Businessmonth sep14

INCISIVE, OBJECTIVE, INDEPENDENT

September 2014 ISSUE 46 PRICE £2.50 (Where sold) l

In association with

DO WE NEED SO MANY OF THEM? • CONSTRUCTION AND TOURISM • PAUL GOSLING ON BELFAST'S SUPPORT CENTRES • BUBBLEBUM LOOKS TO THE FUTURE

CONTENTS

COVER STORY

LEARNING TO CASH IN Students play an important role in Northern Ireland economy

Editor’s note

48

Margaret Canning

m.canning@businessmonth.co.uk

W

FEATURES

12 Analysis: Emerging markets will be first in line for American entrepreneurs looking for new opportunities 14 Analysis: SMEs are urged to enter Belfast Telegraph supported Business Awards 16 Economy watch: Building and tourism come under the miscroscope 24 Breaking the mould: Products and design are key to supplying playgrounds 28 SME: Grainne Kelly’s child booster seat idea has gone global 32 Inside Report: Paul Gosling looks at why big firms are choosing Belfast as a base

FOCUS

38 Aerospace: Increasing air travel means that demand for new aircraft is continuing to soar 42 Focus on housing: Homes building industry is on the verge of a recovery, but it still faces many challenges

OFFLINE

46 Out to lunch: Neal McAlindon talks wine 48 Day in the life of: Peter Conway of Warrenpoint Harbour Authority 48 Estate-ment: Jim McCauley on Vauxhall’s Insignia Country Tourer 58 The Chairman: The inside track on business BUSINESS MONTH 124-144 Royal Avenue, Belfast, BT11EB Editor - David Elliott

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46

Sales manager - Jackie Reid Contact: +44 2890 264070 or email: j.reid@belfasttelegraph.co.uk

58 Design and production: www.pm81.com Business Month is an imprint of Independent News and Media (NI)

ELCOME to September’s Business Month, which we hope finds you in fine fettle after the summer.

This month our cover story considers the impact of Northern Ireland’s large third-level student population on the economy, and ask the question, are they worth it?

It’s easy to indulge in eyerolling at the idea of the cliched student antics of partying, lie-ins and missed lectures, but close study shows that they spend a significant amount of money, and are in a good position to apply for jobs with Northern Ireland’s new wave of inward investors.

September always brings an air of weary back-toschool resignation, regardless of the decades since we last wore a school uniform — but fear not, the next few months promise to be an interesting if disquieting period in business. Political uncertainty abounds in the run-up to the general election — and once the dust settles on Scotland’s referendum on independence, we expect to find out if Westminster will grant the long-held wish for the devolution of tax-setting powers.

By the time we’re back for October’s Business Month, we may well know for sure. In the meantime, enjoy the September issue.

1 September 2014 BUSINESS MONTH 3

NEWS BITES

26.7% 16.3% 16.1% Skilled trades occupations

Professional occupations

Managers, directors and senior officials

14.8% 7.5% Associate professional and technical occupations

Process, plant and machine operatives

6.8%

Caring, leisure and other service occupations

Source: Six main occupations in the UK's self-employed, Office for National Statistics

Judicial review urged over Newry revamp BUSINESS leaders in Newry are poised to apply for a judicial review of what they called an “utterly absurd” decision to allow an out of town development.

Newry Chamber said it was “bitterly disappointing” that Environment Minister Mark H Durkan had granted full planning permission to the Hill Partnership's plans for a multimillion pound retail hub nearly two miles outside Newry.

They claim the centre at Carnbane Way, which is expected to house anchor tenant Asda plus 70 industrial units, will damage the city's economy.

The chamber, along with the Northern Ireland Independent Retail Association (NIIRTA) said the decision was a U-turn on Mr Durkan's ethos of ”championing a town centre first” approach to large retail applications.

In a joint statement, Deborah Loughran, president of Newry Chamber and NIIRTA chief executive Glyn Roberts said the development “would have a devastating impact on Newry city centre”.

“It was not long ago both the Minister and his party were championing a town centre first approach to large retail applications,” they said, asking “why the U-turn”?

Jeweller Argento to open flagship city site NORTHERN Ireland fashion jeweller Argento unveils its new flagship Belfast shop and headquarters this month after making a major investment in buying the property.

Argento, which is run by Co Tyrone-born Pete Boyle, has bought the Royal Avenue building formerly occupied by luxury jeweller Lunn's from the company for an undisclosed sum.

Argento's roots lie in the stalls which Mr Boyle ran on streets and beaches in the 1990s with supplies sourced from traders around Ireland

UNLOCKING THE HACKERS: Jonathon Smyth and Sarah Dynan, recently appointed software developers at Belfast-based tech firm TotalMobile, get ready for a 24-hour hackathon being held at Crumlin Road Gaol on September 13. Highly skilled developers are being urged to endure a sleepless night to come up with the best ideas to tackle the challenges facing the NHS as part of TotalMobile's Code for Better campaign. You can register for the free event at www.codeforbetter.com

and eventually, from more farflung global locations.

But now the company has around 40 shops around the UK and Ireland, employing around 350 people – and in July opened on Dublin's Grafton Street, a retail location synonymous with luxury shopping — and once, some of the world's highest shop rents.

The expanded Royal Avenue shop opens this month — and the shutters are also being brought up on shops in Newry, Portadown, and the Ards Shopping Centre.

The head office of the company will also be located above the Royal Avenue shop, which will have a ‘heritage shop front' in a nod to the premises' listing building status.

Boardroom bans for company directors THREE sets of company directors have received boardroom bans after running up debts to-

4 BUSINESS MONTH 1 September 2014

talling nearly £2.5m. Co Londonderry construction firm director Eugene Bradley (47) of Ringsend Close, Swatragh, Maghera, was disqualified in July for four years after shoring up debts of £297,511.

His firm EJB Construction Services Ltd, of the same address, went into liquidation in December 2011, also owing £145,968 in unpaid taxes.

Mr Bradley admitted bouncing 69 cheques with a value of £90,464.70 to the First Trust Bank — one of which, for £374.40, was returned twice.

Meanwhile, Colin Crothers (48) of Baird Avenue, Carrickfergus was disqualified as director of James Harcourt (NI) Limited for three years.

The double glazing contractors, based at Boucher Place in Belfast, went bust in February 2011 with losses worth £391,516 and owing £225,874 in taxes.

Food company directors Gillian White (58) and Nicholas Herbert White (58) of Leafy Close, Leyland, Preston were

struck off as directors after their debts spiralled to £1,887,101.

Gortin site hailed as a potential goldmine SOME of the world's biggest investment funds have visited a potential goldmine in Co Tyrone, its owners said as they announced 19 new jobs.

Canadian firm Dalradian Resources said Curraghinalt near Gortin could yield hundreds of millions of pounds worth of gold, which could be used as jewellery or bullion.

Now it is seeking 19 employees from entry level positions to technical experts, geologists to a financial director and managing director.

The company controls the mineral rights to over 80,000 hectares in Northern Ireland including Curraghinalt, which has been identified as one of the top 10 undeveloped gold deposits by grade in the world.

NEWS BITES

NI ‘outperforming’ rest of UK for FDI PAUL GOSLING

▲ FIRST TIME BUYERS The number of first-time home buyers in the UK increased to their highest level since August 2007 — before the crash. ▲ MORTGAGE LENDING New mortgage lending in the UK rose by 15% in the last year, reaching its highest level since August 2008. ▲ PROPERTY PRICES Northern Ireland average property prices rose by 10% in the last year and by 4% in the latest quarter. ▲ RETAIL SPENDING The amount bought in the retail industry in July was up 2.6% on July 2013 ▲ ONLINE SPENDING The amount spent online in July was up 11.2% on the same month in 2013 ▼ NI UNEMPLOYMENT Northern Ireland’s unemployment has fallen from 7.5% to 6.7% in the last year. ▼ UK UNEMPLOYMENT The UK’s unemployment rate has fallen to 6.4% — the lowest since late 2008. ▼ INFLATION RATE The UK’s inflation rate fell from 1.9% in the year ending June to 1.6% in the year to July — probably delaying a rise in the base rate. ▼ PUBLIC BORROWING Borrowing by the UK government in July was £764m compared to £1.573bn in the same month last year.

NORTHERN Ireland is outperforming the rest of the UK in attracting foreign direct investment (FDI), according to the Inward Investment Report 2013/14, published by the Government agency UK Trade and Investment.

FDI in Northern Ireland grew by 32% in 2013/14 — a much faster rate of growth than in any other UK region. However, in total numbers Northern Ireland was behind the other UK regions — it attracted 50 FDI projects in the year, while Wales attracted 79, Scotland 122, London 656 and the rest of England 840.

There are concerns, though, that the impact of Northern Ireland’s FDI is less beneficial than that in other parts of the UK. Investments in Northern Ireland attract an average of 77 jobs — which is better than the impact in London, where they create or safeguard 44 jobs on average — but lags behind the impact in Scotland, where each investment is associated with 87 jobs, and Wales boasts 132 jobs per investment.

Moreover, a report produced last year for the Scottish Executive concluded that FDI in Northern Ireland was of lower quality and attracted jobs of

Northern Ireland competes against much larger European regions for foreign direct investment (FDI) yet in 2013/14 the NI FDI rate grew by 32% lower pay than that of any other UK region.

Alastair Hamilton, chief executive of Invest NI, said: “We are competing against much larger countries, and indeed regions, across Europe to attract investors. It is therefore important we continue to build on our strengths, to present a positive and supportive image to potential investors and to work together to sell Northern Ireland internationally.”

The UKTI report revealed the role of the UK Government in attracting FDI to Northern Ireland.

Before Convergys made a £5m investment in Londonderry, creating 333 jobs, the report says that the company “took part in a roundtable discussion with Prime Minister David Cameron to specifically discuss the benefits of Northern Ireland as a high skilled and costeffective investment location”.

Late payments are hurting businesses BUSINESSES in Northern Ireland and Scotland are the most likely to suffer from late payment by debtors, according to new research published by Bacs, which processes electronic payments for the banking industry.

Some 66% of firms in Northern Ireland are dealing with overdue accounts, compared with 59% of Welsh firms, 62% of English companies and 67% of Scottish businesses.

The manufacturing sector is worst affected, followed by services businesses and the transport, retail and logistics sectors.

Across the UK, there is a total overdue payment debt of over £46bn, with SMEs much worse affected than large corporations. On average, UK SMEs are awaiting £38,186 in overdue payments. One in four SMEs admit that if the figure grew

6 BUSINESS MONTH 1 September 2014

marginally — to £50,000 — it would be enough to push them into bankruptcy, says Bacs.

Knock-on costs associated with late payment — including additional financing from overdrafts and time spent collecting debts — are an annual burden to UK businesses of £9.16bn.

Mike Hutchinson from Bacs

said: “Despite the positive signs emerging about the financial state of the nation as a whole and the fact that we are thankfully moving out of recession, SMEs, which everyone agrees are the drivers of a successful economy, are being held back because of the increasing pressures of late payments.”

NEWS BITES

Job market remains stilted as turnaround slower than expected PAUL GOSLING UNEMPLOYMENT in Northern Ireland is taking longer to turn around after the recession than in any other part of the UK, according to a report from the TUC. It says that Northern Ireland has the biggest gap between its current and pre-recession unemployment rates.

At the end of the first quarter of 2014, unemployment in Northern Ireland was running at 6.9%, which was 68% higher than six years ago, when it was 4.1%. The TUC adds that unemployment and economic inactivity remain higher than before the recession in every region and nation of the UK and across all working age groups. The biggest unemployment gap by age group is among young people, with the number of unemployed 16 to 24-yearolds some 167,000 higher than six years ago.

TUC general secretary Frances O'Grady said: “The recent upturn in the economy has prompted lots of speculation about an increase in interest rates.

Those hawks that are keen for interest rates to rise have forgotten that unemployment is still over 2m.

“In some parts of the UK, unemployment is 50% higher than it was before the recession. The talk in the City and around Westminster may be about a fast growing economy, but the recovery still feels a good way off for millions of people still desperate for work across the rest of the country.

“The government should be doing more to get unemployment down in every part of the UK. High levels of youth joblessness are particularly concerning. The growing talk of an interest rise is a worrying distraction from this far bigger economic and social problem.”

NI has UK’s best broadband network NORTHERN Ireland has the UK’s best superfast broadband availability and Londonderry is the UK’s best city for fixed line high speed internet access, according to a survey conducted by communications regulator Ofcom.

