeon to wipe the egg from her face, arising from the Scottish Nationalists lucky escape in the fight for a devolved Scotland. Had Salmond been victorious he would now be looking at an £8.7 billion loss in revenues in his first three years in a devolved Scottish parliament. However, cheaper oil prices and resurgent US and UK economies are unlikely to be enough to pull the global economy out of a growth pattern that is still too low, too brittle and too lopsided to protect us from the very strong global headwinds which still buffet the world some seven years on from the global financial crisis.

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[Columnist] Trevor Annon, chairman of the mount charles group

Squirrelling away NATURE USES SOME RUTHLESS CONTROL METHODS, AS TREVOR ANNON EXPLAINS.

t first glance, the grey squirrel might look cute and harmless as it scampers through our woodland and gardens on a rapidly increasing basis. The picture postcard image however, is far removed from the reality of the grey squirrel. Its potential for causing damage to the natural ecosystem of the British Isles is limitless. But there is now a growing realisation that a solution to the control, and ultimate eradication of the grey squirrel threat, is literally on our own doorstep. The bonus is that the control mechanism is one that is both natural and absolutely environmentally friendly. Or, at least, it is unless you happen to be a grey squirrel. To buy into the control project, however, may take time for many landowners – and in particular gamekeepers – to accept. It will involve looking with completely fresh eyes at another species that for generations has been regarded as vicious vermin. As such, it will require a complete review of the pine marten. There is no denying that the pine marten is in a class of its own in being a ruthlessly efficient killer. And hugely impressive evidence from the Republic of Ireland has now graphically underpinned those capabilities. The pine marten’s ability to target and ultimately destroy the grey squirrel is now helping bring the vulnerable red species back from the edge of extinction. The main victims of the voracious appetite displayed by the grey squirrel are its native red species cousin and the woodland habitat of Britain and Ireland. Since the introduction in Victorian times of the grey squirrel from the United States as a naively believed addition to the local environment, the results have been simply catastrophic. In many parts of these islands the sight of the bushy-tailed red squirrel has become an increasingly rare occurrence. For many individuals the only real relevance that the red squirrel has is in the context of Beatrix Potter book illustrations for children. Our woodland heritage has also suffered serious damage as a direct result of the importation of the American rodents. Their persistent attacks on young trees has resulted in the regeneration of fresh woodland becoming practically impossible in many places. The fact that the UK Government has decided that the way to tackle the increasing numbers of grey squirrels is through the implementation of a culling campaign has raised some very difficult questions. Essentially critics of the scheme continue to question both the validity of the cash outlay involved – but more pertinently the actual long-

26 NI Chamber

term success of the strategy. A succession of initiatives built around culling might have generated initial optimism through a carefully coordinated pre-publicity campaign. However the end results have continually failed to match expectations. The brutal truth is that despite all manner of poisoning, trapping and shooting there has been no successful long-term control method developed to counter the grey squirrel threat. Despite the most intensive culling initiative, the recovery in population numbers was found to have reverted to pre-killing levels within ten weeks. The frustrating aspect of this debate is that if basic environmental principles had been adhered to in the first place the problem would not have arisen. For both in the context of importing such a ravenously invasive species as the grey squirrel and the persecution of the pine marten huge mistakes were undoubtedly made. The end result has been the evolution of the grey squirrel as a problem of enormous ecological proportions. However in the Irish Republic, thinking outside the box – as far as the grey squirrel is concerned – has returned some fascinating results. TThe reintroduction of the pine marten as an environmental tool over the last few decades has turned the occupying grey tide east of the Shannon back by close to 100 miles. Legislation in the Republic now bans the killing of pine martens, allowing the species to colonise areas they had been driven out of for generations. The main beneficiary of this rebalancing exercise has been the return of the red squirrel

“For many individuals the only real relevance that the red squirrel has is in the context of Beatrix Potter book illustrations for children”. to the landscapes it had been absent from for 30 years. It has been an astonishing environmental turnaround. The predatory instincts of the pine marten and the vulnerability of the mostly ground foraging grey squirrel have contributed to that species rebalancing. But the most intriguing element of the revival of the reds is the generally poor health of grey squirrels in those areas now controlled by pine martens. Recent studies have found that the close proximity of pine martens to grey squirrels creates a so-called landscape of fear. Grey squirrels have no defence against pine martens. Instead of stocking up their food reserves they are constantly forced to be alert to a relentless daily threat. The much more nimble red squirrel can evade attack by staying out of harm’s way in the uppermost branches of trees and out of bounds to the pine marten. Death, either through sharp claws or empty stomachs, is therefore the inevitable consequence of the pine marten’s presence, as far as the grey squirrel is concerned across an increasingly wide part of the island. It also proves that for all the power of modern scientific methods, nature’s way continues to be the best.

Spe

cial

Foc

Business tourism

on the map

Business tourism, which is defined as leisure activities in conjunction with business travel, is a lucrative and fast-growing segment of the worldâ&#x20AC;&#x2122;s largest industry. Business tourists are less cost-sensitive than leisure tourists, spending on average twice as much per day. Their purchase decisions are influenced primarily by their ability to use time efficiently within business travel schedules. As two-thirds of business travellers extend their business trips for pleasure when they can, there is enormous potential in this market. Business tourism is expected to be one of the hottest growth markets for travel industry providers in the years ahead. In this section, we look at Northern Irelandâ&#x20AC;&#x2122;s position within the sector and highlight the changes which are set to enhance the regionâ&#x20AC;&#x2122;s attractiveness as a must-visit destination.

business tourism on the map

Getting into top gear Tourism Minister Arlene Foster, writing exclusively for Ambition, reveals how capitalising on the strengths of the tourist sector and harnessing the potential of business tourism, while making changes on the way, is all part of the strategy to make tourism a £1billion industry by 2020.

015 represents another exciting and challenging year for the tourism industry here in Northern Ireland. The industry remains a key sector in our economy and one that continues to grow. This year will see the return of the Tall Ships, the hosting of the Gran Fondo – which follows the success of the Giro d’Italia in 2014 – and the staging of the Irish Open in Royal County Down. Given the importance of tourism to the local economy, my priority is to ensure we have the right structures in place to maximise the benefits of this crucial sector. Many of you will be aware of the recent recommendations into the review of the Northern Ireland Tourist Board and the challenges being presented to us all in a tight budgetary climate. The coming year represents a significant time of change for the Northern Ireland Tourist Board with a new Chair due to be appointed by April 2015 and the competition for a new Chief Executive underway. Both posts will be crucial in taking forward recommendations and implementing the organisational change programme. To signify the new era and this important change process it has therefore been decided the organisation will be renamed Tourism Northern Ireland. Tourism Northern Ireland will have a much greater presence at local level, developing strong relationships and increasing its knowledge of the needs of local tourism partners. This is especially important given the imminent changes in local government and increased powers and responsibilities for the new councils including local economic development. It is therefore crucial key partners in the industry, and in central and local government, continue to work together

28 NI Chamber

in setting the future strategic direction. An updated overarching tourism strategy will help tourism partners to work together and understand their role in the achievement of common goals and in the realisation of important synergies. In order to meet the targets set in the strategy, tourism growth must be realised right across Northern Ireland and Tourism Northern Ireland have been engaging with the new Council Chief Executives to determine tourism development priorities in each of the new

of the £29.5m expansion to the Belfast Waterfront in 2016. The state-of-the-art extension will seamlessly integrate with the existing facility and see its conferencing facilities double in size to 7000 sq m. With cutting edge technology and intuitively designed meeting space, the new centre will go above and beyond. It is envisaged the Waterfront extension will be completed in the Spring 2016 helping to increase the number of discretionary bed nights for the annual conference calendar from 35,000 in

“An important sector within the tourism industry is that of business tourism. The benefit of hosting events such as conferences, symposiums and trade fairs extends right across the hospitality, retail and tourism sectors.” Local Authority areas. Continued growth in tourism is vital to the rebalancing of the local economy and in making it a £1billion industry by 2020. An important sector within the tourism industry is that of business tourism. The benefit of hosting events such as conferences, symposiums and trade fairs extends right across the hospitality, retail and tourism sectors. This important high yield sector has been identified as one of the growth areas over the next decade with significant progress being made over the last few years, however the real ‘tipping point’ for business tourism will be realised during the next three to five years with the opening

2015 to over 122,000 in 2020/21. It is easy to see how projects such as this enhance our offering within the sector and help us to make Belfast one of the key national and international conferencing destinations. This combined with the announcement of new routes to our airports, such as the KLM service between Belfast City Airport and Amsterdam, only serves to strengthen business links between Northern Ireland and the rest of the world. Therefore to ensure we continue to build on the growth of business tourism I envisage a greater alignment between Tourism Northern Ireland and Invest Northern Ireland. There is already good cooperation between

business tourism on the map The Giro dâ&#x20AC;&#x2122;Italia was an outstanding success.

the two organisations. For example at the end of 2013, along with Visit Belfast, they launched the Business Ambassadors Programme. This aims to showcase Northern Ireland as a world class region to invest and do business in by attracting global business organisations here. The initiative recruits business leaders who can help identify business and tourism opportunities for Northern Ireland from within their own organisations or professional networks. As a direct result, three conferences have

been confirmed and an active pipeline of 27 events exists across a variety of sectors including aerospace, creative industries, manufacturing, legal and pharma industries. The combined worth of which could potentially be in excess of ÂŁ16m. The success of programmes such as these demonstrates the value of the two organisations working together. I therefore see a merit in the deepening of this association in helping to deliver on other joint initiatives such as the development of a

Northern Ireland economic brand. I will continue to do all I can to further raise the positive profile of Northern Ireland on the world stage as a great place to visit and I look forward to welcoming many more tourists to our shores in the year ahead. I believe within the industry and amongst the wider public there is the will, expertise and drive to maximise the benefits tourism can bring to the local economy and showcase our country to the world. NI Chamber 29

business tourism on the map

Tourism’s story makes for a very good read AS HE HEADS TOWARDS THE END OF HIS TENURE AS NORTHERN IRELAND TOURIST BOARD CHAIRMAN, HOWARD HASTINGS TELLS ADRIENNE MCGILL THAT FOLLOWING A GREAT DEAL OF RECENT PROGRESS, THE TOURISM INDUSTRY IS NOW MOVING INTO AN EXCITING NEW CHAPTER.

Mount Stewart re-opens in April following the £7.5 million restoration project.

orthern Ireland has been basking in the glow of a series of highprofile and hugely successful events in recent years which have propelled the Province into the spotlight as a supremely alluring tourist destination. In 2014 the opening stages of the Giro d’Italia were hosted here attracting a global television audience of 775 million people, drawn from a panoramic raft of 174 countries. It was the largest sporting event ever to be hosted in Northern Ireland, and naturally provided a unique opportunity to showcase the destination to a worldwide audience. The hosting of the Giro d’Italia can be seen in the context of a succession of global events being held in Northern Ireland following the World Police and Fire Games in 2013, the Irish Open in 2012 and the MTV European

30 NI Chamber

Music Awards in 2011. With this unprecedented success, Northern Ireland has achieved significant growth in visitor numbers and, more importantly, in tourism revenue over the last five years. Howard Hastings, who steps down as Northern Ireland Tourist Board (NITB) Chairman at the end of this month after holding the post since 2009, is confident about the further development of the organisation and the promotion of the Northern Ireland experience. “One of the big changes I have been pleased to see in tourism over the last few years, among those who work in and around it, the government and the wider public, is an increased recognition of the industry as an income generator and employer. “Compared to a few years ago, there

is now a far greater and society-wide appreciation of the industry’s strengths and reputation, and a much better awareness of its identity and value to the economy. “The challenge in the present financial climate, of course, is to make sure that tourism sustains this approval because, as January’s announcement from Department of Enterprise, Trade and Investment Minister Arlene Foster (who heads the tourism portfolio) has heralded, the development of the industry is entering into a new phase. “The Northern Ireland Tourist Board’s change of name to Tourism Northern Ireland is a huge signal in that regard, and I am quite sure the new appellation will encompass a unified brand, renewed impetus and a fresh springboard to move the industry on. “Following the Hunter Review, the Minister has moved to set out the way ahead for the

NITB Chairman Howard Hastings, who steps down from the post at the end of March. the coming years, will ensure that Northern Ireland tourism continues to develop, perform and keep the focus on enhancing the visitor experience.” Attractions coming on stream this year include the £7.5 million project to restore Mount Stewart on the Ards peninsula to its original 1920s glory, and the National Trust’s recent purchase of the historic estate land around the house, increasing the size of the attraction tenfold, is an additional development ahead of the April re-opening. The Gobbins, a major coastal attraction in County Antrim, will also open in the summer, and this dramatic cliff-face path will offer another jewel on the famous Causeway Coastal Route. In Derry~Londonderry, the renovation and extension to the Apprentice Boys Memorial Hall will contain a new Siege Museum, a major addition to the cultural attractions of the city, while developments in Belfast will include the opening of the

“A series of investments in new and refurbished attractions already in the pipeline, as well as the staging of more major events in the coming years, will ensure that Northern Ireland tourism continues to develop, perform and keep the focus on enhancing the visitor experience.”

Titanic Walkways and the Belfast Window on Wildlife. These are added city experiences that will improve the visitor flow around Titanic Quarter. The product enhancement story will continue well into 2016 with improvements to the Museum of Free Derry, a Heritage Gateway to Fermanagh and the fruition of the HMS Caroline project to transform the First World War’s last surviving battleship into a floating museum. The extended Waterfront Hall is also set to open in 2016, a development that will add a lot of value to the business tourism mix and very much enhance Belfast’s capacity and reputation for staging and hosting major conferences and conventions. In terms of events, the immediate highlight is the Irish Open in May this year at Royal County Down, an ideal platform for Northern Ireland to showcase its golf product, golf stars and golf destination potential. In June, there will be the Gran Fondo Giro d’Italia legacy event which begins a threeyear run in 2015 and will highlight Northern Ireland’s premium cycling facilities and wider tourism offering. The summer sees the arrival of the magnificent Tall Ships – up to 80 in all – attracting hundreds of thousands to the Titanic Maritime Festival, the city and the shores of Belfast Lough. Plans are also coming together to make 2016 a year long celebration of Northern Ireland’s wonderful food offering. In 2017 there is the completion of the restoration of St Columb’s Cathedral in Derry~Londonderry and the Irish Open at Lough Erne. By then, the outcome of the all-Ireland bid and Northern Ireland’s place within it, to host the 2023 Rugby World Cup will be known. Moving towards the turn of the decade, Royal Portrush, and the whole of Northern Ireland, can be thinking about staging The Open, the biggest golf event in the world, which will bring a £70 million boost to the economy and to tourism of all descriptions, not just golf. “So as a new narrative for the industry begins to open up, the picture is a very positive one,” says Mr Hastings. “As the next chapter unfolds I strongly believe that tourism is in good shape to meet any challenge the next few years could throw up. “Indeed, it looks like the best part of the Northern Ireland tourism story may yet lie ahead.”

NI Chamber 31

business tourism on the map

broader tourism structures. “It is encouraging that she has committed to creating a new tourism strategy that will set the future direction for the industry, and Tourism NI particularly now looks forward to working closely with Invest NI, the 11 new councils and all who will have a role emanating from the Hunter Review’s recommendations.” Tourism’s new direction includes a search to replace Alan Clarke, the recently retired NITB Chief Executive. Paying tribute to his excellent leadership, Mr Hastings says: “Under Alan’s sterling leadership, NITB drove a huge collective effort to transform tourism over the last decade and more. “And as I prepare to hand over the reins of Chairman in March, a new appointment to that position is also in the offing. “Northern Ireland tourism is therefore turning the page into a new chapter that includes a new name for its lead body, a new strategic agenda, exciting new partnerships and changes to the personnel at the helm of the industry – and the opening paragraphs of that new chapter read very well indeed.” With an increase in both visitor numbers and visitor spend, Northern Ireland’s reputation as a fresh and energetic destination has grown considerably in the last few years, dynamically affecting the local economy. Making close to an £800 million impact to the economy per annum, tourism is now responsible for 5.2 per cent of the Northern Ireland GDP and as of the beginning of 2015, it is in pole position to hit the Programme for Government targets of becoming a £1 billion industry by 2020. “That is a tremendous starting point for a new chapter in anybody’s book, so I have great confidence that the future story of tourism industry will be headlined by further success in delivering for the economy,” says Mr Hastings. “A series of investments in new and refurbished attractions already in the pipeline, as well as the staging of more major events in

business tourism on the map

students On course for jobs in business tourism Growing the value of our business tourism in Northern Ireland is possible through developing the managers of tomorrow says Dr Peter Bolan, Director of the International Travel and Tourism Management degree course at Ulster Business School.

ur tourism industry and its potential is currently performing extremely well. Indeed ever since 2012 we have expanded and diversified what we have on offer and showcased this to the world through many of the great events that we have hosted. Our tourism product here is excellent and itâ&#x20AC;&#x2122;s been growing in areas such as golf tourism, film tourism and in business tourism. If we capitalise on this now and develop things in the right direction whilst we have such strong momentum then tourism here can have an incredibly bright future. One area of potential that we need to expand and capitalise on is business tourism. With regard to our business tourism product, Northern Ireland has already shown in recent years that it can host important international conferences and exhibitions. Notable examples include the G8 Summit at the Lough Erne Resort which placed that particular venue on the global stage. Another of our most notable venues going forward will be the Waterfront Hall which is undergoing a sizeable enhancement which will double the size of its conference centre (due to be complete by early 2016). Doubling the existing convention and exhibition space at the Waterfront in particular, will greatly add to what is already a huge growth area for our economy and showcase Belfast and Northern Ireland as a highly viable and desirable venue for conference organisers and delegates. It is therefore crucial that we have managers in the industry coming through that have studied and understand business tourism specifically and in the wider tourism context that surrounds it. Managers that understand the emerging needs of the new

â&#x20AC;&#x153;At Ulster we very much strive to ensure that our travel and tourism students are not only knowledgeable about the industry and the wider tourism phenomenon but that they are creative, innovative and entrepreneurial in their outlook and vision.â&#x20AC;? 32 NI Chamber

experience and can draw upon that in the latter stages of their degree qualification. At Ulster we very much strive to ensure that our travel and tourism students are not only knowledgeable about the industry and the wider tourism phenomenon but that they are creative, innovative and entrepreneurial in their outlook and vision. In their final year eBusiness Strategy module, they are required to come up with a new business concept in tourism which is digitally driven. They must then pitch their concept to a Dragons’ Den style panel of industry experts where they are questioned and tested to an extremely high level. Such creative live modes of assessment where the students are tested in a very practical way and not just on their knowledge is something which has become ever more important if we are to produce graduates that can make a real difference and a significant contribution to the industry. Indeed, for Northern Ireland to be truly seen as a cutting edge destination and location for major global conferences and exhibitions we have to give much more thought, planning and

development to technological infrastructure. In this digital age that means a proper focus on providing high-quality free WiFi connectivity in our event venues. Today’s discerning conference organisers and delegates demand good quality WiFi and for free. After all, people are now used to receiving such a service in their local coffee shop. Many of our event venues and hotels are still out of touch that way and need to catch up fast to meet expectations. Delegates need to be able to check and respond to emails, tweet, blog or post to various social media platforms, stay in touch with their organisations by skype or facetime etc. on their tablets and smartphones. Almost impossible to do effectively if there isn’t a decent strong and quality WiFi service provided. Our tourism graduates fully appreciate and understand such issues and how to harness them in the most effective way for business success. Our industry needs such graduates who have taken a course that combines cutting edge areas of business and management but tailors and focuses them specifically on the tourism industry – an industry that has great momentum at the present time and is so crucially important to Northern Ireland’s economic development. * The BSc International Travel and Tourism Management degree is available on a full time or part time basis through the Department of Hospitality and Tourism Management in the Ulster University Business School at the Coleraine Campus.

