CONTENTS
46 XX
Editor’s note Margaret Canning
FEATURES
mcanning@belfasttelegraph.co.uk
W
11 Analysis: Private equities could be crucial to Northern Ireland’s economic stability 14 Analysis: Angela McGowan talks about the gender balance in the workplace 22 Analysis: Women shouldn’t be put off taking a position in the building sector 26 Analysis: Never stop learning when it comes to boardrooms
FOCUS 28 SME Watch: The NOW group boss who is helping people with disabilities get into employment 32 Inside report: The number of people who are self-employed are on the rise 38 Infrastructure: Our airports are facing up to a crucial time 42 Service industry: The drinks trade might be improving but it still needs support
OFFLINE 46 Out to Lunch: Dining out with Colin Reid, the chief executive of Total Mobile 50 Motoring: The new Mercedes GLA takes to the road 50 The Chairman: The inside track on business
COVER STORY GIRL POWER The female editors who are speaking up for the fairer sex when it comes to business
Clockwise from top left: Grainne McGarvey, managing director of Pulse PR; Roseann Kelly, chief executive of Women in Business, Kirby O’Connor, director of GOC Estate Agents Heather Hawkins, food development manager, Moy Park
46
26 Business Month 124-144 Royal Avenue, Belfast, BT1 1EB Editor - Margaret Canning
Sales manager - Jackie Reid Contact: +44 2890 264070 or email: j.reid@belfasttelegraph.co.uk
58 XX Design and production: RE&D Business Month is an imprint of Independent News and Media (NI)
ELCOME to a (mainly) female Business Month as we assemble four businesswomen to help edit our magazine. The visibility of businesswomen in media is often low. For that reason, we’ve filled our regular slots with women, from dairy queen Lady Dufferin, to Jayne Brady, manager of Kernel Capital in Northern Ireland and an engineer by training. We’ve cheekily routed the boys from our ‘ask the expert’ page and installed three female experts instead. After all, women are rising to the top of finance, law and other business services — so shouldn’t we reflect that? We realise, too, that no-one wants to be preached at, and Business Month does not want to push a po-faced, predictable agenda. And we are well aware that having an all-female issue is flying in the face of the argument for gender diversity and avoiding the dominance of one sex over the other. But we decided that for one month only, we would focus on the businesswomen in our midst, because very often we don’t, and make a conscious effort in future issues to feature more women. The wider media agenda is pushing us towards this. The CBI has pledged to ensure that 30% of its commitees will be made up of women. We say congratulations to everyone — and would add that we’re proud to do our bit.
6 October 2014 BUSINESS MONTH 3
NEWS BITES
2.8m
employment in UK tourism in 2013
1.13m
part-time workers in UK tourism in 2013
72K
increase in new parttime tourism workers ‘09 to ‘13
1.24m
workers who would like more hours in tourism
229K
self-employed people in culture, sports, recreation & conferencing Source: Tourism Employment Trends ‘09 to ‘13, Office for National Statistics
16.6%
increase in temporary employment in tourism
IT sector boost as 50 highly paid jobs arrive FIFTY high-value IT jobs with an average salary of £57,000 — more than three times the Northern Ireland private sector average — have been announced in Belfast. The jobs, which will generate £2.8m in salaries over next three years, are being created by IT firm Version 1 in the Gasworks. The company said the workers would be providing “frontline IT services” for customers of the cloud-based firm, which include Land & Property Services and the energy firm Firmus. John Moore, regional director of Hays Recruitment, said that within the IT sector the demand for staff was “unparalleled”. And he added that with the need for talented staff accelerating much faster than universities could cope with, there was a “war for talent” in the sector, which is good news for potential recruits.
Willowbrook enters convenience market A CO Down food company has launched a new venture in the growing high-quality convenience food market. Willowbrook Foods in Killinchy, best known for making bagged lettuce, has established Willowbrook Fine Foods to make freshly cooked meal accompaniments. John McCann, the director of Willowbrook Fine Foods, has more than 40 years experience in the food business. Willowbrook has so far been known for making fresh pre-packed vegetables, salads and potatoes, and the company employs around 200 people. Mr McCann said: “Over the last number of years, we have seen an explosion of convenience eating right across the UK, but we believe that convenient doesn’t have to mean
TOP OF THE WORLD: Marty Walsh, the Democrat Mayor of Boston, Massachusetts, has visited Belfast — and he got a taste of home when he visited the headquarters of Liberty IT, part of Boston firm Liberty Mututal, in Northern Ireland. Mayor Walsh (centre) was joined by James McGlennon, executive vice president and chief information officer of Liberty Mutual Insurance (r), and William Hamilton, managing director of Liberty IT in Belfast. The IT firm held a reception for Mayor Walsh during his recent visit unhealthy and tasteless. “The Willowbrook Fine Foods range has been created by our new product development team in our Willowbrook Foods innovation centre, and it uses the very best of local produce.” The company revealed its new range was already attracting strong interest from retailers. The line includes potato and leek gratin, honey and mustard parsnips and a special Christmas range promising Brussels sprouts ‘with a twist’.
Lidl opens its 37th Northern Ireland store THE march of discount retailer Lidl continues in Northern Ireland as the firm opened up a store in Lisburn. The Bentrim Road store features grocery and non-food lines at the German firm’s signature low prices.
4 BUSINESS MONTH 6 October 2014
A bakery will produce artisan breads the company said. Lisburn is Lidl’s 37th store in Northern Ireland — and another in Belfast’s High Street opens soon. Barry McConville, store manager for the new Lisburn outlet said: “I am looking forward to welcoming all of the Lisburn residents to our new store. We have some fantastic items on special offer over the next few days.” The business has been increasing its market share in the UK and Republic. According to the latest figures from KantarWorldpanel, it now has a 3.6% share of the UK grocery market.
Espresso on the fast track to more growth INDEPENDENT coffee firm Ground Espresso will soon be brewing at three more Next stores, creating 100 jobs in the next year.
Marking its lucky 13th birthday, the Northern Ireland firm, fronted by husband and wife Karen and Darren Gardiner, said the shops would be opening here and in the Republic. Along with a new outlet in Next in Blanchardstown — the first in the Republic — there will be others in Newry and Newtownabbey, with another six yet to be finalised. The growth of the 11-shop business, which started in Coleraine, follows the recent £100,000 facelift to its two existing concession outlets at Waterstones and Next in Belfast city centre. Mrs Gardiner said new branches would solidify the firm’s relationship with the fashion retailer and would bring the workforce to more than 220 people. “This is a significant investment and we look forward to further investment and job creation in the coming months,” she said.
NEWS BITES
Jobs boost means NI is ‘growing places’ PAUL GOSLING
▲ CURRENCYRATES
Sterling has risen in value against the euro from less than €1.18 last November to nearly €1.28 this September
▲ HOUSE PRICES
Residential property prices in the Irish Republic rose 15% in the last year
▲ PLANNING
Planning applications increased 13% in the first quarter of this year
▲ GDP
Britain’s economy expanded by 0.9% between April and June, compared to previous estimates of 0.8%
▲ NI HOUSE PRICES
Average prices rose 10.2% to £119,782 in September, according to the Nationwide Building Society
t INFLATION FALLS
Inflation, as measured by the CPI, grew 1.5% in the year to August 2014, down from 1.6% in July
t CANADIAN IMPORTS
Canadian imports to the EU28 were €27.3bn in 2013, down from €30.3bn in 2012
t DOLE CLAIMANTS
The numbers of people claiming unemployment benefit fell by 600 to 52,200 during August
t MANUFACTURING PRICES
Firms told the Ulster Bank PMI that prices in August fell at their fastest since April 2013
t CAR SALES
New motor sales in NI were down nearly 3% in August on the same time in 2013
t MORTGAGE APPROVALS
There were 64,212 approvals for house purchases in the UK in August, compared to an average for the six months before of 65,738
A SERIES of job announcements has generated extra confidence in the Northern Ireland economy. In two major announcements by law firm Baker and McKenzie and accountants Deloitte, nearly 600 jobs will be created in Belfast. Almost 400 more are being created through investments from SSE Airtricity, Puppet Labs and Version 1. Away from the capital, some 348 jobs are being created in Craigavon through an expansion by Almac. An additional 47 jobs will be located at Greyabbey, Co Down, at Magellan Aerospace while 35 positions are being created in Enniskillen by Webtech and 31 jobs in Lisburn with Smiley Monroe. Unemployment in Northern Ireland was already showing positive signs before the announcements. Over the last year there has been a drop of nearly 10,000 in the unemployment claimant count. In the period May to July of this year, unemployment fell by 0.3% to 6.6% — though this is still above the UK national rate, which has now fallen to 6.2%. Nigel Smyth, director of CBI Northern Ireland, said the employment market is encouraging. “The growing economy is feeding into new jobs and employment is now back to levels last seen in 2009 — with 712,500 employee jobs in June 2014,” he says. “The growth in jobs is being
Growth spurt: A series of jobs announcements has given the Northern Ireland economy a welcome boost driven by the private sector with over 16,000 new jobs created in the last 12 months, offsetting a reduction of around 3,000 jobs within the public sector. While the majority of jobs are being created in the services sector, it is encouraging that manufacturing and construction are creating jobs too. “With a continuing high lev-
el of economic inactivity and a claimant count which is the highest of the UK regions, including over 14,000 under 25s, it remains essential that we focus on growing the economy. We must also ensure our young people have access to quality labour information, to enable them to make informed choices on the career opportunities available.”
Wage growth outstrips rest of UK WAGE growth in Northern Ireland outstripped that in the rest of the UK in the last year, according to latest UK Job Market Report published by Adzuna. However, average wages remain lower in Northern Ireland than in any other UK region. Average salaries for advertised vacancies in Northern Ireland reached £29,682 in August, a rise of 7% in the last year. This was the UK’s third highest wage rate increase,
6 BUSINESS MONTH 6 October 2014
exceeded only in Wales and the South West of England. Average wage growth in London was a mere 0.6%, but average pay in the capital is more than £42,000. Across the UK, wages have risen by an average 1.9% in the year, to £34,463. Andrew Hunter, co-founder of Adzuna, said: “Much of the UK’s economic good news has arrived on the back of high levels of job creation, but this has often been at the expense of low wages. However, as companies enjoy more profit,
salary growth is finally starting to outpace inflation. A real wage rise marks a significant turning point in the road to economic recovery.” The rise in wages represents the first occasion since the recession that pay increases exceeded the rate of inflation. Higher pay has been driven by significant additional demand for staff. Advertised vacancies in the UK rose 30% in the last year, with UK job growth strongest in the manufacturing and construction sectors.
NEWS BITES
Bank expects NI growth to accelerate DANSKE Bank expects Northern Ireland’s recovery to accelerate in the coming months. It has revised this year’s growth prospects from 2.4% to 2.6%, with further growth of 2.3% next year. The predicted higher levels of growth reflect several positive trends, including rising employment levels, house price rises, stronger credit conditions, improved confidence and economic recovery in the Irish Republic. Danske Bank chief economist Angela McGowan says: “It is a case of ‘so far so good’ for the local economy in 2014. In particular, the recent improvements in the housing market have provided a welcome lift for the construction sector and helped to boost consumer confidence. Over the year to quarter two we saw new jobs being created in a variety of sectors including agriculture, manufacturing, construction and services, indicating that the recovery is now much more widespread across Northern Ireland’s private sector. “There is a good story to tell around the private side of our economy as the vast majority of sectors are now expanding again. The overall challenge is of course to grow the private sector significantly more — but that takes time. Regardless of the political environment, policy makers in Northern Ireland must stay close to the economic script in terms of focusing on skills, investment, enterprise and infrastructure to ensure that Northern Ireland’s economy can withstand any political storm.” Accountancy firm PwC confirmed Northern Ireland’s economic improvement, with the caveat that growth is “patchy, slow and vulnerable”. Its latest Northern Ireland economic outlook reports that overall employment rose by 20,000 in the two years to March 2014.
Tories in call to review Barnett formula THE clear majority for the ‘No’ campaign in the Scottish independence referendum has led to strong calls within the Conservative Party for a review of the Barnett formula. Under the formula, Northern Ireland receives significantly more than England per person for the delivery of public services through grant to the devolved governments. In Northern Ireland, some £10.876 was spent per person on public services in 2012/13 year. In Scotland the figure was £10,152, in Wales £9,709, while in England it was just £8,529. The intention of the Barnett formula — devised by former chief secretary to the Treasury Joel Barnett in the 1970s — was to provide a
fair financial arrangement for all UK nations, reflecting the higher cost of public services where populations are more geographically spread and suffering higher levels of deprivation. Several prominent Conservatives, led by London mayor Boris Johnson, have challenged the current grant support provided through Barnett, believing it treats England unfairly. A reduction in grant under the Barnett formula could accompany greater tax levying powers for Scotland and Northern Ireland. William Hague, the leader of the House of Commons, is reviewing devolution arrangements for the four nations. He suggested that the Barnett
formula is likely to change as more tax levying powers are devolved. He said: “The Barnett formula becomes less relevant over time.” The TaxPayers’ Alliance — a lobby group with close connections to the Conservative Party — joined calls for its abolition, saying it “cannot possibly survive”. Its chief executive Jonathan Isaby said: “The Barnett formula…. is outdated and has spectacularly failed to address the extremely inequitable situation of taxpayers from one home nation heavily subsidising others.” PwC predicts a new formula will be devised, more closely connected to assessed ‘need’ — potentially reducing the block grant to Northern Ireland.
Ireland under international pressure over corporate tax PAUL GOSLING IRELAND is coming under increasing pressure from the G20 group of major economies and from the OECD — the Organisation for Economic Co-operation and Development — to plug loopholes in its corporation tax regime. Several nations, led by the US and Germany, are reported to be angry at Ireland’s use of its corporation tax system to encourage multinationals to locate their headquarters in the country. The US believes it has lost substantial tax revenues through US companies chanelling profits through Ireland. The target of international pressure is not so much Ireland’s headline CT rate of 12.5%, but the country’s acceptance of the ‘double Irish’ tax avoidance process. This enables companies to channel profits through both Ireland and an offshore tax haven, where no CT is charged. This enables corporates using the system to pay no tax on a large proportion of their profits. Ireland is also reportedly under pressure from both Germany and France to cut its
8 BUSINESS MONTH 6 October 2014
The US believes it has lost substantial tax revenues to Ireland headline CT rate. Germany’s current CT rate is 29.5%, in France it is 33.33% and in the
US 40%. The UK’s main CT rate is currently 21%, which falls next year to 20%.