The availability of high speed internet access appears to be driving changed consumer habits within Northern Ireland.

Tablet ownership here is the joint highest — with Wales — of any UK region, at 45%. This re-

flects a dramatic increase over the last two years, jumping from 29% a year ago and 9% in 2012.

Smartphone ownership has also risen, from 45% to 55%, in the last year. The biggest increase has been in rural areas, where there has been a strong improvement in 3G and 2G phone network coverage in the last year.

There has been a 6% rise in the number of people in Northern Ireland using the internet while travelling, facilitated by

signal improvements. While people here spend less time on the internet every day than in the UK as a whole, they spend longer online through their smart phones.

James Stinson, regulatory affairs manager at Ofcom Northern Ireland, said: “Just a few years ago it was the norm to sit at a desk to go online, but the rapid rise in smartphone ownership means that more than half of us now access the internet on the move.”

Average home rent rates in NI are second lowest across UK NORTHERN Ireland is one of the two cheapest UK regions in which to rent a home, according to the latest HomeLet Rental Index. Only the north east of England offers lower average home rental costs.

Average private rent in Northern Ireland is £567 a month, rising by an annual 2%. This compares with the UK average of £862 a month, rising at 6.3% a year. Moreover, the ratio of low rents to incomes makes Northern Ireland more affordable than most regions for home renting, says HomeLet, part of the Barbon Insurance Group.

Martin Totty, chief executive of Barbon, said that Northern Ireland, Wales, Scotland and the north east of England were much more affordable than the south of England.

He said: “These regions currently offer comparatively good value for tenants and may, as a result, see growing demand in the months to come both from tenants and from landlords looking for profitable places to invest.”

This view was echoed by specialist investment company Property Frontiers, which is currently marketing a range of apartments in Belfast. It claims that global investors are moving into Belfast’s buy-to-let market as they see opportunities from rising rental yields, rising house prices and currently low purchase prices.

Its chief executive Ray Withers said: “RICS (the Royal Institution of Chartered Surveyors) has predicted house price rises

8 BUSINESS MONTH 1 September 2014

Average rent in Northern Ireland is £567 per month while in the rest of the UK it is £862, with the Northern Ireland rate rising by 2% annually of 4% for Northern Ireland during 2014, providing strong potential for investors to grow their capital through the country's property sector. Rental yields also look promising for buy-to-let properties, with census data showing an increase in the private rented sector of 128% in the decade to 2011.

“In the first six months of

2014 alone, this trend can be seen continuing, with an increase in rental transactions of 6.4% over the first half of the year, according to the Northern Ireland Housing Executive.

“There has rarely been a more encouraging set of circumstances, so far as buy-to-let investment has been concerned.”

NEWS BITES

£23m fund launched A FUND for new start and early stage technology businesses and university spinouts has been launched by Enterprise Minister Arlene Foster.

The fund is supported by the Department of Enterprise, Trade and Investment and by the European Regional Development Fund.

Techstart NI will have £23.6m available to support tech businesses, comprising a £13m SME equity fund, two university funds of £1.5m and a proof of concept grant fund of £7.6m.

Investments of between £50,000 and £250,000 will be available under each category, except the proof of concept fund, which will provide grants of up to £40,000 to help commercialise technology innovations. An investment awareness programme will support entrepreneurs.

Commercial woes cause the tide to turn on wave power PAUL GOSLING PREDICTIONS for the rate of growth of tidal and wave powered electricity have been cut back, following difficulties with commercialising the technologies.

The world’s first commercial scale tidal power project has been trialled in Strangford Lough, while there are plans for a larger scheme to be installed in Rathlin Sound, off Ballycastle on the Antrim coast.

According to a report from Bloomberg New Energy Finance, the development of renewable energy technologies is taking longer and proving more problematic than had been hoped.

It now expects tidal stream electricity generation to rise by 11% by 2020 and tidal power by 72% in the same period.

“But these are still trifling amounts in the context of the

Tidal powered electricity may be on the wane

world’s power system”, it warns.

Angus McCrone, senior analyst at Bloomberg New Energy Finance, said: “Governments in countries such as the UK, France, Australia and Canada have identified tidal and wave as large opportunities not just for clean power generation, but also for creating local jobs and building national technological expertise.

“That continues to be the case and we will see further progress over the rest of this decade.

“But caution is necessary because taking devices from the small-scale demonstrator stage to the pre-commercial array stage is proving even more expensive and time-consuming than many companies — and their investors — expected.”

1 September 2014 BUSINESS MONTH 11

NEWS ANALYSIS

US investors ready to fly

Emerging markets will be first in line for American entrepreneurs looking for new opportunities. Alan Watts believes Northern Ireland can get in on the action

T

HOSE who say ‘if you can remember it, you weren’t there,’ will recall Leaving on a Jet Plane. Peter, Paul and Mary made the song famous, although few people know it was actually written by John Denver.

By now you’re probably thinking that this column, normally vaguely pointed at the world of business finance, has lost its proverbial marbles and turned into a pop trivia collection.

But don’t despair — there is a point, and it’s all about American venture capitalists.

For many years Deloitte has surveyed VCs from over 10 countries and without fail, the US VCs always return the lowest confidence level to the question: What is your overall confidence in investing outside your home country?

So Peter and Paul may be on a jet plane (Mary sadly is no longer with us), but the US VCs are not — well, certainly not to far-off places anyway.

And indeed, why should they be? Good investors need to add value to their portfolio companies — making connections and providing expertise, especially when things aren’t going well.

Silicon Valley VCs are especially reluctant to invest outside of their sunshine ecosystem and, so far, this has served them well. Much of the key talent gravitates to them.

And getting to, pretty much, any other large market is a 10 hour trip for them, at the very least.

Exits (that is, off-loading your shares when a business is acquired or floated) is the big driver for the VC industry and two thirds of venture-backed exits have been in the USA. So, why travel?

Well, the world is changing.

In fact, 90% of internet users are now outside the US and this is only going to increase — especially with the growth of increasingly low-cost smartphones.

An EY survey asked global technology executives where

Changes in investment priorities in Silicon Valley could signal potential opportunities for Northern Ireland firms they intend to focus their merger and acquisition efforts. Two thirds expect their acquisition capital to focus on emerging markets, citing their desire to gain market share in these fast growing regions.

And there is a further implication of this trend which will follow some years later. Successful exited entrepreneurs can’t resist doing it again. And they also become savvy investors, often as business angels and mentors.

This suggests that, in time, the next generation of great companies will not be in Silicon Valley, but much closer to where the high growth emerging markets will be.

I read recently that in Silicon Valley, 400 companies and VC

12 BUSINESS MONTH 1 September 2014

firms can trace their roots back to just one early stage company, Fairchild Semiconductors — the pioneering transistor and integrated circuit firm. More recently, some of the pioneers from PayPal became founders of LinkedIn, Tesla, YouTube, Yammer and many others.

Now just think if, or when, this pattern repeats outside the US. While the huge growth markets will be in countries like China, India and Brazil, Europe will be a major player. And little old Northern Ireland, with its well-educated, English-speaking population and excellent communication and cultural links, should be well positioned.

So with other pressures finally making the valley look further afield, the opportunity will

grow for our companies and organisations to ensure they find a nice soft landing here. Much work is already under way to help this, although more remains to be done.

Many of our young companies have the ambition to look west.

Trade missions, diaspora links, Irish-American organisations are all there to help.

We must recognise that change is afoot in the valley and position ourselves to maximise the opportunity for Northern Ireland. We want them singing ‘I’m landing on a jet plane’ — in Norn Iron.

More information about Halo, the NI business angels can be found at www.haloni.com. Alan can also be contacted through this site.

NEWS ANALYSIS

Rewarding achievers

Head of Ulster Bank Northern Ireland, Ellvena Graham, urges SMEs to enter her institution’s Belfast Telegraph supported Business Awards

T

his month marks the deadline for entry to the Ulster Bank Business Achievers Awards, which celebrate all that is good about the SME sector in Ulster and across the island of Ireland.

With SMEs making up around 99.9% of all businesses in Northern Ireland and employing around 347,000 people here, they really are the backbone of the economy and it’s essential to mark their achievements.

Run in association with the Belfast Telegraph, Invest NI, InterTradeIreland and SmallBusinessCan.com, the awards culminate in a national final in Dublin in December.

We hold four provincial finals across eight categories with winners from each category going on to the all-island final where the overall category winners are announced. One of them will then be named the overall Ulster Bank Business Achiever 2014.

The winner will receive a comprehensive prize package including a €50,000 (around £40,000) publishing bursary with the Belfast Telegraph, business mentoring from Enterprise Ireland and a full-serv-

ice communications workshop, as well as media exposure.

Previous years have shown that Ulster punches well above its weight in taking home the top title of overall Ulster Bank Business Achiever.

At the most recent awards, Cookstown materials washing company CDE Global topped the awards list, while in 2011 Comber-based TG Eakin, which manufactures medical devices for the ostomy and woundcare industry, lifted the trophy and in 2010 Andor Technology was crowned all-island champion.

North west companies Budget Energy and BubbleBum have also enjoyed all-island success in the last few years in the best business start-up category, while Cookstown-based TES NI took the all-island title of best established SME. First Derivatives, Mash Direct, Avondale Foods, Wilson’s Country and Bryson Charitable Group are just some of the other Northern Ireland companies who have met with success at the provincial awards, going on to compete in the all-island stage.

The benefits of entering are numerous. Aside from the value of the bursary, previous winners tell us that winning or

14 BUSINESS MONTH 1 September 2014

being a finalist in a provincial, national or overall award has provided excellent brand exposure and an opportunity for them to highlight and celebrate what they are providing in terms of products and services.

They say that the awards help their current customers appreciate their success and are a fantastic platform from which to talk to new customers about what they have achieved and what they can offer.

As well as the external benefits, winning an award results in a feel good factor for all staff, increasing motivation and job satisfaction, obviously key to the continued success and expansion of any business.

We know how hard our local SMEs are working and how busy they are but we believe it’s important to take stock of how far your business has come and to tell Ulster Bank Business Achievers all about it. The awards are free to enter and time spent on your application could be an investment that really pays off. I look forward to being inspired by the dynamic business and entrepreneurship stories that exist here.

Throughout each stage of the awards, companies will be judged on a variety of merits in-

cluding financial performance, company milestones and achievements, future strategy for business people and the business and the development of innovative products and services. Judges include representatives from each of our partner organisations, while the chairperson of the national judging panel is Senator Mary Ann O'Brien, the founder of Lily O’Brien’s and the Jack and Jill Foundation.

Entries for the 2014 awards are open to SMEs across all sectors and businesses can enter in any two of these categories at BusinessAchieversAward.com:

● Business Start Up Award ● Small Business Award ● Established SME Award ● International Business

Award ● Social Enterprise Award ● Food & Drink Award ● Agri-Business Award ● Women Led Business Award Deadline for submissions is Friday, September 26. You can follow all the action throughout the 2014 awards using @ulsterbank and #UBBAA *Terms and conditions apply to Business Achievers Awards.

ECONOMY WATCH

Building

Once the bread and butter of the economy, after the recession. Richard Ramsey looks at Bolan explores the contribution of tourism

N

ORTHERN Ireland’s construction industry was the first sector to enter the economic downturn around seven years ago, and the last sector to exit recession. In recent months there have been encouraging signs, but it remains to be seen how bright the light at the end of the tunnel will be.

The Ulster Bank Northern Ireland PMI and the Ulster Bank Construction PMI for the Republic of Ireland have been a source of positivity in recent months, hitting record rates of growth or multi-year highs.

However, there is a big distinction between record rates of growth and record levels of activity. The construction sector on both sides of the border is reporting the former and not the latter. Furthermore, the source of this growth does not necessarily relate to work being undertaken on the island of Ireland. An increasing share of construction companies’ workloads, north and south, is linked to expansion of their activity elsewhere, particularly in Great Britain. External markets are more important than ever before as far as construction firms on this side of the Irish Sea are concerned. This issue explains why some surveys (eg the RICS construction survey & the Ulster Bank PMIs) are painting a much brighter picture than some official data.

Looking at levels of activity rather than growth rates puts the scale of the construction recovery into perspective. According to the Department of Finance and Personnel’s index of construction, which includes the public and private sectors, output in the first quarter of this year was just 0.6% above the trough in activity in the previous quarter and some 46% below the peak recorded seven years ago. It is a similar story with employment. Northern Ireland’s construction sector

Richard Ramsey Ulster Bank chief economist

saw employment peak back in quarter four 2007. The subsequent downturn saw over 17,000 job losses (excluding the self-employed), which represented a decrease of some 37%.