NI Chamber 29

business tourism on the map

breed of business tourist and everything that needs to be utilised in a strategic way to capture those tourists, ensure they have a top quality experience and that they will return to us again. At the Ulster University Business School, through our BSc in International Travel and Tourism Management, we are educating the next generation of such managers. A course which has previously achieved number one status in the UK in the annual National Student Survey. Our students study highly focused and relevant areas such as corporate event management. Around this however, they are learning about everything from the importance of air route development to how to harness social media and WiFi connectivity to ensure tourism success. Our travel and tourism management degree programme also provides the students with the opportunity of a one year placement in relevant industry sectors all around the globe. This ensures they have the opportunity to put into practice key elements of what they have studied in their first two years of the course. Furthermore they can return to their final year of study with a wealth of

business tourism on the map

Checking out hotel room demand Michael Williamson, Director of Consulting at ASM Chartered Accountants, examines hotel performance.

usiness tourism falls into two broad categories. Firstly, there is the independent business (or “corporate”) traveller, a non-discretionary visitor that travels to a destination because that is where they conduct business. Second are the meetings, incentives, conferencing and exhibitions markets (or “MICE”) in which large groups are brought together for some particular purpose. This is a discretionary market which can be encouraged to visit a destination because

The recession of 2008 led to a decline in visitor numbers from these markets (to 240,000 room nights in total and around 45 per cent of all bedroom sales), but this was mitigated by the very sharp increase in leisure visitors to Belfast. This market has also helped to fill the 1,000 new bedrooms added to the supply side in the city since 2009. In 2013, we estimate that business tourism visitors accounted for around 35 per cent of all hotel rooms occupied in

“The emerging under supply in room stock will also present opportunities for hotel investors, for operators, for the construction industry and for those seeking to develop a career in the tourism industry.”

of a specific business, academic or specialist connection or advantage, or because of reputation, facilities, price and so on. Both markets are important to the tourism industry because business users generally demand upmarket hotel facilities and service, pay higher prices, they typically travel outside the key summer season (although the recession has had some impact on these general features) and in the case of the MICE market, the average length of stay can be longer than is the case for other visitor types. Unsurprisingly, Belfast is the key business tourism destination in Northern Ireland and our own extensive research into the performance of the hotel sector shows that in 2007, business tourism accounted for an estimated 54 per cent of all bedrooms demanded in the city (equating to around 300,000 business related room nights including 30,000 from the MICE markets).

34 NI Chamber

the city, which although some way short of the 2007 ratio, translates into the same number of room nights – such has been the growth in room stock over that period. During this time, the room rates paid by visitors on business remained the highest of all customer segments. While the demand for overnight accommodation from the corporate market will be dictated by general economic activity and cannot be influenced by the tourism development or promotional bodies, this is not the case with MICE tourists. And while the city was successfully breaking into this market pre-recession, it has found it difficult to capitalise on that initial momentum as recessionary fears have eased. In part, this is a function of Belfast not having integrated conference and exhibition facilities. The current extension to the Waterfront Hall is designed specifically to address

this deficiency and will open up new opportunities for the city in the conference and exhibitions markets especially. From mid-2016 onwards, Belfast will be capable of hosting larger European or global events. This will deliver an economic boost for Northern Ireland and add to the city’s already impressive reputation. The extent of this opportunity is such that we estimate a trebling in the demand for hotel bedrooms from the MICE markets by 2020 (to around 120,000 room nights or 10 per cent of all rooms occupied). Indeed, our biggest challenge may be meeting the demand from all of the visitors to the city that require accommodation. This is a particular issue that we have looked at in some detail and taking the bedroom supply in 2013 as a baseline, we have calculated that even with relatively modest growth in demand from other markets there is a need for around 1,500 additional hotel bedrooms by the end of the current decade. If the City Council’s aspirations of doubling tourism by 2020 are achieved, then the shortfall in bedrooms could be greater than this estimate. The potential success of the extended Waterfront Hall is not only good news for the City Council, it is also good for the Northern Ireland tourism supply chain including local hoteliers. The emerging under supply in room stock will also present opportunities for hotel investors, for operators, for the construction industry and for those seeking to develop a career in the tourism industry. Belfast City Council has listened to the concerns of the industry and is investing heavily in the business tourism infrastructure. The private sector must now do likewise if the opportunities presented by the extended Waterfront Hall are to be fully realised.

A historic building in Belfast city centre is to be restored and transformed into stylish hotel, writes Adrienne McGill.

The Bedford, Belfast’s newest luxury hotel, is due to open next year.

he Bedford, a new luxury boutique hotel, is due to open in Belfast in Autumn 2016. The six-storey, Grade B1 listed former Scottish Mutual Building, immediately behind City Hall on the corner of Bedford St and Donegall Square South, is to be refurbished and restored to its former glory. Covering a total of 42,000 sq ft, the three upper floors will provide up to 40 hotel bedrooms and 10 serviced apartments. The lower floors will provide two bars and two restaurants for guests and members of the public, while there are also plans for a large seated function room for more than 120 people on the second floor, in addition to a further two smaller function rooms to accommodate either private dining, business meetings or other events. The development represents a £12.5 million investment by the developers Tullymore House Limited, the group behind Galgorm Resort and Spa and who

also operate Fratelli’s restaurant in Belfast. The new hotel will create more than 180 full and part time jobs when it opens in mid-2016 to coincide with the opening of the Waterfront Hall extension, while another 100 jobs are expected to arise from its design and fit-out. The Scottish Mutual Building is one of Belfast’s most historic establishments and was completed in 1904 for the Scottish Temperance Assurance Company. It originally comprised both the main building fronting the Donegall Square South/Bedford Street corner and the 6 storey warehouse fronting James Street South with a central L-shaped yard and lightwell between the two parts. Built around the same time as the City Hall, the Scottish Provident Institution, and the Robinson Cleaver Building, it replaced a 3-storey linen warehouse that had stood since 1850, which was the first commercial building to have been built on what was known formerly as ‘McClean’s Fields’.

It is proposed to retain the notable features of the interiors such as the terrazzo flooring, ceramic wall tiling, wood panelled doors and architraves along the central corridors and to reuse original fireplaces where possible within the new bedrooms and apartments. Colin Johnston, Project Manager, said: “This truly magnificent, iconic city centre building has all the key ingredients – location, beauty, space and heritage – for a welcome and sympathetic restoration into a luxury, boutique hotel designed to accommodate the hospitality needs of everyone in the city, from discerning tourists, local socialites, diners and business people with an eye for a quality venue. “This investment is significant for the city, it’s a vote of confidence in the prospects for the economy and it will bring a new, exciting dimension to Belfast’s hospitality offering which is backed, supported and driven by successful and experienced hoteliers.” NI Chamber 29

business tourism on the map

Landmark building to become luxury hotel

business tourism on the map

NORTHERN IRELAND OPENs the DOORS to BUSINESS TOURISM Tourism Ireland is showcasing Northern Ireland as a world-class business tourism destination around the world, its Chief Executive Niall Gibbons tells Adrienne McGill.

usiness tourism is one of the highest yield sectors in tourism, with the average spend of business travellers being significantly higher than that of leisure tourists. Tourism Ireland, the body responsible for marketing the island of Ireland as a tourist destination, raises awareness of Northern Ireland as a world-class region for business tourism through an extensive programme of activity in its main markets around the world, including Great Britain, the United States, France and Germany. Activity includes B2B workshops and networking events, inviting key decision-makers in the MICE (meetings, incentives, conferences and events) sector to visit Northern Ireland, as well as direct marketing and advertising in relevant publications. Corporate meetings, association conferences and incentive travel are the main focus. Northern Ireland’s growing reputation as an excellent conference location was confirmed in 2013 when the leaders

of eight of the world’s richest countries came to the Lough Erne Resort in County Fermanagh for the G8 summit. No event of its magnitude had ever been held in Northern Ireland before. An important message for Tourism Ireland in 2015 is the multi-million expansion of the Belfast Waterfront Conference & Exhibition Centre, opening in spring 2016. Tourism Ireland is also communicating Northern Ireland’s other strengths – value for money, ease of access, venues, quality and professionalism. Niall Gibbons, Chief Executive of Tourism Ireland, says: “Tourism Ireland is working hard in our key markets overseas, particularly in GB, the United States and Mainland Europe, to continue to raise awareness of Northern Ireland as a world-class conference and business tourism destination. Our work involves building

The luxurious Ross suite, one of six conference and event rooms at the Lough Erne Resort.

36 NI Chamber

relationships with influential MICE buyers and providing effective platforms for our Northern Ireland industry partners to ‘close the sale’. Our messages are highlighting the excellent meetings, incentive and transport infrastructure available in Belfast and Northern Ireland – and particularly showcasing the new facilities at the Waterfront Hall. We are also highlighting the good value rates on offer for meetings and conferences; interesting preand post-conference programmes around Northern Ireland; as well as improving access to Northern Ireland’s three airports, with new services from Amsterdam and Barcelona, as well as connectivity through Dublin Airport from many countries around the world.” In Great Britain, Tourism Ireland – together with industry partners like Visit Belfast and Visit Derry – will participate in 11 important business tourism events during 2015. These include Confex in London, in February, and The Meetings Show in London’s Olympia, in July. Tourism Ireland’s own workshops this year

will take place in Manchester and London, providing valuable platforms for Northern Ireland industry partners to sell direct to leading GB corporate and incentive buyers. Throughout 2015, key GB business tourism contacts, including social media influencers, will be invited by Tourism Ireland to come and visit Northern Ireland – to experience the high standard of the business tourism offering for themselves. During their time here, they will also have the opportunity to sample some of the great experiences that business delegates can enjoy in Northern Ireland, on the sidelines of their conference or meeting, interacting with locals and savouring aspects of the Province’s unique culture and heritage. Ads and advertorials will run in relevant GB business publications, such as Conference News; and monthly e-newsletters will reach several thousand MICE contacts on the Tourism Ireland database. In North America, Tourism Ireland’s business tourism promotions include a successful lead-generation programme; participation at IMEX (International Meetings and Events Exhibition) America, in October; as well as a series of networking events in New Jersey, Philadelphia,

“Our messages are highlighting the excellent meetings, incentive and transport infrastructure available in Belfast and Northern Ireland – and particularly showcasing the new facilities at the Waterfront Hall.”

Toronto, San Francisco and Los Angeles. A new event for 2015 will take place in Washington DC in April, targeting the association sector. And Tourism Ireland has also forged a strategic partnership with PCMA (Professional Conference and Meetings Association) to promote Belfast and Northern Ireland to key international meeting planners and to develop sales leads throughout North America. In Germany, Tourism Ireland will organise three business tourism workshops and networking events during 2015 – inviting partners from Northern Ireland to meet and do business with buyers in Düsseldorf (in April), northern Germany (in June) and Munich (in October). And, given that the headquarters of more than 2,000 associations are located in Brussels, Tourism Ireland is also proactively targeting the association conference sector in Belgium, with various networking events due to take place during 2015 – including the European launch of the Belfast

Waterfront Conference & Exhibition Centre in Brussels, at the end of February. Tourism Ireland’s targets for 2015 will see Northern Ireland welcome almost 1.9 million visitors from overseas, representing growth of 6 per cent over 2014. Looking ahead Niall Gibbons says: “We will continue to highlight iconic experiences all over Northern Ireland – including Titanic Belfast, the Causeway Coastal Route, the Giant’s Causeway and our unique National Trust properties. We will continue to promote Northern Ireland as a top golf destination, focusing particularly on the prestigious Irish Open at Royal County Down. We will be working hard to maximise the tourism potential of the return of the Tall Ships to Belfast, as well as the opening of the Gobbins Cliff Path. And we will highlight the new British-Irish Visa Scheme in China and India, which will enable Chinese and Indian visitors to visit both Ireland and the UK, including Northern Ireland, on a single visa of either country.”

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business tourism on the map

The Lough Erne Resort, which hosted the G8 summit in 2013.

business tourism on the map

Award-winning chef Niall McKenna.

28 NI Chamber

Business tourists often have a discerning palate and like to dine OUT, as AWARD-WINNING chef, Niall McKenna, explains to Adrienne McGill.

iall McKenna knows how valuable tourists are to his business – and business tourists in particular. As the owner and head chef of James Street South Restaurant in Belfast, he spends his days creating succulent dishes showcasing the best of local produce cooked with classic French technique and flair – which is served with aplomb to diners who are very often visiting the city as conference delegates. His gastronomic dinner menu includes delectable combinations such as Chilled Portavogie Crab Lasagne, Lemongrass and Brown Crab Bisque; and Monkfish, Creamed Mussels, Aubergine and Apple. Accompanying the food is a wine list of over 100 bins served by the glass, carafe and bottle along with service which is attentive and professional. “Tourism is the key to my business,” says Niall. “Every time there is a conference in Belfast it is like a cash-injection into the economy and into restaurants. Tourism and conferences are the major contributors to our industry at the moment. “The great thing about Belfast is that it is very easy to walk around so when business people finish their day at a conference or exhibition, they generally will want to walk, see a bit of the city and have a meal – and that obviously is good for us. “There is such a great range of restaurants in Belfast, there is a choice to suit all palates – so no matter what you are looking for you will find it.” Niall also owns and operates the Bar + Grill next door to James Street South Restaurant, a Cookery School and Hadskis and is set to open another restaurant in May near the Titanic Drawing Rooms close to Titanic Belfast which often hosts conferences. “Apart from business tourists there are so many opportunities for leisure tourists as well – there are great places to visit and great things to see and do in Northern Ireland – they are spoilt for choice. The more tourists we have, the better my business is going to be,” says Niall.

Niall, a former Belfast Metropolitan College (Belfast Met) hospitality student, has been cooking since the age of 16 when he started working part time in the Strand Restaurant in Belfast. His first full time cooking position was in the Dunadry Inn near Antrim and he moved to work with Paul Rankin when he opened Roscoff in Belfast in the late 1980s. He then moved to London for twelve years where he trained under Michelin starred chefs Nico Ladenis, Gary Rhodes and Marco Pierre White.  He returned home to Belfast to open James Street South Restaurant in 2003 in a disused office space, which was once a linen mill. In 2010 Niall competed in the BBC2 series ‘Great British Menu’ and gained a place in the final.

excellent food, excellent service and an all round excellent experience. They tend to be concerned with speed of service and overall efficiency.” Niall is regarded as an ambassador of the tourism and hospitality industries in Northern Ireland, and was hailed a “Tourism Hero” at the prestigious Northern Ireland Tourism Awards. He was also awarded an Honorary Fellowship by Belfast Met for his outstanding contribution to entrepreneurship. He is passionate about developing culinary skills in young people and has provided many work placements and apprenticeship programmes to Belfast Met students over recent years. His recent collaboration with the College has resulted in the development of a Professional Chefs Academy. Every year Niall recruits eight apprentices, aged between 16 and 24 who he believes

“Every time there is a conference in Belfast it is like a cash-injection into the economy and into restaurants. Tourism and conferences are the major contributors to our industry at the moment.” He has won a host of awards – last year James Street South was recognised in the Observer Food Monthly best restaurant awards. The Bar + Grill was recently awarded a sought-after Bib Gourmand in the official 2015 Michelin Guide, an honour which came just weeks after James Street South was named Northern Ireland Restaurant of the Year in the prestigious 2015 Waitrose Good Food Guide. “The produce we use in James Street South is all from Northern Ireland. The best thing is that everything is on my doorstep here – I can get fresh, top quality produce from all of our suppliers,” says Niall. “Our business guests are very often in groups or one individual may be hosting a table – so we have to ensure that they have

have the drive and enthusiasm to develop their skills in the hospitality industry and learn from some of the best chefs in Northern Ireland during a year-long placement. The successful applicants combine their James Street South training with two days attendance at Belfast Met each week to learn and practise the skills for the job. They may even one day own their own restaurant. “What makes a restaurant stand out is great atmosphere, service and food,” says Niall. “If you get that right – your diners will return again and again.”

NI Chamber 39

business tourism on the map

Cooking up a storm

business tourism on the map

Selective Travel Management, Managing Director Mukesh Sharma.

28 NI Chamber

Fancy a night at the theatre after a gruelling day? Selective Travel Management will not only organise complicated travel itineraries for executives but also ensure there’s something to look forward to after the business of the day is over, as Adrienne McGill hears from its Managing Director Mukesh Sharma.

usiness people attending conferences or exhibitions generally have a hectic schedule – they have to fit a lot into one or two days in a city or region with which they may not be familiar. The majority of their time is likely to be spent at one particular venue where they will attend meetings and networking events so fitting in some sightseeing may be difficult. But by using the services of an expert travel management company, they can use their time effectively to see more than they otherwise might have done. Mukesh Sharma is Managing Director of Selective Travel Management, Northern Ireland’s biggest independent travel management company which operates from spacious offices in Murray’s Exchange in Belfast. With a client base extending across the whole of the UK and Ireland, Selective Travel Management, part of the World Travel Centre Group which has offices in Belfast and Dublin, are market leaders in providing business travel for a range of industry sectors. These include government departments, blue chip companies, the higher education sector and SMEs. The company covers corporate, leisure and commercial travel and has a staff of almost 80 in its Belfast office who help travellers with all of their travel needs. While the majority of the work undertaken by the company involves organising travel itineraries for company executives who are flying from Northern Ireland to countries around the world, it is also involved in assembling itineraries for executives from other areas of the UK or further afield who are jetting into Northern Ireland on business. “We have definitely seen the number of business tourists visiting Northern Ireland from all over the world increase over the last couple of years,” says Mukesh. “This is mainly due to the high profile events which have taken place such as the Giro d’Italia, the Irish Open and the G8 summit. It is good that the profile of such a small country has been raised internationally.

“The inbound passengers that we cater for are generally associated with some of the large corporate clients that we handle in Northern Ireland. We often organise the travel schedules for people who are experts in a particular field such as scientists, doctors or university academics. “We book their flights and arrange their accommodation. Sometimes we are asked to book car hire or rail tickets because they are keen to see some of our famous tourist sights. A lot of the time the travel is organised by the internal travel department of the corporation. But we are finding more and more that the traveller himself contacts us and says ‘I am here for three days, can you help with something to do in the evening, such as book tickets for a show, the theatre, a music event or reserve a table in a restaurant?’ “We have had instances where executives have asked us to change their return tickets because they want to stay for a few extra days

Bangkok to Sydney to Rio to Barcelona and finally…..back to Belfast,” says Mukesh. “These types of travel arrangements are going on every day of the week involving business people from here. They could be in Mumbai and want an extra 2 days so that means we have to re-configure their other flights. “A dedicated team of experienced travel professionals are allocated to clients to ensure a personal service. Our account manager will ensure we have a complete understanding of a client’s business and carry out regular reviews. “We are a business travel agent but there is a leisure side so we can organise holidays, cruises and city breaks. We have also organised travel rnanagement for large groups of up to eighty people travelling abroad to attend conferences in places like Istanbul, Milan and Copenhagen. “It can be quite complicated – one flight delay can have a massive knock-on effect, in terms of making connections, restaurant

“We have had instances where executives have asked us to change their return tickets because they want to stay for a few extra days in Northern Ireland and want their family to join them.” in Northern Ireland and want their family to join them. We are happy to be part of that because we recognise that every penny spent in the local economy helps wealth here and ultimately helps our business. “It is the travellers who are spending one to three nights who add a lot to the economy.” The company facilitates around 2,000 business tourists every year to come to Northern Ireland but its main focus is to meet the travel requirements of those flying out of the Province to destinations across the world. “It is not uncommon for us to organise an itinerary with multiple flights for a busy executive spread over a couple of weeks – Belfast to London to Dubai to Mumbai to

reservations, hotel rooms and even starting the conference on time. But we offer a 24 hour service so if a problem arises we can deal with it.” The company has invested substantially in technology. The Selective Travel management portal – which can be tailored for individual companies – can check availability on lowcost and scheduled worldwide airlines, book multi-sector itineraries, search by both fare and schedule, print tickets and itineraries and manage travel budgets among companies. Mukesh says the company’s focus is to fulfill the travel requirements of client’s in the most cost-effective and efficient way… and that’s just what people in business want.

NI Chamber 41

business tourism on the map

Catch a flight and see the sights

business tourism on the map

Competing and winning

With an increasing number of conferences coming to Belfast, the company charged with making it happen is about to get even busier. Adrienne McGill talks to Gerry Lennon, Chief Executive of Visit Belfast and hears whatâ&#x20AC;&#x2122;s in store.

isit Belfast is the destination marketing company for the city and, within business tourism, is responsible for promoting Belfast in GB, RoI and internationally as a leading conference, meetings and business events destination. Business tourism is an important aspect of the tourism economy in the city as conferences

42 NI Chamber

and meetings bring important mid-week, year round trade for the industry and complement the buoyant leisure tourism market. Business visitors are typically high spending visitors and the benefits of hosting conferences in the city extend right across the tourist industry from hotels, venues, bars and restaurants, event suppliers and transport operators.