NEWS BITES
Ebrington Barracks plan marches ahead DEVELOPMENT of the Ebrington Barracks site in Londonderry is moving ahead quickly, according to Ilex, the urban regeneration company responsible for the site. The Planning Service is opening its regional and ministerial headquarters on the site from this month, bringing 25 jobs to the site. In addition, a cafe will open in Spring and another building is currently out to tender for commercial use. The building used for the Turner Prize will reopen as a cultural hub, also in the spring. Market testing is underway to establish interest in converting existing buildings into a hotel. Property developers have also interested in another three buildings on the site for various purposes. Proposals for a Maritime Museum at Ebrington are in the process of finalisation. Ilex said that the site — which was gifted to the Northern Ireland Executive by the UK Government — is to be used primarily for job creation, rather than to raise revenue. It said that no project will be supported on the Ebrington site that simply displaces economic activity from elsewhere in Derry, with every approved project on the site adding value for the city. Restrictions will be placed on retail activity to ensure Ebrington does not compete against existing city centre retailers. It is intended that eventually 2,400 jobs will be located at Ebrington, of which 1,800 are to be new, additional, jobs for the city. Caoimhín Corrigan, Ilex’s director of Ebrington, updated businesses on progress on the site at a meeting convened by Londonderry Chamber of Commerce. He said: “We are more confident about moving projects forward because we now have more balls in play. So there is a better chance of getting more balls over the line.”
Check out Belfast - our hotels prosper as demand stays high PAUL GOSLING
HOTELS in Belfast benefited from stronger demand growth than in the rest of the UK in the first half of this year, according to analysis conducted by accountancy firm PwC. Demand in Belfast grew by 8.2% in the last year, well ahead of average 2.9% annual growth of the UK. Belfast had the highest demand growth of any major UK city. Average occupancy in the first half of this year was
10 BUSINESS MONTH 6 October 2014
80%, just below the 82% of the UK as a whole. PwC reports that Belfast hotels also performed well in terms of revenues per available room. On this measure, only Glasgow of the UK’s biggest cities outperformed this revenue growth. This was despite the number of hotel rooms available in Belfast increasing by almost 5% in the first half of this year — the biggest rise in any large UK city. However, demand in Belfast and else-
where flagged in July. Liz Hall, author of PwC’s Hotels Forecast 2015, said: “2014 saw a great start, but then hit some summer trading turbulence, but hotels are confident that the remainder of the year will get back on track. The wobbles in summer trading were a combination of fewer sporting events [and] the impact of the euro and dollar exchange rates making the UK and, London in particular, expensive.”
NEWS ANALYSIS
The missing ingredient
Private equity can become vital to Northern Ireland’s economy, says Alan Watts
I
T’S all about a pig — the film A Private Function, that is, featuring an A-list cast of British actors, a script by Alan Bennett and, of course, the all-important pig in the post-war rationing period. But the private function I want to talk about now is a very important one, but which isn’t that prevalent in Northern Ireland: private equity. Most people have heard of private equity but often only have the vaguest idea what it means. They think it’s something that happens in London a lot and doesn’t really affect us here in Northern Ireland. And they are sort of right in that we don’t have very much of it here. However, there are signs that more is being attracted, so perhaps it’s worth. Private equity is money which is invested in shares
or debt into a trading company which is not on the stock market. So it’s a broad term that includes angel investing, venture capitalists and funnily enough, private equity firms. However, most people use the phrase private equity or PE in reference to the companies which specialise in taking control of, or fully acquiring, companies. Another way to understand this is to say that venture capital funds tend to invest in companies at an early stage in their development when they often have little or no track record and are cash-hungry. However, private equity funds invest in more mature companies with the aim to eliminate inefficiencies and drive growth. Capital for private equity is raised to be used to fund new technologies, expand working capital within an owned com-
pany, make acquisitions, or to strengthen a balance sheet. These investments often demand long holding periods to allow for a turnaround of a distressed company or a liquidity event, such as a listing or sale to a public company. As I mentioned, there has not been much PE deployed in Northern Ireland. However that does appear to be changing. The most noticeable area is in energy. Examples include Budget Energy and Simple Power, while Craigahulliar Energy attracted funding by London-based Triple Point who have stated publicly that they are looking for opportunities in Northern Ireland. On a smaller scale, the Arran Angel Group, a group of angels working under the Halo umbrella, acquired bathroom manufacture Adamsez this summer in a deal which has all
the hallmarks of a classic PE investment. So it can be done here. But it’s still very much the exception. And one of the reasons is that we lack the dedicated PE funds locally. Elsewhere in the UK, local authority pension funds participate to a greater degree in regional PE funds. Here they rarely do. And with our oversupply of family run businesses — normally a great target for PE-driven improvement and growth — we could really use more PE. This is what Northern Ireland has been missing. Our situation may have improved a little recently, but we’ve a long way to go. And let me assure you that no pigs were injured in the writing of this column. More details about Halo, the NI business angels can be found at www.haloni.com.
6 October 2014 BUSINESS MONTH 11
NEWS ANALYSIS
The gender balance By Angela McGowan chief economist, Danske Bank
I
N a recent speech in Tokyo, Christine Lagarde, managing director of the International Monetary Fund (IMF), said that women’s involvement in economic activities could be a tremendous boon to the 21st century global economy. However, the IMF leader pointed out that empowering women in the workplace requires ‘changes in public policy complemented by changes in business culture’. In particular, Ms Lagarde challenged business to become more welcoming to women by making one obvious step “to make the work environment more flexible... moving away from the ingrained culture of lifetime employment and long working hours, and towards a system based more on output and performance”. Christine Lagarde’s decision to choose Tokyo to deliver a speech on the benefits of greater inclusion for women in the workplace is significant. Just last year Japan’s government made the promotion of working women a signature feature of its economic growth strategy. Traditionally in Japan women left their careers after having their first child — conversely, the majority of Japanese women who stayed in work chose to forgo having children as achieving a worklife balance in Japan was next to impossible. The economic cost of Japan’s low female participation rate is high, with some analysts estimating that it has shaved approximately 5% off the country’s GDP. Without doubt a country’s economic progress is strongly influenced by the contribution of women to the labour market and enterprise. Here in Northern Ireland we have employment laws that ensure equality of opportunity and employment when it comes to recruitment. Nonetheless, while female representation in the workforce has improved
Women will flourish if business culture is changed
“I think the message is gradually getting through. Gender diversity is not a women’s issue but a core business issue and that child-caring is not just woman’s responsibility but the responsibility of both parents. “Yet it is disappointing that even with that realisation and the positive impacts it can have on the bottom line for business and for families, there is no real appetite to deliver.” Guest editor Roseann Kelly, chief executive ofWomen in Business NI females now comprising 47.1% of those currently in employment), women in Northern Ireland are still under represented in top corporate positions and in politics and public life. The official data from the Northern Ireland Statistics and Research Agency’s (Nisra) publication ‘Women in Northern Ireland’ (published in September 2013) shows that the female level of entrepreneurial activity was 5.6% compared to 10.7% for males. When it comes to political and public life only one in five MLAs are women and only 23.5% of the councillors in local government are women. Yet female representation in top business positions and politics is not reflective of academic achievement. Typically, girls in Northern Ireland leave school
12 BUSINESS MONTH 6 October 2014
with higher levels of qualifications than boys. Nisra reported that in 2011/12 82% of girls left school with at least five GCSE grades A-C compared with 71% of boys. Similarly, 64% of girls left school with two or more A-Levels compared to 47% of boys. When the academic evidence is pitted against the labour market statistics, it is probably fair to conclude that a glass ceiling ‘of sorts’ must exist. This begs the question — are women leaving the workplace or unable to apply for jobs that require very long or anti-social hours because of childcare pressures? Despite significant improvement in attitudes to household roles, women in many advanced economies still carry the bulk of responsibility for childcare and housework. Female participation in the labour market is good for the economy, good for diversity, it
provides women with financial rewards and independence and improves the outlook for the next generation, but it can also come at a cost — juggling child care. One solution, according to Christine Lagarde, is to make the work environment more flexible for both men and women so that care-giving responsibilities can be shared. Governments in more socially developed countries such as Norway, Sweden and Denmark invest heavily in universal childcare and the infrastructure to care for the elderly and disabled and indeed these competitive economies are consistently ranked highest when it comes to ‘quality of life’ and ‘happiness’. Quite simply the best countries and the best companies recognise that providing employees with flexibility and support to have a work-life balance reaps rewards in terms of retaining talent, maintaining motivation, increasing loyalty and productivity. I am certain that in time culture and attitudes in Northern Ireland will progress. But until that time arrives we will not see a healthy gender balance at the top of our corporate and political spheres.
ECONOMY WATCH
Mixed
The Republic’s budget this month will McLoughlin of EY - while Ulster Bank’s Northern Ireland still face the pain of real
W
HEN Labour leader Ed Milliband failed to mention the deficit in his recent party conference speech, political commentators and the media went into overdrive, with criticism and derision meted out in equal measure. In truth, it is far from unusual for the word deficit to be omitted from the speeches and rhetoric of political leaders. In Northern Ireland, in particular, public discussion about public finances has seldom taken place at all — until recently anyway. Indeed, while we have enjoyed a steady stream of good news about economic recovery, one key headline conspicuous by its absence has been ‘a recovery in the public finances’. Globally, government debt levels in the west, consumer debt levels in some emerging economies, and slowing growth are leading to alarm bells being sounded. The latest annual Geneva Report suggests the global economy could be heading for another crisis as a result. The influential report predicts interest rates would have to stay low for a “very, very long” time to enable households, companies and governments to service their debts and avoid another crash. It should be remembered that a slowdown in economic growth feeds into lower growth rates in government revenues. With government debt levels already high, scope for borrowing is more limited. This leaves cutting more public expenditure and/or raising taxes as the two policy levers that will be pulled. Contrary to popular belief, the world has not even started the deleveraging process. Five years of global economic recovery have not led to a fall in global debt to GDP ratios. They are still growing. And it is debt levels in the Eurozone
NEW ALARM
RICHARD RAMSEY
ULSTER BANK CHIEF ECONOMIST periphery and China that the Geneva Report’s authors are most concerned about. Meanwhile, the UK may be on course to be the fastest growing G7 economy this year, but concerns over its public finances are rising. Despite more net employment growth in the last four years than the rest of the EU combined, government revenues have not grown in line with this. Back in March, the Office for Budget Responsibility (OBR), forecast the UK to borrow 12% less this year than last. However, so far this year, the UK Chancellor has had to borrow some 6% more. While UK public spending is under control, tax receipts have risen a mere 2% so far this year. This is less than half of the 5% growth rate anticipated back at the time of Budget 2014 in March. Income tax is the largest single source of government revenue, accounting for 25% of
16 BUSINESS MONTH 6 October 2014
all government revenue raised. However, income tax receipts, which were expected to rise by 6.5% this year, have instead fallen by almost 1%. The 2% per annum wage growth predicted in March has also failed to materialise, with average weekly earnings growing at less than half this rate. This highlights that the government coffers are suffering from the cost of living crisis too. The upshot of the preceding analysis is that the lack of recovery in the public finances will require additional austerity on top of that which had already been announced. It is worth remembering that back in March, UK public expenditure was set to fall in both nominal and real terms up to 2018/19. The reality is that the UK will experience a second full term of austerity up to 2020. Indeed, last month the recently retired head of the UK Civil Service, Sir Bob
Kerslake, warned “that under any government, we face up to a further five years of austerity in public sector spending”. The reality is whether it’s David Cameron or Ed Miliband in 10 Downing Street, the medicine will largely be the same. The current Chancellor has ruled in favour of more public expenditure cuts, rather than tax rises, to balance the government’s books. Meanwhile Ed Balls, the Shadow Chancellor, has pledged that Labour will balance the books too. According to Mr Balls ‘there will be no new spending paid for by additional borrowing’. All of the above provides a sobering context within which Northern Ireland’s public expenditure outlook will be framed going forward. Northern Ireland will share the UK’s five years of austerity. However, in addition, Northern Ireland has to deal with its own public expenditure pressures largely, but not exclusively, linked to not having adopted UK welfare reforms. Northern Ireland has not yet really experienced the reality of the public expenditure cuts delivered in England or indeed the Republic of Ireland. This is about to change. Over the past number of weeks, there has been a Mexican-wave of areas being flagged as being under threat, with significant cuts due by the end of the financial year. Up until this point, Northern Ireland has been dealing with an ever increasing budget, or since 2010 one that has been broadly flat. Going forward, the Northern Ireland Executive and the local electorate will chart new waters where significant annual public expenditure cuts are the norm. It is important that everyone realises that difficult and unpopular decisions are unavoidable in Northern Ireland, as well as elsewhere.