This was twice the rate of decline recorded for the UK, but compared favourably with the 65% decline in construction employment for the Republic.

Since their respective troughs in construction employment last year, both Northern Ireland and the Republic have recouped just 3% of the jobs lost during the downturn.

The DFP construction output index only includes activity that takes place within Northern Ireland and therefore suggests that a meaningful recovery in the domestic construction industry remains some way off. Indeed, DFP’s new business index, which is a forward-looking indicator of domestic demand, shows that, as of quarter one 2014, there has been no pick-up in new business activity whatsoever.

New business activity was flat

16 BUSINESS MONTH 1 September 2014

in quarter one 2014 and remains a hefty 56% below the pre-downturn peak.

However, the headline construction output index conceals contrasting fortunes at a subsector level. On a positive note, there was a significant improvement in the level of activity within the ‘other work’ construction index, which posted a quarterly rise of almost 17% and 6% year-on-year. This sub-sector includes the commercial, industrial and education property sectors. The recovery in this area has gained traction since quarter one 2014 with notable developments including the University of Ulster’s £250m Belfast city campus, encompassing the Interpoint Building (the old Coop). There’s also Belfast Harbour’s City Quay’s, a planned £250m development to regenerate 20 acres of exshipping land to include, amongst other things, ‘grade A’ office space.

Meanwhile the housing and infrastructure indices continue

to post quarterly declines in the first quarter of 2014, with the housing index some 65% below its quarter one 2007 peak.

Despite a growing population, last year Northern Ireland saw the fewest number of housing starts since records began (1978). There are tentative signs that the house building sector is showing signs of improvement since the turn of the year.

This suggests that the corner has been turned, but the subdued level of house building remains a cause for concern.

Clearly a meaningful recovery in the domestic construction scene requires a significant uplift in the level of house building. Whilst large scale developments, like the aforementioned university campus and Harbour development are under construction in the commercial/educational sphere, a return to large scale house building will not happen any time soon. Many of Northern Ireland’s largest house builders adorned the pages of the Top 100 businesses back in 2007.

However, today they are no longer with us. So, too, are some of the lenders who funded large scale housing developments in the past. Northern Ireland’s ability to fund and build the required number of homes has been seriously impaired. Whilst appetite to fund house builders is improving, it is on a smaller scale than was previously the case. The proposed developer contribution to building affordable homes could potentially have the opposite of the desired effect, discouraging developers from building homes at all. Looking ahead, it is clear that there is something of a two-speed recovery happening within construction, with domestic house building, although improving, still stuck in doldrums, whilst other kinds of work, notably local firms working in Great Britain, continues to recover much more quickly.

tourism

it's only now that construction is picking up the trials of the building trade, while Peter to the economy, now and in the future

O

ur tourism industry and potential in Northern Ireland are currently surging forward to great success. Indeed ever since 2012 we have expanded and diversified what we have on offer and showcased it to the world through many of the great events that we have hosted.

Our tourism product here is excellent. In many respects it always has been. We have stunning beaches, dramatic coastlines, breathtaking scenery, iconic heritage sites, great hotels, restaurants and pubs and the list could go on.

In the past it wasn’t always easy to convince people of that, to get them to see past some of the negative publicity and pay Northern Ireland a visit.

Times have changed. We can export that more effectively in the current climate. Tourism here has been gathering pace and if we get it right it can have an incredibly bright future.

In recent years, we’ve had new visitor attractions (such as Titanic and the visitor centre at the Giant’s Causeway), we’ve hosted major scale events (such as the Giro d’Italia, the Irish Open Golf, the World Police and Fire Games etc) and we’ve had great sporting success (golf in particular, but also rugby, boxing, rowing and surfing).

When we start adding all these together there’s a definite and very positive image for Northern Ireland and a recipe for tourism success. Where do we go from here, though? How do we follow that recipe and use the right mix of those recent successful ingredients to keep the momentum moving forward and achieve something truly special for our tourism industry and what that can do for our economy?

Well, there are many factors at play but a key part of future success lies in harnessing and developing those forms of tourism that are highly lucra-

Peter Bolan

Director of international travel and tourism management at Ulster Business School, University of Ulster tive (in tourist spend), that have high visibility ie, are especially media friendly, therefore easy to market and promote with the right know-how. On a global basis two such forms of tourism that many other countries have used to great success, are golf tourism and film tourism. Northern Ireland couldn’t be better placed to capitalise on exactly those two forms of tourism right now.

Golf tourism has been valued at some US$20bn with over 50m golf tourists travelling the world to play on some of the estimated 32,000 courses. Northern Ireland is in a prime position to capture a larger slice of this lucrative market due to an excellent golf product in courses and venues, the extremely high profile of the country’s top golfers (boosted yet further by Rory McIlroy’s recent wins at The Open and the US PGA) and an ever-increasing portfolio of events (particularly the return of the Open as early as 2019).

Golf tourists typically spend

two to three times as much as many other forms of tourist and can be more frequent travellers.

If leveraged properly, this high-spend form of tourism can bring job creation, new business development, urban and coastal regeneration, improved quality of hotel/restaurant provision and improved image as a tourist destination. We need to seize that huge potential and maximise it fully. It’s there for the taking, but we have to get it right.

Our creative industries (particularly film and television) are flourishing. Film tourism or screen tourism can also bring enormous opportunities in global destination image as well as economic impact and development (£2.1bn of visitor spend/year in the UK is already attributable to the influence of film). With hugely successful shows made right here such as Game of Thrones (currently shooting its fifth season here) and major feature films like Universal’s Dracula Untold

(getting its cinematic release in October), there is an urgent need to capitalise on the tourism potential of these productions. They have already brought a strong economic impact from the film-making and production itself but they showcase Northern Ireland and its scenery to vast global audiences and so the tourism spinoff is arguably much greater.

The Game of Thrones (GoT) fans are already coming to our shores and we’ve now seen the entrepreneurial spirit here seize that opportunity. Clearsky Adventure Centre at Castle Ward (Winterfell in the show) with their GoT themed archery and other activities, McComb’s Travel with their GoT location tour around the province are just two successful examples.

We need more of that, all fitting within an overall film tourism strategy for Northern Ireland.

Tourism Ireland launching their GoT marketing campaign back in March 2014 (with endorsement from the show’s makers HBO) was an excellent start but it can’t just be one-off campaigns and it can’t just focus on Game of Thrones.

A full film tourism strategy for the future is a must to achieve proper success in this arena in the way that VisitBritain has done for Great Britain and that Tourism NZ has done for New Zealand. This form of tourism also allows Northern Ireland to create a new image, a new brand in a sense, if tapped into wisely.

There is currently a review under way of how our tourism authority here (NITB) is structured and focused. Our tourism body has achieved great success in recent years and should be applauded for that. However, the recent review is very welcome as we have new opportunities to seize, not least focusing on hugely important forms of tourism such as those discussed here. We have to get it right.

1 September 2014 BUSINESS MONTH 17

COVER STORY

ALL WORTH EVERY

W

ITH another academic year looming, Northern Ireland’s universities and further education (FE) colleges are gearing up for an influx of 63,168 higher education students — 68,000 including the Open University.

More than 51,000 of them will be educated at Queen’s University Belfast, University of Ulster, Stranmillis University College and St Mary’s University College, while another 11,000 will study at one of Northern Ireland’s six FE colleges.

Of that total around 11,000 are first year, full-time undergraduates – and with annual university fees costing £3,685 per student, at more than £40m, higher education students are a considerable expense to the Government.

Students' tuition fees loans are paid by the Student Loans Company, which is wholly funded by the Department for Employment and Learning (DEL), the department with responsibility for higher education.

In effect, DEL subsidises student loans by covering the cost of tuition fees, which aren't paid back until that student has graduated and earning at least £21,000 a year. That process takes years and sometimes loans are never repaid.

But according to experts our “highly skilled” graduates are

As Northern Ireland prepares for a new influx of students to its universities and FE colleges, Lindsay Fergus looks at the economic importance of our new learners

worth every penny because of the benefits they bring to Northern Ireland’s economy both financially and socially.

DEL puts the figure at in excess of £1bn annually.

A DEL spokesman said: “The universities make a significant impact on the Northern Ireland economy.

“This impact is achieved in a variety of ways — for example through the multiplier effect of staff salaries, student spend and support service contracts, capital spend which results in construction jobs and supplier con-

18 BUSINESS MONTH 1 September 2014

tracts, spin-off companies, business partnerships, research income generation, consultancy and the development of significant initiatives like the Northern Ireland Science Park.”

Scott Rutherford, director of research and enterprise at Queen’s, said it played a crucial role in developing a “confident and forward-looking” Northern Ireland.

“As a hub of innovation and entrepreneurship, and a driver of growth, Queen’s is also enhancing the performance of industry at home and abroad, creating jobs, both directly and indirectly, and producing a flow of highlyeducated graduates who are taking their place in the world and making their own individual impact.

“From our support and creation of spin out companies, which alone have created over 1,500 jobs and which generate more than £150m

each year, to our William J Clinton Leadership Institute, which is already providing executive education for over 200 companies in Northern Ireland, Queen’s is continuing to grow the regional economy and put Northern Ireland on the world stage.”

But whatever the sterling work put in by our universities, are we providing jobs for all their graduates?

The evidence is yes, and in many cases by liaising with the companies, the universities are supplying graduates with the skills businesses need, and exploiting the commercial potential of new ideas.

According to DEL more than three out of four Northern Ireland graduates were in employment six months after leaving university, jumping to almost nine out of 10 three years later.

Statistics also show graduates attract a higher rate of pay, which has a knock-on effect for spending in the economy.

Figures from the Labour Force Statistics and the Annual Population Survey, indicate that in the last quarter of 2013, a graduate with a degree was earning on average £585 per week compared to £332 for someone qualified to A level standard and £325 to GCSE. The University of Ulster works closely with many international and locally-based companies across key sectors including Citi, Kainos, Jaguar

PENNY? Department setting its targets high

BY 2020 DEL wants to have at least 22% of graduates or postgraduates qualifying from university with a STEM (science, technology, engineering, and maths) related qualification.

As part of that drive there’s a commitment in the Programme for Government to increase the uptake of economically relevant STEM subjects at higher education level by funding additional places.

Employment Minister Stephen Farry said: “I have made significant progress in delivering the recommendations contained in the STEM strategy and by the end of 2015/16 I will have provided an additional 1,350 undergraduate places and 350 Masters places in STEM subjects.”

Figures from DEL also show that Landrover, PwC, Herbert Smith Freehills, Randox Laboratories and Dunbia.

Queen’s has estab-

there has been a growth in the uptake of STEM at third level.

From 2008/09 to 2012/13 there was a 13.6% increase instudents gaining qualifications at Northern Ireland’s higher education institutions in biological sciences, physical sciences, mathematical sciences, computer science, engineering and technology.

Companies looking for such skills include Randox, Almac, Allstate, Kainos, Citi, First Derivatives, Intel, Liberty IT and Sophia Search.

Professor Neil Gibson, from Ulster Business School, believes the Executive is right — for now — to focus on STEM. “We need high end graduates to get companies to Northern Ireland,” he said. lished new employer partnership degrees with PwC and IT companies Asidua, Citi, Kainos and Liberty, integrating study, placement and graduate job on completion. A Queen’s spokeswoman said: “In addition we have created new degrees which meet the needs of companies like First Derivatives, founded by Queen’s graduate Brian Conlon, and which assist them in expanding their company eg, the Masters in computational finance and trading.”

But if you look at the UK average, we still have some way to go where 35% of the population is qualified to NVQ level 4 or higher compared to 28% here.

As a sector, third level: É Provides 6,500 jobs directly and levers the same number again in the labour market É Contributes significantly to the skills base through the provision of highly qualified graduates, a factor which plays a crucial role in attracting inward investment É Off-campus expenditure is estimated at almost £400m, creating over 4,000 full-time jobs and contributing almost £200m to GVA

É Plays a vital role in research. É University of Ulster contributed £112.3m to the economy in staff wages alone in 2013 É Queen’s puts its overall economic contribution at £700m each year

Figures from University of Ulster, Queen’s University and the Department for Employment and Learning

Benefits for the construction industry ONE sector that is enjoying a boost thanks to higher education is one which was hardest hit during the recession — construction.

The University of Ulster is in the midst of a £250m building programme in the Cathedral Quarter, which will be home to its new Belfast campus.