Business tourism also brings strategic benefits for the city beyond numbers and spend. A significant number of the conferences and events held in Belfast have attracted global business, medical and academic leaders whose specialisms support the work of the universities, research institutions and businesses in the city. Events held have covered a wide range of

sectors including ICT, Business and Professional Services, Financial Services, Renewables, Creative Industries, Life and Health Sciences and Agri-Food. The past 3 years have been particularly busy for Visit Belfast which is funded mainly by Belfast City Council with support from the Northern Ireland Tourist Board, with conference wins up by over 150 per cent. In that time, 206 conferences have taken place in the city bringing a total of 81,000 delegates and 250,000 bed nights generating £110 million for the local economy. Undoubtedly the expansion of the Waterfront

Hall, which is due to open in 2016, will be a game changer for business tourism in the city as it will enable Visit Belfast to attract more international, longer staying conference business to the city and convention type events attracting thousands of delegates. “Research shows that business tourists spend substantially more than leisure visitors so they contribute significantly to the local economy,” says Gerry Lennon, Chief Executive, Visit Belfast. “The more conferences or exhibitions which take place in a city, the more business tourists there are going to be. “Our ambition is to grow the conference business by 250 per cent over the next 5 years. “The extension to the Waterfront Hall is a key component of this because the new facilities will attract many more conferences. It will transform our opportunity to grow business tourism.” In the 2014/15 financial year, Visit Belfast is on track to deliver new conference business to the city worth £40 million in terms of economic impact – on a par with cities double Belfast’s size. These wins are for conferences taking place right up to 2020. “Even in these early stages of the building process, Visit Belfast has secured a host of major events scheduled to take place at the Waterfront in 2016 and beyond. So far, 24 major conferences have already been secured with an economic impact of £45 million which demonstrates the significant demand for the new expanded facilities,” says Gerry. Major international events secured for the Waterfront include: The World Council of Credit Unions – 2,000 delegates from over 100 countries will come to Belfast in July 2016. This is a major win for the city – the event has been previously held in Barcelona, Hong Kong, Sydney and Las Vegas. It is expected to generate an economic impact of £2.3 million. The IMEKO World Congress which will take place in 2018 is a global conference of 1,000 scientists and engineers from 50 countries who will spend 5 days in Belfast. Belfast fended off stiff competition from a number of European cities to secure the event. Its economic impact is forecast to top £1.9 million. The Association of Surgeons of Great Britain and Ireland (ASGBI) Conference will be held in May 2016 with 1,500 delegates attending and staying in Belfast for 3 days. The value it is expected to bring to the economy is £2.2 million. The British Medical Association Conference will take place in 2017. Around 600 delegates will be in the city for 5 days generating £1.4 million for the local economy. “These early wins for the city demonstrate

that Belfast is now competing for and winning conference business against cities double our size – and we are just getting started,” says Gerry. Within the business tourism sector, Belfast is gaining widespread recognition including being named ‘Best conference and Incentive City Destination in the UK 2013’ by C&IT (Conference and Incentive Travel magazine). “We want to make sure that the conferences that we bring add value to Northern Ireland in terms of having a subject matter of interest to the economic priorities of Invest NI or the research priorities of our universities. We have to evaluate them in terms of asking ‘is that event going to add value to the wider economy?’,” says Gerry. Instrumental in attracting conferences and events is the Belfast Ambassador Programme which is a network of leading academic, medical and business professionals who work in partnership with Visit Belfast to attract prestigious national and international meetings to the city. “Raising Belfast’s standing, profile and reputation internationally is crucial for the tourism industry to continue to deliver much needed economic revenue and support jobs – and that’s why it is so vitally important to have the Ambassadors who contribute so much to helping to ensure that Belfast is on the conference map,” says Gerry. And if conference delegates feel they have

“These early wins for the city demonstrate that Belfast is now competing for and winning conference business against cities double our size – and we are just getting started.” explored Belfast as much as they want to, there’s always the rest of Northern Ireland to see. “A lot of people have yet to discover Northern Ireland. We are the gateway to some of the finest scenery in Ireland with the Mountains of Mourne, the Fermanagh lakes and the North Coast – there are breathtaking sights,” says Gerry. But of course Belfast is his focus. “Belfast has great restaurants, pubs, hotels and attractions such as Titanic Belfast. All of these things make us a very interesting and exciting destination for conference delegates.”

NI Chamber 43

business tourism on the map

Visit Belfast, Chief Executive Gerry Lennon.

business tourism on the map John McGrillen, Belfast City Council’s Director of Development.

A World class facility Firmly established as one of the world’s best convention centres, Belfast’s Waterfront Hall is set to be bigger and better than ever once its new facilities open next year following a major expansion. Adrienne McGill talks to Belfast City Council’s Director of Development John McGrillen and hears how the venue will dazzle on the Lagan.

he multi-million pounds expansion of Belfast’s Waterfront Hall continues to take shape on the banks of the River Lagan with a new element of construction starting or being completed every day. The £29.5 million project to create an enlarged world class conference and exhibition centre is expected to provide a huge boost for the city. It is hoped the development, which will double the size of the conference centre, will be fully operational by mid-2016.

44 NI Chamber

The state-of-the-art facilities will make Belfast one of the premium destinations for national and international conferences and will boost the development of business tourism in Belfast and act as a catalyst for wider economic growth across the city. There will also be a real economic boost locally, with numerous construction jobs having been created in the short term and full time permanent posts in the long term. It is one of the most ambitious projects

undertaken in the city in recent times. The expansion will double the Waterfront Hall’s event space to 7,000 m2 and will fully integrate the existing facilities and offer new exhibition, banqueting and breakout areas. In place currently is a 2,200 seat auditorium, a 380 seat studio, 14 meeting rooms and a 1,370 m2 exhibition space. When the new extension opens next year, the facility will also have two large conference halls measuring 1,805 m2 and 702 m2, and six additional

spaces for meetings which can accommodate 10-200 delegates. The enhanced facilities and extra 4,000 m2 capacity will mean that a greater number of world class events with a wider variety of requirements can be hosted. “We are on target and on budget,” John McGrillen, Belfast City Council’s Director of Development, says confidently. “We need to get away from talking about an extension to the Waterfront Hall. What we are looking at is one fully integrated building incorporating a conference and exhibition centre. It will be a more cohesive Waterfront. “This is not about the Waterfront Hall operating as it currently does and having a big new extension at the back. Essentially we are converting the facility from being an entertainments venue which can facilitate

eroded. “Given that business tourism is a very important element of the tourism mix, it is important that we are in a position where we have the infrastructure to allow us to compete in that sector of the market.” Belfast City Council has committed £11 million to the project, £14.5 million is coming from the European Regional Development Fund, while the Northern Ireland Tourist Board is also providing funding of £4 million. In addition Belfast City Council recently agreed to put in place an accelerated replacement programme into the existing building to the tune of £2.9 million. This will ensure outdated electrical or technical equipment can be replaced over the next 3 years. “The reason why the Council has taken the decision to make the investment is because there is a recognition that by increasing business tourism, visitors will come, stay in hotels, spend money in bars and restaurants and that results in job creation. “We would see this as an important piece of our economic development strategy for the city,” says John McGrillen. “We are looking at increasing the number of delegate days at conferences in Belfast to 50,000 per annum by 2020 and based on research we believe that will require an additional 1400 hotel bedrooms within the city to meet that demand.” Having a larger conference facility in the city will certainly strengthen Belfast’s position as one of the top business tourist destinations in the world. Although it is not due to open until next year, the Waterfront’s calendar is filling up fast as a number of national and international conferences line up to be among the first to benefit from the new enhanced multi-purpose spaces. Delegates should get ready to be wowed!

A computer generated image of how the enlarged Waterfront Hall will look.

NI Chamber 45

business tourism on the map

“What we are looking at is one fully integrated building incorporating a conference and exhibition centre. It will be a more cohesive Waterfront.”

conferences to a conference venue which can facilitate entertainment. “If we were to start this development from scratch, we would have to invest in the region of £50 million-£60 million to build a brand new state-of-the-art facility which would meet the needs of the entertainment, conference and exhibition sector. “What we are trying to do is to utilise the infrastructure which currently exists and expand upon that.” The Waterfront Hall opened in 1997 as the cornerstone project of a £1 billion regeneration of Belfast’s riverfront undertaken by the Laganside Corporation. Previously this area of Belfast had been rundown due to the decline of the ship building industry in the city. The Waterfront Hall was one of the first projects in what became one of the largest regeneration projects in Europe. “This is a convention centre which is being built in two stages – one which is taking place now and the other which was built some time ago,” says John McGrillen. He says the Waterfront Hall has been successful in attracting conferences but the market has changed over the years. “Conferences are dependent on exhibitions in order to generate an income stream which make the conference self-sustaining. As the conferences have got larger they have required a greater level of exhibition space in order to subvent them. “We have found that over recent years we have become less capable of providing that exhibition space and the space for banqueting and break out rooms and all of the other things that are required to make a conference a success. “We have also suffered from the fact that we have seen new facilities open in Liverpool, Glasgow and Dublin. Our ability to compete in the market place has been severely

every market

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[Feature]

Getting the Green light for doing business in the US As St Patrick’s Day approaches on 17 march and political and business figures from Northern Ireland, including NI Chamber President Kevin Kingston, prepare to visit the White House for celebrations to mark the event, the close economic relationship the region has with the US will be further reinforced. Michael Burke, a Partner in the Washington DC office of US law firm Arnall Golden Gregory LLP, where he focuses on international business transactions and regulatory compliance, gives Northern Ireland companies pointers on engaging in business across the Atlantic.

picture of the White House

here are many dynamic companies in Northern Ireland ready to succeed in the US market. While the US market may not be first on your expansion list and the other members of the European Economic Area are at your doorstep, the US market should be near the top of your list for many reasons. We speak the same language, although we have an assortment of rather interesting accents. The US has a large and active consumer market and an economy that is expanding faster than Europe’s. There is an

48 NI Chamber

affinity in the US market for Northern Irish products, partly because of the large number of Americans who trace their heritage back to Northern Ireland. And, as the dollar appreciates relative to the pound, Northern Irish exports become relatively less expensive here. Success in the US market requires some planning and a modest front-end investment. It is far more expensive and time consuming to undo or redo a bad contract or relationship than to get it right at the outset; and that assumes that the contract or relationship can

even be modified. With that in mind, I offer some suggestions for succeeding in the US market: Don’t Be Afraid: You’re not going to get sued just because you do business here. There are litigation and other operational risks in the US market – like any market – but these risks can be mitigated. I call this mitigation strategy ‘smart exporting’. It calls for advance planning and understanding potential risk points, and taking practical steps to control and mitigate the operational risk of doing business here.

The Most Important Thing: The most important point in ‘smart exporting’ is to develop and consistently use ‘US-style’ agreements. Develop a practical library of agreements – I’ll discuss some of them in this list – that can help avoid disputes in the US and, in the event of a dispute, will add a degree of certainty and predictability (for your benefit) as to how a dispute would be resolved. You May Already be Doing Business in the US: Keep in mind that even if you think you’re not doing business in the US (in the legal sense) you still may be doing business in the US. The ‘stream of commerce’ theory used by US courts would conclude that a Northern Irish company that puts goods or services into the US stream of commerce is doing business here, for purposes of asserting the jurisdiction of US courts. This analysis is done on a sliding scale – the more contacts the greater the likelihood of US jurisdiction. Keep Secrets: A non-disclosure agreement (NDA) should be one of the first US-style agreements in your ‘smart exporting’ toolkit. If you think the information you may share with a client, customer or potential partner provides you with a competitive advantage, don’t disclose it without first signing an NDA. An effective NDA will define carefully ‘confidential information’, taking care to define ‘confidential materials’ (any written material that includes confidential information) as well. The agreement should define the appropriate scope of use and should obligate the recipient to protect your confidential information in the same manner

as they protect their own. You should reserve all rights in any intellectual property in the ‘confidential information’ you disclose. Further, you should require the recipient to return or certify the destruction of information after use period expires, and should reserve the right to seek injunctive relief, in a US court, against a threatened or actual breach. Protect Your Intellectual Property: You should develop a strategy to protect your intellectual property (IP) in the US market. Audit

predictability to your US operations. Effective Structuring Can Insulate the Parent: Forming a US affiliate, and conducting business through that affiliate, can be an effective way to insulate the Northern Ireland parent, its officers and directors, and its capital, from US operational risk. There are many forms, and jurisdictions to choose from, but each should be able to ‘block’ potential liability from impacting the Northern Ireland business. Trust but Verify: If you intend to involve

“It is far more expensive and time consuming to undo or redo a bad contract or relationship than TO GET it right at the outset.” your IP as you develop your export strategy, and remember that IP can come in many shapes, and from some unexpected places. Some IP protections are jurisdictional – so what you may have in Northern Ireland may not extend to the US. Terms and Conditions: A standard terms and conditions of sale will be another key part of your ‘smart exporting’ toolkit. These terms can specify the law governing the transaction, the venue for any dispute, payment terms and requirements, warranties, and many other issues. A practical terms and conditions of sale document will be enforced by US courts, providing additional

a partner – such as a distributor, agent or other third party – do your due diligence on that partner before signing any agreement. At the least, you should (i) ask to see the partner’s state registration/business licence; (ii) perform a judgment/litigation; (iii) speak with their other customers/clients and (iv) ask your friends/ colleagues in the same geographic area as the potential partner if they have heard of that partner. Don’t ignore your intuition about a potential partner. These pointers should help you on your way to ‘smart exporting’ and success in the US market – good luck!

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[news]

business bites from brussels IN THE LATEST BULLETIN FROM THE EUROPEAN COMMISSION, MEASURES UNDER CONSIDERATION WILL HAVE REPERCUSSIONS FOR BUSINESSES, CONSUMERS AND THE GENERAL PUBLIC IN NORTHERN IRELAND. HERE WE DETAIL WHAT’S UNDER PROPOSAL IN BRUSSELS.

WORK PROGRAMME Fast Track to ACTION PLAN Innovation Pilot In December, the European Commission adopted its Work Programme for 2015, which sets out the actions that the Commission intends to take over the next 12 months for jobs, growth and investment. The Commission’s Work Programme sets out 23 new initiatives proposed by the European Commission, including the Investment Plan for Europe, an Ambitious Digital Single Market Package, the first steps towards a European Energy Union, a Fairer Approach to Taxation, a European Agenda on Migration and Deeper Economic and Monetary Union. The Work Programme also includes 80 existing proposals which

the Commission proposes to withdraw or amend. The Commission will also continue to ensure that existing policies and rules are fit for purpose, deliver concrete results on the ground and are properly implemented. For more information, see www.ec.europa.eu/priorities/ work-programme.

A new €200 million pilot initiative to promote innovation by reducing the time it takes to bring innovative ideas to market has been launched by the European Commission. UK small and mediumsized enterprises were particularly successful in another similar scheme launched last year. The new scheme – called “Fast Track to Innovation” – aims to support mature innovative concepts that have been tested in an operational environment and increase private sector investment in research and innovation. One of its priorities is to encourage the participation

of first-time applicants. The scheme is open for applications since 6 January 2015. Proposals can be submitted at any time, but will be ranked following three cut-off dates on 29 April, 1 September and 1 December 2015. For more information, see the Horizon 2020 website www.ec.europa.eu/programmes/ horizon2020.

€1 billion available for the young unemployed

Economic outlook improves but risks remain

The European Commission has proposed to make €1 billion from the Youth Employment Initiative available as early as this year. This change will increase the pre-financing that Member States receive to boost youth unemployment by up to 30 times – reaching up to 650,000 young people and helping them get into work faster. The European Commission’s first priority is to strengthen Europe’s competitiveness, stimulate investment and create jobs. The €315 billion Investment Plan announced in November can create millions of new jobs – not least for young people. But even when new jobs are created, it is often very difficult for young people to enter the job market successfully. This is why the Youth Employment Initiative focuses particularly on getting young people back into work or training. All EU Member States have committed to the “Youth Guarantee” – to provide young people under 25 with a quality job offer, an apprenticeship or training within four months of leaving school or losing a job.

Over the course of this year, economic activity is expected to pick up moderately in the EU and in the euro area, before accelerating further in 2016. Growth this year is forecast to rise to 1.7 per cent for the EU as a whole and to 1.3 per cent for the euro area. In 2016, annual growth should reach 2.1 per cent and 1.9 per cent respectively, on the back of strengthened domestic and foreign demand, very accommodative monetary policy and a broadly neutral fiscal stance. Growth prospects across Europe are still limited by a weak investment environment and high unemployment. However, since the autumn, a number of key developments have brightened the near-term outlook. Oil prices have declined faster than before, the euro has depreciated noticeably, the ECB has announced quantitative easing, and the European Commission has presented its Investment Plan for Europe. All these factors are set to have a positive impact on growth.

50 NI Chamber

[SPONSORED FEATURE]

Deborah Archer, Director, Tughans Solicitors.

•Better cash flow gives increased bargaining power with suppliers and less need to concede discounts to customers. •Removal of cash flow worries allows more time to be spent developing and improving the business. •Fewer conditional requirements. •Comparatively, it offers a more cost-effective facility. Are there disadvantages to invoice financing? •Businesses lose profit from orders or services that they provide. •Invoice financiers will usually only buy commercial invoices. •It may affect the ability of a business to obtain other funding due to the lack of ‘book debts’ that can be offered as security for other loans. •Once a business enters into an invoice discounting arrangement it can be difficult to leave as the business becomes reliant on the improved cash flow. What type of businesses are best suited to invoice financing?

Invoice Financing Versus Bank Loans

•Invoice financing is suitable for most business in the manufacturing, business services and distributive trade sectors in the UK selling goods and services to other businesses on normal credit terms and who are seeking short term borrowing aimed at specifically improving its working capital and cash flow position.

Both bank loans and invoice financing are favourable sources of finance for businesses but what is invoice financing and how does it differ from a bank loan?

•The key point is that no business is excluded, even those making trade losses since the invoice financing company’s security is primarily its customers (through the invoices). Invoice financing facilities are therefore available to sole traders, partnerships, limited companies, plc’s and new start–ups.

•Bank loans are credit facilities offered by banks, with a fixed amount, usually a fixed term and repayments required on a regular basis.

Are there particular types of businesses which are not suitable for invoice financing?

•Factoring and invoice discounting have become a major source of working capital finance resulting from the credit crunch and the difficulties facing a lot of business in securing a bank loan. Capital is created out of a business’ outstanding invoices. The invoice financier essentially lends the business money against its unpaid invoices, usually an agreed percentage of the total value of the invoices. As the customers pay their invoices, the money goes to the invoice financier, reducing the amount owed and allowing more borrowing on the invoices from new sales, again up to the percentage previously agreed.

•Potential problematic areas for invoice financing are: -maintenance contracts; -stage payments; -long term contracts and retentions. However, even if your business does contain any of the above elements, there are specialist trade financiers who may be able to assist. It should also be borne in mind that various banks, financial institutions and invoice financiers offer a range of invoice financing products making invoice financing potentially an attractive alternative form of funding for businesses.

So what are the advantages to invoice financing? •The various forms of invoice financing allow businesses to free up capital tied up in invoices with long remittance terms. •It can be arranged confidentially so customers won’t know what the business is borrowing against their invoices. •Once an invoice is raised up to 90% of the invoice value could be available with 24-48 hours, funds are made available quicker when compared with bank loans.

T: 02890 55 33 00 Tughans Solicitors, Marlborough House, 30 Victoria Street, Belfast BT1 3GG www.tughans.com

[Feature]

Professor Marie McHugh, Dean of the Ulster University Business School.