ECONOMY WATCH
fortunes
reflect the end of austerity, writes Kevin Richard Ramsey reflects that the UK and public expenditure cuts
T
HE Irish economic recovery has begun to accelerate, with the Q2 estimates for 2014 suggesting the economy is 7.7% larger than it was a year ago. Employment has risen by 1.7% over a similar period and consumer confidence has accelerated rapidly. The period of austerity is nearing its end and Ireland is well placed to return to the top of the European growth leagues. Nothing should take away from this recent performance, but it is important to remember just how much pain has been endured over the past seven years. Unemployment is still above 11% (though down from its peaks in late 2011 of 15%) and the country has lost many people through emigration in response to the lack of job opportunities. This provides a context in which to view the current outlook, but the data suggests the recovery is firmly bedded in and the prospects are positive, despite significant risks associated with the performance of the eurozone economy and wider geo-political tensions. Perhaps the most encouraging sign in the recent data is that the recovery appears to be broadening out. All the major sectors in the economy enjoyed growth over the last year. Agriculture and distribution transport software and communications enjoyed double digit rates of annual growth and even construction managed a very strong 9.1% rate of annual growth. In the labour market there has also been growth in most sectors, with disappointing performance in manufacturing the notable exception. Strong growth in professional and administrative services, has been supported by strong
ON THE UP
Kevin McLoughlin
Head of corporate tax Ireland EY growth in agriculture and construction, again demonstrating the breadth of recovery. Exports have once again been at the forefront of Ireland’s economic recovery, growing 6% on the year to Q2 and returning to levels last seen in early 2008. Capital investment has also recovered sharply in Q2 reflecting increasing levels of construction. Consumer spend has also grown, but more modestly, another reflection of the broad nature of the recovery. Rapid rises in house prices (especially in the Dublin) and new car registrations are further indications of consumers slowly beginning to ‘feel’ the recovery. The sharp contrast in house price growth in Dublin versus elsewhere in the country is a reflection of the two speed nature of the Irish economy, which is still very evident and presents a risk to the sustainability of the recovery. Domestic businesses continue to find trading conditions more challenging than export
orientated ones and finance remains hard to access for many smaller firms and individuals with limited cash piles. This divergence in experience means commentary on the nature of the recovery must be carefully phrased; this is not an economic recovery shared by all at this point. Recent budgets have been characterised by fiscal “adjustments” comprising a mix of tax increases and spending cuts as a means of reducing the fiscal deficit. The debate prior to those years has focused on the mix and sources of those tax increases and spending cuts. The forthcoming Irish budget may well mark a turning point; the end of the austerity era. The Government remains committed to meeting its planned fiscal adjustment target — however, it is not clear whether there will be any tax increases or spending cuts. The Taoiseach has stated that marginal rates of income tax are too high and need to be reduced, although it seems more likely that any changes in
this respect might be for future budgets. National tax revenues have been buoyant this year, well ahead of plan, and it is conceivable that this buoyancy may be sufficient to avoid any tax increases or spending cuts. It is worth remembering though that water charges will start to be levied in 2015 — also, certain temporary measures remain in place which may be difficult to repeal, such as the levy on pension funds, which has risen over €2bn since its introduction. What will be of interest to international business is to see whether there will be further clarification of Ireland’s policy on international tax in light of the pressure on the so called “double Irish” structures. The government will undoubtedly carefully balance the need to remain strongly competitive in terms of its tax offering with protection of its international reputation; however any announcements will be very carefully scrutinised. The latest Economic Eye forecast for Ireland from EY suggests a relatively healthy recovery in 2014 into 2015 before a slight moderation. The recovery is, however, projected to withstand the pressures exerted from a weak eurozone and a more modestly growing UK as its austerity ramps up. Geo-political concerns represent one significant risk to the Irish outlook and, as always, the fortunes of the UK and the US are key to the crucial export sector despite growth in new markets. The recession was extraordinarily painful for many businesses and individuals and Ireland is still far from fully recovered, but as it returns to the top of the European growth charts once again the country is looking forward more than it is looking back.
6 October 2014 BUSINESS MONTH 17
COVER STORY
THE SUPER From left, Rosann Kelly, Margaret Canning, Heather Hawkins, Grainne McGarvey and Kirby O’Connor
F
OUR women from different walks of business life — food production, PR, lobbying and property — who are all advancing in their fields. I asked Kirby O’Connor, managing director of GOC Estate Agents, Grainne McGarvey, managing director of Pulse PR, Heather Hawkins, food development manager at Moy Park, and Roseann Kelly, the chief executive of campaign group Women in Business, to share their ideas on maximising the contribution of women to the economy and workplace. While only five of the Belfast Telegraph’s Top 100 Companies - Ulster Bank, Boots, the Progressive Building Society, Moy Park and Northern Ireland Water - are led by women, progress is being made in advancing women throughout the workforce.
Women’s traits, such as steady and risk averse, where once seen as flaws, but now they are recognised as virtues Women in Northern Ireland do account for a much higher percentage of managers and senior officials than Great Britain — according to the most up-to-date statistics, 45.1% of all managers are women, compared to 33.6% in Great Britain. That’s an increase for us of just under 9% on 2004. And one repercussion of the economic downturn and pressure on household budgets has been to beckon many women back into the workplace. The female employment rate for April to June 2004 was 58.3% — compared to 63.9% in the same period this year. And despite the well-docu-
18 BUSINESS MONTH 6 October 2014
mented challenges which some women face in combining work with family life, it seems like the expense involved in having a family spurs women to get back into work. The economic activity rate for woman without children is 65% — and for those with two children it’s 76%. In fact, more women with children are in the workplace in Northern Ireland than their sisters across the water. Just over 76% of women with two children are economically active in Northern Ireland, compared to just under 75% in Great Britain. And just under 61% of women with three or more children are economically active,
compared to 55.5% across the water — the falling economic activity which comes as a family grows reflects the high costs of childcare. So women are present in management in the workforce at growing levels — but the guest editors aren’t convinced that the statistics show a breaking of the glass ceiling. The editors muse that while a higher percentage of managers in Northern Ireland are female, that has to be explained by our economy’s dependence on the public sector, where provisions such as flexi-time and job shares make it easier for women to combine family life with responsibility in work. Indeed, 52% of women in Northern Ireland work in public administration, education and health, compared to 45.2% of females in Great Britain.
SISTERHOOD
However, whether they are succeeding in the public sector or private sector, the guest editors are comfortable with the generalisation that women do not push themselves forward as much as men. As director of an estate agency — a field she has worked in for two decades — Kirby O’Connor thinks women are getting more assertive. “Generally, women don’t shout as much — that’s a fair comment. I do think women hold back. But maybe because of me, as a female director, my female staff are coming forward — wanting a pay rise, for example. They might argue they should have a pay rise sooner than they usually have one, because we’ve had such a good summer.” That is a really good positive, everyone concedes — because they feel women may
sometimes talk themselves out of going for the very promotion that a male colleague thinks already has his name on it. But is there a glass ceiling preventing women from reaching their full potential? Sadly, their view is that the glass ceiling is intact in most companies. Children may enrich women’s lives in a myriad of ways, but can hold you back. Our women editors — mainly mothers themselves — worry about losing the contribution of female employees during maternity leave, and believe that the provision of ‘keeping in touch days’ can help both the business and the employee. Heather Hawkins is an employee of Moy Park, whose chief executive Janet McCollum made history this year as the first women to lead a number one company in the Belfast
Telegraph’s Top 100 rundown. Heather is now food development manager, managing a team of 12 people. She has worked for Moy Park for 22 years, including going parttime for 14 years to give her more time with her children, who are now aged 14 and 18. Heather came back to full-time work four years ago. She said Janet McCollum has been a strong role model for women at the company, but that others have also blazed the trail in the poultry business. That includes Ursula Lavery, who is the company’s technical director — making Moy Park’s executive board 25% female. Heather said: “That was a big thing for us, for Janet to be put in the top job after (former chief executive) Nigel Dunlop stood down — especially as she was someone who was promot-
ed from within after being in the company for a long time. “The fact that there are two women on the executive suggests there is not a ceiling and that the opportunities are there if you want to take them.” Both are long-serving women, with Ursula notching up 27 years as well as Heather’s 22. A spokeswoman for Moy Park says that 37% of entry to middle level management posts at the company are held by females while of those joining the company at graduate level in 2014, 64% were female. The importance of role models comes up time and time again. Grainne McGarvey points out that her mother has been her strongest role model and long emphasised
Continued on page 20
6 October 2014 BUSINESS MONTH 19
COVER STORY Continued from page 19 to her that she could do anything she put her mind to and that gender would never be a factor in determining how far she would go. That can-do attitude has led to her feeling confident in her career. And Grainne maintains that she doesn’t want to be a member of Women in Business — the organisation which fellow panelist Roseann Kelly is head of — because it differentiates women from men. In her chosen field of PR, she feels women are better at communicating and bringing messages to life, and has chiefly female bosses in the past, and a 50:50 male/female client mix. Neal Lucas, who owns recruitment company Neal Lucas Ltd, said companies in Northern Ireland understand the positives of a diverse workforce, with many studies showing that diversity is good for the ‘bottom line’. And had women been in charge of the world’s banks and financial institutions
Women play a vital role Gender diversity has been the subject of much discussion in recent months, from our own panel to a speech from UN Women Goodwill Ambassador Emma Watson. Here is a selection of thoughts from members of our own panel, and from others Roseann Kelly: The main disadvantages women face compared to men are lack of confidence, lack of networks and lack of role models. I don’t think women can have it all, but I don’t think think men have it all either. They can end up missing out on a huge amount...If you look at the men who appear to have it all, they will have a hugely supportive partner as well. Grainne McGarvey: in the mid-2000s, our guest editors are adamant that there would have been no financial crash. Women, our editors agree, are slow, steady and risk-averse
20 BUSINESS MONTH 6 October 2014
My business is my baby, and it’s four now. And I’m having to compromise and put things on hold. It’s just been very difficult to build up a business from scratch. And I have had to make sacrifices, having to work Bank Holidays. And it all depends on how you measure success in your life. I feel I have a business that I am proud of — and it’s not all about making money but having life experiences. It’s a thing that I love that I have made a career out of. Rotha Johnston, non-executive director of NIE: Surprisingly, I am only the third female non-executive director at NIE but follow in the very prestigious footsteps of Lynda Rouse and Mary McAleese. Women are — traits once perceived as flaws, but now recognised as virtues. Roseann quotes IMF boss Christine Lagarde who said that if the now-notorious
now very much part of the business at NIE. At a recent event, Lisa O’Neill, one of our graduate engineers said “there is still an image problem and a common perception that engineering is not a suitable career for women”. A perception or perhaps misperception which I am pleased to say is changing. Emma Watson: My life is a sheer privilege because my parents didn’t love me less because I was born a daughter. My school did not limit me because I was a girl. My mentors didn’t assume that I would go less far because I might give birth to a child one day. These influences are the gender equality ambassadors that made me who I am today. financial services firm - whose bankruptcy triggered the credit crunch - had been Lehman Sisters, not Lehman Brothers, things would have been very different.
NEWS ANALYSIS
Constructive women By Fiona Grant, Royal Institution of Chartered Surveyors world regional chairman, UK and Ireland
H
ARRIET Beecher Stowe once said that “women are the real architects of society”. It is essential that we encourage more of them to be the chartered surveyors, valuers, civil engineers, architects, and manual labourers of the future. Yes, there are many very talented women working in property and construction — indeed RICS has recently inaugurated a female president, Louise Brooke-Smith. But, in the UK, women make up not much more than 10% of the construction sector, with a mere 1.2% working in manual labour trades, meaning there is a huge potential pipeline of untapped talent for the construction sector to benefit from. The most recent RICS construction market survey suggests skills shortages are becoming more and more of an issue for Northern Ireland’s construction sector as the industry continues its recovery. (This is something that is happening elsewhere in the UK as well.) This is concerning, as there is a real need for the necessary skills to enhance and upgrade Northern Ireland’s infrastructure. Skills shortages have the potential to hamper this economically important objective in the years ahead. This should prompt all of those involved in the construction sector to sit up and think seriously about how to attract, retain and progress more women After all, how can you expect to compete in the market and deliver some of the major projects required if you are not using the expertise of over 50% of the population? RICS has heard from local third-level education establishments that enrolment levels for construction-related courses have been at very low levels. With skills shortages emerging and the pipeline of professionals
potentially hampered by fewer students enrolling on courses, something needs to be done. Northern Ireland has an infrastructure deficit which will need to be dealt, and we need the necessary skills available to do so. RICS’ message is that students shouldn’t be put off studying chartered surveying and other construction disciplines because of challenges the sector has had in the past. We hear from the local universities that employers are having difficulty recruiting due to the increasing demand and the lack of availability of students with the necessary skills. So there are real opportunities for students — male and female. It’s important for profes-
22 BUSINESS MONTH 6 October 2014
“I think the small percentage of women already in the property industry should be encouraged to go out to schools, colleges, universities and employment workshops in order to give informal talks on their own personal experiences. Students will then be able to ask questions of real people, so to speak, and if there is a latent interest, it will strengthen.” Guest editor Kirby O’Connor, director GOC Estate Agents sional bodies and employers to unite in the effort to attract more women into construction. RICS is keen to lead in this arena. Because, while we acknowledge that our profession’s employment credentials are marginally better than the rest of the UK construction industry, with just 13% of chartered surveyors being female and 28% of students/trainees, there is still room for progress. We held a great event recently in the RICS Belfast office to
which we invited senior women in property and construction to join with local female journalists and others to discuss all of these issues. They included senior figures from academia, residential and commercial agencies, planning consultancy, government bodies, and other organisations. We were very pleased to bring together such an eminent group for this important discussion, and we are confident that it will provide a very useful platform to further this essential debate.
BREAKING THE MOULD
Engineering success By Jayne Brady, partner at Kernel Capital, Northern Ireland Name: Jayne Brady Company: Kernel Capital
with and helping any of our 70+ companies we have invested in. It’s very satisfying when our companies reach a positive exit, FeedHenry which we invested in was acquired last month for more than $80m by RedHat, returning $20m to our fund. Many of our successful portfolio company founders have returned to us to fund their new investment opportunities and I think this is a reflection of the support we provide.
I got into engineering because... I enjoyed maths and the sciences and wanted to have a job which allowed me to work in a business environment and to travel. I remember way back when I was choosing my A-Levels it was unusual for females to choose engineering as a degree but I felt that the usual female professions of law or medicine just weren’t for me. This was due in no short measure to the great guidance I obtained from my school, St Dominic’s. My relationship with engineering actually goes back many years when I wrote to the professional body for engineering, the Institution of Engineering and Technology (IET), asking if they would consider an application from a 12-year-old. They wrote back a very polite letter saying I was their youngest applicant but there was a minimum age of 18 and I should contact them again at that point. I was obviously not held back by the delay and I did join at 18, and last year became chairman of the IET in Northern Ireland. I didn’t always do this... I am currently a partner with venture capital firm Kernel Capital. We have almost £150m in Bank of Ireland Kernel Capital Venture Funds under management, investing in knowledge-driven companies focused on growth and export. Before that, I spent most of my career working in a variety of engineering roles in startups and multi-nationals. I studied electrical and electronic engineering at Queen’s, and before leaving I had decided that I wanted to work abroad. Over the last 20 years I have spent a proportion of my time working and living abroad, including Asia, North America and Central Europe. My relationship with venture capital began six years on the other side of the boardroom table in a Kernel Capital
“Jayne’s experience of university and career vindicates just how important it is to get good careers advice at school. Students, male or female, need good advice which reflects the real world and your own talents, and doesn’t pigeonhole you in professions like medicine or law.” Margaret Canning, business editor, BelfastTelegraph and Business Month investee company. It seemed to me a logical step to join a firm seeking to provide both financial and strategic support to technology-based companies. Our partnership team come from a business and technology background and this influences our sectoral focus as we leverage the skills of our team to invest where we can add value from our expertise. To date we have invested in some fantastic local companies such as DisplayNote and Silform.