When that is completed in 2018, it’s estimated 28,500 students will be living in Belfast from the four universities.

Brian Lavery from commercial property agency CBRE said: “A development of this nature is of great importance not only in terms of job creation but would also act as a catalyst for the economic regeneration of Belfast city centre.”

And at Queen’s work on

capital schemes in 2012/13 generated £125m for the economy and the university has said it will invest £350m over the next 10 years.

Firms are already trying to capitalise on the increased numbers of students who will be educated, living and socialising in the city.

Four developers have plans for student accommodating: É A 391-bedroom block at Glenalpin Street É The ex-Belfast Metropolitan College at College Square East has been bought by Welsh company Watkins Jones and Sons, with plans for 400 rooms É McNeill Properties is behind a 200-bedroom facility at the junction of York Street and Francis Street É Progressive Properties wants to provide 45 en-suite rooms on Donegall Street.

Continues on page 20 >>

1 September 2014 BUSINESS MONTH 19

COVER STORY <<Continued from page 19 DEL Minister Dr Stephen Farry said higher education bodies and students played a critical role in the economy by supplying a workforce and developing the knowledge economy.

“We need to supply high quality graduates, equipped with the right mix of abilities, knowledge and skills sought by employers, so that they can make a positive impact on our future economic prosperity.

“We must maximise the valuable contribution made by graduates to ensure that Northern Ireland secures a sustainable, globally competitive economy built on increased numbers of people with high level skills.”

Last month a UKTI report revealed Northern Ireland outperformed the rest of the UK in attracting foreign investment with a 32% growth in foreign direct investment projects.

Professor Neil Gibson, director of the Northern Ireland Centre for Economic policy at Ulster Business School, said the quality of our workforce is key to attracting global powerhouses to Northern Ireland.

Over 51,000 students will be educated across sites at Queen’s University, the University of Ulster (above centre), Stranmillis College and St Mary’s (above right). Top left, top right and above left are artists’ impressions of the new UU. It will also give rise to development — including the renovation of the old Belfast Met (top row, centre) He said: “If somewhere is always going to out compete you on cost then you have to compete on the quality side of that equation, and the quality side is absolutely dependent on not only high level skills but very particular high level skills.”

But he said we must not lose sight of the range of jobs an

20 BUSINESS MONTH 1 September 2014

economy needs. “Our focus has primarily been at the upskilling end, getting people towards third level education and I think that has been entirely appropriate as it’s what the labour market has been asking.

“But I think we run the risk that we are starting to get to the point where we are perhaps los-

ing a little bit of sight of other important tasks in society.”

He added: “It’s not only graduates contributing to the economy’s wealth. It’s all ultimately interconnected.

“There’s all the people who support that graduate — taxi drivers, hospital porters, bakers, cleaners etc.”

BREAKING THE MOULD

Planning for fun and games Entrepreneur Richard Stuart says using top quality products and an eye for design are the key to his success supplying playgrounds and outdoor gyms across Ireland Name: Richard Stuart Company: Garden Escapes and TGO Ireland Ltd I got into business because…

I can remember when I was picking ‘A’ levels and going through the whole university application process at school. I had friends who knew exactly what career they wanted to enter into but had I no idea other than something to do with engineering. After failing first year of an electrical and electronic engineering degree at Queen’s, I changed to technology and design at The University of Ulster where I really found my feet and graduated with a first class honours degree.

After leaving uni, I worked for a leading playground company as their design manager where I looked after sales, design, tenders and some contract management. In my time here, I helped to move the company forward and really learnt a lot about running a successful business. After five years, I was at the point where I felt that I could be doing everything that I was doing for them, for myself, so I handed my notice in and started Garden Escapes in my spare room in 2006. Today, we are one of the country’s leading playground design and build companies, working with schools, councils, nurseries and private companies. We have even had interest in some of the products that we’ve designed and manufacture in house from as far away as Australia and Disney World Florida.

In addition to playgrounds with Garden Escapes, I noticed a trend in outdoor fitness equipment spreading across Europe and the UK and reckoned it would only be a matter of time before it reached here.

This led to me start The Great Outdoor Gym Company (TGO Ireland for short).

Since 2012, we have become the largest provider of outdoor fitness areas in Ireland — north and south — having provided close to 70 fully functional outdoor gyms designed to help the

population become more active.

I didn’t always do this…

I was 15 when I got my first job working for one of my dad’s friends as a labourer on a Saturday as he built a new house. I got £15 for a full day of hard work, which I thought was great at the time. I then worked as a shop assistant in local general store that stocked everything from beds to bikes. I also did a bit of bar work while I was at university as well and working on sites between semesters building play areas. During my degree, I had the opportunity to spend a year in industry which I chose to do with a professional audio company.

The best thing about my work…

The best thing about building play areas and outdoor fitness areas is seeing them being used and enjoyed by children and adults and seeing how our products and services help people to grow and develop in life.

A lot of our work is carried out through competitive tendering so it’s also really satisfying being selected for a contract based of quality and design.

The person I take inspiration from in business is…

Too often people fire out names like Lord Sugar and Sir Richard Branson in reply to a question like this. While I have a lot of respect for people like this and enjoyed reading their books, the people that inspire me the most are all the small and medium business owners that really make a difference to their local communities and have made it through some really tough times over the past few years.

The biggest obstacles I have come up against in business are…

The biggest obstacle I think that we have faced has been customers being price focused rather than being focused on quality and sometimes safety.

Quality has always been at our core and is reflected in the products that we offer, our ad-

24 BUSINESS MONTH 1 September 2014

Running two businesses takes up all of Richard Stuart’s time vice and the quality of workmanship that we provide.

Sometimes, it can be difficult to convince people that this is worth paying that little bit more for, but I wouldn’t compromise my values by offering anything less just to make the sale.

My advice to anyone thinking about starting their own business…

Do your research. Make sure there is a demand for whatever it is you are thinking of doing and make sure that it will actually make money. I was once

told, ‘do as much as you can, for as long as you can, with as little as you can.’

In 10 years time…

I hope to be taking things a little easier perhaps. Running two businesses can be very demanding especially with a young family so hopefully the foundations that we are laying now will pay off as we move forward.

I couldn’t go to work without…

Belief….that we are best at what we do and because of that, we’ll be successful.

AND I’LL TELL YOU ANOTHER THING

Determination is a winner

Trevor Annon, chairman and founder of support services business The Mount Charles Group, reveals his inspiration and how technology has changed his life My first job was...

When I was 17 I started working as a clerk with Lyle & Kinahan, a beer bottling plant in west Belfast.

I had just left schooI and I was paid just five pounds per week, but it was only meant to be for a few months. I’d always wanted to be a policeman and I was waiting until I was old enough to apply but unfortunately, when the time came I was a quarter of an inch short of their minimum height requirement, so I had to rethink my plans. I would like to think it was their loss, but who knows.

The person who taught me to succeed in business is...

I owe a lot to Ron Harris, the production director for Lyle & Kinahan and the man who first inspired me to seek a career in business. He always told me I possessed the qualities and understanding to be successful and encouraged me to further my education. Thanks to his help I went on to study business part-time at the University of Ulster and set the foundations to start my own company, so for that I will always be grateful.

My business mantra is...

There is nothing wrong in making a profit. That is what commerce is all about, but always be firm and fair in your dealings, as otherwise the consequences will catch up with you.

Remember to listen to your employees too, as sometimes they know more than you and always be sure to motivate them with encouragement, not fear.

It's all changed since I started out...

The biggest change has undoubtedly been the development of technology. When I first started work there were no such things as computers, the internet and emails. Even things we take for granted like electronic cash registers were still a long way off. Tills only rang in sales and you had to have quite strong mathematical

Trevor Annon starts the day by breakfasting with his wife and reading the Belfast Telegraph skills to keep on top of things.

The whole marketplace, especially in the services industry has undoubtedly become more competitive as well. Today I think you have to work harder for the same or less money.

It is now a more challenging environment to build a business in, but competition is not necessarily a bad thing as it ensures that companies, including The Mount Charles Group, have to constantly focus on business improvement and innovation to ensure their success and the end result is that clients get better service.

we have witnessed in my lifetime will only continue.

In our own hospitality and the services sector, people are becoming much more aware of what the term ‘hospitality’ means and they are now more demanding than ever. They expect the highest standards and I believe this attitude will drive standards to become even higher over the next decade. I believe businesses that fail to reinvest will struggle in the future, so those who don’t work towards expansion and development now may not be here come 2024.

In 10 years' time the business world will look...

My one regret in business is...

Retail sales are going to fall under further pressure as the popularity of online shopping increases and our preferences change. I think it’s also safe to say that the rise of technology

26 BUSINESS MONTH 1 September 2014

I wouldn't say I have any regrets from my career to date, but if I could go back and do anything differently I would love to have studied law at university. I've always enjoyed working my way through con-

tracts and have a strong eye for detail that I think I could have applied to law. You could probably say I'm a bit of ‘wannabe’ lawyer. That said, even if I had a legal background I still wouldn't move out of the industry I'm in now. I love it.

My one piece of advice is...

Always believe in what you do and set out a clear vision of what you wish to achieve. Success may not be achieved immediately and there will be setbacks, but with determination you will win in the end.

I couldn't start a day’s work without....

In the morning my wife and I usually have breakfast together with a healthy fix of fresh fruit, followed by a brief read at the Belfast Telegraph. It’s a simple morning routine but it focuses me on the day ahead.

SME WATCH

Bubbling over ...

Amanda Ferguson talks to Co Londonderry mother-of-two Grainne Kelly whose child booster seat idea has gone global

28 BUSINESS MONTH 1 September 2014

A

CO Londonderry inflatable child booster seat company is selling its products all over the world after entrepreneur Grainne Kelly identified a gap in the market for her simple but effective product.

BubbleBum was launched online in December 2009 by the Derry mother-of-two, who currently employs eight people at the new science park located on the Strand Road in the city.

The award-winning businesswoman was inspired to start the firm following feedback from customers of a travel agency franchise she ran and through her own experience of travelling with youngsters.

“I came up with the idea when I was travelling with young children,” she said.

“Every time I arrived at the car rental desk they didn't have a booster seat when I got there.

“I came back and checked with my own customers and they had the same problem so I decided to take a flight out to China and manufacture one myself. The rest is history.”

By spring 2010 BubbleBum had an independent distributor in the UK and Ms Kelly moved to the US for a year to get the (£29.99) product, which is manufactured in China, ready for the American market.

Month by month BubbleBum has moved into other international markets and is now available to buy in 24 countries across the globe.

In March of this year it was launched in 2,100 Walmart stores in the US, picking up an endorsement from actress Tori Spelling along the way. Former reality TV star Stacey Solomon has also been the product's celebrity ambassador this year.

Ms Kelly said the company had new products coming this year after sticking to the one in the early stages.

“We stuck with the one product — we actually stuck with the one colour for the first year.

We literally only had one purple seat.

“It's unheard of really for a one product company to go into a store launch to the likes of a Walmart.

“It is unheard for a one product company to have a contract

with the likes of a Walmart, particularly for that number of stores.

“Ordinarily you would have been given a 5% or 10% store test, which would have been about 400 stores, so we were thinking if we got that I would run naked through the street.

“When she said 2,100 stores I thought, ‘oh my God' I am going to have to do more than run naked through the street.”

There is a significant opportunity for BubbleBum's growth in other markets, including in Russia, Asia and South America “Those are really big markets,” Ms Kelly said.

“We are focusing mainly on the UK, Ireland and the US at the minute but this year we are moving forward and going to be focusing on some other areas in Europe and put some marketing behind that because we haven't really done that until this year really.”

Ms Kelly has won a series of awards for the lightweight inflatable booster seat, which is aimed at children aged four to 11, including an Ulster Bank Business Achievers Award.

“We have won loads of awards, which is great,” she

said. “The most beneficial award we were a finalist for was the Ireland EY Entre-

preneur of the Year award.

“That is recognition globally for us.

“We have found that even

when we go into a buyers meeting, for example, whenever we went to Japan, even before they would look at the product they wanted to know what we were like.

“The wanted to know our accolades — and the EY finalist recognition was when they came back to us. “It does have recognition,” she added.

At the minute one BubbleBum product in four different colours is available to buy but another three products are coming to market before the end of this year.

“One of them is in manufacture and the other two we are finalising with the buyers, the finer detail in it,” Ms Kelly said.

“We are looking at another full range of children's toys as well at the start of next year.”