46 NI Chamber

Celebrating 40 years of shaping futures As the Ulster University Business School celebrates its ruby anniversary this year, Professor Marie McHugh, Dean of the School, tells Adrienne McGill about the important contribution it has made to the Northern Ireland economy.

he is the sixth Dean of the Ulster University Business School, but is the one who perhaps has seen most changes take shape across the academic institution over a short time frame. Professor Marie McHugh has held the post since 2009 and this year is leading the celebrations to mark the 40th anniversary of the School which has become renowned for its entrepreneurial, innovative and dynamic focus. “For our 40th anniversary year, as a business school that is renowned for working with business and for business, we plan to have a series of events and activities that celebrate the work of the School over the last four decades. As part of our anniversary celebrations, we will be highlighting the achievements of our graduates, and the impact that we have made within the local economy. We are very keen to share this celebration with our 60,000 alumni and with the business community,” says Professor McHugh. A committee comprising distinguished alumni led by Danske Bank Chief Executive Gerry Mallon has launched a programme of events and activities, both academic and social, to mark the 40-year milestone culminating in a ruby celebratory lunch in November in Titanic Belfast. Alumni head Gerry Mallon, who completed an MBA at the School, said: “I’m delighted to play a part in the 40th anniversary celebrations of the Ulster University Business School. I’ve very fond memories of my time there. It was not only stimulating, challenging and thoroughly enjoyable but also provided an opportunity to forge links which I’ll have for a life time. The School is to be congratulated for all that it has achieved and can look forward to the next 40 years with even more confidence.” The School was set up in 1975, providing courses in business and professional studies. It was led by Professor Aidan O’Reilly, with 40 staff and 300 undergraduates. Since then it has become one of the university’s largest faculties – and what the School describes as “a major engine of growth within Ulster University”. It now has 6,000 students, 200 staff and offers a total of 100 undergraduate, postgraduate and PhD degrees. “It is a heavy responsibility to run the business school – the role has changed out of all recognition from the early days and even since I became Dean,” says Professor McHugh. “It is in essence like running a business in a very competitive environment. There is a

Professor Marie McHugh and Gerry Mallon start the celebrations. NI Chamber 53

focus on finding programmes of study which are relevant and meet market needs. “A very significant portion of our work is about engagement with businesses and ensuring that what we do meets the needs of the business community and that has to be reflected in our teaching, in engagement with bodies such as Invest NI and also in using the knowledge that is generated in the University and ensure that it is transferred for the good of business in Northern Ireland and beyond. “Recently there have been new job announcements by some of the major business advisers including PwC, Deloitte and EY. These are wonderful to hear but the challenge for us is to ensure that we have the graduates with the correct disciplines that can take up those positions. “We can do that in a variety of ways – we will engage very actively with potential investors, Invest NI and with existing employers. We are designing and revising degree programmes so that they will be fit for purpose and match the needs of employers. We will engage directly with employers and develop bespoke programmes.” The Ulster University Business School is a major contributor to the development of the Northern Ireland economy with its annual economic impact estimated at £41 million. Knowledge Transfer Partnerships (KTPs) which have been developed have supported 68 local companies since 1991 with a grant value of £7.6 million. This work has involved 56 academics from the Ulster University Business School working with companies to ensure that the latest thinking and research-based knowledge from academia are transferred into business practice. The University’s first recorded KTP was within the Ulster University Business School and involved Harland & Wolff Shipbuilding Ltd in October 1991. As a University, Ulster is placed 8th out of 106 knowledge bases in the UK for delivering Innovation Vouchers which are aimed at supporting companies who wish to develop their organisation via tapping into university expertise. The School has completed some 55 Innovation Vouchers in its efforts to support the growth and development of business across the island of Ireland. “We also have a placement and internship programme built into many of our courses so that students can develop their knowledge and skills, and employers can benefit from the knowledge, skills and dynamism that students bring to the workplace. Over 20,000 placements and internships have taken place, facilitated by the Ulster University Business School,” says Professor McHugh. “We have a highly talented team of 40 Visiting Professors within the School who represent a variety of sectors such as agri-food, finance, health, marketing, SMEs, retail and hospitality. Our Visiting Professors bring their knowledge and experience to the School and play a key role in helping us to ensure that our students are kept up to date with the latest thinking and practice.” The Ulster University Business School is one 54 NI Chamber

The Bloomberg Suite. of the largest research-led business schools in room for students studying finance, accounting Britain and in Ireland with an award-winning and business studies. They can engage in a curriculum which Professor McHugh says stock market trading environment. It is really a “seeks to provide our students with professional financial innovation laboratory – the title of that education that prepares them for professional reflects the sophistication of the School in terms life”. of its students, knowledge and the skills that She points to the School’s performance in they are acquiring and developing.” terms of the UK’s assessment of research that Professor McHugh’s passion for shaping took place in 2014 – the Research Excellence bright futures for students, business and the Framework (REF). The world leading wider community is clearly evident. economic and societal impact of the School’s Reflecting on the achievements of the School research places it 7th in the UK, out of 101 and looking forward to the future, she says: business schools included in REF 2014. “We are proud to have played a significant Furthermore, as a member of Harvard part in developing the successful careers of Business School’s Affiliate Network, and with our graduates, and to have supported local strong links to the prestigious Babson College businesses and organisations in achieving their in Boston, the School has established itself as goals. a major centre for management and business “I would like us to continue to be very education of international standing. relevant, very applied, very engaged with the “We have the Harvard curriculum embedded business community and to further contribute in our Masters in Business Development and to the growth and development of the Innovation, in our MBA and we anticipate Northern Ireland economy.” rolling it out to the final year of our degree * The Ulster University Business School programmes. It is a really exciting development invites any undergraduate or postgraduate from for us,” says Professor McHugh. 1975 onwards to register at www.business. “One of the fantastic at theand School Professor Mariefacilities McHugh Gerryulster.ac.uk/forty to ensure inclusion in the 40th is Mallon our Bloomberg is like a training anniversary celebrations. startSuite thewhich celebrations.

“We are proud to have played a significant part in developing the successful careers of our graduates, and to have supported local businesses and organisations in achieving their goals.”

[Face to Face with....] PETER LEGGE, TAX PARTNER, GRANT THORNTON

Tax Efficient Employee Incentives Rewarding staff can take many forms but doing it in a tax efficient manner brings benefits for both employers and employees as Adrienne McGill hears from Peter Legge.

n increasing number of firms have introduced tax efficient incentives as a means of attracting, retaining and motivating staff. Rewards and incentives in the workplace have benefits for both employees and employers. When recognised for stellar performance and productivity, employees have increased morale, job satisfaction and involvement in organisational functions. As a result, employers experience greater efficiency and an increase in sales and productivity. Through workplace rewards and incentives, employers and workers enjoy a positive and productive work environment. Incentives can come in a variety of forms – salaries, bonuses, benefits including child care vouchers, retail vouchers, car allowance, private health care, share schemes and training programmes. Peter Legge, Tax Partner with business advisers Grant Thornton in Belfast, says certain businesses have been reticent to offer pay rises because of financial circumstances – but there are tax efficient methods by which staff can be rewarded. “Our experience shows that employee reward is a key issue for the vast majority of businesses we work with. People are the heart of many businesses. However, employee costs are one of the biggest overheads they face. Getting the best return on spend is fundamental to achieving an organisation’s growth aspirations. Increasingly FDs work closely with their HR colleagues in the people space to drive competitive advantage. “Many of the businesses we talk to have changed their reward structure over the last number of years, or are considering a change. As advisers, it is our job to ensure they are maximising the return on their investment. If they have spent lots of money on putting a benefits plan in place or paying out lots of bonuses or paying for training programmes – is that the right thing to do? How has it been measured? “For instance, when you factor in employee pension arrangements, benefit plans can represent a significant level of expense for a business – but do employees really value that and do they understand its related value? Very often the only number an employee carries around in their head is their base salary.” When it comes to a pension scheme, an increasing number of employers are offering employees the option of salary sacrifice. A pension salary sacrifice is an arrangement

which involves employees giving up part of their salary in return for enhanced pension contributions by the employer. Both the employer and employee can benefit.

“People are the heart of many businesses. However, employee costs are one of the biggest overheads they face.”

The employer pays National Insurance Contributions (NICs) on the employees’ salaries but not on pension contributions. Accordingly, the employer will save 13.8 per cent of the amount sacrificed in NICs while employees will save up to 12 per cent of the amount they sacrifice, depending on their earnings. Peter also highlights share options as another way of incentivising staff and points to the government-commissioned MacLeod Review of Employee Engagement which revealed that where employees were engaged in a business (such as owning shares or share options) production rose

18 per cent, profitability was up 16 per cent and there was a 30 per cent reduction in absenteeism. He says: “When employees understand the impact of their personal performance on the value of the business, ownership of company shares can motivate them to be more productive and innovative. If the right arrangement is chosen, shares need not be expensive for employees to acquire, while cash which would otherwise be tied up in higher salaries or bonuses can be made available to the business.” Employers may choose to provide shares in a number of different ways. These include HMRC approved, and tax advantaged arrangements, such as the Enterprise Management Incentive (EMI) scheme. Typically, the growth in shares is subject to capital gains tax, at 10 per cent, 18 per cent or 28 per cent, compared to 45 per cent income tax and 2 per cent NIC the employee would pay on a bonus. “While bonus payments, company pensions and cars still have their place, the chance to participate in the ownership of the company is an increasingly popular and effective way of incentivising employees,” says Peter. He adds: “Overall where there is a total reward for employees which is split across salary, bonuses benefits, shares, training and development, those businesses that have the resource to deliver it will see the benefits. However, one of the key elements in the success or otherwise of a reward programme is how well it is communicated. If employees don’t understand the programme, they won’t be motivated by it!”

NI Chamber 55

[Feature]

Creating a strong partnership Corporate sponsorship is a growing part of the communications mix between companies, consumers and organisations. David Manning, Director of Corporate Affairs at SSE Airtricity, tells Adrienne McGill why his company is proud to sponsor NI Chamber’s flagship Growing Something Brilliant campaign.

David Manning, Director of Corporate Affairs at SSE Airtricity, speaking at the Corporate Champions’ Dinner.

he number of companies participating in partnerships, as well as corporate expenditures for sponsoring events, is on the rise as companies seek new ways to reach audiences and raise their profile. SSE Airtricity, Northern Ireland’s fastestgrowing and second largest energy provider which supplies around 300,000 domestic and commercial customers with gas and electricity, is the headline sponsor of NI Chamber’s Growing Something Brilliant campaign. The initiative is aimed at increasing business confidence and inspiring more businesses to grow through innovation, leadership and export. It also provides a platform for firms to make their opinions known to key decision makers.

56 NI Chamber

The company has been headline sponsor for the GSB conferences at Titanic Belfast in September 2013 and May 2014, both of which were attended by hundreds of members of the local business community. They heard keynote speakers including Leigh Meyer, Managing Director at Citi, David Dobbin, Group Chief Executive at United Dairy Farmers, and Sean O’Driscoll, Chairman and Chief Executive of Glen Dimplex, tell the story of how they grew brilliant businesses. The conferences also provided excellent networking opportunities for NI Chamber members. And SSE Airtricity is set to lend its support to the next GSB conference in May this year. Formerly known as Airtricity before the

rebrand in 2014 to SSE Airtricity to reflect the ownership of its parent SSE Renewables, the company has powered alongside NI Chamber to deliver not only the Growing Something Brilliant conferences, but also the Corporate Champions’ Dinner and a number of NI Chamber’s in-camera dinners at which members can meet government ministers and policy makers and exchange views. David Manning, Director of Corporate Affairs at SSE Airtricity, says the company was very keen to be involved with NI Chamber. “Being a part of the Chamber movement in Northern Ireland is not only great for our business profile as we continue to advance our growth, but it also affords us with superb

opportunities to exchange views and opinions with other business leaders across the country, which is absolutely invaluable for everyone in business today. “We build, own and operate assets but while our name was known through advertising campaigns, I did not think that we as a business were known that well nor our people. “In 2012 I started to look around at what sort of organisations existed in Northern Ireland that we could partner with. “I was particularly impressed by NI Chamber. It seemed to be a very progressive organisation that was very membership focused and really put a lot of emphasis on helping members grow their businesses. “At that time, NI Chamber had started to develop the Growing Something Brilliant (GSB) initiative and to me that was what I wanted for our business. The whole concept of GSB resonated really strongly with me.” The GSB campaign was launched on 10 May 2013 at Ballymena’s Galgorm Manor Hotel by Mark Nodder and the Mayor of London Boris Johnson in the presence of 200 members of the business community, First Minister Peter Robinson, Secretary of State Theresa Villiers and the Ministers for Finance, Employment and Learning, Regional Development and Justice. “It was such an amazing day and I knew we wanted to be part of this,” says David.

“I was hooked from the beginning. Growing Something Brilliant is a great fit for our company. This is not only because the GSB conferences focus on ‘teamwork’ and how we as a business community can work together, to learn from one another and lift trade by creating opportunities here in Northern Ireland and in export markets, but also because GSB

“I was hooked from the beginning. Growing Something Brilliant is a great fit for our company.”

offers a dynamically different conference format to help cultivate brilliant thinking. “Broken out into interactive workshop zones the conferences allow attendees from a diverse range of SMEs and large manufacturers to network with other business leaders as

well as senior economists and government representatives to seek inspiration and support from export growth strategies from Northern Ireland’s policy makers. “After speaking with a number of business leaders at the conferences, it is clear to me that the Northern Ireland business community is giving a signal to its politicians, policy makers and regulators – we are here, we are ready, we are energized and we want you to work with us in ‘Growing Something Brilliant’. “The initiative has also allowed me to reflect on what Growing Something Brilliant means for my own energy business. “We are constantly innovating and providing new solutions that are transforming how we generate, deliver and service our customers’ needs. And it is in innovation that the opportunity to grow something brilliant exists for SSE Airtricity here. Northern Ireland is an ideal location for SSE to deploy innovative new products and services including digital servicing to make our customers lives easier; to invest in demand side management to make the electricity system ever more efficient; and to look at new ways in the area of wind integration to ensure we can deliver more clean renewable energy to the grid. “NI Chamber has created a strong brand and goal that we can rally around. We have a great partnership.”

Professional / Commerical / Industrial / Healthcare

Belfast / Ballymena / Bangor / Coleraine / Lurgan / Newry

First Choice Selection Service Limited

NI Chamber 57

[Feature]

My Ambition is to… ANDREW BURROWS, INVESTMENT PLANNING ADVISER, JOHNSTON CAMPBELL.

Andrew Burrows

started out working for Prudential on their savings and investments side and also gained experience dealing with protection and retirement products. My role was limited in relation to full wealth management advice. After my experience there, I was keen to take my involvement in wealth management to the next level and at the best firm. I joined Johnston Campbell’s Investment Management Team based in Belfast in July 2006 as an investment consultant and since then I have developed a keen interest in investment strategies to achieve specific client goals and objectives. Meeting clients, presenting performance and giving detailed commentary about different assets and markets is one of the most pleasing aspects of the job. But my role has evolved significantly over time and I’m grateful for the opportunity to extend my capabilities. I set up and manage a discretionary investment business for Johnston Campbell clients which has been a great success, growing the assets from £0 to £25 million in quite a short period of time. This brings me into contact with high net-worth individuals, meeting with them on a regular basis and providing them with

58 NI Chamber

updates on performance and the ever changing market conditions that seem to be a facet of financial life. I’m also now more involved in providing advice to our wealthiest clients – those with complex needs, who require strategies to help them achieve their goals. This involves utilising the latest modeling software and techniques to help create more definitive and realistic outcomes for these clients. It’s quite a challenge but the results are worth it. I do what I do because I love solving puzzles. These days that means piecing together client data and formulating a solution to deliver the desired results. I found school a challenging environment, it was a place where you learnt very quickly how to work well with a wide variety of different people. On reflection I think this provided me with the skills to deal with all sorts of people, ultimately enabling me to succeed in working very well with clients. After school, I decided I had an aptitude for numbers and problem-solving which led me to complete a BA (Hons) in Business through the University of Sheffield and I subsequently moved on to wealth management.

In terms of qualifications, the ‘Retail Distribution Review’ set out a minimum level of qualification that advisers must achieve known as Level 4. I’m currently Level 6 having had a strong focus on my own professional development to both differentiate myself from other advisers but more importantly to deliver excellent client advice and experience. I’ve attained various qualifications over the years and from many different awarding bodies. It’s a bit of a list but includes: The Chartered Insurance Institute (CII) Diploma in Financial Planning; The CII Advanced Diploma in Financial Planning; and The Personal Financial Society (PFS) Fellowship. My ambition is to be a leading wealth manager, who is immediately considered when client advice is required and who is known for providing clients with the best solutions. I think we are a profession that is evolving in every aspect, and most importantly, for the better. It’s encouraging to be part of that. So I want to be at the top of this new paradigm, leading the profession, and to be associated with giving the best advice and service to our clients, both existing and prospective.

[appointments]

CBRE has announced a significant boost to its already highly acclaimed property team with the recruitment of four new Directors as well as the return to the Belfast office by Deborah Cromie from a two year secondment at RBS. (From left) â&#x20AC;&#x201C; Colin Mathewson, who joins as Senior Director (Retail); Deborah Cromie, Valuations Team Leader (New Business Generation); Joel Callaghan, Consultant (Capital Advisory); Robert Ditty, Senior Director (Agency); Andrew Coggins, Director (Capital Markets) who are welcomed by Brian Lavery, Managing Director (CBRE Belfast).

new appointments

Helen McKeever has been appointed Project Management Director at Almac Discovery.

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Laura Montgomery has been appointed Senior Market Insight Director at Almac Group.

Martin Wiles has been appointed Vice President of Business Development and Licensing at Almac Discovery.

Dr Stewart McWilliams has been appointed VP Quality and Regulatory Affairs at Almac Diagnostics.

First past the post Electing to find the right candidate for a job requires a thorough approach says Paul Kenna, Business Manager with Grafton Recruitment.

The general election is almost upon us. In May, people across the UK will be going to the polls to put their X against the candidate of their choice. The person they select will play a part, if elected, in the running of the country, either in government or opposition. But would you employ that person on the basis of the election process? What will you know about the person? You will be aware that they are a member of a political party, and that will give you some idea of the way they think. You may, or may not, depending on if you live at the top of a hill, or the end of a long lane, have seen a leaflet telling you a little about the candidate, and perhaps with an old, rather boring photograph attached. The leaflet will have a very small typeface, and tell you that your life will be greatly improved by placing your X beside their name. The photo will also be seen attached

Laura Hughes has been appointed Lead of Revenue Protection at firmus energy.

to a lamp post, with the instruction to “VOTE BLOGS” underneath. You may even get to meet the real person, who will knock on your door just as the goal is about to be scored, or the programme you are watching is reaching the exciting bit (thank you live pause technology). Now this is an important, well paid position that the politician wants. Would your company recruit on such skimpy information, and without an interview? In the real world, to genuinely guarantee appointing the best candidates, the recruitment process should be much more thorough. For example, Grafton’s Specialist Appointments client charter promises: •A dedicated Account Manager to ensure a smooth and successful process •Consultation to discuss role in detail and agree recruitment timetable •All contingent jobs advertised as standard on all local jobs boards and social

John McCorry has been appointed Network Engineer at firmus energy.

media •Access to our exclusive network of candidates who may not be on the open market •Short-listed candidates submitted by agreed date with formatted CVs and profiles •All selected candidates met and screened against key criteria •Prompt interview feedback from all candidates •Management of the offer stage You may think this makes complete sense and should form part of every recruitment process but did your last hiring process include all of the above and run smoothly? Grafton don’t run the process for recruiting our politicians, but if we did, you’d have peace of mind and confidence that the appointed candidate was the best person available for the job – exactly what all employers want.

Bernie Kerr has been appointed Business Acquisition Manager for Mid Ulster by Danske Bank.

Mark Sproule has been appointed Business Acquisition Manager for the North West by Danske Bank.

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[Guest Columnist] Sam Brown, Head of Belfast Office, Investec

Taxing issues According to figures published by the 2015 Tax Action campaign, UK taxpayers are set to overpay a vast sum of £4.9 billion in tax in 2015. This figure can largely be attributed to us not making full use of the allowances that are readily available. With the new tax year starting on 6 April, now is the time to start planning. Sam Brown answers questions which give an insight into how you could personally reduce this figure.