24 BUSINESS MONTH 6 October 2014
The best thing about my work... Without doubt, it’s getting to meet so many companies across a broad range of sectors. It is our approach to get to meet companies early. When progressing with an investment we perform our own due diligence and this means we work very closely with the company to understand their business. This also gives them a chance to get to know us and means we get an in-depth insight into their technology and target market. For our investee companies we offer much more than just investment. We have a long track record of working
The person I take inspiration from... Those who take the brave step to start their own business. We have great home-grown success stories such as William Wright of Wrightbus and Peter FitzGerald of Randox, who is a member of the Kernel Capital advisory board. I know from personal experience that life in a start-up is not always an easy journey and I really appreciate the challenges and rewards of being an entrepreneur. Within the Kernel Capital team, with our strong performance track record, we have the experience to help companies through the difficult times and the skills and networks to maximise the ‘window of opportunity’ when it opens. On a personal level I have been lucky to have very strong female role models in my mother and grandmothers who brought me up to believe that nothing was outside my reach. My advice to anyone thinking about starting out in engineering... It is one of the best professions to provide you strong foundation to lead you into many opportunities. Engineering and technology increasingly touch all aspects of our world and this progress will only increase in the future. Engineering skills can give you a great opportunity to make your mark in the world whether through inventing lifesaving medical equipment or delivering the next Facebook or WhatsApp.
NEWS ANALYSIS
Never stop learning By Joy Allen, managing director of Leading Governance, a firm which helps to develop the talents of boards and their members
My first job was…. At the tender age of 16 I spent my summer holiday working in a hotel in Portstewart. It seemed very adventurous at the time. Even then, I was amazed at the difference between the management styles of the people I reported to, and could see the impact of effective leadership. We would happily jump out of bed to serve breakfasts from 6.30am if we were working with the managers we admired. Others didn’t generate quite the same levels of enthusiasm from us. The person who taught me to succeed in business was…. My late dad was a really inspiring man, and gently challenged and encouraged me when I needed it most. In my early career, as a tourism officer, my public speaking phobia often held me back, so dad coaxed me to teach an evening class, which quickly got me used to addressing a group. When microphones got in my way, he persuaded me to spend a summer working at the airport announcing flight departures — that worked. I still use those principles when a new hurdle seems daunting — do something even more daunting, and then the first thing is a breeze. My business mantra is…. First do no harm. It’s such a privilege to be invited to work in the boardroom of any great organisations. While we work with a range of frameworks of effective governance, it’s so important that we begin with the clients’ perspectives and work from there. Everything we do is designed to support the good work that boards are already doing, and then help them prioritise the actions needed for further improvement, within the context of best practice. It’s all changed since I started out…. When I began to specialise in board development 12 years ago, it was common for boards to be populated by the chair-
“I totally agree with Joy, who recently ran a very successful training session with theWomen in Business board of directors. It’s like building a house — you need to get the foundations right. Good governance and an effective board are key to supporting the growth of any organisation.” Guest editor Roseann Kelly, chief executive of Women in Business NI
man’s friends and golf buddies. In the private sector, the word ‘governance’ hasn’t been used much until now. That’s all changed. Modern boards recognise the importance of having real breadth and depth of skills, experience and perspectives, so that the board can really add value as ‘the brain of the organisation’. The lessons from the bad experiences of others, eg the Co-operative Group, have helped people appreciate how important it is to have the right skills. The result is a safer and more productive organisation that is also a happier place in which to work. In 10 years’ time the business world will look…. Well governed. Every week we see news of directors being
26 BUSINESS MONTH 6 October 2014
struck off, fined and imprisoned for bad behaviour or extreme negligence. Often, people take on the role without fully understanding their legal duties, role and responsibilities. I routinely need to break the news that the ‘limited company’ label doesn’t limit the liability of directors if they fail to discharge their duties properly. While we wouldn’t want to put people off becoming directors, it’s so important that they know what they’re taking on, and are able for the task. Many of our clients, rather than facing disaster, are taking their board from ‘good to great’ — and adding real value to the organisation. They develop a ‘learning board’ culture, taking continual improvement seriously, and that sets a great tone for the whole organisation. In
10 years’ time all businesses will be doing the same. My one regret in is…. That I didn’t open the first pizza restaurant in Ireland. I spotted the opportunity during a holiday to Italy, when I was 19. I even did the research — what oven to buy, what recipes to use, where to source the best ingredients. Dad had offered to finance the business, and we had found suitable premises. It all came off the rails when we disagreed about the wine licence, as dad was very anti-alcohol, and I thought it would be so untrendy not to have wine. Oh the arrogance of youth! My one piece of advice is…. If you’re becoming a director, whether in a business, a charity or a public body, find out what that really means first, and get good training and induction. Then learn, learn, learn.
NEWS ANALYSIS
Delivering diversity By Edel McCooe, regional manager, First Trust Bank
T
HANKFULLY the penny has finally dropped for many companies. Encouraging gender diversity in the workplace is not just a nice thing to do, it’s the right thing to do from a business perspective. While still a relatively new realisation for many organisations here in Northern Ireland, I believe we have turned a corner and are at least on the right path to reaping the full benefits of a more diverse workforce. I’m pleased to report that, in my experience, First Trust Bank was near the top of the queue in embarking on this path. When I joined the bank in 1987, straight from secondary school, there was one female branch manager. Today, not only do we have a strong female representation on the senior management team, in my region, 40% of the branch leaders I manage are female. I would encourage all companies to replicate First Trust’s journey and to avail of all the best talent at their disposal, regardless of gender, age or ethnicity. Also, it stands to reason that it is important to mirror, as much as possible, the market you are targeting. When you consider that anywhere between 70 and 80% of global consumer spending decisions are currently being made, or are strongly influenced, by women, it would be foolish to ignore this fact. This trend is consistent with our day to day banking activities and having a diverse workplace ensures we better understand our customers. Some people seem to need hard evidence to highlight the benefits of better gender diversity. There is a large body of evidence which shows that companies and economies will be most competitive and successful if they empower individuals with the best talent, both male and female. The McKinsey Women Matter – 3 study (2009) reported that companies with more
women in top management tended to have an operating margin at least twice as high as those in the bottom quartiles. In their 2010 study, Women at the top of corporations: Making it happen, they again report a 41% higher return on equity for companies with the highest share of women on their boards compared to companies with no women on their boards. If all of this evidence is to be believed it would suggest that any barriers to achieving a meritocracy of the sexes not only risks future financial stability but also holds back corporate performance. Recent serious moves to achieve a minimum representation of women on the boards of FTSE 100 companies would perhaps suggest that a hard lesson has been learned. At the other end of the financial scale, as a local community-based bank our people are generally from the communities that we serve. It therefore makes sense for us to reflect that community by having a diverse workforce. I accept that this wasn’t always the case, especially
when I started my career in the 1980s. Banking, like many other professional sectors then, was generally seen as a male dominated industry — particularly when it came to senior level positions. Thankfully those days are gone. Many more women are choosing to pursue a career in banking and see ample opportunity to rise to the top. That does not mean however that barriers no longer exist. Work/life balance is important. I developed my career as a working mother and I would hope that I have two more independent children as a result. Flexible working and childcare are two of the most obvious challenges, but as we have found in the bank they are not insurmountable and are no longer an excuse for companies to hold back good talent. The importance of having strong role models is also key. I know the value of positive role models within the bank and was inspired and encouraged by the presence of women at a senior level. Many of these senior women acted as a mentor to me as I progressed through my career.
When you consider that female entrepreneurship remains the largest under-represented group in terms of enterprise in Northern Ireland, the importance of having and celebrating more local role models should not be underestimated — not least because it suggests an enormous amount of untapped potential. First Trust Bank was delighted to support the recent Women in Business 30:30 Vision initiative pledging our commitment to promoting gender diversity at leadership level. It was also encouraging to see the CBI put this issue firmly on their agenda and we will continue to support such initiatives, not only because we have seen the benefits internally, but also because we know it offers significant economic potential. Diversity is very important for businesses to succeed. Our experience in First Trust Bank is that when you have a diverse team of people contributing to the business, it leads to better decision making and ultimately better outcomes. Who in business can afford to ignore that?
6 October 2014 BUSINESS MONTH 27
SME WATCH
M People first AMANDA FERGUSON talks to the NOW group boss who helps those with disabilities and learning difficulties break down employment barriers Breaking barriers: Maeve Monaghan
28 BUSINESS MONTH 6 October 2014
AEVE Monaghan and the team at the NOW Group put people at the heart of everything they do. The chief executive of the registered charity and social enterprise, along with its 50 staff, help people gain qualifications and life and work experience to support them to move into jobs with a future. West Belfast based motherof-three Maeve (38), originally from Maghera in Co Londonderry, is focused on breaking barriers to training and employment through a range of projects and businesses. “I have always been entrepreneurial, so from the beginning I had been doing a number of things to make money and give it to people,” she said. “I really liked the idea of doing something useful, the idea of social business, so I did a year in the Down Syndrome Association around the idea of supported employment and getting people with disabilities into employment and then this job came up. It was set up as a small project that got funding and needed somebody to run it but I have pretty much been here since the beginning.” NOW is an organisation finding training and employment opportunities for people with different levels of learning difficulties and that range has widened over the years. “We were set up primarily to help people with significant and severe learning disabilities and we still do that,” she said. “It’s at the heart of what we do but we have also widened that range out to work with young people, people with learning difficulties and anybody that faces barriers to employment and learning. “Our heart is in west Belfast, that’s where we started, but we are expanding across Northern Ireland.” From two staff when it started 12 years ago, NOW currently employs 50 people and turnover has grown from around £45,000 to around £1.3m this year. Headquarters are on the Springfield Road, but they are
progressing toward Belfast city centre with their new ventures. NOW purchased the Oak Bar and the Hive on the Grosvenor Road and just recently won the contract to run The Bobbin cafe at Belfast City Hall through Loaf Catering. “When you think of the NOW group you think of four social enterprises around training and employment, so people think of that as a charity but actually we deliver contracts as well,” Ms Monaghan said. “It’s a mixture of funding and government contracts so we earn income from that and the idea is that we do as much of that as possible, as many jobs and as many training opportunities as possible. “Then we have Loaf Catering. It’s been there from the beginning but it has really only been branded for about four years. “It’s a training arm within NOW but it’s also a sustainable business and we operate it that way — the board are very keen for us to operate it that way. “We have four cafes now. There is one in the Maureen
Sheehan Centre, one in Belfast Met’s Millennium building, and we have also taken on one in Springvale Learning,” she added. A “tipping point” for NOW was taking on outside catering contracts for Nicva, bringing in a good income, and then
The Bobbin came up, which provides 10 training places per week for people with learning disabilities and difficulties. The Bobbin’s clientele is split evenly between tourists, City Hall staff and business people. “We opened on September 4,” Maeve said.
“It’s flying. It’s part of the heart of City Hall. “The council here are really interested in the idea of opening up this building as part of their aims so it works really well for us. FOR more about NOW visit www.nowproject.co.uk
6 October 2014 BUSINESS MONTH 29
ASK THE EXPERTS I hold a middle management position within a small firm and have just discovered I’m pregnant. I’m worried about approaching my boss in regards to taking maternity leave. What can I do? WORKPLACE attitudes towards pregnancy and maternity leave have improved greatly over the years, especially with the introduction of new legislation which entitles both parents to share maternity leave from April 2015 onwards. Nevertheless, plenty of expectant mothers still feel a sense of anxiety when approaching an employer to make them aware of the situation. To help your company prepare for your absence, give your supervisor as much notice as possible. This proactive approach will show you want to work with them to formulate an effective plan of action. Every company has a policy which states the terms and conditions surrounding maternity leave — however, this can vary depending on the size and nature of the organisation. To gain an understanding of your entitlements and whether you will receive full, partial or statutory maternity pay, familiarise yourself with the policy and address any issues you are unsure of with your manager. Some new mothers have an agreement with their employer to occasionally keep in touch during their leave in order to be informed of any significant business developments to make the prospect of returning to work less daunting. If you wish to return to work earlier than the statutory 52 weeks leave granted, for example, when your statutory maternity pay ends, you must give at least eight weeks notice. If you don’t, your employer can insist that you don’t return until the eight weeks have passed. You must tell your employer that you are returning to work early and that you want to change the date of your return. The key to keeping the process as easy as possible is transparent communication, preparation and organisation. By achieving this, you can then make the most of enjoying your maternity leave. GS
Gillian Skelton Of global outplacement company, Lee Hecht Harrison
Laura Hourican Head of HR UK and Ireland for Firstsource Solutions
Carolyn Keenan ASM Chartered Accountants
Sound advice can be a valuable commodity We put your questions to the experts with the answers
As an employer I am keen to retain talented employees. How can I engage in a way that benefits both the business and my staff? EMPLOYEE retention is critical to the success of any organisation. In the words of Doug Conant, CEO of Campbell’s Soup, “to win in the marketplace you must first win in the workplace”. The question is, how? Firstly, you need to measure it through factors indicating how engaged your workforce are which include operational performance and staff turnover. To get a true reflection, conduct a survey that tells you not only how engaged your staff are, but also what matters to them. Then it is vital to act on the information. At Firstsource, we have developed the ‘people plan’. It focuses on four key areas that are important for employees — leadership, development, corporate social responsibility and engagement. The people plan includes activities like ‘let’s talk’ sessions with senior personnel, charity dress down days, and management development programmes. People champions are then appointed to formulate the plans — weekly, monthly, quarterly and annual activities are then planned for staff. Engaging your workforce through activities not only increases
I want to make small gifts to family members — is there a tax efficient way of doing this? ONE of the easiest ways to reduce your estate for inheritance tax (IHT) purposes is by lifetime giving. Gifts can be made without impacting on your IHT liability in certain circumstances. You can give as much money as you choose to your spouse or civil partner, UK registered Charities and to some national organisations ie, the National Trust. These gifts can be made during your lifetime or after death in your will. You are also allowed to gift £3,000 per tax year to family members or friends with no IHT implications. This annual exemption can also be carried forward one tax year if it has not been utilised. For example if you did not make a gift in the 2013/14 tax year you can gift £6,000 in the current 2014/15 tax year. You can also make small gifts to individuals of £250 per annum with no impact on IHT. You should note that these small gifts cannot be combined with the annual exemption in order to give an individual a larger gift. And the following gifts can be made free of IHT on the occasion of a marriage — from a parent, £5,000, from a grandparent, £2,500 and for anyone else, £1,000. In addition, if you have excess income, ie, the income you receive each year is over and above what you require to maintain your lifestyle, then you can make regular gifts out of income. By making regular gifts out of income you are not increasing your estate for IHT purposes and you are making IHT efficient gifts. satisfaction but keeps fresh ideas coming through. Success is then measured through an annual employee satisfaction survey. The benefits to any organisation can be seen through business performance. Research has demonstrated the correlation between
All questions should be addressed to: experts@businessmonth.co.uk Questions and advice are publishted in good faith but should not replace the advice of your professional financial advisor.