BubbleBum benefited from Invest NI's help after Ms Kelly invested her own cash in the business and she is urging other entrepreneurs to tap into the warm welcome US investors give to entrepreneurs from the island of Ireland.

“I know this from living in America.

“I discovered that a lot of our businesses don't realise the power of being Irish when you are doing business abroad,” she said.

“Whether it is Northern Ireland or southern Ireland, it doesn't matter.

“They don't care, as long as you are Irish they are very keen to help — and it is with outstretched arms, they don't want anything in return,” Ms Kelly added.

You can follow Bubblebum on on Twitter @bubblebumukltd or at www.bubblebum.co/

1 September 2014 BUSINESS MONTH 29

ASK THE EXPERTS I AM concerned because a key customer has entered a company voluntary arrangement and still wants to trade with me.

What should I do?

THE company voluntary arrangement is a system where a company makes a compromise agreement with its creditors to pay them a percentage of their debts over a prescribed period of time.

There is an independent insolvency practitioner who will act as a nominee to put the proposal to the creditors and if the creditors accept that proposal (or any amended version) at a meeting, then the proposal is approved.

An insolvency practitioner then acts as a supervisor of this proposal and the company continues under the control of its directors.

All creditors have a choice whether or not they continue to trade with the company and the basis on which they will trade.

This will depend upon the confidence you have in the ability of the company to trade successfully in the future and the risks that this could pose for you.

The key decision you have to make about the customer in difficulty is whether you consider that they have acted reasonably in the circumstances, have been transparent in how they have dealt with their problems and how you can manage the risks to your own business by trading with them in the future.

The performance of the company to meet its commitments in the CVA will be a clear indicator of the ability of the company to survive.

JH

John Moore Managing director, Hays, Northern Ireland

Ross Davidson Principal, RW Davidson, commercial property law firm

Joan Houston Restructuring specialist, Begbies Traynor

Sound advice can be a valuable commodity We put your questions to the experts with the answers

I’m a recent graduate and competing for employment. What tips would you give younger people trying to get onto the career ladder?

T

HERE is no doubt that the under-25s bore the brunt of the reduction in job numbers during the recession. The latest labour market figures, published by the Northern Ireland Statistics & Research Agency, record the current unemployment rate for 18-24 year olds at 19.4%.

This compares to the UK average rate of 16.9% for 16-24-year-olds.

However, the tide is beginning to turn as the economy grows. We are expecting more opportunities for young people in Northern Ireland over the coming months. For example, a new digital action plan will help to create 20,000 jobs by 2018 in the IT sector alone.

There are jobs available but the market is incredibly competitive, so you need to give yourself an advantage. In order to build up experience and a track record, consider seeking out placements, internship roles and apprenticeships within your chosen field.

Apply for jobs that you are really interested in doing. If you’re only applying because a job is available, your lack of enthusiasm will be evident at some stage during the application process and you will have wasted your time and energy.

When applying for a job, tailor your CV or application according to the requirements

I’M the owner of a large property and a customer of a bank which is selling its loans to a major investor. I’m worried about having to deal with a big investor rather than my bank. What can I do?

THERE has been a lot of this kind of activity of late as banks try to clear their balance sheets of property loans advanced during boom times. In the past 12 months, some local banks have adopted a strategy of wholesale disposal of their property loan books. This has meant that loans provided to customers of the banks, from the very biggest through to small connections, are lumped together and sold on at a discount to large investors, typically from the US. Anyone caught up in a loan book disposal should, as a priority, speak to their bank to try to get as complete an understanding as possible of the sales process and the timescale for completion. They should also do their research as to where their loans are likely to end up. It tends to be the same names which crop up time and again in connection with these deals. There has been a lot of Press attention on loan book sales in recent months with much commentary on the strategies of the various purchasing investors. There is therefore plenty of information on these investors with which an affected borrower can arm itself.

Any borrower caught up in a loan book sale should consider options to re-finance their debt with a new lender. If a borrower is able to approach their bank with a proposal to buy out their debt through re-financing which it has arranged, there is a chance the bank will agree and remove that borrower’s loans from the deal. Time, however, is of the essence.

RD of the role. Find an experienced recruiter to critique your application, CV and your cover letter — an objective opinion is essential.

Carry out plenty of research into the chosen company and be prepared to demonstrate knowledge at interviews.

If you can find out who is interviewing you, look them up on LinkedIn so as to get

an idea of their background.

Such in-depth preparation should not be underestimated.

You will need to show you can slot into an organisation and add value from day one. Hard work and persistence are critical to get that all-important first step on the career ladder.

For further information visit www.hays.co.uk/northernireland

JM

All questions should be addressed to: experts@businessmonth.co.uk Questions and advice are published in good faith but should not replace the advice of your professional financial advisor.

30 BUSINESS MONTH 1 September 2014

INSIDE REPORT

CITY ADDS UP

FOR ACCOUNTANTS International professional firms are choosing Belfast as the base for key elements of their business. Paul Gosling looks at why the capital is beating global competition to attract big hitters

B

ELFAST has developed a niche specialism as a support centre for major international professional firms. Two ‘big four' accountancy firms, Deloitte and EY; two major law firms, Allen & Overy and Herbert Smith Freehills; plus recruitment agency Alexander Mann Solutions and financial services firm FinTrU, have all recently opened large support centres in the city.

Several factors seem to have been key in attracting the firms — but, perhaps more than anything, the deciding ingredient has been that Northern Ireland wanted the firms more than our competitor nations did.

In part, that keenness was demonstrated through attention to the firms, in part it was reflected in grant support from Invest NI and the Department for Employment and Learning (DEL). In addition, Belfast’s proximity to two universities and its air routes have been very important.

In April, EY — which used to be called Ernst & Young and is one of the four mega, global, accountancy firms — announced that it was settingup a new business unit in Belfast offering advisory and assurance services to clients outside Northern Ireland.

This unit will house 486 staff, in addition to the existing 145 EY people located in Belfast.

Attracting EY to Belfast was aided by a grant from Invest NI of £3.2m, plus training support

provided by DEL. This financial and practical support from the Northern Ireland Executive was a key factor, confirms Mike McKerr, managing partner of EY Ireland. He said: “Belfast has a compelling case for business looking to locate here. In addition to Invest NI's investment — which played an instrumental role in EY’s decision — they also provided EY with compelling examples of corporate investments already located in Belfast. The investment conference held last October provided us access to many other inward investors who shared their positive experience.”

Several other factors also attracted EY to Belfast, Mr McKerr said. He quotes active policies by the Executive to support inward investment and job creation, a “robust infrastructure”, in particular the city’s high-speed and lowcost broadband connectivity, two “world-class” universities in greater Belfast, ease of access to senior levels of government and, at present, low property costs.

Growing confidence in the economy of Ireland — north and south — also played a role.

“Client confidence is returning as the all-island economy shows signs of growth generating more employment opportunities, (which is) so vital to recovery,” said Mr McKerr.

He added: “We are in the process of appointing a chief operating officer to head up the new unit, and we've received

32 BUSINESS MONTH 1 September 2014

plenty of applications from graduates and experienced hire professionals for other positions on offer. We will be staying in our offices based at Bedford House, but we do recognise that the success of this project will mean, as we continue to grow, we may have to source additional office space.”

Deloitte, another of the ‘big four' accountancy firms, has also chosen Belfast for a major expansion project. It is recruiting 177 staff for a new analytics and digital hub based in the Gasworks that will be a ‘centre of excellence’ to support the firm across its UK practice and also internationally.

Dr Danny McConnell, a Deloitte partner, said: “What we are doing represents a fantastic investment in Northern Ireland, in Belfast and in the skills developed in our colleges. The work undertaken at Deloitte's UK digital and analytical hub will have an impact globally. It's a huge vote of confidence in Northern Ireland.

Belfast will represent a true centre of excellence, employing graduates, those without degrees and experienced professionals.”

As with EY, Deloitte refers to the financial support from Invest NI — Deloitte is receiving £1.2m — and training assistance from DEL. Deloitte also praises Belfast City Council for its role in creating an excellent working environment at the Gasworks development, which it regenerated (with financial

support from the European Union) and continues to manage.

But the role of the local universities must not be underestimated in attracting investment in the services sector.

This was a major factor in attracting FinTrU — the Financial Transparency Utility —

which offers specialist outsourcing to the financial services sector. FinTrU announced in July that it is creating 80 jobs at a service centre in Belfast, with support of £600,000 from Invest NI, plus £240,000 for training support from DEL. Darragh McCarthy, chief executive of FinTrU, said:

“There were a number of factors combined that made Belfast the most attractive location for FinTrU to establish a centre of excellence. The main driver was the quality and depth of the local talent pool.

“Belfast has a well-established and growing financial services sector, while Queen's

University and the University of Ulster produce a steady stream of skilled graduates. A second factor was the close proximity to our clients — Belfast is a onehour flight from London, which is important for client engagement and service delivery.

Being within the UK legal and regulatory environment was

also key, as was the competitive cost environment that Belfast offers.

“Overarching was the visible partnership and collaboration between business, government and education that makes it easy to operate in and

1 September 2014 BUSINESS MONTH 33

INSIDE REPORT do business from Belfast.”

Rosaleen Blair, the founding chief executive of the recruitment agency Alexander Mann Solutions, makes a similar case.

“There is no doubting why Northern Ireland is the leading UK region for inward investment outside of London,” she said.

“In particular, we were attracted to Belfast’s compelling combination of a highly educated and multi-lingual workforce, a cost competitive infrastructure and a pro-business operating environment. We are confident that the city is the best strategic destination for the next stage of our global development and we are delighted to be working with Invest NI to generate high value jobs that boost the local economy.”

As with the other recent services announcements, Alexander Mann’s Belfast location was also aided by financial support.

Some 250 jobs will be located at the new global client service centre. This has attracted a £1m grant from Invest NI, with further support of £600,000 being provided for training, part coming from the European Regional Development Fund and £400,000 from DEL's

assured skills programme.

It is instructive to learn from British investors why they regard Belfast as a location of choice. This should assist people in Northern Ireland to recognise our strengths. Grant assistance, low cost and skills

from the universities seem to be recurring factors drawing in investment. But perhaps many in Northern Ireland will be surprised at the extent to which government departments and agencies are praised for what outsiders see as pro-business

policies, with ministers willing to get stuck in to deliver the deals that create jobs. That, it must be acknowledged, is not the reputation those same ministers always enjoy within Northern Ireland. Perhaps they deserve more congratulations.

University of Ulster law graduate Martina Muldoon (centre) recently joined the Belfast support office of law firm Herbert Smith Freehills. She was joined by UU pro-vice chancellor, Professor Denise McAllister (left) and Professor Jeanne Keay, pro vice-chancellor at the University of the West of Scotland, who spoke at a UU graduate skills event

34 BUSINESS MONTH 1 September 2014

TICKERS

The month’s local indicators at a glance Ulster Bank economist Richard Ramsey considers the latest key government statistics THE latest Residential Property Price Index (RPPI) is the most encouraging report on the state of Northern Ireland housing market since before the property downturn began. The last time this survey reported falls in house prices was in Q4 2012.

Indeed, the latest survey for Q2 2014, with a 4% quarterly rise in average prices and a 10% increase relative to Q2 2013, represents the strongest rate of growth since Q3 2007.

The latest quarter of house price growth marked the fifth consecutive quarterly rise with Q2 residential prices now some 12% higher than their low in Q4 2012. While encouraging, the increase must be seen in context.

To date, NI has recouped just one tenth of the overall decline in house prices since the peak seven years ago. Following the latest figures, Northern Ireland’s standardised residential average price (£105,894) is still 49% below the Q3 2007 peak. This compares with a revised peakto-trough fall of 55% between Q3 2007 and Q4 2012. From a wider economic perspective, the

continued rise in transactions is a more significant signal that the recovery is strengthening. Residential property transactions in Q2 2014 (4,812) were 25% higher than the same quarter last year and represented the highest Q2 figure in seven years. On an an-

nual basis, the number of transactions has been rising for three years with almost 18,400 transactions completed over the past 12 months. This is almost double the number recorded at the low in the 12 months to Q2 2009, but 55% below the ‘freak peak’

recorded in 2006/07. A return to this ‘freak peak’ is neither expected nor desired. Instead a return to more ‘normal’ levels of activity that we would have seen around 2005 (29,000) would be desirable. This is 36% above where transactions currently are.

WHILE there has been a steady stream of indicators pointing to an economic recovery, signs of improvement within households have been less obvious.