New ISA (NISA): Q: I have heard that the amount you can now invest into ISAs has changed and the investment rules have also been modified. Can you summarise these changes? A: From July 2014 we have seen the introduction of the new ISA (NISA). Up to £15,000 can now be invested by each individual over 18, meaning that a couple who have not yet used their NISA allowance will be able to straddle two tax years and shelter more than £60,000 in aggregate. It is also important to be aware of the ability to transfer existing ISAs to other offices whilst still maintaining your £15,000 allowance. This ensures your ISAs are refreshed and are not left languishing in dormant accounts. It is also now permissible for NISAs to hold shares quoted on the Alternative Investment Market (AIM) thus creating excellent planning opportunities to reduce Inheritance Tax. Finally, the Autumn Statement introduced the idea that on death, NISAs can now be inherited by the surviving spouse/partner, thereby retaining the tax advantages. Pension Plans: Q: I have been reading that the pension changes from April 2015 will create a more attractive proposition. Can you clarify the main changes? A: Access to your pension pot was greatly enhanced in the Budget with the introduction of the new Pensions Freedom. Essentially,

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from April 2015 and assuming you are over 55, you will be able to take your entire personal pension fund as one lump sum. Usually 25 per cent of this will be tax free with the balance taxed at your marginal rate of tax. This is a paradigm shift in retirement planning and will open up a whole range of possibilities for holders of personal pension funds. Contributions to approved pension schemes still remain one of the principal means of tax efficient savings as you can claim income tax relief at your highest rate of tax you pay. In 2014/15, the maximum contribution you can obtain tax relief on is 100 per cent of earnings subject to a maximum of £40,000. In certain circumstances, previously unused contribution allowances may be utilised. Capital Gains Tax (CGT): Q: I am about to dispose of a portfolio of shares and am concerned I may be liable to Capital Gains Tax. Can you advise? A: The 2014/15 annual allowance for Capital Gains Tax is set at £11,000. If the aggregate total of your gains exceed this, there could be a tax liability levied at 18 per cent (if you are a 20 per cent taxpayer) or 28 per cent (if you are a 40 per cent taxpayer). If relevant, do consider transferring shares to a spouse/civil partner so that you may enjoy a further £11,000 CGT allowance. Also, straddling the share sales either side of the tax

year could minimise the liability further. For very large gains, a specialist investment vehicle referred to as an Enterprise Investment Scheme (EIS) could defer the gain for several years. Inheritance Tax: Q: My parents are worried about the effect of Inheritance Tax (IHT). What measures can they take to reduce its impact? A: The first step before assessing any IHT liability is to ensure there is a valid Will in place that accurately reflects your parents’ wishes. If not, the Intestacy Laws will be invoked which will serve only to complicate matters. Most people in the UK will be entitled to a sum, referred to as the Nil Rate Band, which they are able to pass on without incurring IHT. This sum is £325,000 and is fixed until April 2018. Once this level is breached a tax rate of 40 per cent is levied. Common planning measures to reduce this are to make use of all the available IHT exemptions, such as Annual Gifts (£3,000). Often overlooked is regular gifts out of surplus income which has no monetary limit and which enjoys immediate exemption from IHT under the “Normal Expenditure out of Income” provisions. Larger gifts that don’t have an exemption attaching will require a 7 year term before falling outside your estate. Trusts are also widely used in this area but expert advice should always be sought.

[NEWS]

BT IRELAND TAKES BROADBAND SPEEDS TO NEW HEIGHTS

Frank McManus (head of wholesale sales and services at BT Ireland) with Julie Massey (Project Implementation Manager with BT Ireland).

BT has deployed its first fibre-to-the-premises (FTTP) broadband connection in Northern Ireland, delivering download speeds of up to 330 Mbps, a record breaking figure for commercial consumer speeds on the island of Ireland. BT’s fibre broadband network is pre-dominantly delivered through fibre-to-the-cabinet technology, which provides superfast broadband by replacing a section of the copper network with high speed fibre optic cable. FTTP takes this technology further by creating a direct line between the network and the home or business. The result is faster download speeds of up to 330 Mbps and upload speeds of 40 Mbps, which is the equivalent of downloading a feature length movie of 850MB

in size in approximately 20 seconds. Rowan Sheridan, a home-owner from Mallusk, on the outskirts of Belfast, was the first customer to be connected to the FTTP technology, which was deployed by BT under the Northern Ireland Broadband Improvement Project. Commenting on the experience he’s had since the connection was installed, Mr Sheridan, who was previously getting download speeds of 0.5 Mbps, said: “It has made a massive difference. I rely on fast access to the cloud, for downloading and uploading important work files from home. Previously if I had to upload a large file it would kill my internet connection for a day. Now I can upload files and continue working as normal and at the same time my partner has been able to watch Netflix without any interference. It has gotten to the stage that superfast internet has become a utility which we now all rely on.” Frank McManus, head of wholesale sales and services at BT Ireland said: “At BT we are always innovating, and continuously trying to raise the bar on what we’ve done before. We brought fixed-line broadband to Northern Ireland; we then embarked on making it faster through fibre-to-cabinet technology and now we are proactively building on that by connecting customers with fibre to the premises in a number of locations within the Northern Ireland Improvement project. It’s an exciting development for Northern Ireland and the results speak for themselves.” With over 90 per cent of premises connected to a fibre cabinet, Northern Ireland is one of Europe’s best connected regions, and with BT’s open access network, consumers can choose from up to 27 internet service providers. For more information on fibre broadband, availability in your area, the benefits and a list of providers, visit www. nibroadband.com.

Prestige Group BT business win BT has secured the business to provide a next generation network (NGN) upgrade to the Prestige Group, which includes well known insurance companies including Abbey Insurance, Abbey Bond Lovis and Class Management, a claims handling business. With headquarters in Northern Ireland, the Group employs approximately 450 people in 22 offices dispersed across Ireland and the UK, making it a significant win for the telecommunications company. BT is now supplying BT Ethernet Connect UK, a fast and reliable secure network, essential for the smooth running of a multi-site operation with high bandwidth and is an ideal solution for a business like the Prestige Group that had begun to outgrow its ageing infrastructure. BT will provide the network to link 22 of Prestige’s business premises, making it easier for them to share voice, email and critical applications with speed ranges from 4Mbps to 1Gbps. Commenting on their reason for the switch to BT, Roy Montgomery, IT Manager at the Prestige Group said: “Our network infrastructure was becoming unreliable and nearing end of life. We were looking for more bandwidth to help drive the business forward. BT provided a next-generation network at the same price we were paying previously but with much more flexibility. The combination of

Jeff Hillis, BT Head of major business and finance in Northern Ireland, with Roy Montgomery, IT Manager at the Prestige Group.

capacity and cost made it the ideal solution.” Mr Montgomery said that upgrading to BT Ethernet Connect UK has saved Prestige time and money. “We are now paying the same price for 10Mbps than we used to pay for 2Mbps, and the extra capacity means we can send a lot

more traffic down the network to the regional offices.” BT Ethernet Connect UK is designed as a set of building blocks, future-proofing the network to accommodate growth and can be scaled or reconfigured quickly and easily to meet changes in business strategy.

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[columnist] Siobhan Lavery, Managing Director of ICAN

Who do you think they are?

Understanding how consumers think and behave means looking beyond the obvious says Siobhan Lavery.

“The consumer revolution we are currently experiencing is both technological as well as psychological.”

usiness 101 – your customers are the lifeline of your success. But just how well do you know them and what drives them to make a purchase or use your service? As marketing budgets continue to be cut across the board and brands come under increasing pressure to justify return on investment, the need to answer this question has never been more important. A worrying trend however still prevails in the advertiser (client) and agency relationship. Agencies can be too dependent on the client telling them who they want to target and how they want to do it, rather than taking the time to really define the who, the what and the why that will bring about a better strategy. “All Adults”, “18-24 young people”, “ABC1 professionals”, “mums with kids”. These are all commonly used to identify target audiences and groups. This broad-brush approach however fails to appreciate that human behaviour (and therefore consumer behaviour) is much more complex and should not be reduced to mere life stage classifications. To truly understand consumers, we need to look well beyond the obvious, to really identify the psychological triggers (rational and emotional) that brands need to tap into if they are to truly engage, persuade and ultimately bring about real behavioural change. This requires a more robust and thorough approach to research, consumer understanding and strategy development – one that follows a clear planning process that

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allows enough time (and yes, resources) to yield genuine insights that will inform and inspire truly effective communications. Your business’ communication and marketing agencies should take a holistic view of the real world (rather than just “the market” in which the brand and their consumer coexists. They need to look further and deeper, asking pertinent (and sometimes difficult) questions to address challenges, analyse weaknesses and identify opportunities facing your customers and your business. This is not a natural state of mind for most marketing managers, or agencies – whose instinct as business practitioners is to focus on areas that can be confidently pinpointed, categorised or easily referenced. But it is absolutely necessary. And with this comes another even more pressing need for brands – the need to understand the digital consumer. Technology has empowered consumers like never before. We live in a digital world where the internet is increasingly the first port of call when researching a purchase decision. The predictable linear path from advertising (awareness), consideration, decision and purchase is fading fast. Over two-thirds of consumers have changed their mind about a purchase based on information they found online. Today’s customer journey looks less like the typical purchase funnel and more like an erratic flight map with consumers zigzagging back and forth from digital to offline and within different channels (e.g. from search,

to social, to website, to search again) before settling on a final decision. We also trust our peers more than we trust brands (no surprise there) but the savviest of brands have realised that by thinking and behaving more like their consumers they can persuade them to become advocates and influence one another. The consumer revolution we are currently experiencing is both technological as well as psychological. We need to understand how our target consumers actually think and behave, especially when disrupted or empowered by technology. This requires marketers to adopt a digitalfirst mind-set and approach research and strategic planning from a very different place – being willing to grapple with more data, more information and more research that will allow them to let go of vague assumptions and bring about genuine understanding. Time and resources spent on really understanding your consumers is not a cost to the business, it’s a necessary investment. Strategy is only strategy when it’s best borne out of genuine understanding – anything else is either a hunch, or just repeating what was done before, based on what we ‘knew before’ – regardless of whether it worked or not. Misunderstandings can cost your business dearly and unless a business really knows who their consumer really is, and most importantly, what they’re doing, the price can be very high indeed.

GETTING A TASTE FOR QUALITY PRODUCTS By Andy Mills, Regional Director, Business Banking, Ulster Bank.

If the Northern Ireland economy is to grow and sustain a strong private sector, an important part of that is playing to our strengths and supporting the sectors in which we demonstrate a capacity for innovation and export. To that end, much is rightly said about Northern Ireland’s larger food and drink producers – as our larger firms employ thousands of people locally and play a significant role in the development of local opportunities for employment and growth. Those successes are indicative of a broader positive contribution made by many SME and start-up producers in the food and drink sector in Northern Ireland. These businesses, which make up the bulk of activity in the industry, have the potential to support the innovation and new product

development that is so important to help these entrepreneurs thrive. According to Invest NI, there are over 60 countries that our food and drink businesses count as export markets – and exports from Northern Ireland were worth over £1billion in 2014. It is an industry that is clearly performing well and has significant growth potential, particularly in the way that it responds to the demands and tastes of an emerging and growing middle class in fast-growing developing countries. As a bank, we understand the sector – both its seasonal challenges and the exportfocused outlook that is needed to succeed. Recently, Ulster Bank hosted a breakfast to formally launch our sponsorship of this year’s Balmoral Show – attendees had the opportunity to sample produce

from a number of local suppliers. Their commitment to quality and producing products higher up the value chain can point the way for other companies seeking to differentiate their products in a crowded marketplace. Events like these demonstrate the commitment and support that we offer the sector. At the recent Ulster Bank Business Achievers Awards, we were pleased to see that companies from the sector were well represented across all the award categories. Whether it’s by celebrating success publicly, providing business advice through SmallBusinessCan.com, or helping a business with its investment plans or in managing its cashflow, we hope to help many more firms along the road to strong growth.

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[Columnist] Maureen O’Reilly, NI-based independent economist

Low inflation – friend or foe? Stable prices equals a stable economy. Maureen O’Reilly examines the current low inflation environment.

rice stability – this is one of the primary objectives of some of the world’s largest central banking systems. In simple terms it means that the aim is to keep inflation low and stable, with prices increasing only gradually over time. This in turn gives consumers and businesses confidence to make spending, investment and savings decisions ultimately leading to a more stable economy. Keeping prices stable is important because both inflation and deflation bring with them significant risks. Inflation or rising prices means money is worth less. It can discourage spending and investment, erode savings and makes it harder for businesses, consumers and governments to plan what to do with their money. Inflation is also thought to hit those on lower incomes harder because they tend to spend (rather than save) more of their income. Deflation or falling prices increases the real value of money. If deflation is persistent it can lead to lower levels of spending because consumers postpone purchases in the expectation of further price falls. This lowers demand putting further downward pressure on prices with knock-on effects on jobs, profits and investment. One of the difficulties at the moment is that the current low interest rate environment also means that deflation is harder to control because a typical response to control deflation is to reduce interest rates. Indeed some countries like Switzerland and Sweden are now turning to negative interest rates to try to encourage spending and raise prices. Price stability is at the core of the Bank of England’s monetary policy. It is defined through its ‘inflation target’ introduced more than 22 years ago by the then Chancellor of the Exchequer, Norman Lamont. After the UK’s forced exit from the European Exchange Rate Mechanism (ERM) Lamont set a target rate of inflation in the long term of 2 per cent or less, a rate that has been maintained by the Bank of England since then. That 2 per cent target is also in place in other jurisdictions across the world including the EU, America and Canada. Typically the inflation target ranges between 1 per cent and 3 per cent. Every quarter since the inflation target was introduced, the Bank of England publishes its Inflation Report. This gives an overview of recent economic developments and provides inflation projections on which the Bank’s Monetary Policy Committee bases its interest rate decisions. The Report explicitly focuses on

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the current rate of inflation relative to the 2 per cent target and explains why, if any, differences occur. If the target is missed by 1 per cent point either way, the Governor of the Bank must write an open letter to the Chancellor explaining why this has happened and what the Bank of England’s response will be. The February 2015 Inflation Report showed that the UK inflation rate had fallen from 1.2 per cent in September 2014 to 0.5 per cent in December 2014 (it has since fallen further to 0.3 per cent). This is its lowest level since the Inflation Target was first introduced. The Bank of England believes that around two thirds (or 1 per cent point) of the undershoot in the 2 per cent target is down to low energy, food and other goods prices. Petrol prices have fallen because of the fall in the price of Brent crude oil. Food and other imports prices are lower in part because of sterling’s appreciation but falling agricultural prices due to a bumper harvest in 2014 and greater competition among the supermarkets are also having an effect on food prices. The Bank puts the other one third of the undershoot in the 2 per cent target down to weak domestic cost growth, particularly wages, because a degree of slack or unused capacity still remains in the economy. Inflation is likely to fall further over the coming months. In fact the Bank of England forecasts that it could temporarily turn negative at some point in the Spring then remain close to zero for the rest of 2015. However, the Bank is adamant that “the UK is not experiencing deflation’’. It highlights that excluding food and energy, 68 per cent of the underlying categories in the

Consumer Price Index (CPI – the basket of goods and services used to measure inflation) are showing positive inflation. The Office for National Statistics (ONS) figures show that when food and energy costs are removed core inflation actually rose by 1.3 per cent in December 2014. The expectation is that inflation will return to its 2 per cent target within the next two years. The Bank of England Governor Mark Carney has described the current level of prices as “unambiguously good” for the economy. People should be feeling better off and find that their money can go further. The Inflation Report suggests that this boost to real incomes will help support economic growth and reduce spare capacity in the economy. The Bank of England’s view is that economy is already growing strongly, unemployment is falling and there are signs of pick up in wage growth. There is another positive in the findings from the February Inflation Report which is the likelihood of any imminent increase in the Bank of England base rate is now very small. It is very telling that the two ‘hawks’ in the MPC dropped their call for a rate rise in January 2015 having consistently called for a 0.25 per cent rise since August 2014. Economic commentators are now suggesting that the first rate rise will be in early 2016 and any increase is still projected to be small and very gradual. Perhaps we will see a boost to spending in this low inflation environment and with that further stability returning to the economy. Yet another interesting few months ahead!

Forecast UK CPI Inflation

Source: Bank of England, based on market interest rate expectations & £375bn asset purchase

Northern Ireland Chamber of Commerce & Industry

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[feature]

bright young business brains NISP CONNECT Programme Manager, Peter Edgar and Head of Business & Corporate Banking at Bank of Ireland UK, Ian Sheppard launch INVENT 2015.

‘Back to the Future’ as INVENT 2015 is launched The search is on to find the inventions of tomorrow for the world of today.

an you imagine a world without the portable defibrillator, ejector seat, Massey Ferguson tractors or even a mug of warming hot chocolate? These (very varied) inventions are used daily around the world without a second thought, but they all have one thing in common – they were invented by people from Northern Ireland. Each one of these local inventors used their creativity to come up with a solution to an everyday problem and through determination and drive, they all turned these ideas into world-changing inventions. Now it’s your turn to bring your problemsolving ideas, concepts, or prototypes to the fore and take the first steps towards transforming them into a business. Widely recognised as one of the most lucrative door-opening opportunities for science and technology innovators in Northern Ireland, the 2015 search for the region’s inventions with the greatest commercial potential has just been launched. INVENT 2015, run by NISP CONNECT at the Northern Ireland Science Park and sponsored by Bank of Ireland UK, is seeking applications for innovations across six categories: 1.) Creative Media and Consumer Internet 2.) Agri-Food 3.) Life and Health 4.) Engineering 5.) Electronics

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6.) Enterprise Software Entrants are competing for a share of the £33,000 prize fund and a money-can’t-buy opportunity to take part in the Northern Ireland “Tech Mission” to San Diego and San Francisco in the US, to connect with some of the world’s top innovators in science & technology. NISP CONNECT Programme Manager, Peter Edgar, said: “It’s very fitting that it was this very year, 2015, when the 1989 classic ‘Back to the Future’ predicted what our futuristic tech might be – things like fingerprint technology, hands-free video games, time travel, flying cars and hover boards. “The challenge laid down to our ‘wantrepreneurs’, researchers, garden shed inventors or school kids across the province is create and invent products that can change the world around us for the better.” Peter continued: “We had over 90 applications for INVENT 2014 so it’s testament to the fact that innovation is not only in our blood, but that we also have that real hunger and desire for invention. “The quality of entrants last year was remarkable, from a university professor whose animation skills were used in the movie ‘Avatar’, to a 16-year-old schoolboy who’d created a mobile app for his friends with dyslexia. “Then you have our other INVENT 2014 category winners whose innovations will mean introducing tech to the death industry,

cleaner cities, smarter cycling, safer pesticides and more effective vaccinations: it’s that variety of incredible inventions that we are seeking in 2015.” Ian Sheppard, Head of Business & Corporate Banking at Bank of Ireland UK said: “At Bank of Ireland UK we care and passionately believe that Northern Ireland needs more entrepreneurs and business start ups. We understand the value of innovation and its importance right across the business spectrum in driving economic growth. The Bank continues to support some of Northern Ireland’s most innovative companies from start up through to global success.” The competition, previously the 25K Awards, is, this year, celebrating its 15th anniversary. It comes as Northern Ireland was named as the second fastest growing knowledge economy in the UK. The winner of INVENT 2014 was announced as cemetery technology company ‘Plotbox’ in October. The husband and wife team from Portglenone, Sean and Leona McAllister, have already secured a number of key leads in America where the death industry is estimated at $20 billion annually. As part of the prize, Plotbox took part in the Northern Ireland Tech Mission in December which led to them gaining a place on the world renowned 500 Startups – a Silicon Valley based accelerator. * Applications for INVENT 2015 close on Sunday 5 April 2015. To apply, visit www. invent2015.co/

(L-R) Josh McConnell, Adam Boucher, Dean Welch, Ryan Maguire and Kieran Fraser from the winning team Chip n’Sim.