30 BUSINESS MONTH 6 October 2014
how employees feel they are treated and the more positive this is, the more significant its performance impact. Regardless of your sector, engaged employees will be ambassadors for your organisation so it’s important to incorporate this into your business. LH
INSIDE REPORT
GOING SOLO IS The number of self-employed workers will soon take over those in a full-time post, but unions are warning of ‘under-employment’ with many people forced to sit at home waiting for the telephone to ring
I
F your image of a self-employed person is a consultant carrying a briefcase, think again. According to the Office for National Statistics (ONS), the most common jobs for the self-employed in the UK were in the construction sector, followed by taxi drivers and then carpenters and joiners. And while some of the self-employed are rich, an awful lot are poor. Figures from the StepChange Debt Charity reveal its self-employed clients in Northern Ireland are on average £279 a month worst off than those in full-time employment. Moreover, they have an average debt level of nearly £37,000 and their earnings are typically £169 short of what they need to pay their essential monthly bills. Whether the trend is regarded as negative or positive, it is inescapable — we are heading into a freelance world. Within a few years there may be more people self-employed than in traditional full-time employment. A study by accountancy firm PwC projects that by the end of the decade half the working population in the UK will be self-employed. We have already seen a sharp escalation in self-employment. Chris Bryce, chief executive of the sector’s representative body, the Association of Independent Professionals and the Self Employed, is clear that a big change in the nature of work is taking place. “Self-employment is the zeitgeist,” he said. “It has grown by an astonishing 39% since 2000 and has outstripped growth in traditional employment by
three to one in the last decade.” He added in the next year the number of people self-employed will overtake those in public sector employment. The rise in self-employment responds to several pressures. ONS explains the major factor is that fewer self-employed people now retire. This is probably because their financial situations mean they cannot afford to stop working and, with longer longevity and improved older health, people are physically and mentally able to work later in life. We can speculate about other factors, too. It is clear that many more people made unemployed during the recession responded by earning money as and when they could through self-employment, rather than becoming unemployed. This is particularly true for older people who otherwise fear being regarded as unemployable. “One of the reasons for the increased self-employed in Northern Ireland has been the number of over 50s going into self-employment,” said Ulster
It is now the zeitgeist... Self-employment has grown by an astonishing 39% since 2000 to outstrip traditional employment by 3 to 1
32 BUSINESS MONTH 6 October 2014
Bank chief economist, Richard Ramsey. In addition the younger age profile of Northern Ireland may explain why our rate of self-employment is marginally less than the rest of the UK. It is a bit under 15% according to the latest figures, while it is 15% in the UK as a whole. This is the same average rate as the rest of the EU, though substantially below the level in some countries. But there are also major variations in the UK. As would be expected, the self-employment rate is higher in London than in northern England. Within Northern Ireland, the gender difference is obvious. Nearly 22% of working men here are self-employed. By contrast, less than 7% of women are self-employed. But the growth in self-employment must not be overlooked or undervalued in terms of its role in the modern economy. In Great Britain, the reduction in unemployment is down to the growth in self-employment above all other factors. Two-thirds of the jobs created in the UK in the last six years were self-employed. Total employment grew in the UK by 1.1m since the second quarter of 2008, of which 732,000 were self-employed. This is an astonishing and highly significant statistic. However, Northern Ireland is behaving differently from the rest of the UK. In the period from 2011 to 2013, Northern Ireland was the only region in the UK where self-employment actually fell. The number rose
Continued on page 34
YOUR JOB LOT ust volorrum utatiata volenda quia ni alitati ratiumet et vendus dis et voluptas ut ium nihilla quamus duscipis ressequam quassimus.
“I didn’t necessarily set out to work for myself. I was in a role that was not making me happy and I knew that being my own boss would be a much better alternative. I don’t think I would have been so confident if I didn’t have a strong business and personal support network. Not all women have that, so I can understand why employment seems a much more appealing option. I laugh when my employed friends think self-employment is all lie-ins and finishing early — I have never worked so hard in my life, but when you can see the business growing, it makes all the pain worth it.” Grainne McGarvey, managing director, Pulse PR
6 October 2014 BUSINESS MONTH 33
FOCUS ON: EMPLOYMENT Continued from page 32 by more than 430,000 in that period in the rest of the UK. It has since improved, while tending to fluctuate — the figure in the second quarter of this year was about 4,000 down on that in the first quarter. Had Northern Ireland been able to consistently build on the self-employment base of 2011, it is possible that the claimant count figures here would be better than those for the UK as a whole. But while self-employment is better than unemployment, there should be no confusion about it equalling wealth. Average pay for the self-employed in the UK is down 20% since 2007, according to the Resolution Foundation, a research institute. It reports that average pay for the self-employed is now 40% below that for employees. The self-employed are also more likely to work long hours, but, confusingly, they are also more likely to work fewer hours. The first statistic may reflect the self-employed’s need to work more to make up
for low pay, while the latter fact may reflect the lack of working opportunities. Self-employment also allows for more flexible hours, to fit in with childcare and other commitments, which is a decided plus.
34 BUSINESS MONTH 6 October 2014
There are strong upsides in the growth of self-employment. But there are risks. The TUC is concerned at the rise of ‘underemployment’ — with a rising tide of people only working part of the time and sitting
waiting for the call to begin work again. According to the TUC, Northern Ireland has the UK’s worst problem of rising underemployment. Many of those people are self-employed. It is not all rosy.
TICKERS
The month’s local indicators at a glance Ulster Bank economist Richard Ramsey gives a rundown on the latest key pointers
N
ORTHERN Ireland has recouped half of the jobs lost during the downturn. Last month’s labour statistics provided further evidence that Northern Ireland’s economic recovery remains on track. Unemployment continues to fall whilst job creation continues at a healthy rate. The number of individuals claiming unemployment benefit fell in August for the twentieth successive month with the latest monthly decline of 600 taking the claimant count to a five-year low of 52,200. This brings the cumulative decline in unemployment since the recent peak in December 2012 (64,800) to 12,600. Meanwhile the Quarterly Employment Survey (QES), which excludes the self-employed, measures the number of jobs as opposed to the number of individuals
in employment, recorded its ninth consecutive quarter of employment growth. The number of seasonally adjusted jobs peaked in Q2 2008 at 733,040 and troughed in Q1 2012 with 691,460 jobs. This represented a fall of 5.7% or 41,580 jobs and
compared unfavourably with a decline of 3.6% for the UK (RoI = -15.1%). In the subsequent nine quarters, the total number of Northern Ireland employee jobs has increased by over 21,000, with 2,210 of these added in Q2 2014. The
latest quarterly increase has taken Northern Ireland past an important milestone, namely, more than half of the jobs lost during the downturn have now been recouped. Northern Ireland’s employment levels are currently 2.8%.
NORTHERN Ireland has regained less than half of the full-time jobs lost during the downturn During the downturn, Northern Ireland’s full-time job losses were more severe than the UK. However, RoI full-time employment fell by (-21.7%) almost three times as much
as Northern Ireland and more than four times that recorded for the UK (-5.2%). Over the five-year period from Q1 2008 to Q1 2013 Northern Ireland full-time employment fell by 7.5% (36,510 jobs). However, the recovery in employment growth over the last year has been largely due to gains in full-time employment.
NORTHERN Ireland’s service sector jobs recovery is almost complete. Some sectors of the economy have experienced faster rates of recovery than others. Indeed, the services sector’s recovery is almost complete with almost 19,500 net job gains recouped over the last two-and-a-half years.
In Q2 2014, service sector employment stood at almost at a six-year high and within 400 jobs of the pre-recession peak. By comparison, the UK regained all of its job losses within services and current employment levels are now some 3% above the 2008 peak.
36 BUSINESS MONTH 6 October 2014
BUSINESSPEOPLE
The Northern Ireland Businessperson who... ...turned a rubber duck into a marketing masterstroke By Julie Hastings marketing director of Hastings Hotels
M
Y father, Sir William Hastings, is the chairman of Hastings Hotels but I never took it for granted that I would work for the family company. I studied at Queen’s University and after studied for and achieved a Masters Degree at the University of Georgia in Atlanta. I then had various jobs with a number of companies gaining experience and knowledge which would ultimately help me in my career. Having acquired some experience in the world of work, I decided marketing was for me so I did a post-grad at the University of Ulster in marketing. When I graduated I was affectionately known to my father as ‘the 3 degrees’ and it was shortly after this he called to let me know there he was recruiting for a sales job. I told him I didn’t do sales that I did marketing and he said: “Sales? Marketing? Same thing”. Which back then I suppose it was. However, the job wasn’t guaranteed to me. I had to do the interview and to be honest I’ve had to work even harder over the years to prove myself and show that I had the qualifications required for the position of marketing manager and had not just got the job because of who my father is. Over the last 26 years I have implemented many marketing campaigns which are seen around the world. However, I am most proud to say I am responsible for the creation of the world-famous Hastings ducks (inset) which have become a firm favourite of all of our guests, young and old alike. Since the introduction of the very first duck, we have since created over 20 different themed ducks and we now purchase around 130,000 every year. To me they represent the
personality behind our brand — the fun mascot of the bricks and mortar of our hotels. They have made various cameo appearances over the years — including Steve McDonald’s cab office in Coronation Street and this year visited Wimbledon. Over the years various famous people have been photographed with them including Rory McIlroy, Julian Fellowes, Russell Brand and the Ulster Rugby team. I am now the marketing director of Hastings Hotels and last year was made a Visiting Professor at the University of Ulster. This was a major honour for me and I was delighted to have been recognised for the work
I have done within the group and the wider hospitality industry. In 1998, I launched a website for the group and we were the first hotel company in Ireland to do this. Since then I have developed an online marketing team and I continue to learn so much more in the realm of digital marketing. In fact we organise a monthly digital forum which is attended by other likeminded professionals and an annual digi-talk conference to ensure we keep up to speed in this evolving industry. Other initiatives I have been responsible for includes ‘Lobby Lives’ the observational documentary series which ran for 25 weeks and
was shown on BBC NI and RTE and ‘In The Headlines’ which is the story of one of the world’s most famous hotels - the Europa Hotel. I also secured and worked on a documentary about the dramatic history of the hotel and how it mirrored the history of Belfast with ‘Bombs, Bullets and Business as Usual’. While I am extremely proud to be a member of the Hastings family, I am equally as proud to have worked hard and achieved a lot on my own merit. I have also been very fortunate to meet some incredible people including President Clinton during his visit to Belfast in 2005. I had the opportunity to talk to him for several minutes about Northern Ireland and his interest in golf. I invited him to come and play golf at Royal County Down the following year, which I am overwhelmed to say he did with John Hume. I am the eldest of four siblings, and after I joined the company in 1988 my brother and two sisters came onboard shortly after. We all work in different positions within the company and we each have our own departments in which we specialise in. As a family, we get on extremely well. Dad does referee when opinions differ, and he is good at it. We are all part of the team and extremely passionate about what we do, so debate is good, and we all work very hard to make all the hotels the success they are. Outside of work, I am mother of three and to relax I love to play tennis. I’ve played from the age of 12 and by 14 I was playing for Ulster and I’m still on the team (the veteran’s one now). Hastings Hotels is Northern Ireland’s largest independent hotel chain with six hotels in the province, and is co-owner of the Merrion Hotel in Dublin.
6 October 2014 BUSINESS MONTH 37
FOCUS ON: INFRASTRUCTURE
SOFT LANDING
Our airports are experiencing some turbulent times in their battles for business. The result could
I
T’S been a bumpy ride for the bosses of Northern Ireland’s three main airports in recent years but this summer marked a major turning point as the sector corrected its flight path. The first positive news to appear on the radar after a period of turbulence at Belfast International Airport was the launch of two separate transatlantic connections to Orlando, Florida by Virgin Atlantic and Thomas Cook. The seasonal routes are a much-needed lift to the airport, which was left reeling from United Airways’ decision to suspend what is the only direct flight from Belfast to America. The Newark service will be halted for nine weeks from January next year. There is also a new easyJet route to Reykjavik, Iceland from Belfast International — and the announcement of 86 new jobs by low-cost carrier Jet2.com at its Belfast hub, with new routes to Prague, Rome, Gran Canaria and Zante in Greece. And Wizz Air also announced new routes to Katowice in Poland and Vilnius in Lithuania, again from Belfast International. The airport has also announced the appointment of Graham Keddie as managing director following the retirement of John Doran. And Turkish Airlines has been lobbying for a route to Istanbul, now regarded as a major gateway airport into the Middle East. Meanwhile, George Best Belfast City Airport has said it enjoyed one of its most successful years ever in 2013, with passenger numbers up by 13% to 2.5m, boosted by the World Police and Fire Games which attracted nearly 7,000 athletes from 67 countries to the city last year. And City of Derry Airport is reaping the rewards of a major investment programme whereby it is now handling in excess of 400,000 passengers and flourishing under its ‘gateway to the north west’ branding. A spokewoman said: “CoDA has enjoyed a very successful summer in 2014. Passenger numbers were lower than the previous year — however, load factors have
38 BUSINESS MONTH 6 October 2014
increased (average increase of 2% overall). “Ryanair continues to offer passengers travelling from CoDA low cost fares to a range of UK and European destination. Ryanair recently announced a new service from CoDA into Glasgow International Airport.” But the industry is still being buffeted from all sides and there is no guarantee of a soft landing. Planned new long-haul routes from Northern Ireland to Toronto and Abu Dhabi were shelved earlier this year. International air links are the lifeblood of trade and they send a signal to investors and tourists that Northern Ireland is accessible and open for business. Without them, the province’s economic development will stall. Moreover, the controversial air passenger duty (APD) and the ‘cap’ on flights at Belfast City Airport are putting further brakes on growth. But the biggest danger at present is that Northern Ireland simply can’t compete with the Republic’s airports, which can offer airlines huge financial incentives. In many ways, the past year has been a tale of two cities. Dublin Airport — just two hours down the road by car — boasts four routes to Canada alone, and two to the Middle East, as well as a vast network of short-haul European routes and long-haul services. Belfast International handled around 4m passengers in 2013 — around a fifth of Dublin’s 20m annual passenger volume — which was down nearly 7% on 2012. In the same period the number of Northern Ireland residents using Dublin Airport increased by 11% to more than 570,000 last year. Howard Hastings, managing director of Hastings Hotels, has voiced concern at the commercial threat posed by Dublin Airport. “The growth in air access to the island had been skewed disproportionately in recent years to the Republic of Ireland leaving us feeling a bit more regional and peripheral,” he said. “There are gains from the additional
ON HORIZON?