Average weekly earnings in Q2 fell (- 0.2% y/y) for the first time since 2009. Looking at regular pay growth, which excludes bonuses, average

weekly earnings growth fell to a series low of 0.6% y/y in Q2.

Subdued annual pay growth last month triggered the Bank of England to halve its forecast for earnings growth this year to 1.25% y/y. This will be below the anticipated rate of CPI and therefore the cost of living squeeze is set to continue.

ACCORDING to the Ulster Bank PMI for July, Northern Ireland’s private sector recovery has begun the third quarter with considerable momentum.

The pace of growth in business activity and new orders accelerated in July relative to June.

Local firms have now posted 13 successive months of output

growth with new orders rising in July for the 14th consecutive month. The recovery remains broad-based with construction firms posting the fastest rates of growth, albeit from a low base. Panellists reported that NI continues to benefit from the improving economic conditions in the Republic of Ireland.

36 BUSINESS MONTH 1 September 2014

BUSINESSPEOPLE

The Northern Ireland Businessperson who... ... made £1,000 a week typing dissertations Paul Trouton, chief executive of FUEL IT, explains how computers grabbed his imagination and how leaving Queen’s University set him on the right path

F

OR some people computers and IT are in the blood — that’s how it was for me.

From my earliest days I had to be working things out and I had a very logical mind.

In many ways it was this matter of fact attitude from a young age that formed a very individual outlook which I believe meant that I was always going to set up in business.

That’s not to say my route into the business was conventional — far from it. It wasn’t undertaken to become a business. It evolved, progressed and gained legs of its own and brought a major decision that I would hope a son or daughter of mine would never have to make.

From as long as I can care to remember I never took anything at face value. I always questioned and interrogated perceived knowledge. It just so happens that this is an incredibly important aspect of being in the computer business.

So for me the progression to computers and IT was a completely natural one. At a young age I quickly learned that there was a finite number of things I could do with my Meccano or science set but at the age of nine I found out that there was in fact an infinite number of opportunities with computers — it had me. Computers grabbed my imagination from that day to this and it was no surprise to anyone when I set up my own business.

A necessary step was studying computer science at Queen’s but with the knowledge I had I found the first two years was simply going over old ground.

The biggest opportunity that Queen’s brought me was inadvertently providing me with the opportunity to start to build my business.

It was 1990 and dissertations were the order of the day. But the charge of £7 per page was too steep for me, so having been able to type from when I was nine I not only typed my own but many other students' dissertations, and I soon realised there was money to be made. I then quickly recruited typists, making a healthy profit on their work and coming out with around £1,000 a week — which was some return for a student.

That was also the time when PCs were moving towards the mainstream. People on my course at Queen’s knew that I had built my own computer, and started asking me to do the same for them. This was the end of the typing and the point where my current business started as the penny dropped that this was just going to grow and grow. In fact, it grew so quickly that having marketed the computers in Queen’s Student’s Union, I soon realised that I was on the Vat threshold and tax needed paid. At that time I had also been awarded the BT Queen’s scholarship, which was awarded to one student in the computer science department. I had a lot of money at my disposal. Being young and impressionable, I acquired the embarrassing trappings of a mobile phone, which was extremely rare in the early 1990s, as well as a Porsche (albeit second hand), so I was creating quite a stir in the corridors of Queen’s. As someone who thought completing a degree and running a successful business would be perceived positively, as it would be today, I was somewhat dismayed to find that it was frowned upon.

It came to the point that it was the degree, where I was well positioned for a first class honours, or the business.

To their eternal credit when I

Paul Trouton of FUEL IT started out building up his highly successful business as a student at Queen’s University in Belfast outlined my scenario to my parents they told me to go with my gut. I’d like to think that I would be as progressive and open minded if my child asked me the same question but I’m not convinced.

And that was it, that started the education process for me on the complexities of running a business. I realised early on that a business must be fluid and needs to change and evolve. This is something that I’ve rigidly stuck to since my last day at Queen’s.

When I left I set up MCS. We gained a reputation and we grew but in the last few years I felt that the brand was dated and needed refreshed. We were

achieving considerable growth and market share was growing by 30% across Ireland and the UK and it was my view that we should re-launch to reflect the growth, opportunity and optimism within the technology industry. The decision to rebrand to FUEL after 21 years was not only borne out of our growth in agri-food, engineering and manufacturing and the development of custom built PCs and servers but also to reflect the drive, motivation and passion of our workforce.

It was the right thing to do at the right time, at least in my logical mind. That’ll continue to be my mantra in business with FUEL as it grows.

1 September 2014 BUSINESS MONTH 37

FOCUS ON AEROSPACE

SOARING HIGH

With the UK aerospace sector growing 10 times faster than the total economy, Northern

W

ITH the worldwide demand for air travel and for new aircraft continuing to soar, it is estimated that by 2032 more than 29,000 new large civil airliners, 24,000 business jets, 5,800 regional aircraft and 40,000 helicopters will be required across the globe.

Those projections were reflected at the renowned Farnborough International Airshow in July, which saw orders and commitments reach a record $201bn (£119m).

With Northern Ireland’s impressive aerospace heritage, there has never been a better time for companies based here to try and grab a slice of a burgeoning market.

American firm B/E Aerospace employs 800 people at its aircraft seats factory in Kilkeel. Earlier this year the American business reorganised by splitting into two independent companies, with one focusing on the design and manufacture of cabin interiors — the part which Kilkeel belongs to — and the other dealing with supply chain distribution and logistics in aerospace and energy services industries.

The Kilkeel factory manufactures a large proportion of the world's first-class and business-class aircraft seats.

University and company research teams in Northern Ireland are working on projects that are already influencing the design and manufacture of next-generation aircraft and propulsion systems with leading manufacturers such as Airbus, Boeing, Bombardier, BAE, Rolls-Royce and numerous others in the supply chain.

Northern Ireland companies are also manufacturing parts for the Airbus A380, Boeing 787 ‘Dreamliner’ and the Eurofighter Typhoon.

In the associated defence and security sectors, the Thales Air Defence Systems operation in Belfast develops and manufacturers missile systems for clients such as the Ministry of Defence (MoD).

The province is also home to Survitec, which makes lifesaving equipment for boats and planes, and Northern Ireland is a world-ranked centre for the development of survival systems such as injection technology, pioneered by Sir James Baker,

38 BUSINESS MONTH 1 September 2014

inventor of the Martin Baker ejection seat.

Leslie Orr is manager of ADS in Northern Ireland, the national trade organisation advancing the UK aerospace, defence, security and space industries.

He said that with the UK aerospace sector growing 10 times faster than the UK economy, Northern Ireland is well positioned capture some of this global business growth in this high-technology, highvalue sector.

“ADS has 60 member companies in Northern Ireland and together they already contribute over £1bn to the local economy,” noted Mr Orr. “Bombardier, B/E Aerospace, RLC Group, Magellan Aerospace and Survitec all have substantial operations in Northern Ireland that supply many aerospace programmes worldwide.

“There is also a very strong aerospace supply chain cluster of SMEs supplying components to major industry primes like Bombardier, Airbus and Boeing.

“Bringing together many of these strands for growth, ADS has formed a strong Northern Ireland Industry council.”

The goal over the next 10 years is to more than double Northern Ireland’s aerospace revenues to £2bn Working jointly, the national Aerospace Growth Partnership (AGP) Programme and the ADS NI Council, together with Northern Ireland government departments has developed a strategic plan to accelerate growth in the industry here.

Mr Orr added: “The “Northern Ireland Partnering for Growth” strategy was launched earlier this year.

“The goal over the next 10 years is to more than double Northern Ireland aerospace revenues to over £2bn.”

In another development at Farnborough, it was announced that Northern Ireland companies will now be able to benefit from the National Aerospace Technology Exploitation Programme (NATEP).

Enterprise Minister Arlene Foster with (left to right) David Beatty, managing director of Thales UK's Belfast facility; First Minister Peter Robinson; Philip Dunne MP, Minister for Defence Equipment, Support and Technology; and Victor Chavez, chief executive for Thales UK

ON DEMAND

Ireland is well placed to capture a share of the global market, says Clare Weir

1 September 2014 BUSINESS MONTH 39

FOCUS ON AEROSPACE The £40m initiative is aimed at supporting aerospace supply chain companies, including small and medium-sized suppliers, to develop new technologies, secure new business and diversify their customer base.

A Northern Ireland panel has been established — which includes representatives of major companies such as Bombardier, Airbus and Rolls-Royce — to assess and support project funding proposals.

Financial assistance for Northern Ireland-based companies wishing to participate in collaborative research and development projects through NATEP will be managed by Invest Northern Ireland.

During the Farnborough show, three Northern Ireland aerospace companies received business excellence awards for their work in the supply chain.

Bangor firm Denroy Plastics, which makes parts for the Eurofighter Typhoon, and Newtownards-based Vulcanium Metals International both picked up an SC21 silver award while RTA Ireland from Kilkeel received a bronze award.

It was also announced in July that Londonderry firm Maydown Precision Engineering is to create 40 jobs and embark on a £2.5m capital expenditure programme as it welcomes a new investor and ‘venture catalyst' on board.

Amin Amiri and his a2e Venture Catalysts, based in Manchester, have ploughed equity and loans worth an undisclosed sum

40 BUSINESS MONTH 1 September 2014

Enterprise Minister Arlene Foster with James Knowles and Eugene Taylor of Denroy Plastics at Farnborough airshow into the business, which employs around 135 people supplying parts to companies like Bombardier, Airbus and Boeing.

It hasn’t all been plain sailing though — despite anticipation over its new CSeries model, the wings of which were invented,

designed and are being built in Belfast — Bombardier Aerospace announced it was laying off 1,800 employees globally.

Meanwhile, Guy Hachey, president and chief executive of the aerospace division, also announced his retirement.

FOCUS ON HOUSING

BUILDING ON A RECOVERY? Surveys and statistics suggest the house building industry is on the verge of a recovery, but it still faces many challenges, discovers Maureen Coleman

N

ORTHERN Ireland's beleaguered house building industry is showing tentative signs of recovery, but is still facing obstacles.

While nearly all of the province's sectors suffered as a result of the recession, the construction industry was the main casualty over the past seven years, with property prices collapsing and many companies going to the wall.

But recent surveys and government statistics show a sector experiencing growth again and a bottoming out of construction.

Some companies are reporting an increased demand for new houses after six or seven subdued years.

But others within the industry have sounded a cautionary note, warning that while transactions and house prices are on the rise, problems such as debt hangovers, planning restrictions and skills shortages still remain.

According to the most recent Royal Institute of Chartered Surveyors (RICS) market survey, the construction sector in Northern Ireland experienced its fourth successive quarter of expansion between April and June, with the overall growth in workload rising at its fastest pace since the end of 2004.

This growth was also recognised in recent statistics from the Department for Social Development. A significant fact in the report showed that the total number of new dwelling starts in the first three months of the year was 1,993 — a rise of 14% (239) on the same quarter in 2013.

42 BUSINESS MONTH 1 September 2014

Conor Mulligan, director of Lagan Homes, which builds houses in greater Belfast and its main commuting corridors, said there had been a “dramatic change” in the sector this year and that the company had seen a rise of almost three-fold in the number of homes it had sold over the past 12 months.

He said: “The industry has come through seven very lean years and has dramatically changed. Many of the best-known players are no longer

Conor Mulligan with Peter Robinson in existence. However, this year in particular, has seen a dramatic change with the bottoming out of prices and demand returning to the sector.

“We have seen a dramatic increase in both visitors and bookings this year. We have sold over 130 houses this year in Northern Ireland to date, compared to around 50 at the same stage last year.”

Highest demand was for three-bedroom semi-detached and townhouses, although Mr Mulligan noted that demand for fourbedroom detached properties was rising.

He said: “The main demand is not for the traditional starter homes as most of our purchasers are coming from a rental property and they have been there for a number of years and have either started a family or are at that stage.

“It may well be their first purchase but they are coming in at a step above starter homes,” he explained.

Ulster Bank chief economist Richard Ramsey said house building in Northern Ireland had been “the first sector to enter the downturn and the last to exit recession”.

He said: “The latest housing starts and completions figures from DSD perhaps offer the first signs that things may be beginning to improve for Northern Ireland's beleaguered house building sector. It remains to be seen whether these figures mark the first step on a long road to recovery for our local house builders.”

Quarter one’s 1,993 housing starts represented the highest number over eight quarters and was due to a pick-up in private sector activity rather than the public sector, he said.

“While the increase in housing starts is an encouraging sign, it is important to place the current level of house building in context,” he said.