Banking on success

team of young technologists called Chip n’Sim took the top prize at Northern Ireland’s first dedicated banking hackathon organised by Ulster Bank and global IT experts at the Open Bank Project held at The Mac in Belfast recently. The weekend-long event brought together almost 80 coders, designers, mentors and investors for an intensive period of peer-to-peer idea generation and programming focused on new thinking for banks and bank customers. As winners, the Chip n’Sim team will now be able to avail of three months incubation at Ulster Bank with access to a number of mentors, executives and specialists to help develop their idea of linking smartphones with ATMs into a commercial proposition. Each member of the team also received a Parrot AR 2 Drone, 2 equipped with GPS and a camera, which is wi-fi enabled. Participants brought 19 ideas at a hugely creative session over the weekend distilling them down to 7 ideas which were ‘hacked’ together by the teams using the Open Bank Project API system and data sandbox and

other partner services (including, Big Red Cloud, data.gov.ie, mailjet). Each group was mentored by technical, design, investor and banking advisers to help them to sharpen their ideas into a proposition to pitch to judges. Commenting on the event, Chris Davis, Chief Operating Officer, Ulster Bank said:  “I’d like to congratulate Chip n’Sim on their very worthy win for the excellent idea of technology linking smartphones with ATMs to cut waiting times at banking machines and improve security. This was the first time an event of this kind took place in Northern Ireland. It brought together almost 35 energetic, creative and innovative people and they really challenged the way banks think, building on an event held in Dublin. At Ulster Bank we’re aiming to become the number one bank for customer service, trust and advocacy so we’re open to all ideas and new thinking on how to best serve our customers.” The team was also congratulated by Simon Redfern, founder of the Open Bank Project. The Project aims to foster a secure,

open, innovation ‘ecosystem’ by connecting banks, software developers and account holders. It promotes financial transparency by opening up transaction data. He said: “We would like to congratulate Chip n’Sim on their win at this weekend’s hackathon. We have seen excellent engagement with the fintech communities in Dublin and Belfast with Ulster Bank, which builds on the successful series of events we’ve held across Europe. As this weekend has shown, there’s no limit to the ideas that can be explored.” Diane Roberts, CEO Xcell Partners and judge at the Hackathon said the ideas that emerged from Ulster Bank’s hackathon were really incredible. “The judges were very impressed by the teams, their ideas and their fresh thinking. I look forward to seeing how Chip n’Sim can take this idea and turn it into a tangible business process in the working environment.” * More information is available at http:// www.hackmakethebank.com/go/ulsterbank/

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[feature]

Students look forward to a bright start

Compere Pete Snodden who is promoting the BrightStart programme with Eimhear Carey from St. Killian’s College in Carnlough and Jackie Henry, Senior Partner of Deloitte in Belfast.

SCHOOL leavers aged 16-18 were given the chance to learn more about the 2015 Deloitte BrightStart programme at the launch event which took place at the Radisson Hotel in Belfast’s Gasworks recently.

BrightStart is Deloitte’s five-year programme for those school leavers interested in business and technology. The programme combines the opportunity to study for an honours degree while

working for one of the UK’s most successful professional services firms. Jackie Henry, Senior Partner of Deloitte in Belfast said: “We are very excited to launch the 2015 BrightStart programme – it’s been great to welcome prospective students today and give them an insight into what we have to offer. “BrightStart is a bespoke initiative that gives young people the opportunity to grow professionally in a very supportive environment. Through this programme, we aim to develop the talents of every single person that comes through our door. “In addition to gaining priceless experience, applicants will achieve professional qualifications and a competitive starting salary of £14k a year. If one considers the degree fees paid by the company, that’s a net gain of £100k over five years – a fantastic start to a career. “The application process is now open and we expect a high level of interest so early application is encouraged.” * For more information on the Deloitte BrightStart programme visit http://belfast. deloitte.co.uk/role/

Charity helps young people to manage money

Young Enterprise is working with Bank of Ireland UK to put financial responsibility on the radar for young people across Northern Ireland.

Through the charity’s Learn to Earn programme teenagers are encouraged to think about their futures and consider how their financial choices impact their lives.

Karen Elliott from Bank of Ireland UK and Jan Gilliland from Young Enterprise Northern Ireland launch the Learn to Earn programme for 2015 at Dominican College, Belfast with students Rachael McLaughlin, Greer Sullivan and Ellie Mayne.

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Young Enterprise Chief Executive Carol Fitzsimons said: “Learn to Earn encourages young people to take control of their future through a fun, practical session at school that breathes some life into financial responsibility. At the start of the programme students describe their ideal future, they then consider their career, salary and lifestyle and are challenged to set realistic goals preparing them to make wise choices for a financially sound future.” More than 11,000 14-15 year olds took part in Learn to Earn last year with the help of Bank of Ireland UK, who have pledged their support to the programme for 2015. Sean Sheehan, Regional Director, NI Consumer & Small Business said: “Bank of Ireland UK is keen to help both individuals and communities across Northern Ireland to flourish. Learn to Earn is a great introduction for young people into financial responsibility. I know our staff enjoy taking part and bringing their professional skills into the classroom and we hope all those who participate will learn valuable lessons they can use now and throughout the rest of their lives and we are proud to support it.”

The Night of Ambition was launched by Rían Patterson, a pupil at St Louis Grammar School in Ballymena, and Generation Innovation Programme Manager, Claire Burgoyne at ‘hackerspace’ Farset Labs.

A Night of Ambition Are you worried your kids are spending too much time online or on computer games? Well, did you know games such as Minecraft are actually teaching them the basics in computer programming and managing servers? Or Hopscotch explains how to code through interactive games? Teenagers here with a talent and interest in the technology and creative industries are being urged to develop those skills now – and follow in the footsteps of our most influential tech entrepreneurs. Students aged 16-17 across the province are being called on by the Northern Ireland Science Park to snap up their place at their Generation Innovation ‘Night of Ambition’ at St George’s Market in Belfast on 18 March 2015. This action packed evening, this year

hosted by Radio 1 DJ Phil Taggart, sees young people, who have been nominated by their schools and colleges, meet our top innovators, including Kyle Gawley of Get Invited and Clare Colhoun of 8over8. Generation Innovation Programme Manager, Claire Burgoyne said: “This event is not designed for our young people to just sit and listen to speakers tell their stories of how they got to where they are today. “In fact, it’s really an opportunity for them to get up close and personal, and have one-onone chats with some of our most successful local tech talent. It’s interactive, it’s dynamic and they’ll be able to ask all the questions they want answers to.” At last year’s Night of Ambition, hundreds of teenagers were treated to a live Skype chat

with none other than Twitter co-founder, Jack Dorsey, who works with Northern Ireland expat Sarah Friar. Claire Burgoyne added: “Each attendee becomes a member of our Generation Innovation programme, so they’ll have more opportunities to participate in other projects and events to really develop that interest further. We’ve over 50 of our local entrepreneurs attending so the chance to network with them is incredible.” Generation Innovation is looking for those 16 – 17 year olds most likely to succeed in the new knowledge economy, such as engineers, scientists, gamers, App developers, programmers, designers, creatives or budding entrepreneurs. * For more information, visit www. generationinnovation.co.uk

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[Feature]

finding ways TO CURE ABSENCE AT WORK A HEALTHY WORKFORCE MEANS A HEALTHY BUSINESS. DR TONY MCGREAD TELLS ADRIENNE MCGILL HOW OCCUPATIONAL HEALTH PROFESSSIONALS CAN MAKE THE WORKPLACE BETTER.

eing in business involves risk – commercial opportunities are often uncertain and need to be assessed and managed but other risks are also part of running any business. An important area of risk is around employee health. Such risks can potentially have a major impact, whether from ill health (either related or unrelated to work) or from litigation, both civil (alleged negligence, workrelated damage or failure to comply with disability discrimination requirements) and criminal (health and safety offences). This is why an increasing number of employers are calling on the services of occupational health physicians who are able to help significantly reduce the risks and thus assist with optimising productivity whilst reducing costs related to employee health issues and absence at work. One of Northern Ireland’s leading experts in the field, Dr Tony McGread, is Director of the Occupational Health, Risk and Disability Consultancy (OHRD). He operates from a state of the art clinic in Belfast city centre and also from regional clinics in the North West and Enniskillen. OHRD is the first and only private occupational health provider in Northern Ireland to have been recognised for its high quality of service with the award of SEQOHS (Safe, Effective, Quality, Occupational Health Service). “Occupational health is a specialist area of medicine where physicians advise employers on the fitness of their employees for work and ultimately ensures that they are fit to do their duties. It also takes account of the workplace itself and assesses that work undertaken will not be harmful to employees,” explains Dr McGread. “It is the band of medicine which is an intermediary between the strictly therapeutic (or treatment) world of medicine and clinical care and the world of work. Occupational health professionals provide practical solutions to health-related problems in the work setting, for example, from policy development to facilitating a return to work.

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Dr Tony McGread. “The physician assesses the individual’s physical and psychological capabilities and matches the work setting to those capabilities. “Most employers are experts in their own field but not health experts. General Practitioners are experts in family medicine but not in the interaction of work on health or health on work. The value of trained occupational health professionals includes their excellent understanding of the working environment, including workplace culture,

procedures, hazards and risks, as well as the necessary legal framework related to health and safety and disability law. Such understanding is essential to give appropriate and considered advice both to the employee and employer and do so in a fair and unbiased manner. “One example of this is when advising on the cause of health problems, that is whether it be non-work, domestic or work related as only then can appropriate solutions be

designed and implemented.” Dr McGread’s ever-growing list of clients covers employers in the public and private sector. “The key service we provide for them is an assessment of sickness absence and staff who are off work with a health-related issue,” he says. “Most of the time employers are having to fulfil legal and contractual requirements to have an individual assessed but they also recognise that it is good business sense to get the individual assessed in order to help them return to work and, if this is not possible, to look at the other options which are available. “The reason why employers like to use occupational health professionals is that we can provide an independent impartial assessment of

in the workplace has become integral to the Public Health agenda. For example, the UK Department of Health through the National Institute of Clinical Excellence (NICE) has over the past number of years commissioned an increasing number of important guidance documents aimed at improving the health of employees, but targeted specifically at employers, employment professionals (including the role of line managers) as well as health professionals such as occupational health physicians. Employers are being urged to consider employee health and well-being as part of the everyday running of their organisation as well as being included in performance reviews, goals and objectives. “Many large organisations in Northern Ireland

“The value of trained occupational health professionals includes their excellent understanding of the working environment, including workplace culture, procedures, hazards and risks, as well as the necessary legal framework related to health and safety and disability law.” an individual’s case.” The importance of good quality occupational health has been identified by government commissioned research as a major factor in reducing the number of days employers lose to sickness absence. Furthermore, the government is increasingly recognising the workplace as an essential ‘target area’ to improve the health of people of working age. Focusing on health

are very much in tune with occupational health and have seen it as an essential part of their overall business programme – but a lot of companies still do not recognise its importance or value,” says Dr McGread. “Demand for our services is increasing. Employers are becoming more aware and also they recognise that it is helping them satisfy their legal duties to their employees especially

in relation to the Disability Discrimination Act (DDA). This legislation is quite wide in terms of which employees may fall under it. “An employer may not know who falls under it until they have sought independent medical advice from an occupational health physician who understands the legal requirements of the DDA and can interpret it on their behalf. “Mental health is covered under Health and Safety at Work legislation. There is now a push to have mental health considered so that employers take a proactive approach in assessing stress and mental health disorders in the work setting.” The economic costs of ill health and its impact on work are considerable. The Health and Safety Executive calculated the cost of workplace fatality, injury and ill health in Northern Ireland in 2013 to be approximately £285 million with ill health representing around three-quarters of this total figure. Every year in the UK 200 million days are lost through sickness absence at an estimated cost of £14 billion. Each week, one million people (almost 4 per cent of the workforce averaged out over a year) take time off work due to illness. “It is accepted that being in work is generally good for people’s physical and mental wellbeing,” says Dr McGread. “Work meets important psychosocial needs in our society and it is often central to personal identify and self-esteem. In fact, a true measure of one’s health really needs to consider ‘physical, mental and social well-being’. “As a healthy workforce has lower sickness absence, it is clear that employers can achieve significant cost savings if they can reduce their absence by improving employee health and well-being at work.” NI Chamber 73

[Feature]

Helping fund retirement Every employer now has a duty to put staff, who meet certain criteria, into a workplace pension scheme and contribute towards it. Iain Ferguson, Business Development Manager at Workers Pension Trust tells Adrienne McGill why auto-enrolment is vital for firms.

Iain Ferguson, Business Development Manager at Workers Pension Trust.

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he year 2017 marks an important deadline for small business owners. It’s the year by which every existing UK business that employs staff will by law have to offer their workers and pay contributions into a pension scheme in a process known as auto-enrolment. The government’s auto-enrolment legislation was rolled out in October 2012 – but only large companies were affected at first. Small companies will begin the process in 2015, with all existing UK companies enrolled by April 2017. To date, more than 40,000 large and medium-sized employers across the UK have been through the process, with 5 million workers now automatically enrolled into a qualifying pension scheme. Over the next 3 years, a further 1.3 million small and micro employers (employers with 1-49 workers) will need to comply with the law. The fact is that people are living longer and many are not saving enough to be financially comfortable after they retire. This means they will have to retire on the State pension, which is currently only £113.10 a week for a single person and £180.90 a week for a couple – not enough for most people to live on. The government has introduced autoenrolment as a way by which people who are working can save for their retirement in order to supplement their State pension. Auto-enrolment is now a reality for many businesses in Northern Ireland, with

hundreds of firms every month, depending on their size, reaching their staging date – the date by which businesses must offer a workplace pension for employees. Around 33,000 companies across Northern Ireland will have to comply with this legislation by 2018. Under the legislation, eligible jobholders are all employees aged over 22 years old, under State pension age, earning over £10,000 per annum and working in the UK. The process can be complex so it is important that companies are fully aware of their responsibilities and seek support to ensure that implementation is as smooth as possible. Employers will have to choose a pension scheme if they don’t already have one and that might require the help of a financial adviser. There are a number of options available, some schemes will be more limited in investment options and can be more expensive, so it is important for employers to take the time to decide which scheme is right for their staff. In Northern Ireland, Workers Pension Trust is the only multi-employer pension scheme designed for auto-enrolment. The scheme’s administrators have more than 30 years’ experience in running workplace pension schemes. Iain Ferguson, Business Development Manager at Workers Pension Trust has the task of ensuring that Northern Ireland businesses know what they are obliged to do under the legislation for auto-enrolment. “From experience, the two main issues for employers are the communication with the workforce so that they are kept informed about what is happening and also how the payroll systems operate which will run the autoenrolment process from the staging date going forward,” says Iain. “Every employer has a duty to automatically enrol an individual into a pension scheme for auto enrolment. Employees can opt out but employers cannot.” As part of a major new awareness campaign, over the next few months the Pensions Regulator is writing to every small employer to tell them the date their automatic enrolment legal duties come into effect – in other words, the staging date. All employers have a staging date that is specific to them, including those with one worker. The mail-out will ask small business owners to supply email contact details to the Regulator so it can provide them with regular reminders and updates as their individual staging date approaches.

“Companies who do not comply face a fine of up to £400 but after a period, there is an escalating penalty starting at fines of £50 to £10,000 a day,” explains Iain. “Workers Pension Trust provides as much information as possible to employers and employees to assist companies with their autoenrolment compliance.” There are different bands of minimum contributions. Until the end of September 2017, the total minimum contribution into a scheme for each qualifying employee is 2 per cent of basic pay, made up of 1 per cent from the employer and 1 per cent from the employee. This increases to a total of 8 per cent by October 2018 – with the minimum employer contribution set at 3 per cent and 5 per cent coming from the employee. Employees receive tax relief on their contributions. “Naturally, contributing to employees’ pension pots is an expense for companies, and for many small businesses it is an expense that will present itself for the first time,” says Iain. “Fortunately it will not produce any additional tax liabilities for firms, as employer contributions can be offset against corporation tax and are not subject to employer National Insurance contributions. “Employers need to assess how much they can expect their costs to rise with autoenrolment and include that in their budgets.” Since firms will now be responsible for their employees’ retirement savings as well as their salaries, it is vital that they pick a pension scheme that works best for their staff. There is a glut of providers catering for all kinds of firms, but the advent of auto-enrolment has also brought more providers who offer trust based multi-employer pension schemes into the mix. Workers Pension Trust, which takes investment advice from JLT, one of the biggest employee benefit providers in London, is run by a board of trustees who have experience of running a multi-employer pension scheme for over 30 years. Their main job is to make sure that the money, which goes in on behalf of employees, is safeguarded and invested in funds that will grow surely and steadily over a long period of time. “Our advice to employers is to plan early – there could be bottle necks in the system as more companies come on board,” says Iain. “They must talk to pension providers early and make sure they are in the system. They also must ensure that staff know what’s happening so that when employees get the first contribution coming out of their salary – it is no surprise to them.”

“Naturally, contributing to employees’ pension pots is an expense for companies, and for many small businesses it is an expense that will present itself for the first time.”

[SPONSORED FEATURE]

Delivering on their promise for business SSE Airtricity, Northern Ireland’s second largest business energy supplier has announced that it will cut its natural gas and electricity prices for small business customers across Northern Ireland.

The reductions, which come into effect from 1 April 2015, will see an average 7.8% cut to natural gas prices for over 5000 businesses in the Greater Belfast market, as well as an 8% cut for more than 6000 SMEs on SSE Airtricity’s variable price tariff. Stephen Wheeler, SSE Airtricity Managing Director, commented: “Our announcement delivers on the promise we have always made that if we can lower energy prices, we will, and reflects our long-standing approach to buying energy on wholesale

markets which ensures we can provide our natural gas and electricity customers with competitive products and stable prices at all times.” SSE Airtricity supplies gas and electric to more than 20,000 businesses across Northern Ireland and is the largest supplier by load in Northern Ireland’s commercial energy market. ireland.sse.com

2015 Business Expectations – a year half full or half empty? By Alan Bridle, UK Economist & Market Analyst AT Bank of Ireland UK.

Q1 of a year is typically a time for optimism and business surveys in general confirm that the operating environment for most firms is slowly improving, particularly those reliant on consumer spending which remains the principal driver of activity. Decent growth rates in our key neighbouring economies of GB and ROI will continue to offer opportunities during 2015 although the stronger exchange rate is already proving more challenging for some who transact in euro-related export markets. For smaller business owners, it remains important not to misread the signals for the year ahead. The “new normal” environment of generally lower growth, productivity and profitability is not one where businesses can afford to stand still hoping that a rising tide will lift all boats.

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The nature of the recent recession and recovery has left a number of sectors facing overcapacity and intense competition in crowded markets resulting in wafer-thin profit margins and little room for error. All at a time when digital technology is reshaping business and customer relationships. Opportunity is there provided businesses recognise the difference between healthy growth and unhealthy growth – sales can look impressive but if not matched by a corresponding increase in profitability and most importantly, cash flow, this may conceal underlying issues. The temptation to overtrade during economic recovery is real. The competitive environment and ultra-low inflation context of 2015 will make price increases difficult to push through and the sort of “price wars”

we are seeing in food retailing brings risks of contagion. We are not accustomed to periods of deflation in the UK, however brief. “Good deflation” can boost household discretionary spending and buoy sales but “bad deflation”, when a psychology of ever-falling prices takes a grip, can see purchase behaviours change. In general, a sustained period of deflation is not good for business as annual growth in sales and revenue is no longer the norm. Innovation, agility and continued vigilance on costs and cash remain crucial. With 2015 heralding the prospect of continued growth, as always, the performance of individual firms will vary. The fundamentals of running a successful business don’t change – most importantly, keep both eyes on the cash.