have a big impact right across Northern Ireland’s economic performance. By Simon Rowe
connectivity of the island but it is holding back economic development in this part of the world in that we haven’t had our fair share of the gain in connectivity.” Politicians and business groups are equally concerned about the impact on Northern Ireland’s airports after the Republic of Ireland scrapped its air travel tax. The tax had been €3 per passenger, per flight, but this was abolished in April. In Northern Ireland air passenger duty is £13 per passenger, per flight. APD on long-haul flights has already been dropped. A spokeswoman for City of Derry Airport said: “Over 80% of all flights to and from Northern Ireland are to airports in Great Britain. “This means that our passengers are charged APD on both legs of their journey. At the current rate passengers are charged £26 in tax on a return ticket to anywhere in Great Britain from Northern Ireland. “Passengers in Great Britain also have other travel options if they wish to avoid the tax — they can drive or get the train. These options are very limited or non-ex-
The biggest danger is that Northern Ireland airports cannot compete with the Republic’s istent for Northern Ireland travellers. Therefore APD has a disproportionate effect on Northern Ireland passengers because for many they have no choice but to fly.” Northern Ireland is also reeling from the repercussions of the Republic’s removal of its air travel tax,the spokesman for City of Derry Airport said. “The other effect of this tax differential is that airlines are choosing to put new flights into countries where there is no
Continued on page 40
6 October 2014 BUSINESS MONTH 39
FOCUS ON: INFRASTRUCTURE Continued from page 39 travel taxation. This makes it even more difficult to develop new routes. “APD is bad for Northern Ireland. It is unfair and is detrimental to growth of the Northern Ireland economy. “It is imperative that our politicians persuade the Exchequer in London to reduce or remove this tax in order to facilitate the connectivity Northern Ireland needs for business, leisure and tourism.” But bosses at George Best Belfast City Airport remain upbeat as they hope to add new flights to European cities and are preparing for the introduction of Flybe’s new direct service into London City Airport. From later this month, Flybe will offer three times daily services into the heart of London, bringing the total number of direct destinations offered from Northern Ireland to 14 making it the largest airline operating at George Best airport. Steering a course through the commercial storm clouds won’t be easy but if our airports can do it then the only way is up in 2015.
40 BUSINESS MONTH 6 October 2014
FOCUS ON DRINKS TRADE
SERVING UP A
Northern Ireland’s pubs suffered during the recession but it looks like peoplearestartingto goingoutagain.Howevertheindustryisinthe early stages of revival and still needs more support Clare Weir reports
W
ITH less disposable income in people’s pockets, it has been no surprise that pubs have been a major casualty of the economic downturn. As the recovery gets under way, consumers are returning back to sinking pints rather than saving pennies and canny publicans are capitalising on new trends towards gastropubs and themed experiences. In 2013, there was shock as Botanic Inns collapsed, owing over £14m to Ulster Bank, drinks company Diageo and hundreds of other creditors. The group ran 14 venues, including The Botanic Inn, Madison’s Hotel, the King’s Head, The Kitchen Bar, The Apartment and the Northern Whig, which now continue to trade under new ownership. But others have adapted to the changing times. Ronan Sweeney, recognising the importance of food tourism, has helped transform the fortunes of a number of premises with his Balloo Inns business partner, chef Danny Millar. Sweeney bought Balloo House in Killinchy in 2003 and has since snapped up The Parson’s Nose in Hillsborough (formerly the Marquis of Downshire) and The Poacher’s Pocket in Lisbane, formerly Lisbarnett House. While many pubs say the smoking ban harmed their business, Sweeney said it was an opportunity for theirs, ena-
bling them to attract families with children, and corner the gastropub market, which is hugely popular in England. And while it will be hard to prise imported drinks from the hands of drinkers, Northern Ireland has also seen the resurrection of homegrown brewing and distilling, with new beer companies springing up and distillers like Echlinville Distillery and Rademon Estate Distillery launching their own whiskey and gin brands. Added to the resurgent interest in locally produced beers, ciders and spirits is a new shake-up of laws regulating the sale of alcohol in Northern Ireland. A Department for Social Development consultation attracted over 2,500 responses. Among the changes announced by Social Development Minister Nelson McCausland in July are a ban on carryouts from pubs and an hour for drinking-up, as
The pubs industry contributes £1bn to our economy. It is imperative therefore that the industry is supported and allowed to flourish
42 BUSINESS MONTH 6 October 2014
NEW FUTURE ust volorrum utatiata volenda quia ni alitati ratiumet et vendus dis et voluptas ut ium nihilla quamus duscipis ressequam quassimus.l
6 October 2014 BUSINESS MONTH 43
FOCUS ON DRINKS TRADE opposed to half an hour. A new ‘occasional licence’ will also allow pubs to open until 2am on 12 nights per year. There have also been small changes to Easter opening, where normal opening hours will apply on the Thursday and Saturday before Easter. Other changes to the law will permit people under the age of 18 to attend functions on licensed premises, provided the bar is closed. There will be restrictions on the advertising of alcohol in supermarkets and off sales premises. There will also be minor changes to the law affecting private members’ clubs. Colin Neill, chief executive of Pubs of Ulster said: “The hospitality industry in Northern Ireland has had a tumultuous few years and we have witnessed the closure of a number of pubs, restaurants and hotels,” he said “In the past year we have seen a modest revival, particularly in areas like Belfast with the opening of a number of new bars and restaurants. We must do all we can to cut out the red
tape which can strangle many businesses and help them focus on their core business.” Neill said that a proposed industry shake-up is a step in the right direction, but added that more needs to be done. “The reform of the liquor
44 BUSINESS MONTH 6 October 2014
licensing system proposed by the Social Development Minister will go some way to helping the industry,” he said. “The pubs industry contributes around £1bn to our economy here and indeed the vast majority of tourists who visit
Northern Ireland, make a trip to one of our famous pubs. “It is imperative therefore that the industry is supported and allowed to flourish to support our economy and have Northern Ireland recognised as a world class destination.”
OFF LINE SECTION MOTORING
DAY INTHE LIFE
MANABOUTTOWN
TOP
LADY
THE
CLASS
The new Mercedes GLA
DUFFERIN
Farming excellence
CHAIRMAN
Inside track on Northern Ireland business
TASTY TREAT
PORTUGUESE VINEYARD REGION
6 October 2014 BUSINESS MONTH 45
offline
OUT TO LUNCH
‘The arrival of the iPad turbo-charged the market totally’ Colin Reid, the chief executive Total Mobile tells Joris Minne that some foresight and the many advances in technology are proving to be a life-saver for front-line health staff
C
OLIN Reid is inscrutable. The calm which surrounds him is generated by an unselfconscious inner steadiness, the kind of quiet unassuming confidence you normally associate with a seventh dan tae kwon do master. For somebody who has spent years convincing large organisations how to communicate better and who has proved at long last that mobile communications can make a life or death difference, he is remarkably modest and self effacing. Consider the hundreds of millions spent in the last decade by the UK government on failed digitising and mobilising projects which were aimed at front line health staff. For Reid, whose business formerly known as Consilium Technologies was providing communications solutions to local authorities throughout Great Britain, the problem was clear and simple. “Nurses and front line staff were being handed bulky lap tops and told to go out and do the job, key in the patient information and everything would be fine,” he says. “Except it wasn’t fine at all. “Those health workers found the software very user unfriendly, more often than not they could not get online so they wasted extremely precious patient time trying to complete their administrative work, the very burden the systems were supposed to relieve if not eliminate. “We had been working with mobile
46 BUSINESS MONTH 6 October 2014
communications since the days of the HP Ipaq and had evolved with the advent smart pones tablets and we knew the solution lay here.” Consilium Technologies was reborn as Total Mobile three years ago and moved from Antrim to Belfast. A specialist team of crack coders was put into a darkened room for months and a communications solution was devised. This solution is now in its sixth edition and Reid says it has improved the efficiency and productivity of NHS workers beyond expectation. He says the systems are saving workers, nurses and clinicians up to two hours a day which they can devote to patient time. Reid doesn’t take all the credit. He points to the phenomenon of the tablet which educated and informed millions of people as to how such a device could be used and what applications might work. “By the time we had done all the heavy lifting with British local authorities and health bodies explaining to them the concept of mobile communications, the arrival of the tablet suddenly made a difficult-to-understand solution very easy and obvious,” he says. “The arrival of the iPad turbo-charged the mobility market.” Reid talks of product adoption and says the original telephones took about 35 years from launch before becoming mainstream (in 1960s Armagh, we still didn’t have a telephone); PCs took about 16 years, mo-
biles 13 years, smartphones, seven, social media four and tablets three years. He now says wearables will take a year now to become mainstream, ie showing up to 25% market penetration. Reid then takes me into a mysterious world of “agile methods”, “two-week iterations”, and “the internet of thngs.” But what is clear is that his firm’s health sector activities which went from zero revenue in 2012 to £4m now, are expected to double this next year. The quiet man of mobile communications says it is the first time in 35 years in business that he sees “actual delivery of progress and benefits in the most critical sector of them all: health.”
James Street South Restaurant
Scallops Wood pigeon Lamb John Dory Fries Salad Sparkling water Gls Albarino x 2 Gls pinot noir Ice cream and madeleines Coffees x 2 Total
£9.50 £8.50 £21.00 £19.50 £3.50 £3.50 £7.90 £13.00 £6.00 £5.50 £5.00 £ 102.90
offline
STREETVIEW
A winning combination of taste and presentation Ron McBride
C
HAPMAN’S is one of a growing number of Northern Ireland businesses to scoop awards in the UK Great Taste Awards. Following 18 Gold awards in 2013, they gained further awards for foodstuffs ranging from banana cake to chicken and leek pie in 2014. There is more than meets the eye behind this business with the dozen staff working from early morning both in the bakery and with the varied produce in terms of quality control and presentation. The shop, run by brothers Brian, Greg and Graham, from a farming background, evolved from a mobile stall in the 1980s to today’s substantial modern premises opened in 2002. The site sits on the main road between Portadown and Armagh. The frontage of the shop is attractive with a combination of red brick and stonework, good signage and a
clock. The outbuildings are set back from the main entrance. Outside, there are gas cylinders, firewood and an array of bedding plants. On entering, the customer becomes aware of its surprising size and the array of produce. The lighting is good, presenting attractive ‘blocks of colour’. In the front section of the L-shaped premises there is room for quality shelving on both sides and
a double aisle in the middle. Towards the back of the shop fruit and vegetables give way to refrigerated cabinets followed by a variety of jams and chutneys, a wide range of bakery products and soft drinks. Dairy produce, pies, cut flowers and soft fruit are available in another middle aisle. The shop extends into the L-shaped section at the rear which has a large display of
home baking and branded goods. Chapman’s produce the vast majority in their own bakery and have, of course, the requisite hygiene awards. Their own-brand chutneys and soups are complemented by dedicated shelving for Cottage Delight, Mrs Bridges, Kennedy’s Farm ice cream. Chapman’s has expanded over the last decade, supporting 20 local suppliers and about a dozen from UK. In terms of community involvement, they sponsor the annual 10k road race in Armagh and are involved in a project supplying fruit and vegetables at cost to local primary schools. They do school visits, run evening classes and offer demonstrations and tastings throughout year. The shop is well worth a visit because of its high quality produce and friendly staff. Anyone looking for lemongrass or frozen fruit coulis will not be disappointed — the list is endless.
6 October 2014 BUSINESS MONTH 47
offline
DAY IN THE LIFE
‘Clandeboye is like a big machine, my job is to keep it well oiled’ Lady Dufferin
Marchioness of Dufferin and Ava, owner of Clandeboye Estate Yoghurt and other estate businesses
7am
I’ve always been an early riser and I have a very productive couple of hours every morning before I leave the house. I start my day with a cup of tea and fruit whilst answer my emails. I do dabble in the cyberworld of Facebook and LinkedIn but I am still a firm believer in the importance of good old-fashioned communication and a proper handwritten letter. Every morning, I do my written correspondence and make my long “to do” list for the day ahead.
9.30am
I head to the Estate Office to meet with my PA and we go through the diary for the day and week ahead. I frequently travel back and forth to London so there are usually tickets to be printed, flights to be booked and meetings to be confirmed. Clandeboye is like a big machine, my job is to keep everything well oiled and moving in the same direction. The estate is my life, so it doesn’t ever really feel like a job. Establishing profitable commercial ventures at Clan-
“In my career I have been inspired and supported by strong female role models. Coming from a food industry background I admire how Lady Dufferin has led the success of the Clandeboye yoghurt brand which has such a strong local identity.”
deboye whilst still retaining it as my private home is a difficult balancing act…and one I can only manage to get right with the help of a trusted team of managers who share my passion for Clandeboye.
10am
First stop on my rounds will be The Courtyard, which is available for private hire for wedding and events. I touch base with events manager Karen Kane, who looks after this very important area of the business.
11 am
Karen and I meet with representatives from the Prince’s Trust. As part of our charitable work, we are currently developing an exciting new three-way relationship with The Dufferin Foundation, The Prince’s Trust and the Conservation Volunteers.
Lunch
Lunch in the house with Bryan Boggs, Clandeboye Estate Yoghurt manager, and a senior supermarket buyer interested
48 BUSINESS MONTH 6 October 2014
Heather Hawkins, Moy Park food development manager in stocking our range of handmade artisan yoghurts.