“The number of housing starts over the last four quarters (to Q1 2014) was just 5,170, which is around half of the long-term average (1978-2007) and one third of the level that prevailed in 2006 (15,260).”

Ben Collin, director of RICS in Northern Ireland, said that although Northern

1 September 2014 BUSINESS MONTH 43

FOCUS ON HOUSING Ireland's chartered surveyors were seeing their workloads rise for the fourth quarter in a row, there was evidence of skills shortages emerging.

“It highlights the need for the construction sector to think seriously about how to attract, retain and progress more people, particularly women, in the sector.”

Conor Mulligan also cautioned that the industry was facing a number of challenges, including a shortage in labour.

“I have heard it said that there is no one under 40 on the sites any more,” he said.

“This is largely true as few young people entered the trades during the downturn and those with a trade and free to travel left for Australia and may not return.

“Therefore there is a great opportunity for the young unemployed and the industry to help each other in the coming years.”

While some industry insiders can see signs of a recovery within the house building sector, John Armstrong, managing director of the Construction Employers’

The housing building industry is suffering a shortage of skilled workers Federation (CEF), was less optimistic. He is calling on the Northern Ireland Executive

44 BUSINESS MONTH 1 September 2014

to help boost the supply of private housing. “Government estimates that we need 12,700

new units every year between now and 2025. Last year around 8,000 units were delivered.

“We need to substantially increase the supply of new private housing. The Northern Ireland Executive has an important role to play in making that possible.”

He echoed the comments that the house building sector still faced some obstacles to recovery.

“A debt hangover lingers, many home owners are locked in negative equity, interest rates may rise and banks remain reluctant to lend for development,” said Mr Armstrong.

“To compound this, the Belfast Metropolitan Area Plan remains log jammed at the Executive table and turbulence is expected as planning powers are moved to local councils in 2015.

“With so many other challenges at present we certainly do not believe that the time is right for government to be introducing developer contributions for social and affordable housing.”

OFFLINE SECTION

MOTORING

DAY IN THE LIFE

MAN ABOUT TOWN

Vauxhall Insignia

Warrenpoint Harbour Authority

Restaurants recognised with awards

TOP TOURER

PETER CONWAY

THE CHAIRMAN

VIVA ITALIA

LIVING IT UP ON THE AMALFI COAST

1 September 2014 BUSINESS MONTH 45

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OUT TO LUNCH

Wine merchant treats grapes like a fine art Neal McAlindon of Direct Wine Shipments shows as much passion for the fruit of the vine as an art critic holds for art and performance. Joris Minne finds out more

I

T’S hard to say whether wine merchant Neal McAlindon is on the edge of fury or just intensely enthused, such is his passion for the grape. He talks excitedly about his and his family’s collective obsession with wine in much the same way as arts critics talk of artists and performances.

“If we didn’t have this passion and desire to fight for the small wine growers of the world, we would never stand a chance on the battlefield with the global, multi-national corporate wine companies,” he says over lunch in Home.

It takes that combination of fury to be able to fight the fight, and the love for the wine and the stories that go with it.

McAlindon and his brother Peter now direct the Direct Wine Shipments company started by father Kevin 50 years ago.

Firebombed by both nationalist and loyalist terrorists, Direct Wine Shipments was lucky to survive a number of moves. But not only did it survive, last year it secured the most coveted prize of them all, the International Wine & Spirit Competition’s UK Independent Retailer of the Year. That’s a knock out for any firm, never mind a Belfast firm.

“The message has got through that our wine business is about supporting small growers and makers of distinction from around the world, bringing them to the Northern Ireland market and letting people understand that quality wines come from in-

46 BUSINESS MONTH 1 September 2014

dependents, not multi-national, industrial volume companies,” he says.

The message is a clear reflection of the trends in Northern Ireland for us to eat local produce because it’s good and only marginally more expensive than the mass-produced stuff.

For Neal McAlindon, it’s an extension of his political outlook, honed as a politics undergraduate.

“I love what we do because it’s like incubating creativity. As a politics student I would have been a bit rebellious and Peter and I had a punk band (which has been revived lately), and there is a strong correlation between that and the culture of small wine makers who are equally rebellious and creative.”

But he is also a researcher of forensic precision. His constant quest for top and new wines at good prices means he reads wine updates all the time, travels the world and seeks out those wines he will be able to bring back and sell.

Take the obscure Txakoli white wine from Gitaria in the Basque region. More often than not, there won’t be any available, as the volumes are so small — but on a recent visit he was able to secure 50 cases, all that was left, to bring back to Belfast.

Part of the bigger picture for the McAlindons is ensuring that restaurant staff know their wines and to make this happen, Direct Wine Shipments in association with the

Northern Regional College (NRC) now hosts the Wine & Spirit Education Trust (WSET) levels one and two courses supervised by acknowledged expert Peter Morris Wilson.

“Five of our own staff hold WSET Diplomas, the equivalent of a bachelor degree, and we teach restaurant staff. The more knowledge there is, the better informed the market is. The better informed you are the greater the enjoyment,” he says.

Restaurants are the wine market's front line and whether it’s a case of Ruan Pienaar and Robbie Diack’s new red or white Ballybosch (yes, really — under a tenner) or a venerable old Vega Siciliana Valbuena for £110, the buyers are there.

And it’s a healthy market with estimates of Northern Ireland’s restaurant and bar consumption hovering close to £100m. Next time you fancy a drop of red or white with a story behind it, try an independent, says Neal.

The Bill Half lobster & chips Whipped goats cheese salad Pannacotta Toffee pudding Glass Esporao x 2 Bottle sparkling water x 2 Total:

13.00 9.00 5.50 5.50 9.50 4.00 46.50

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Streetview No.48: The Crowes Nest Ron McBride

T

HIS attractive shop has a fine sailing ship in one of its five upstairs windows, but that is as near to a chandler as the customer will get. The name may be evocative of the sea and matters nautical, but actually alludes to the family’s former home. The business, like a cuckoo, grew from occupying a couple of downstairs rooms only to push the family out of their nest.

Shauna, who runs the business, proudly describes its growth over two decades: the fine 18th-century house and courtyard now hosts a diverse gift shop and cafe. The frontage boasts two doors and wellstocked windows on both the ground floor and upstairs.

There is good signage, including that over the courtyard entrance. The remaining bollards at the entrance were designed to straighten horses and carriages to facilitate entry.

The yard itself is well-ordered with new flagstones and pebbles,

boasting a selection of garden furniture and concrete animals, figures and bird baths. Off the square are various furnished rooms, one of which has an attractive library wall.

Shauna has a keen interest in fabrics and interior design, providing a home visit service.

She runs classes in using Annie Sloan paint. It is no surprise that it is the interior, accessed by the front door, which provides a lot of interest.

There are many nooks and crannies facilitating browsing without feeling pressured.

The shop has a style of its own. On entry, it is ‘busy’ with a selection of tables, lamps and candlesticks, mirrors, picture frames, objets d’art and fabrics all set off by ample artificial flowers in large pots and vases. In an adjoining ‘nook’ there are perfume sprays, candles and gift wrapping alongside jewellery in an illuminated glass cabinet.

Walking through to the back of the shop one finds more gifts and fabrics, and samples of the Annie Sloan paints. These areas are attractively presented and

SHOP FRONT

lit with chandeliers. The cafe, with its new coffee machine, is on the ground floor. Ideally suited as a venue for reflection, the cafe boasts home cooking, including the produce of a French pastry chef.

The narrow stairway leads to separate upstairs rooms including the former bedrooms which are fully furnished. The most attractive room is a spacious lounge, tastefully presented. The sofa, chairs and tables are of good quality and the range of large mirrors is complemented by accessories, a chandelier and, once again, by lots of flowers.

It is little wonder that customers come from all over the province and that expatriates return from London and elsewhere, keeping Shauna, husband Michael and staff busy. This is a shop for browsing in, for a wedding gift perhaps, and refuelling with a good cup of coffee.

The Crowes Nest 50 Downpatrick Street, Crossgar

1 September 2014 BUSINESS MONTH 47

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DAY IN THE LIFE

Relishing the challenge of ensuring all is shipshape Peter Conway Chief executive of Warrenpoint Harbour Authority

7am

I usually wake up to Noelle bringing me a cup of tea. She has already been up for an hour with a run in Kilbroney Park in Rostrevor and is always full of the joys of spring come rain or shine.

I rise at 7.15am and it's into the shorts and sneakers in the summer for my walk with Luna, our three-year-old Siberian Husky. We have a planned route every morning around Warrenpoint. Having lived away for 25 years, it's so good to be back in this idyllic part of Co Down on Carlingford Lough.

My walk takes me down the pier and through the town, stopping off to pick up the papers from Bridie or Louise in The Cabin. I need to keep moving as Luna pulls on her lead as if hauling a sledge through the Arctic.

8.30am

I get to work about 8.30 and after catching up with emails and post, have the ‘10 o’clock meeting’. This is sacrosanct in the Harbour and has been going on since before my time.

Kieran Grant, the financial director; Ciaran Cunningham, the operations director and harbour engineer; the harbour master, Captain Hugh Forrester and I meet every morning for half an hour to review how everything looks for the day.

The discussion, over a coffee, can be about a dredging campaign to clear the berths, ships in port, meetings with customers and agents, trucking issues (500 vehicles a day ploughing back and forth through Newry to get to and from the A1) or as simple as who is covering next weekend on the roster. Warrenpoint Port has never been so busy and although we acquired extra land recently, it's a constant battle to allocate space for the increasing exports and imports.

I worked for 20 years in the energy industry before coming to Warrenpoint Harbour, including 15 years with Esso.

This experience has been fundamental to my management style and technique. In the oil industry you were never allowed to sit back and every two to three years, it was a new

48 BUSINESS MONTH 1 September 2014

job, a new posting, sometimes a new country and, above all, loads of training.

This means that many of the issues that I face in the Harbour I have come across before.

Although sometimes daunting, I get satisfaction by trying to be a firm but fair manager able to work in a team with my colleagues. My philosophy is to be aware of all that is going on and to remember that the buck stops with me.

1pm

Lunchtime today is a meeting of the Newry Chamber of Commerce of which I am honorary secretary. The Newry Chamber is very influential across Northern Ireland and the greater Newry area has been a big success in the last 10 years.

I am proud that we are part of it and believe that business should engage with decision makers and politicians for the greater good. As the port for the region we have a key role to play.

4pm

I need to look at the new Reach

Stacker we just purchased for £400,000, so it's up in the cab with Stephen to witness him stacking containers in the yard and to hear how things are at the coal face.

Back to the office and a cup of coffee with Mary, my PA, to review tomorrow's tasks and get my boarding passes for the red-eye flight to London tomorrow for the British Ports Association (BPA) quarterly council meeting. It's going to be an exciting month as we prepare to host the BPA annual conference in October with both British and Irish Ports here. . . quite an honour.

6pm

Home but never far from the harbour as I can see the ships coming and going to and from the port from my window.

So it's a family supper with Noelle and the (adult) kids about 7pm.

In summer I sometimes fit in a few holes of golf, while in winter it’s a good TV mystery and an early night.

Tomorrow will bring new challenges. I'm a lucky guy.

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Levy on foreign truck drivers earns £17m MORE than 618,000 levies have been bought for over 112,000 lorries from 76 countries since the HGV road user levy was introduced in April of this year.

Foreign truck drivers have handed over more than £17m to the taxpayer in the past four months thanks to a new charge.

That equates to enough cash to patch more than 320,000 potholes on our roads.

Transport Minister Robert Goodwill said: “I welcome these figures which show the levy . . . is really working. We anticipated it would generate around £20m a year — to take £17m in just four months is impressive and shows that compliance has remained high.”

All hauliers driving trucks of 12 tonnes or more must pay the levy before using UK roads, but UK hauliers do so when buying their vehicle excise duty to keep administration costs to a minimum. Discounts are available for longer periods, with charges varying between £1.70 and £10 per day or £85 to £1,000 per year.

The levy is part of the coalition government’s promise of a fairer deal for UK hauliers, which

includes cutting the duty paid on standard diesel to less than it was in October 2010 and freezing HGV vehicle excise duty during this Parliament.

Deadline looms for entering SMMT award ONLY a few days remain for UK automotive companies to submit entries for the prestigious SMMT Award for Automotive Innovation 2014. Now in its fifth year, the award recognises new UK-born technologies with the capacity to leave a lasting impression on the industry.

In 2013, UK automotive businesses committed £1.9bn to furthering the technologies.