[Columnist] Trevor Bingham, Business Development Manager at IT specialist’s, FUEL

The war against cyber criminals With the recent joint announcement from Prime Minister David Cameron and US President Barack Obama that they are to launch a series of joint cyber ‘war games’ as a part of a wider move to coordinate anti-hacking efforts, Trevor Bingham investigates the background to this dark world.

he high-profile cyber attacks and hacks of the past year have seen western governments shining a spotlight on cyber security. Attackers believed to be from North Korea hacked into Sony Pictures Entertainment at the end of 2014, stealing vast amounts of data and intellectual property. As President Obama emphasised in a recent speech: “No foreign nation, no hacker, should be able to shut down our networks, steal our trade secrets, or invade the privacy of American families, especially our kids.” While the high-profile attacks were targeted in the US at some of its best known companies like Sony and eBay, these cyber criminals often base their attacks on creating maximum damage ignoring national borders. It’s reported that plans are being drawn up to simulate an attack on London’s financial sector which is closely linked to Wall St in the US. The plan agreed by David Cameron and Barack Obama will also see the creation of specialist cooperative ‘cyber cells’ operated by the UK and the US. The UK and US have always focussed heavily on cyber security but they now see the need to combine their efforts to further improve their cyber defences. Both governments insist that this isn’t only about protecting companies, it’s about protecting people’s data and personal finances, as often these attacks can have real consequences for people’s prosperity and livelihoods. The latest initiative follows wider attempts by the UK government, as part of the Cyber

Security Strategy launched in 2011, to bolster the nation’s cyber defences and increase the sharing of the threat of moving data between the public and private sectors. The revived UK Strategy has launched several key initiatives since being announced, including the Cyber Security Information Partnership, the UK Computer Emergency Response Team and the soon to launch Cyber Insurance scheme. However, this bolstered cyber security initiative has a secondary focus for the UK

significant part. Security researchers have already uncovered a wave of fresh threats this year, including the defence-dodging ‘Skeleton Key’ malware and the advanced ‘Cryptowall 3.0’ ransomware. Prior to the announcement, many privacy groups had expressed concerns about close ties and coordination between GCHQ in the UK and the US National Security Agency during the PRISM campaign. This campaign saw the US government siphon off web user data from technology firms including Google, Apple, Facebook, Twitter and Yahoo. GCHQ is known to have used some PRISM data during its operations. The Intelligence and Security Committee ruled in July 2013 that GCHQ’s use of PRISM data was entirely legal and after recent attacks the appetite to dispute this practice may have shrunk somewhat. Other uses ways of using collective and less intrusive data is to analyse behavioural movements and activity to predict traditional crime. Many of our larger enterprises are turning to super-fast analytics and monitoring solutions like that of HANA, a high performance database to combat the predicted cyber threats facing them on a daily basis which reminds me of the old adage – forewarned is forearmed! The increased number of potential attack avenues open to hackers means that companies can no longer rely on perimeter defences – a sort of ‘war games’ on a multinational company platform! This new security-monitoring application collects all significant hardware, network and software vendors’ security messages from companies like Microsoft, HP, IBM, CISCO and Oracle into a large HANA database and does

“Security researchers have already uncovered a wave of fresh threats this year, including the defencedodging ‘Skeleton Key’ malware and the advanced ‘Cryptowall 3.0’ ransomware”. government – to set up the UK as a global exporter of cyber security solutions. Defence and security exports, including cyber security, play an important part in strengthening the UK economy, supporting jobs and supporting the defence of the countries we do business with. The UK Trade and Investment department’s Defence and Security Organisation will do its best to ensure that major multinational companies based in the UK are given every support to remain secure and in turn will also help drive the huge export potential of the UK security sector in which Northern Ireland plays a

multi-system security breach analysis. The software is becoming more essential because it’s no longer the case that hackers break into one system and stop. They go into one system and from there they go into another system and then to another system – the thieves are not going through the main door anymore, they’re coming through the basement, or from behind. So as 2014 is often referred to as ‘The Year of The Hack’, will 2015 be ‘The Year of Cyber Security’? Let’s hope so!

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[Feature]

Lines of communication Quicker speeds and internet connectivity are putting Northern Ireland in the superfast lane but more needs to be done says Ofcom. Adrienne McGill looks at the findings of the latest survey from the communications watchdog.

Ofcom Northern Ireland Director Jonathan Rose.

orthern Ireland continues to lead the way with faster internet speeds and more people signing up to superfast broadband services, according to Ofcom’s latest Infrastructure Report. Average download speeds increased more than 20 per cent to 24.8 Mbit/s in the last year and are higher than England (23.9 Mbit/s), Scotland (21.1 Mbit/s) and Wales (18 Mbit/s). Availability of superfast broadband services is highest in Northern Ireland while take-up (22%) is higher than in Wales and Scotland and on a par with England. However, Ofcom points out that the headline figures don’t tell the full story. A challenge right across the UK is that the Fibre to the Cabinet (FTTC) technology commonly used by BT to deliver Next Generation Access services (used to deliver superfast broadband) does not always deliver superfast

broadband speeds (>30Mbit/s). This happens when the length of the connection from a customer to a cabinet is too long to support a speed of 30Mbit/s. It is

“There is more work to be done on mobile coverage and quality of service.” a particular issue in Northern Ireland where, according to Ofcom, the more dispersed rural population results in generally longer line lengths. For the first time the latest Ofcom

Infrastructure report provides details of the range of speeds currently being delivered over FTTC lines. Reaching the UK’s most rural premises is a challenge that is technically complex and expensive, but it is important that these remaining homes and businesses are not left behind says Ofcom. The Infrastructure Report (available via www.ofcom.org.uk) also provides new data on mobile coverage by provider. The information is designed to support consumers in choosing a service that best suits their needs and can encourage providers to improve their performance. “There is more work to be done on mobile coverage and quality of service,” says Ofcom Northern Ireland Director Jonathan Rose. “As well as imposing a licence obligation that will ensure 4G coverage reaches 95 per cent of Northern Ireland premises, Ofcom is preparing to auction additional spectrum that is likely to be used by mobile operators to improve capacity.” More widely, the UK Government has committed £150m to bring mobile coverage to unserved areas (total not-spots), and in December 2014 announced a separate deal with the mobile operators to extend geographic mobile coverage to 90 per cent of the UK to help improve coverage in those areas which has coverage from some but not all operators (partial not-spots). Operators have agreed to invest a total of £5bn in their networks and reach the 90 per cent coverage target by the end of 2017. “Promoting better coverage for mobile services across the UK is a priority work area for Ofcom in 2015/16,” adds Jonathan Rose.

New tool to check your communications coverage

eople can check their local broadband, mobile, TV and radio coverage using a simple, powerful online tool launched by Ofcom. The Ofcom Interactive Map (available at http://infrastructure.ofcom.org.uk/) provides a single-stop for consumers and businesses to discover the quality of the communications infrastructure in areas where they live and work, or somewhere they intend to move. Users can zoom to a specific

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location on a UK map, or simply enter a place name or postcode, to receive comprehensive data on: •Fixed broadband: average download and upload speeds by postcode, comparing standard and superfast services, and illustrations of superfast broadband coverage. •Mobile: average 2G, 3G and 4G coverage in a council area by premises, roads or geography, and coverage illustrations for each operator’s services

down to 100 square meters on the map. •Freeview: levels of coverage across a council area for both public service and commercial channels on digital terrestrial TV. •Digital radio: local council-area coverage for BBC and commercial digital radio channels. All the data shown on the maps was taken in June 2014, and will be updated annually by Ofcom.

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[Feature]

what’s in it for me? HOW NI CHAMBER HAS HELPED MY BUSINESS…WITH GERARD GILDERNEW, PARTNER IN CAVANAGH KELLY.

Describe your business Cavanagh Kelly is a progressive, dynamic business advisory practice. Our team of 60+ chartered accountants and finance professionals provide real time business advice and solutions to our clients across a wide range of sectors. Our high calibre team use their collective knowledge and experience to give clients the advice they need when they need it. With offices in Dungannon, Belfast, Enniskillen, Magherafelt and Omagh, we are ideally placed to guide and advise clients and businesses of all sizes – locally, nationally and internationally. Our client base comprises largely family and owner managed businesses. We provide the straightforward annual accounts and tax compliance service – but we see ourselves as being about much more than that. We come into our own as being real business advisors – advising clients and bringing fresh innovative thinking into their business. What makes your business stand out? We have offices across Northern Ireland – this means our physical base is close to our clients. However – it’s not about having an office in every town; the only way to get to know your client and their business is to get out of the office and travel to your client. We go on site, we see our clients in action. We get under the skin of our client’s business to understand what is going on behind the numbers. How has NI Chamber helped Cavanagh Kelly achieve its goals? Cavanagh Kelly have expanded operations over the past four years with new offices in Belfast, Omagh and Enniskillen. We joined NI Chamber as we opened our Belfast office – and the decision to join was the right one. Working with NI Chamber, we have been able to establish new networks with leading businesses and professionals through attendance at events and introductions made. Through attendance at NI Chamber events, we have been able to reach out to other businesses in a relaxed but professional environment, building linkages and gaining new business. We relished this opportunity and continue to build on these relationships and use the contacts and information gained to add value to our clients’ business. 80 NI Chamber

For our own business too, we have gained knowledge and insight into how some of the region’s most successful entrepreneurs have built and developed their businesses – scaling up their own operations, overcoming the challenges along the way and achieving excellence in all that they do. We have taken this back and put it to work in our organisation. What would your advice be to other NI Chamber members to help them get the most from their membership? Getting membership is the easy bit – like everything in life, you only get something back when you put something in. It is key to pick the events and the initiatives organised by NI Chamber that will mean the most to your business – then when you attend, be sure to engage. When you are attending an event which interests you and is a subject which you enjoy, you will find it all the easier to make it work for you. We often encourage our team to write down why they want to go to an event and who they want to speak to. Getting the attendance list in advance is often very useful, particularly for larger events. That said, you do have to stretch yourself too – get out of the comfort zone. It is all too easy to think that you are too busy and haven’t the time. You have got to put the effort in to make it work for you. How has Chamber membership helped you and your staff develop a professional skillset? Professionalism is at the core of our team ethos, we deliver a valued service to clients and are constantly looking at ways to improve and develop. We have attended NI Chamber workshops and events that have provided useful hints and tips in developing our professional image. This is important to us and encouraged throughout the firm. NI Chamber staff have also attended some of our training events to present on topics such as personal branding and networking skills. This has been particularly useful. It’s widely accepted that business relationships can’t be rushed, so we make the most of opportunities to make sure we identify the right people to help our business grow.

EXPANSION FOR MOURNE SEAFOOD BAR One of Northern Ireland’s best known restaurants has undertaken a major expansion with support from Danske Bank. The Mourne Seafood Bar has expanded its Dundrum restaurant, doubling the size of its seating area to allow for an additional 40 covers. The first Mourne Seafood Bar opened in 2005 in Dundrum with further restaurants following in Belfast, Ballymena and Dublin. The company currently employs 120 people. The owners say the latest expansion is a vote of confidence in the hospitality and tourism sector. “We decided to expand our Dundrum restaurant to help facilitate the large volume of customers,” said Mr McCoubrey. “By creating this expansion we have doubled the size of our seating area and we can now host small weddings and private functions. “The expansion has helped to secure jobs and made the restaurant a more viable business. In the summer we will be employing more full time and part time staff. “The hospitality sector is in a state of recovery and with events like the Irish Open in May and the proposed lowering of corporation tax it puts us in a good position. Hospitality has a huge impact on

Bob McCoubrey, owner of the Mourne Seafood Bar with Oonagh Murtagh, Head of Danske Bank’s Finance Centre in Belfast and Karen Hoey, Business Manager at Danske Bank.

tourism – the key to good tourism is good restaurants.” Mr McCoubrey revealed further expansion plans for the restaurant: “We have been granted planning permission to build accommodation above the restaurant. This will allow us to offer the complete package to customers as they can come and enjoy a meal and stay overnight.” Speaking of Danske Bank’s support Mr McCoubrey said: “I have been banking with

Danske Bank for over 20 years now and they have always been excellent. As well as providing finance for the expansion their support has been overwhelming and they are always on hand for advice.” Karen Hoey, Business Manager at Danske Bank, commented: “At Danske Bank we are dedicated to supporting businesses from all sectors. With over two million visitors a year to Northern Ireland the hospitality sector is a key contributor to our economy.”

Having someone to talk to Age NI has launched an outdoor advertising campaign to increase awareness of loneliness – an issue that affects many older people in Northern Ireland. The campaign is supported by Danske Bank, Age NI’s Charity Partner 2015. Age NI Director of Marketing, Siobhan Casey said: “Our research shows that thousands of older people are facing later life alone across Northern Ireland – 1 in 3 older people tell us that they are lonely. The message of our campaign is that no one should have no one. Having someone to turn to is important to us all. “Everyone faces ups and downs and it’s extremely important, at any age, to have someone to talk to. Services like Age NI day centres and the Age NI Advice Service are providing companionship and support to thousands of people every year.”

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[Feature]

mums with power

CAROLINE KEENAN is Tax Director with ASM Chartered Accountants. She is married to Eugene and is mum to Matthew (Age 16), Ella (Age 12) and Benjamin (Age 8).

relaxing Sunday roast lunch with my dad and my siblings, and even better if someone else is doing the cooking! How has having your children impacted on your working life? I have always considered myself a fairly organised person, but since having our children there has been a need to be even more organised. Time is very precious, and with three children at three different schools with lots of varied interests and hobbies outside of school, it can become a bit of a military operation at times getting everyone to the right place at the right time. But it is such a rewarding experience watching children grow up and develop individual personalities that it would be a shame to miss that. Because, of this, I believe my time management skills have improved greatly, and my ability to spend my time wisely has never been better. Having children has also helped me to more fully appreciate the demands placed on work colleagues who also have young families.

Describe your job ASM Chartered Accountants is a mid-sized Accountancy Practice providing the full range of services including Audit & Accounting, Internal Audit, Taxation, Consultancy, Forensic Accounting, Corporate Finance and Management Consultancy to both Private and Public Sector clients. I head up the Taxation Practice in the Belfast office and oversee the delivery of tax compliance and tax planning services to the firm’s clients. Additionally, I spend part of my working week on Business Development activities, such as meeting potential clients, presenting at information/ technical seminars, writing business articles and attending various business events. What is your favourite part of the day? Definitely, it has to be the end of the day! It is great to get home to see my family. Once the after-school activities and the home-works are all out of the way, we all sit down to enjoy supper together and hear more about each other’s day and our plans for the rest of the week. It is lovely too, to enjoy some peace and quiet with my husband when the children

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have all gone off to bed. Whether it is watching a favourite programme, or enjoying a glass of wine whilst catching up on the events of the day, having some quality time together rounds off the day nicely. What do you do to ensure a work/ life balance? On joining ASM just over four years ago, I made a concerted effort to become much more disciplined in achieving a better work/ life balance. Subject to client demands, I have flexibility to organise my diary so that I am able to do the school runs at least two mornings per week, and can arrange to be available for my children’s school events, such as Sports Day, Christmas Plays, and School Assemblies. Weekends are real “family time”. We live out in the country and are near lots of lovely locations for a good walk, including two National Trust properties… and with a number of great restaurants and coffee shops in the vicinity for a pit stop! After spending over ten years living outside of Northern Ireland and away from family and friends, who are very important to me, it is lovely to have the weekend to meet up. It is hard to beat a

Are working mums in greater need of state support than stay at home mums? My mum made a choice not to work, and I think that is the key thing – that mums have the option of either staying at home with their children, or going out to work. There are a number of factors influencing this decision and unfortunately it is often down to the finances and in particular, the affordability of childcare. In my experience, diversity in the workplace is vital in any business and crucial in seeking to grow a vibrant economy. With that mind, it would be great to see subsidised childcare particularly for mums in lower paid employment but who are interested in retraining to develop new skills to enhance their employability in the future. Do you think you will always remain in employment? Yes I do. I enjoy working and the social interaction that it offers, and I thoroughly enjoy my role at ASM which is a great mix of technically challenging client work, working within a multi-disciplinary team, combined with the opportunity to grow the business through a range of business development activities. I have been a member of the Institute of Directors in Northern Ireland for a number of years, and was recently elected to the Main Committee. Through this role, I fully appreciate the importance of director development, good corporate governance for businesses, and building board competencies. With that in mind, one of my work goals for the future is to take on a number of non-executive director roles.

by James Stinson

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[columnist] james stinson, business class motoring writer

FAST AND FABULOUS Very British and very good, the latest Jaguar F-Type drives as well as it looks, writes James Stinson.

hances are you won’t have heard of Ian Callum but you may be a fan of his work. He’s designed some of the most striking sportscars of recent times – among them, the Aston Martin DB7, Vanquish, and DB9… and this glorious Jaguar F-Type. These long nosed, low slung creations use a design language that is now quite recognisably British, much in the same way their predecessors were back in the 50s and 60s. But for the first time, perhaps since the famous E-Type, Jaguar now has a car that drives as well as it looks. The F-Type is taut and agile, corners beautifully and has the performance to match. Since it was launched in 2013, Jaguar has sold more than 17,000 worldwide, helping to cement the car maker’s growing reputation as a premium but accessible brand. And there are some notable additions to the F-Type range this year, including four-wheel drive and a manual gearbox that should broaden its appeal further. Earnest drivers may sneer at the idea of having four-wheel drive (available as a £5,000 option on some models) but you can’t underestimate the benefits for the rest of us, especially in greasy conditions. Allied to a new Intelligent Driveline Dynamics system, a form of automotive electronic trickery, Jaguar says the All-WheelDrive versions “maximise grip, while retaining rear-wheel drive feel”.

As well as the standard eight-speed automatic gearbox, you now have the option of a six-speed manual gearbox on the V6 rear-wheel drive models, which is £1,800 less than its auto counterpart. Though cheaper, with its lightning quick changes the automatic/paddle shift variant is still better. Under the bonnet, the engines are unchanged. There is a choice of two supercharged 3.0-litre V6 engines with either 340bhp or 380bhp (the latter in S form) or the flagship R with its 550bhp 5.0-litre V8. This thumping unit, previously fitted to the Coupe only, is now found in the Convertible R too. And gosh is this a quick car. In S form, the F-Type boasts a 0 to 60mph time of 5.3 seconds and a top speed of 171mph. In the flagship V8, those numbers improve to 3.9 seconds and 186mph. Prices start at £51,250, which is actually cheaper than a similarly powered and equipped Porsche Cayman. At the top

of the range, the F-type R starts from £86,800, slightly more than a Carrera S but considerably more powerful. Ian Callum’s terrific design remains unchanged and is dramatic as ever, both in coupe and soft-top form. The F-Type V6 and V6 S have alloy wheels and a nice twin-exit central exhaust, while the V8 R looks even bolder, thanks to its larger wheels and four-exit exhaust. Four-wheel drive cars get a bigger power bulge on the bonnet and new air vents, while a Sport Design Pack beefs up the styling – it’s standard on the R, optional on the other models. There are more neat touches inside. For starters, the pop-out door handles add a sense of occasion; then, when you press the starter button, the air vents rise from the top of the driver-focused dash. The joystick-style gearlever and toggle switches all feel special, while a revised touchscreen system is far better than before. There’s no doubt the F-Type is a real head turner just like other recent British sportscars to come off Ian Callum’s drawing board. But what’s changed is the attention to detail beneath the skin. The driving experience and overall quality is now a match for anything that Germany has to offer.

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[columnist] james stinson, business class motoring writer

New Volvo This car’s rolls into town electric The market for big SUVs is very crowded and competitive these days. And this new XC90 will spice things up even more. It’s not just a refresh of the old XC90 but a completely new car based on an all-new platform, which has all-new suspension, electrics and driver interface, and new powertrains. There are three rows of very habitable seats, and luggage space behind that. It’s also endlessly versatile, thanks to any number of sliding, reclining and folding permutations. All seats have a surprisingly good view out too, thanks to their careful ‘theatre’ positioning and glassy sides. There’s a choice of three engines to choose from: a twin turbo 2.0 litre diesel which pumps out a respectable 225bhp; and a V6 petrol, which is turbo and supercharged, and has 320bhp on tap. Both are mated to four-wheel drive. There’s also a hybrid four-wheel drive model, known as the T8, that pairs the same 320bhp petrol with electric drive to the rear. By doing away with the propshaft there’s room in the spine of the car for a plug-in hybrid battery. The result is 400bhp performance in one mode, and up to 25 miles of pure EV range in another. Orders are being taken now with prices starting at £45,550 for the ‘D5’ diesel, climbing to £63,550 for the top-spec ‘T8’ hybrid.