2pm
Meeting with John Witchell, my estate manager and right hand man. John’s role is to help maintain a profitable and self-sustaining estate.
3pm
John and I head over to The Blackwood Golf Centre, which occupies 250 acres of the estate. We will meet with the centre staff and green keeping team once a week to deal with any issues that may arise.
4pm
On my way back home, I stop off with Mark Logan in the dairy farm. I’ve always kept a keen interest in our cows, as well as the award-winning milk-producing Holstein and
Jersey herd, we have an every growing rare breed herd of hornless ancient Moiled Irish cattle.
5pm
John Witchell and I will sit down in the library and review any outstanding issues that have arisen over the day.
6pm
After supper, if I am not going to an engagement and have no house guests, I will usually get engrossed in my other passion, painting. I have recently just completed a commission to produce 188 prints from 40 original drawings for a luxury resort in Montenegro.
10pm
I’m an avid reader and my night-time routine usually winds up with a book in hand.
offline
BMW’slow carbonawardfor outstanding achievement THE BMW Group was awarded the ‘Grand Prix’ award for Outstanding Achievement in Low Carbon Transport in a celebration hosted by TV’s Robert Llewellyn. Professor Dame Julia King, author of ‘King Review of Low Carbon Cars’, was recognised with a special award for outstanding individual achievement. With nearly 300 industry peers and low carbon transport stakeholders in attendance, BMW was the winner of the Low Carbon Car/Van Manufacturer of the Year. The entry impressed the judges as it showed the company’s commitment to a visionary new approach to sustainable mobility and also to cutting the environmental impacts of production. One of the judges, Philip Sellwood, chief executive of the Energy Saving Trust, said: “The road transport sector has been a real success story. I was delighted to play a part in celebrating the successes of the entrants to these awards
who are making an important contribution to current, and future, UK economic success.”
Mileage checks can stop buyers being ripped off THE vehicle checking company HPI has joined forces with valuations experts, Glass’s, to reveal just how much money dodgy sellers can con out of buyers by adjusting the mileage on a car. At the upper end of the market, an unscrupulous seller could earn an extra 25% on the price of a VW Golf 1.6 GTI by simply dropping the mileage from 90,000 to 45,000. That means the innocent buyer pays £2,190 more than the vehicle is worth. Glass’s figures show that a three-year-old saloon such as the BMW 5 series with 120,000 miles on the clock would be worth £13,380, but by shaving off 50,000 miles, clockers could get £15,960. That’s 19% more for the seller, but the buyer hands over £2,580 above the car’s true value. It’s the same story for a Mercedes C-Class £16,360 vehicle with 90,000
miles. Taking the mileage, on that car, down to 45,000 increases the price to £18,600, so buyers stand to lose £2,240 if they fall for the con. The HPI check includes a mileage check against the National Mileage Register as standard, now with over 170m mileage readings. HPI also confirms whether a vehicle is currently recorded by the police as stolen, has outstanding finance against it or has been written-off.
Motor racing big names out in force for Crosslé launch EX-FORMULA 1 stars, John Watson and Martin Donnelly joined a number of other local single seat champions to launch a comprehensive book on the history of Crosslé, the story of the world’s longest serving manufacturer of customer racing cars. Drivers and engineers shared their Crosslé memories with the invited gathering at Belfast’s Titanic Quarter, overshadowed by the fact that the founder of the Co Down
MOTORING NEWS
company, John L. Crosslé had passed away shortly before the event. The book, ‘Hidden Glory’ by Alan Tyndall is now on sale, priced at £60.
Production landmark for Ford diesel engines FORD’S three-millionth UKbuilt small-capacity diesel engine has rolled off the line at the company’s manufacturing centre at Dagenham. Low-carbon diesel engines have been built at the plant for a variety of models across the Ford range, and for other manufacturers, since production started in May 2007. On average, more than 30,000 engines are produced every month, with total production of the small-capacity diesel engine for 2013 exceeding 365,000. By September 2015 all Ford diesel engines will comply with the latest Euro-6 emission regulations, which reflects an 84% reduction in Nitrous Oxide emissions from diesel cars since 2000.
6 October 2014 BUSINESS MONTH 49
offline
MOTORING
MERCEDESMARVEL C
The new GLA takes class to a new level with a great look and drive. By Jim Mc Cauley
OMPUTER aided design and manufacturing have given manufacturers the opportunities to make every car that we are ever likely to need. Distinctive categories have now blurred with intermediate designs that offer a little bit more than the size below it but not quite as much as the model range above it. Some are hard to justify even if they carry an inventive
50 BUSINESS MONTH 6 October 2014
new category while a few bridge that traditional gap in a carefully thought-out solution. Sitting comfortably at the top of the latter category is the Mercedes-Benz GLA which takes the standard A-Class range into a totally different dimension in terms of looks and accommodation to provide an additional choice between the A-Class hatchback range and the CLA saloon. A common
platform and engine choice keeps development time and costs down in this first time SUV offering from Mercedes that will have its ready customers in terms of its stylish if moderately aggressive looks and estate-car versatility. Test choice was the GLA 200 CDI with its 2.1 litre diesel engine developing 136 HP and providing drive to all four wheels via a 7-speed automatic transmission.
Styling-wise, the car portrays a dynamic balance of elegance and aggressiveness on this trim level with the lowered suspension and twin-bar grille adding to its appeal. An upper body crease picks up from the top grille bar and cuts through the substantial headlight units to scribe a distinctive light line along the body before it drops and fades as it approaches the rear wheel arch.
MERCEDES-BENZ GLA 200 CDI Engine: 2.1 litres, four-cylinder turbo-diesel; 136 HP at 3,400 – 4,000 rpm; 300 Nm torque from 1,400 – 3,000 rpm Drive: Via 7G-DCT, 7-speed automatic transmission Performance: 0-62 mph (100 km/h) in 9.9 seconds; max, 127 mph ( 203 km/h) Fuel on combined cycle: 62.8 mpg (4.49 l/100km) CO2: 119 gms/km; VED Band C for annual car tax of £30 Trim: AMG Line Price: £28,300 Insurance: ABI Group 25 Warranty: 3-years, unlimited mileage Benefit-in-Kind: 19% Euro NCAP: 5-Star Available extras: AMG Exclusive package £1,295, Active Park Assist £705, Heated Seats £300, Drive Kit iPhone integration kit £470, Harmon Kardon Surround Sound £680.
On road, and the engine / transmission combination performs well, keeping the car well paced, particularly on roads that can challenge an automatic gearbox, on this occasion the A77 from Cairnryan to Glasgow. At normal road speeds selection up and down was always smooth with a quick response when overtaking by going manual on the steering wheel paddles. Precise steering adds to the confident feel of the car and driving with a mix of light and heavy loads, the suspension provided a good balance of poise and comfort. Cabin accommodation disguises the car’s relative compact 4.4 metres length
with excellent front room and good rear passenger space as well as a very usable boot of 421 litres. Instrument layout is modern with the central 5.8 inch information screen well positioned within the driver’s sight line and silver highlights enclosing the main control panels. The interior of the test vehicle was further enhanced by the AMG Exclusive package, costing £1,295 and a definite extra for those willing to add to the specification of the model. This includes black leather interior with contrasting red stitching, electric adjustment with 4-way lumbar support on the front seats and black roof lining. But other than this, the
standard car is ‘AMG Line’ trim lacks little in terms of industry-leading safety provision as well as equipment levels and excellent interior detailing. The comprehensive safety catalogue includes Electronic Stability Program with Acceleration Skid Control, seven airbags including a driver’s knee unit, active bonnet which rises by 65 mm on detection of a pedestrian impact, Hill Start Assist, Attention Assist which monitors steering behaviour and can help to alert the driver to long journey fatigue as well as other collision prevention measures. Overall, the GLA brings a fresh breath of youthfulness to the Mercedes-Benz ‘A’ range in terms of design,
performance and practicality at a more affordable price than what might at first appear. The car is also extremely frugal with an official combined fuel consumption of 62.8 mpg and a CO2 emissions of 119 gms/ km putting it in Band C for annual road tax, and giving it a BIK tax rate of 19% for business users. While the diesel range opens at £25,795, the model tested in top ‘AMG Line’ trim is listed at £28,300. The model is covered by Mercedes-Benz’s 3-year, unlimited mileage warranty with to to 30 years corrosion cover and 4 years pan European roadside assistance, extendible to up to 30 years subject to conditions.
6 October 2014 BUSINESS MONTH 51
offline
TECHNOLOGY 1 Apple Watch approx £215 @www.apple.com After months of speculation, Apple has finally announced its own smartwatch, and reviews have been mixed. The challenge was to incorporate powerful technology with something small enough to be worn on the wrist, and appeal to both men and women. Size-wise it is not nearly as slim as the iPhone 6, and it’s flat, so in form factor it’s not radically different from the other smartwatches on the market. The screen is bright and crisp and if you are trying to see it at an angle, the words and pictures remain nicely readable. A good thing, or possibly a bad thing, is that you’ll feel a gentle tap when you receive an incoming message, which could mean being bothered throughout the day. Remember that it is actually a watch — like the iPhone, it keeps time within 50 milliseconds of the definitive global time standard.
3 Volkswagen Golf GTE, approx £28,000 It has been argued the GTE is the missing link between conventionally powered Golfs and the all-electric e-Golf, and it is a convincing all-rounder. While it doesn’t live up to its sporty billing, it is plenty of fun and, say the manufacturers, is a sporting family car with tax-dodging emissions and sensational 188mpg fuel economy. The GTE is driven by two engines: a 1.4-litre 150 PS TSI direct-injection petrol engine and a 102 PS electric motor. In pure electric mode (activated at the press of a button), 2 Samsung Galaxy Alpha Smartphone on various contracts it can travel up to Roughly the same size as the Samsung Galaxy S5 Mini, this new model has a metal band 31 miles, and the running around its outside, making it snazzier than its previous counterpart and the electric power updated spec means it’s more powerful. It’s aluminium, with the same sort of anodised can also be saved. finish you see on the back of the iPhone 6, which gives the Galaxy Alpha the Visually, it has cool and hard feel that is largely behind why metal phones feel elements of the more expensive than plastic ones. The edges are quite e-Golf and the GTI sharp, but as the 4.7in Galaxy Alpha isn’t too and will feature an large, handling it is easy. There are some e-manager to let compromises in the Alpha’s screen as the the driver preset resolution is not great – it has a 720p screen when vehicle charging, most phones at a similar price have 1080p ones. This as well as interior makes areas of block white look a little fuzzy. cooling or heating.
52 BUSINESS MONTH 6 October 2014
Facebook posts to self-destruct Many of us have posted what we thought are hilarious comments at 2am only to regret them in the morning. Savvy to this problem, Facebook is planning to introduce self-destructing posts that’ll vanish after a certain time. The online social networking service is reportedly testing a new feature that will see Facebook posts vanish after a stipulated period of time. As well as protecting you from the consequences of your actions, the feature could also help to avoid cluttering up your Facebook profile page with less important status updates, or even advertise time-sensitive events.
offline
FASHION
Rust blazer £150 @ White Stuff
Autumn style By Xtyrtryrt
W
E are into autumn, and what better way to reflect the kaleidoscope of the season’s colours than in our clothes? Flame red, burnt orange, tan and even mustard are great options and will look warm and welcoming teamed with cream, black, dark or light grey. Embellishments, geometric prints and 1970s designs are also big and these autumnal colours will complement them perfectly. Stay clear of head to toe orange or you might be mistaken for a pumpkin at Halloween.
Melinda shopper £99.50 @ Oliver Bonas
Barbour tartan scarf £39 @ HoF
Brown leather skirt £85 @ Topshop
Ponte jacket £40 @ Oasis
Men’s orange T-shirt £5.99 @ New Look
Printed cotton sweater £93 @ Eden Park
Limited Edition dress £45 @ M&S
6 October 2014 BUSINESS MONTH 53
offline
TRAVEL
WINE COUNTRY Fiona Dunlop travels through the little known vineyard region of Mhino Lima in Portugal, but she finds it has much more than a tipple to tempt weary travellers
P
ORTUGAL’S majestic Douro Valley is no secret. Behind its mountain curtain just east of Porto, the valley is almost entirely comprised of steep, rugged hillsides etched with row upon row of vines that plunge down to the languorous river. Many of the beautiful quintas (country estates and wineries) throughout the hills or huddled in folds of valleys have now opened their doors to guests, adding in extras such as pools and — naturally — wine tastings. But there is another, mellower and lesser-known wine region to explore, to the north of Porto near the Spanish border: Minho-Lima, between the Minho and Lima rivers, known as the Minho. Lush and green, Portugal’s wettest region is a visual dream of mists, wild
54 BUSINESS MONTH 6 October 2014
flowers, roses, monumental cedars, vertical vines and even Baroque gardens. So that makes two contrasting settings and some very diverse wines, both under two hours’ drive from Porto. My base in the Minho was the Quinta do Ameal, a hilly enclave bordering the Lima river opposite the town of Ponte de Lima. The vineyard produces award-winning vinho verde in a setting of glorious woodland, walnut groves and wisteria-draped pergolas, sweeping views of which are visible from the pool. Like many enlightened Portuguese vintners, owner Pedro Araujo sees “oeno-tourism” as a business opportunity. The result is an imaginative conversion of a fine old quinta into self-catering suites with thick granite walls, immense bathrooms and
crisp Portuguese bedlinen. A bag of crusty bread rolls was delivered daily by Yolanda straight from the bakery, while each evening, I’d sit in the beautiful garden at that delicious twilight hour, sipping a glass of white Loureiro and nibbling walnuts — both produced just yards away. Best of all were early walks through the estate when morning mists drifted across the vineyards. When I finally reached the river, it felt almost Tolkienesque. Only just visible through the mist, the audibly fast-flowing water reminded me that two millennia ago the invading Romans believed it was the mythical Lethe, or river of forgetfulness: cross to the opposite bank and your life was lost to amnesia in an instant. Similarly ancient is Ponte de Lima,
reputed to be Portugal’s oldest town. It’s a tranquil assemblage of solid granite houses, some aristocratically ornate, lining streets that wind down to the stupendous Roman bridge. The town has a bustling food market that is big on bacalhau (salt cod) and smoked chourico (the Portuguese variant on Spain’s chorizo). There are plenty of beguiling little shops, bars and restaurants. A morning coffee at Mercearia da Vila came with an intriguing display of hand-made metal toys, sumptuous cakes on glass stands, a line-up of local jams and a copious menu of snacks — all written by hand in a notebook. Later, at a buzzing little bar, Os Telhadinhos, I demolished a hearty home-made soup accompanied by a white bowl of young red wine, while a cheerful senhora cooked up virtually anything to order for locals glued to the football on television. From here, it was a tough choice: west to the wild Atlantic beaches around Viana do Castelo, or east into the national park of Peneda-Geres. I chose the latter and headed up into wild hills blanketed with gorse and heather, with vertiginous views and long-horned cattle in the meadows below. In the tiny village of Soajo, an impressive cluster of espigueiros, traditional granite grain-stores, are identical to the hórreos of Galicia, a short hop away over the Minho river — a rustic reminder that these two regions were once one.