Volkswagen’s new plug-in hybrid Golf GTE has just landed in showrooms and is available from £28,035, which includes a £5,000 government subsidy. It’s available as a five-door only, and uses a 148bhp TSI four-cylinder petrol engine mated to a 100bhp electric motor. Operating in unity, these two motors power the GTE from 0-62mph in 7.6 seconds and on to a top speed of 138mph. The official fuel economy figure is 166mpg, and CO2 emissions are rated at just 39g/km. In its fully electric mode the GTE has a 31-mile electric range, and the 8.8 kWh lithium-ion battery takes 3.75 hours to charge up from the mains, or 2.25 hours from a domestic wallbox. And perhaps best of all, there’s also an ‘e-Manager’ which can control the car’s charging and also pre-heat or cool the interior via a smartphone app…

Cars are older and smaller now and it’s the economy’s fault If you want to know how the economy is doing then check out what cars people are driving. Ulster Bank Economist Richard Ramsey has done the numbers, comparing the car market now to the pre-recession days of 2007 and, among other things, has found that cars are, on average, smaller and older than they were then. Today our car parks feature more Korean brands and fewer French and Japanese cars and there aren’t the same numbers of Porsches and Aston Martins which were evident during the height of the property boom. Back in 2007, it was said that Northern Ireland had more BMW 3 Series per head of

population than anywhere outside of Bavaria. Not so now, says Richard. Overall, Northern Ireland new car sales fell by close to one third from their 2007 peak, though they have recouped 45 per cent of this decline since then. As a result, new car sales in 2014 were 17 per cent below the 2007 peak. Looking ahead, Richard expects the Korean brands, such as Hyundai (pictured), will face stiffer competition from their Japanese counterparts as the land of the

rising sun benefits from a much weaker currency. What is certain is that the focus on efficiency and value for money, so evident in recent years, will not go away.

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[profile]

In profile: Tony McKeown, Sales and Marketing Director at CRASH Services. Tell us a bit about CRASH Services. CRASH is one of Northern Irelandâ&#x20AC;&#x2122;s leading accident service providers. We assist motorists involved in road traffic collisions by offering a one stop shop. This includes vehicle recovery, organising repairs, providing replacement vehicles, helping with insurance paperwork, medical claims and legal assistance. Our service is free to any motorist as we recover our costs from the insurers. We also offer a membership based UK and Ireland wide breakdown recovery service. We deal with around 7000 collisions and breakdown incidents per year across the island of Ireland. What does a typical day involve? Like most people working in a Sales and Marketing role, there is no typical day which is one of the reasons I love my job. My week is split between visiting customers, suppliers and being office based. We are working on a number of exciting projects at the moment and there is a lot of planning required to ensure they launch successfully. This includes launching a new website for young drivers called New Driver NI.com.

of our customers will make their first contact by phone. From the initial call, our team focus on helping our customers with anything they need. In particular, our customers depend on their vehicle and we will ensure they are provided with a replacement as quickly as possible to keep them mobile. What differentiates CRASH Services from other businesses dealing with accidents? Over the last 19 years we have constantly brought innovation to the accident management sector. We offer the most comprehensive service to meet all the needs that motorists could have after a collision. In recent years, we have introduced Collision Investigators, who can visit the scenes of incidents and gather information to help establish liability. This has proved to be an extremely valuable service.

How has the company been able to expand as rapidly as it has? There are lots of reasons but the simple answer is our people, we are very fortunate that we have a developed a great team at CRASH. We now employ almost 50 people and we have a shared ethos of What are the most enjoyable and most challenging aspects of helping our customers. Many have progressed to senior roles within your job? the business in the time they have been with us. We review our customer feedback report at the end of each month, it is a great feeling to read the comments that we get. Customers What advice would you give to someone who has just been in regularly highlight how well they are treated by our staff and the an accident? help we provide at an often traumatic time. The main challenges are We would ask them to call our 24 hour helpline on 028 90 660244 prioritising what needs to get done each day. for immediate assistance. All collisions are different but we provide a simple six step guide to follow which can viewed on our website What can customers expect when they visit CRASH Services? www.crashservices.com and we suggest everyone looks at this to We have branches in Belfast, Newry and Dundalk but the majority prepare themselves.

[SPONSORED FEATURE] home and work. As the full taxable benefit depends on the CO2 emissions percentage charge, employees should check that the offer of any free private fuel is worthwhile. In some cases both employees and employers can incur savings by not taking the free fuel option. The taxable amount is based simply on £21,700 (or £22,100 for the next tax year) multiplied by the same percentage as the car benefit, derived from the CO2 figure and fuel type. What is my taxable amount? Fuel benefit is based on CO2 emissions percentage and fuel type.

Is free fuel right for you?

For example; VW Golf Match 1.6 tdi 5dr with CO2 99g/ km Taxable Benefit £3255 which equates to £651 tax payable via PAYE for a basic rate tax payer (double that for higher rate) In this example it means a driver doing less than 10k private miles per year could be better off not taking the free fuel option.

Not everything that is ‘free’ is always good value! Employees will be taxed if their employer provides any free fuel. This could

Please contact David McEwen at Agnew Corporate for more information. 02890386600.

be as a result of using a company fuel card and not repaying the private usage element, or if the employer pays for travel between

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[columnist] Neasa Quigley, Joint Head of Corporate Department, Carson McDowell

Catch the wave of opportunity

Expect more investment in Northern Ireland in 2015 says Neasa Quigley.

ne of the more surprising statistics I saw quoted last year was the fact that only 3 per cent of Northern Ireland’s businesses are exporters, with half the region’s manufacturing exports accounted for by just 10 companies. That may sound like grim news but I prefer to think more positively about it. Despite our modest export performance, the economy has managed to grow – albeit at a slower rate than the other regions in the UK. So consider the opportunity that lies ahead for significant and sustainable growth of the Northern Ireland economy, if our predominantly family-owned businesses spread their wings and expand into overseas markets. Another opportunity to be grasped and exploited is Northern Ireland’s inherent innovative prowess for innovation. Northern Ireland has one of the fastest growing knowledge economies in the UK, according to research commissioned by the Northern Ireland Science Park. According to its Knowledge Economy Index, it is a sector that has grown by 33 per cent in the past five years. The definition of “knowledge economy” includes research intensive sectors where “new ideas, new products and new processes are key determinants of competitiveness”. Northern Ireland has a rich heritage in all these areas and Ballymena-based Wrightbus is a prime example. Employing almost 2,000 people, it is a family-owned business that combines the key ingredients of innovation and engineering excellence together with export sales to impressively successful effect. Many of the big ticket M&A transactions in recent years have happened in this sector of the economy and almost invariably attract international investors to these shores. In 2013 we saw software giant Intel acquire local software company Aepona and in the first half of 2014, NASDAQ-listed Brunswick Corporation – our client – acquired Whale, the Bangor-based water, waste and heating systems manufacturer. Another client, Tyrone-based specialist materials handling manufacturer Telestack, was sold to NASDAQlisted Aztec Industries for $36m. And Northern

This international aspect to M&A activity is a trend that endured through the leaner M&A years particularly when bank funded acquisitions had virtually disappeared and in my view it’s a trend that is set to continue. In the tech and engineering sectors we can expect more interest from the US as cash rich companies continue to look for acquisitions that represent good value for them and can provide added value to their business. I see this as an opportunity not only for those shareholders achieving an exit but for the wider

“In the tech and engineering sectors we can expect more interest from the US as cash rich companies continue to look for acquisitions that represent good value for them and can provide added value to their business.” Ireland is not just on the radar of US companies. We recently advised on the acquisition of Belfastbased cladding solutions manufacturer InterWeld by Swiss firm Sulzer, a deal which secured 50 jobs. The expected devolution of corporation tax powers is bound to bring more M&A activity as the potential of a lower rate than the rest of the UK adds to the attractiveness of the region. Multinational corporations rarely buy businesses purely for tax reasons, but having a lower tax rate on offer is certainly not going to hinder activity.

90 NI Chamber

Northern Ireland economy as investment is pumped into the newly acquired local businesses. Aepona’s workforce grew by 21 per cent in the year after acquisition and Whale’s Chief Executive Patrick Hurst said its acquisition has provided greater security and opened up direct access to the largest markets in the world. With a Budget now agreed at Stormont, the opportunity to really transform our economy by encouraging business owners to expand operations into export markets, facilitating our

innovators and entrepreneurs to develop the knowledge sector and attracting international investors must be a priority. But without political stability in relation to highly emotive matters like parades and flags and public sector cuts, the opportunity that exists to really shift Northern Ireland up a gear and re-balance the economy from public to private sector is at risk of being squandered. Invest NI has been at the forefront of stimulating economic activity in Northern Ireland for many years. Some prominent commentators have called for a re-orientation of Invest NI’s priorities from the recession period priority of keeping businesses going to an emphasis on growth, value added processes and knowledge economy based projects that will feed demand for a more skilled workforce earning higher wages. We have already seen signs of changing priorities in Invest NI evidenced by the strong pipeline of announcements in the legal services, financial services and ICT sectors by foreign direct that attract higher than average incomes. However, if we are to really lift the economy the emphasis must remain on producing goods and services for sale in world markets and Invest NI can play a pivotal role in exploiting that opportunity. Northern Ireland has huge potential but we need all the stakeholders – politicians, funders, universities, business owners, innovators and employees – working towards that same goal, leaning-in to make it happen.

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NI Chamber 91

[lifetsyle] James Stinson, Travel writer

Up in the air James Stinson examines the implications for Northern Ireland if IAG, owner of BA, buys Aer Lingus.

summer – out of a fleet of 47. And this summer it will offer just five services from Belfast out of more than 75 flown by the airline across its network. Crucially though, one of these is the three times daily service to Heathrow, in competition with the six times daily service offered by IAG-owned BA. Any guarantees given to the Irish government will probably cover Dublin,

“While traffic to other London airports has grown significantly over the last 20 years, Heathrow remains the most important airport on these islands for connecting to destinations around the world.”

IAG Chief Executive, Willie Walsh.

t the time of writing, Aer Lingus shareholders, including the Irish government and Ryanair, were still mulling over IAG’s £1.1bn takeover offer. It may get the go-ahead, it may not, largely depending on what guarantees IAG Chief Executive and former Aer Lingus pilot Willie Walsh is able to give the Irish government on maintaining connections to Heathrow from Dublin, Cork and Shannon. Since a deal was first mooted late last year, the main stumbling block has always been the perceived threat that a takeover would have on these services. While traffic to other London airports has grown significantly over the last 20 years,

92 NI Chamber

Heathrow remains the most important airport on these islands for connecting to destinations around the world. The fear is that IAG will buy Aer Lingus and use some of the latter’s precious take-off and landing slots currently used for services to Ireland to instead serve more lucrative longhaul destinations. IAG has sought to soothe these concerns with some modest assurances, including guaranteeing services for at least five years, and may go further to get a deal over the line. Aer Lingus’ presence in Northern Ireland is a modest part of the company’s overall operation, with two planes based at Belfast City in the winter, rising to three in the

Cork, and Shannon only. All that IAG has said is that it has “no current plans” to change its Belfast services which means anything is possible if and when a deal gets done. Meanwhile, last month Aer Lingus appointed a new Chief Executive, Stephen Kavanagh. He has worked for Aer Lingus since 1988 and has been its Chief Commercial Officer since 2009. Mr Kavanagh takes up the post as the takeover bid by IAG, which also owns Iberia of Spain, rumbles on. The Aer Lingus Board has already given its qualified support for IAG to seize control of the profitable airline. The sale to IAG is subject to the Irish government and Michael O’Leary’s Ryanair agreeing to sell their shares in Aer Lingus. Aer Lingus Chairman Colm Barrington has said the Board was of the view that the prospect of becoming part of IAG had a “compelling commercial logic”. We await the outcome.

[feature] CARL JOHANNESSON, HEAD CHEF, THE BAR+GRILL AT JAMES STREET SOUTH

CULINARY DELIGHTS

Steak has a reputation for being tricky to do well at home and remains a treat for many of us. It starts at the butchers on what makes the ‘perfect’ cut and it gets even trickier when cooking, with requests of WELL DONE, MEDIUM RARE or still mooing on the plate! Acclaimed chef Carl Johannesson from The Bar + Grill at James Street South in Belfast, lets us in on his secret of the perfect steak accompanied by baked chips and bearnaise sauce.

and never over crowd your pan as you will lose too much heat and you will not get a good char on the outside. For an average size rib eye (300g) cook for 6-8 minutes for rare, 8-10 minutes for medium and 10-12 minutes for well done. For a fillet of 350g we would cook it 10-12 minutes for rare, 12-14 minutes for medium and 14-16 minutes for well done. The last bit is key, always leave the meat to rest for 5-10 minutes before eating. Bearnaise Sauce 225g butter 2 tbsp malt or white wine vinegar 6 white peppercorns 1 tbsp water 2 egg yolks 25g fresh tarragon Salt and pepper Melt butter in the pan, leave it to cool slightly, if it’s too hot the sauce will curdle. Don’t use the solids which form at the bottom of the pan, these can be discarded, only use the clarified butter. Boil the vinegar with the peppercorns, reduce by half. Add the cold water to cool and drain through a sieve. Add the egg yolks and whisk together. Place the bowl over a pot of hot water and whisk to smooth ribbon texture. Once this stage has been reached, remove the bowl from the heat and continue to whisk, slowly adding the warm clarified butter. When all the butter is added and whisked in, the sauce should be a thick consistency. Add one teasp Dijon mustard and season with salt and pepper. Add in chopped tarragon. Baked Chips

HOW TO COOK THE PERFECT STEAK WITH BAKED CHIPS AND BEARNAISE SAUCE The key to cooking a great steak starts before you even enter the kitchen. Buy the best bit of meat you can and always go for at least 1 inch thick. Once you are ready to cook, the best place is the BBQ but if it is not BBQ weather, use a griddle pan which will give you the char marks across the meat. Your meat should be at room temperature and

well-seasoned with salt and pepper. Place your pan on high heat with the extractor on in order not to smoke anyone out of the kitchen. If you are using a BBQ do not oil your meat, just season. Place your steak in the pan and leave on one side for a couple of minutes then turnover. Carry on turning over until it is cooked the way you like it

2 tbsp olive oil 1kg potatoes, skin on but cleaned and cut into chips 6 cloves garlic, fine dice or grated Start by pre-heating the oven at 190 degrees C and make your chips from the potatoes. I recommend using Maris Piper potatoes and cut the chips about 1cm thick for the perfect mix of floury potato in the middle yet a nice crisp skin on the outside. Add the oil to the roasting tray and add in the chips and mix with onion and garlic. Mix thoroughly and place in oven for 30 minutes turning over at the 15 minute mark.

NI Chamber 93

[columnist] rebecca mckinney, personal stylist and radio presenter

PARALLEL LINES THE STAR IS IN THE STRIPE THIS SEASON SAYS REBECCA MCKINNEY.

This month, I wanted to look at a trend that is always in style for spring time, but give it a twist for 2015. Stripes never go out of style and this year is no exception. Reinvent them with pastel shades, colour pops and fabulous accessories for a look that screams designer labels, while being very much

focused on high street prices. The common stripe, made famous by 1960’s dancers, sailors and jailbirds, has had a reinvention this year and should be a common occurrence in every fashionista’s wardrobe. Personally, I have always been obsessed with stripes, so you can imagine my delight that this

spring – stripes (in any direction) are the right way to go! On the high street, stripy separates feature all the way from Topshop to Tesco – so if you’re a girly girl or simply fancy styling it up for the weekend, these are the only outfits you’ll need to ensure you remain bang on trend.

The Friday Night Cocktail Outfit If a head to toe striped look is too much for you, then why not opt for some accessories. I love this striped bag from New Look that really gives an edge to this fashion forward date night look. Throw a Topshop little black dress and caged heels under this stunning coat from Phase Eight. Classy with the ultimate stylish edge!

The Weekday Workwear Outfit A Breton stripe t-shirt looks great with skinny jeans, but even better with a high-waisted midi skirt. The bright pink version from Monsoon is so on trend for this season and it looks amazing with a statement necklace from House of Fraser and cute peep-toe heels from Office. Carrie Bradshaw eat your heart out!

94 NI Chamber

The Saturday Afternoon Look Pastels and stripes are one of my favourite combinations and a cosy jumper will be perfect to throw on for looking stylish while running around the shops. The key denim of the season is white, so go for a slightly ripped jean to add a cool, quirky edge. I really love this gorgeous pastel blanket coat from Jaeger. Weekend perfection.

The Chic Weekend Outfit A trench coat is made to be worn with a Breton stripe. I adore this cute little tunic dress, teamed with a chic, belted coat from Top Shop and quirky statement clutch from Accessorize. These pieces will work separately for you, but look effortless when styled together! For lovers of all things nautical or simply a fan of the ‘less is more’ look – make the Breton stripe work hard in your wardrobe this Spring. Nothing says ‘easy, breezy fashion’ like some of these looks and I’m in love with this quirky classic.

The Date Night Look A midi skirt is the ultimate date night outfit, stylish enough to wear from work to the bar, but hot enough to make an impact. I love this version from M&S, especially when it’s styled with a colour pop of new season yellow. This chic waistcoat from Tesco will not hang around for long on the shelves, so grab it before I do!

Happy shopping! Lots of Love, Rebecca xx Catch Rebecca co-hosting the Cool FM Breakfast Show with Pete Snodden every weekday morning from 6am-10am and check out her website www.rebecca-mckinney.com for information on personal and commercial styling or event hosting.

NI Chamber 95

[Columnist] jim fitzpatrick, INDEPENDENT BROADCASTER

sign off... No short cuts ahead Politicans aren’t facing economic reality by living in ‘Neverland’ says Jim Fitzpatrick.

It chose the only real option. It agreed a package of extra measures – paid for by borrowing – that will soften the blow. The problem now, however, is that it continues to tell the electorate in Northern Ireland that no-one will be worse off. There’s an important qualification, however, in the language. There will be no reduction in benefits “under the control of the Assembly”. This qualification, suggests the party has belatedly accepted the limitations of Stormont’s remit on the issue. But it’s doing a poor job of explaining this to voters. As a result of this timidity, combined with the opportunistic attacks by other parties who somehow claim they would stop the cuts altogether, Stormont remains caught in Neverland politics where nothing bad ever happens, cuts aren’t an issue, and big ticket items like corporation tax reductions can

he Stormont House Agreement reached in the dying days of 2014 was, in one particular way, a potentially historic shift in Northern Ireland politics. The key difference, compared to all other political deals since Good Friday and even before, was that economic priorities dictated the terms. For once, it seemed, the politicians had put the economy first. On the back of Stormont House came the agreed budget and the move by Westminster to finally legislate for the devolution of corporation tax – a move that many hope can ultimately provide the private sector stimulus the Northern Ireland economy requires. The deal also included important compromises over welfare reform. Although welfare is technically a devolved matter, Stormont has hitherto wisely avoided taking charge of this expensive issue and followed Westminster rules which mean the cost is met through Annually Managed Expenditure and does not impact on the Executive’s bottom line. However the welfare cuts dictated by the Coalition Government’s reform agenda will

96 NI Chamber

hit hard in Northern Ireland and have been a cause for concern for many of the parties and Sinn Fein in particular. Rather than admit that Stormont would be insane to take charge of welfare and reverse the cuts – as this huge expenditure would have to be met from other budgets like health or education – Sinn Fein, and other parties, have insisted they will resist the changes and protect the vulnerable. This is laudable, but also unachievable. A more honest and open approach would have been to admit the limitations of devolved powers and work hard to mitigate the effects through some agreed flexibility from the Treasury based on Northern Ireland’s particular needs. At the Stormont House talks, Sinn Fein finally accepted that the reform agenda, and consequent costs, would not go away. It faced the choice of collapsing the institutions over its refusal to accept a policy that would be swiftly implemented under direct rule (a pyrrhic victory), or doing a deal that accepted the cuts but sought to mitigate their worst effects.

“Selling Belfast Port, which appears to be the favoured option, might raise some money in the short-term. But dumping assets to pay for ongoing expenditure is not a sensible policy.”

happen without any pain elsewhere. It doesn’t bode well for the very difficult decisions that will necessarily accompany a decision to reduce corporation tax. Selling Belfast Port, which appears to be the favoured option, might raise some money in the shortterm. But dumping assets to pay for ongoing expenditure is not a sensible policy. So, Stormont House may have marked a potentially historic shift by prioritising the economy. But the behaviour of the parties suggests they’ve signed something they didn’t read.

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MARCH/APRIL 2015 ISSUE 9

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