The drive south-east from Minho to Douro, passes dozens of pretty smallholdings. Orange and lemon trees grow beside vines trained on high posts in order to squeeze in vegetables or corn beneath. The route also takes in the elegant town of Braga, Portugal’s Catholic heart and capital of Baroque. Here I was intent on rediscovering a magical garden I had seen years before at the Monastery of Tibaes. After undergoing 20 years of renovations, this little-known but vast Benedictine structure is an absolute treasure. In 40 acres of enclosed land, its garden is romantically rambling. A staircase of seven terraced fountains is lushly overgrown beside ragged box hedges, water-channels and — like a jewel amid beeches, cedars, mosses and ferns — an emerald-green pond. But as the bells tolled, it was time for me to move on. At last, I was in the spectacular Douro. Uphill from Pinhao, dizzying bends gave endless perspectives of rippling hillside terracing, olive trees and the twists and turns of the legendary river. My destination was Provesende, the village where the regulations for port production were drawn up by Porto’s wine dynasties in the 17th century. It’s the kind of place where the main action is someone — or their dog — ambling past the stone pillory en route to the café. The astonishing interior of the church, however, its exuberantly Baroque altarpieces and hand-painted ceiling,
spelled out how important the community once was. Gradually, the illustrious past was revealed in a succession of elegant but dilapidated manor houses overshadowing neat little village houses. Of Provesende’s 11 original aristocratic mansions, only a couple are still inhabited. Happily, I was staying at one of them, Morgadio da Calcada. Here, my energetic host, Manuel Villas-Boas, showed me around the family pile: an earthen-floored wine-cellar lined with huge, ancient casks, and grand upper-floor rooms. In contrast, across the courtyard, eight minimalist guestrooms have been carved out of stone outbuildings beside the vineyards that produce Morgadio da Calcada’s wines. At dinner, hosted by Manuel and impeccably served by a white-gloved cook, these were naturally our chosen tipple. Unexpectedly for such a patrician setup, breakfast was dependent on exterior forces. These came in the form of Antonio José at his wonderful old bakery on the main square. I was taken to witness his craft at a huge wood-fired oven from which Antonio shovelled out dozens of sourdough loaves. I grabbed my hot bread and beetled back for a sumptuous breakfast in more salubrious surroundings. It was edible proof that these new, highly personal quintas are paving the way to much more than the discovery of wine.
55 6 October 2014 BUSINESS MONTH 55
offline
TRAVEL
Five of the best: surf’s up IT’S October, the kids have gone back to school, the ice-cream vans have packed up, and the UK and Ireland’s beaches return to being used by dog walkers, the odd jogger and those brave enough to pull on a wetsuit and get into the water. “It’s not as cold as you’d imagine,” says Ernie Capbert, from UK surf brand Finisterre, “and autumn is definitely the best season for swells, sunset barbecues, and general good beach vibes.”
It’s far from grim up North for newcomers
1. While Devon and Cornwall remain the obvious UK choice, there are plenty of amazing surf breaks on every coastline. Whitby, Yorkshire, is the perfect place to get bitten by the surfing bug. The town’s West Cliff beach is an ideal place to learn as the shallow-gradient, sandy beach means nervous surfers won’t get too far out of their depth. Add good parking, nearby showers and a cafe, and it’s no wonder Whitby Surf School (whitbysurf school.co.uk) is in hot demand.
Cromer close enough to bright lights of London
2. Those living in London might be surprised that there’s actually great surf a few hours’ drive away. No, not Brighton, though the odd storm swell does create some good waves in the Sussex resort, but Norfolk’s Cromer Bundoran in Donegal
56 BUSINESS MONTH 6 October 2014
Beach. North Sea swells and the right wind conditions can produce barrelling left-hand waves.
Hit the outer limits for best of Scottish isles
3. If you don’t mind a bit of a trek and fancy some genuine adventuring, the Isle of Lewis — part of the Scottish Outer Hebrides — has empty waves, stunning beaches, genuinely world-class surf, and friendly pubs. The Hebridean Surf School (01851 840343, hebrideansurf.co.uk) offers lessons, transport, advice, surfboard hire and everything you need for a weekend or longer surf break.
Donegal a dream for some Atlantic action
4. Ireland has a wealth of cold-water surf breaks, with Donegal’s Bundoran effectively surf city. But for the true Irish surf experience, head six-miles down the coast to Rossnowlagh, and you’ll get the pick of some clear, perfectly formed Atlantic rollers. For accommodation, try Tyrconnell Holiday Cottages (00 353 7198 42277) who also run the local surf school.
Cornwall is still cream of the crop for boarders
5. It’s still hard to beat a trip to Cornwall. And for the ultimate weekend, head to the revamped Driftwood Spars (driftwood spars.co.uk), in St Agnes.
offline
Appointments
OUT AND ABOUT
withThe
CHAIRMAN
From celebrating women in business to getting together with some volunteers, it has been a busy old time for man about town
Stephen Matchett has joined Danske Bank as its chief financial officer. He has held a number of senior positions in major banks including the same role at the Bank of Ireland’s UK division, and previously as its executive director. Mr Matchett’s previous employers include PwC and Deloitte.
Garth Maxwell has joined Danske Bank as its new head of private banking. In his new role Mr Maxwell will be responsible for a private banking team based at offices in Belfast, Ballymana, Londonderry, Newry, Portadown, Coleraine and Omagh. He has over 30 years’ experience in senior positions.
Roberto Comsa has joined Travel Solutions as its new ski and special projects manager. He will be leading the firm’s Balkan department and joins the company after 32 years in the tourism industry. His expertise includes the development of a range of ski holidays.
T
HE CHAIRMAN is delighted to take part in this month’s special women’s issue of Business Month and feels more than able to represent the usual menfolk who have been banished to make way for our bevy of guest editors and other splendid women from the business world. And to be fair, the editors and their discussions are au courant as we’ve had a flood of initiatives in business life to make women more prominent. The Chairman was pleased to attend the CBI’s annual lunch in Titanic Belfast, where the organisation vowed that its programmes and events will also consist of at least 30% women — an initiative applauded by the Chairman. In his address to the lunch, CBI chairman Colin Walsh said he hoped gender diversity will soon become “an accepted part of the business culture and that we do not have to talk about it anymore”. And Liz Earle, the eternally-youthful founder of the eponymous skincare brand, of which both Mr and Mrs Chairman are avowed fans, addressed the lunch on her experiences of founding a successful company. As ever, the Chairman threw himself with gusto into hob-nobbing with members of the media, such as Ulster Business’ David Elliott, Naomi McMullan of UTV, Frances McDonnell of the Irish Times, Gary McDonald of the Irish News, and that most erudite of economists John Simpson. Jane Wells of JPR was also hovering as she oversaw a competition to win flights to London with Flybe — and who
58 BUSINESS MONTH 6 October 2014
With CBI chairman Colin Walsh (l) at the organisation’s annual lunch was guest speaker Liz Earle, Rotha Johnston of NIE and Stuart Carson of Rainbow Communications
At law firm Arthur Cox’ annual fashion showcase: Lynsey Mallon, the firm’s partner, with models showcasing collections from 12 designers from across Ireland was the lucky winner but Mr Elliott. ... NO sooner had the CBI and their guests tidied up after themselves, than an even more glamorous and sophisticated gathering was held in the main function room at Titanic Belfast. Law firm Arthur Cox was holding its annual fashion showcase, with stylist Cathy O’Connor hosting the event which featured collections from 12 designers. Feeling like Tom Ford or Ralph Lauren, the Chairman had a prime seat in the ‘frow’
BDO Northern Ireland has launched its Charity of the Year initiative with NI Children’s Hospice. BDO partner Michael Jennings (left) joined NI Hospice corporate fundraising manager Ellen Hillen and fellow partner Carol Malcolmson to mark the parntership
Appointments
Mark Carron has become Osborne King Commercial Property Consultants’ director of its auction division. He holds a BSc in Urban Property Surveying and is a member of the Royal Institution of Chartered Surveyors. He has 17 years’ experience in the property market.
Volunteers from the Northern Ireland travel trade donned their hard hats and went to work in Romania, building homes for charity Habitat For Humanity (that’s the front row, non-fashion fans) as the models sashayed down the catwalk. Northern Ireland designer Una Rodden told the Chairman she was delighted to take the opportunity to showcase her Autumn/Winter creations to Northern Ireland businesswomen. ...
Catriona Gibson, Partner at Arthur Cox with renowned Irish stylist Cathy O’Connor (right) at Arthur Cox’ annual fashion showcase
A TEAM of volunteers from the travel trade has gone to Romania to build a home for young people with Habitat for Humanity. Fifteen volunteers were spending the week working beside a community in Oradea, west Romania. The team has raised more than £30,000 for the initiative, covering the cost of the trip and a donation to the work of Habitat for Humanity. The Chairman was carrying the hod along with Jonathan and Isobel Adair, NI Travel News, Peter McMinn of Travel Solutions, Colin Laffin of Laffin Travel, Jill Russell of Topflight, Linda Henderson of Thomas Cook, Sharon Fleming of Thompson Travel International and Charlie Brown of Travelport, among others.
Marian Connolly has joined Osborne King Commercial as a graduate surveyor. She has a BSc in Property Investment and Development and has worked in shopping centre management in Australia. She is working toward membership of the Royal Institution of Chartered Surveyors.
Gareth Howell has become Osborne King Commercial Property Consultants as director of its retail and general agency interests after joining the company in 2003 as a graduate surveyor. He has a BSc and has gained substantial experience within the firm.
6 October 2014 BUSINESS MONTH 59
THE LAST WORD
with John
Sherrocks
With the pace of change increasing all the time, Generation Y has a vital role to play in business
I
N the 19th century it took John D Rockefeller 46 years to make $1bn. In the early 21st century it took Andrew Mason, the founder of daily deals website Groupon, two years. Shane Snow, in his book ‘Smartcuts: How Hackers, Innovators and Icons Accelerate Success, argues that the difference in timescale is not down to inflation alone, but also the effect of an acceleration in the speed of progress. It’s a factor that the tech journalist welcomes. However, he is worried that the mindset of many of us is not keeping pace with the rapid evolution of the business world. He has a problem with our adherence to the traditional concept of us having to pay our dues before we get to reap the rewards. New York-based Snow contends that we should all be thinking like hackers. He’s not proposing criminality or suggesting that the skills of a coder are a prerequisite to rapid success. Rather he is championing the adoption of ethical ‘smartcuts’. Too many people, he says, are stuck on the outdated notion that to succeed in business you must “work 100 hours a week, believe you can do it, visualise and push yourself harder than everyone else”. Snow also dismisses the modern view that embracing failure is a route to succeed, claiming that more often than not we blame our mistakes on others rather than seeking to learn from them. He might have a point; after all, as Homer Simpson says: “If something goes wrong, blame the guy who can’t speak English.” In fact, I agree with the overall premise of Snow’s thesis. We do need to radically change the way we think as business people. And in that regard, Gen Y or the Millennials — the generation born between the 1980s to the early 1990s — is leading the way. Thirty-year-old Mark Zuckerberg set up Facebook just 10 years ago. Last month, the social networking business was valued at $200bn with Zuckerberg’s personal wealth estimated to be around $33bn. No doubt the Harvard college dropout is the perfect role model for Snow’s ‘smartcut’ hypothesis. As Steven Levy, author of the 1984 book Hackers: Heroes of the Computer Revolution, noted in 2010, Zuckerberg “clearly thinks of himself as a hacker”. Yes, Zuckerberg had made his first billion by the age of 23 — having amassed the fortune in the space of a mere five years. However, it would be wrong to imagine that the internet entrepreneur does not
62 BUSINESS MONTH 6 October 2014
John D Rockerfeller took 46 years to make $1bn possess many of the same qualities that drove Rockefeller — Zuckerberg is self-confident, determined, passionate, focused and prepared to take risks. It would also be lazy stereotyping to assume that his generation all prescribe to the worse aspects of the ‘smartcut’ formula. Gen Y has been depicted as lazy, narcissistic and disloyal when it comes to employers. Obviously as a generation they have flaws — having grown up in an digital age in which instant gratification is the norm has undoubtedly shaped their outlook on life — but they also possess positive qualities. They are confident, self-expressive, liberal, upbeat and receptive to new ideas and ways of living. The millennial generation prefer flexible working schedules and a more rounded work/life balance. Is there anything wrong with that if it can produce the same end results or better? Given that technology is making life easier, why not harness it? The 20-somethings that share my office are among the hardest workers I’ve known. The idea of a three-hour boozy weekday lunch that was the norm for my generation back in the 1980s is as foreign to them as reading a novel on a smartphone is to many Baby Boomers. Millennials, now aged between 12 and 32, make up more than 2.4bn of the world population. They already spends $200bn a year, and by 2017 will have more spending power than any other generation. Millennials will replace the 40% of older workers due to retire over the next decade. At the moment our workplaces are inhab-
ited by three generations — Baby Boomers, Generation X and Millennials — businesses need to get to understand how Gen Y thinks and operates. It took the telephone 75 years to achieved 50m users, the radio 38 years, television 13, while the internet achieved that milestone in just four years. The iPod was there at 36 months and the Angry Birds Space app took a mere 35 days. The pace of change is staggeringly faster and it is going to get even faster. Our thinking does need to be attuned to the new dynamic world we now inhabit. For that reason, ‘smartcuts’ make sense but I believe that there is still a place for old-fashioned ethics — something that business schools should be playing a role in reinforcing. As the reggae singer-songwriter Bob Marley said: “The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.” Let’s just hope that the Generation Y does not see the banking industry as a role model.
The 20-somethings that share my office are among the hardest workers I’ve known