The deadline for entries is midnight on September 12. A shortlisting process will follow, after which successful entrants will present their innovations to a panel of industry experts.

Car buyers far prefer content-led websites ACCORDING to a new survey, manufacturer websites play a limited role in the early stages of the car buying process as consumers favour automotive content sites. The study, which

was conducted by Kantar for Auto Trader, suggests that more than half do not go to a car maker’s website in the first 30 days of their online research, choosing instead content-led sites to consider options, prices and to weigh-up the best possible deal.

In a rapid path-to-purchase that takes an average of just six weeks for 85% of new car buyers, 63% initially turn to content-led websites. The most visited site for people who were researching brand new cars is Auto Trader with 64%, three times as many as the second placed site, eBay at 22%, and with 13% going to GumTree.

Fleet-footed deal for Mercedes-Benz MERCEDES-BENZ Financial Services has announced that it will partner with Leasedrive. It said the move will allow fleet customers greater flexibility and range in their financing and servicing options.

Nick Andrews, the head of fleet sales at Mercedes-Benz UK, said: “We have ambitious plans for the future, supported by the strongest range of products we’ve ever had.”

MOTORING NEWS

Jaguar Land Rover to invest £20m in centre JAGUAR Land Rover has chosen Prologis Park in Ryton near Coventry for its special vehicle operations technical centre. The facility will be the company’s global centre of excellence for the creation of high-end luxury bespoke commissions and extreme performance vehicles.

With operations set to begin towards the end of the year, a team of 150 Jaguar Land Rover specialists will be based at Ryton.

Some 100 of those highly skilled engineering and technician jobs will be new. Around £20m will be invested in installing specialist equipment and a customer commissioning suite.

The technical centre will be part of the company’s special operations, created in June under the leadership of John Edwards to focus on meeting the expectations of today's most discerning and enthusiastic Jaguar and Land Rover customers. Its facilities will feature a VIP customer commissioning suite for bespoke services and premium vehicle personalisation, as well as Formula 1inspired flexible workshops and a specialist paint studio.

1 September 2014 BUSINESS MONTH 49

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MOTORING

ESTATE-MENT

Vauxhallâ&#x20AC;&#x2122;s Insignia Country Tourer is a very fitting flagship, says Jim McCauley

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AUXHALL attracted fresh attention with the launch of the Insignia and the arrival of one of the best-looking cars on the road.

Asserting a new commitment to quality as well as styling, the hatchback version was quickly followed by an estate which has further developed into an allwheel drive model. Maintaining the styling flair of the original,

the Country Tourer benefits from the facelift refinements of the latest series and caps the Sports Tourer line-up.

Engine choice is an uncomplicated one between two four-cylinder diesel engines, a bi-turbo 192bhp option and the single turbo 163bhp version.

Test choice was the latter, distributing drive to all four wheels via a six-speed manual

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gearbox. The electronically controlled 4X4 drivetrain constantly adapts to road conditions to vary torque between front and rear axles.

In normal conditions, the bias is to the front wheels, but as conditions dictate, power is seamlessly distributed to the rear wheels as well.

A bank of sensors measuring all aspects of the car's speed and attitude as well as driver

input are constantly assessed to distribute power as necessary.

The all-wheel drive system is further enhanced by an electronic rear axle limited slip differential which manages power distribution to each wheel, ensuring maximum traction. With fully automatic operation, there is no need for driver input to the drive system and full focus can be on control

VAUXHALL INSIGNIA COUNTRY TOURER

Engine: 2.0-litre four-cylinder turbo-diesel. 163PS @ 4,000 rpm.

350 Nm torque @ 1,750 rpm Drive: Via six-speed manual gearbox to all four wheels. Selectable start/stop technology Performance: 0-62mph (100km/h) in 10.9 seconds; max, 127mph (203km/h) Fuel on combined cycle: 50.4 mpg ( 5.6 l/100km) CO2: 147gms/km; VED Band F for £140 annual car tax Trim: Nav 2.0CDTi 4X4 Price: £26,499 Insurance: ABI Group 20E Warranty: Qualifies for lifetime/100,000 mile cover Benefit-in-Kind: 25% Euro NCAP: 5 star Available extras: Eight-inch instrument cluster, £400; sight and light pack, £320

of the car. There is a security in the dependable feel of the Country Tourer, which even at low speeds communicates a solid placement on the tarmac which is maintained through its speed range. While allwheel drive might be considered in an estate such as this to be an off-road advantage, its real benefits are in additional on-road safety as well as providing a performance edge.

With its 2.0-litre turbocharged engine, the Insignia Country Tourer can reach 62mph in 10.9 seconds with a potential top speed of 127mph.

But its real appeal is in its mid-range acceleration with 350 Nm of torque available form 1,750 rpm. Acceleration is smooth and instantaneous

with the engine sound well muted on the open road.

The car also comes with Vauxhall's ‘Flexride’ system which allows the driver a threeway choice of vehicle set-up.

‘Sport’ firms the suspension, and increases throttle response as well as steering weight while ‘Tour’ takes the settings in the opposite direction for a more leisurely response.

Despite its 20mm higher ride height, handling remains sharp with negligible body roll through corners, and the car impresses well before any price comparisons are made with fellow German competitors, the Audi A4 Allroad and Volkswagen Passat Alltrack distancing themselves by several thousand pounds. But that

price differentiation does not necessarily mean lesser quality as the Vauxhall has an updated high-spec interior and comprehensive equipment list that takes it comfortable into the executive sector.

On the Nav 2.0 CDTi badging of the test vehicle, the specification list includes satellite navigation with eight-inch touch screen and central console touch-pad control, Bluetooth connectivity, part electric adjustment on driver's seat and ‘IntelliLink’, Vauxhall's next generation infotainment system that allows touchscreen control of all audio, apps and mobile phone inputs including images and movie footage.

This is in addition to the standard equipment in all

trim levels of front and rear parking sensors, rear privacy glass, climate control, electric handbrake with hill-start control, xenon headlights, USB connection, six airbags and start/stop technology.

On the practical side, the estate offers better rear-seating, along with a 540-litre boot volume. The boot has an automatic opening/closing tailgate, low sill level access and relatively level load platform with the rear seats folded.

Overall, the new Insignia Country Tourer is a fitting flagship for the model range offering style and practicality along with performance and safety. The model tested is listed at £26,499 and is in Band 20E for insurance purposes.

1 September 2014 BUSINESS MONTH 51

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TECHNOLOGY Receet Loyalty Points app, free @ www.receet.co.uk Shoppers are now able to receive rewards anywhere simply by snapping their receipts, than to the launch of Receet on IoS and Android. Receet is a multi-venue programme that rewards buyers for every purchase they make, regardless of where they shop.

Users can gain points at multiple venues to receive combined incentives including iPad minis, concert tickets and pampering days, even hard cash. Bangorbased businessman and architect by profession, Jason Lacken, came up with the innovative marketing and customer analytics concept, which is aimed at attracting shoppers back into their local town centres.

Nook Glowlight, £89 @ www.nook.com The Nook GlowLight has finally arrived in the UK having launched in the US in last autumn. The wait appears to be worth it, as it has an Amazon Kindle Paperwhite beating price-tag of £89. Nook GlowLight offers plenty of the same benefits of the Kindle, yet at a lower price point, including a six-inch e-ink screen that packs a 212ppi resolution for pin-sharp text and you can also read in the dark with it. Its frontlit screen means you’ll be able to get on with your favourite books even when the sun goes down.

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Apple iPhone 6, £TBC @ www.apple.co.uk The launch of a new iPhone is usually one of the hotly anticipated events of the year, and the iPhone 6 is no exception.

Apple is usually very hush hush about the exact date, but a lot of its new features are already being discussed online.

Rumours about the iPhone 6 features have been doing the rounds for months with everything from the return of the notification light, to the iPhone 6 coming in different sizes, and a much larger screen. Based on previous launches, handsets are usually revealed in September and shipped a few weeks later. And with two models — a 4.7-inch and a 5.5-inch variety on the way — it looks like it will be well worth making a note of the date as soon as it’s confirmed.

CultureTECH comes to town A festival of digital technology, media and music is set to return to Londonderry later this month. CultureTECH is taking place in the Maiden city from September 9 to 15. And it will be bigger and better than previous years. Taking place in a range of venues, including the Millennium Forum, Verbal Arts Centre and Ebrington, if you’re in Derry you cannot fail to know it’s on.

Activities include everything from a Google Juice Bar, 48-hour music bootcamp, STEMies big video challenge, Jobs Fair, and the Friday Night Mashup. The events run throughout the day and night, and as many of them are free of charge it is best to register early. More information can be found at www.culturetech.co.

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FASHION

IT’S A WRAP Grainne McGarvey

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UTUMN/ WINTER is a great season because let’s face it, many of us dress better for the cold weather than we do for the hot. We much prefer wrapping ourselves in snuggly coats and layers of soft knit, and with shops now full of AW14 clothes,

it’s time to start planning your wardrobe. If you only buy one thing for the new season, it must be a statement coat.

My top tip is the blanket coat because what can be better than commuting in your duvet? Other key looks include chunky faux-furs, full-length patchwork designs, luxe puffas and anything shearling.

Striped grey coat, £325 @ Karen Millen

Definitions fur-collar check-blanket coat, £89.00 @ www.very.co.uk

Indigo collection coat, £110 @ M&S

Polo Ralph Lauren red puffa jacket, £255 @ House of Fraser

Olive wax jacket, £229 @ Barbour

Wool Ice jacket, £995 @ www.stoneisland.co.uk

Yellow raffia weave tailored coat, £108 @ www.maryling.com

1 September 2014 BUSINESS MONTH 53

NEWS BITES

ITALY’S SEA OF TRANQUILITY The Mediterranean’s Amalfi Coast has long been popular with the rich and famous.

But as Maureen Coleman discovers, the region offers far more than stunning beaches

GAZING out on a view of brilliant blue sea merging seamlessly with the sky, whitewashed houses clinging for life to the ragged, sloping cliffs and bougainvillea adding a splash of intense pink to the landscape, it’s hard to imagine a more stunning setting than Italy’s Amalfi Coast.

Like a glamorous backdrop for an Agatha Christie whodunnit or a spy film, this 50km of spectacular coastline has long been the playground for the rich and famous, enticing visitors back time after time.

Declared by UNESCO as a World Heritage Site, the sun-kissed stretch of countryside is one of Europe’s most beautiful and dramatic, with its lemon groves, pebbled beaches and picture postcard villages.

Its most famous town is honeymooners’ paradise Sorrento, a favourite with Irish holiday-makers. It’s a great location from which to explore, as it’s well connected by sea, bus, rail and road. But for the first part of our 10-day trip to southern Italy, we based ourselves in the less tourist-heavy town of Amalfi, a pretty place of piazzas, pizzerias and gelati (ice-cream) parlours.

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On the advice of our Topflight travel rep, we booked into the family-run La Bussola hotel, situated on the seafront and a stone’s throw away from the centre. A traditional Italian hotel, its emphasis is on comfort rather than glamour, with a restaurant specialising in Neapolitan cuisine and a roof garden offering wonderful views of the town.

Unfortunately the sun deck by the sea was still under construction when we were there, but the roof garden was ideal for a spot of sun-bathing.

The staff at La Bussola went out of their way to make us feel welcome. It says a lot about the hotel that we met an American father and son who had stayed there every summer for the past 20 years.

On the first day in Amalfi, we hired a boat with its own private skipper, to take us down the coast. There’s something rather decadent about

reclining on a deck, while a captain clad in white serenades you with O Sole Mio. He proved an excellent tour guide as well, pointing out a villa high on the rocks where Sophia Loren once lived and regaling us with the history of the gorgeous coastline.

Boat trips run regularly throughout the summer season, to the islands of Capri and Ischia and to Sorrento and Salerno. Tickets can be bought at kiosks along the pier but a good tip is to shop around for the best price.

Open-top tourist buses also run from Amalfi’s roundabout and it is well worth taking one to the magical mountain town of Ravello. Perched high above the Amalfi coast, it offers the most breath-taking views of the Mediterranean.

If you suffer from vertigo, don’t look down — but you’ll definitely miss out.

Villa Rufolo, which has parts that date back to the 11th century, is said to have inspired Wagner, who stayed here in 1880. And

NEWS BITES

Left: Hotel la Bussola, Amalfi and, above, Hotel Minerva, Sorrento

the peaceful atmosphere encouraged Greta Garbo, Jacqueline Kennedy and Tennessee Williams to holiday in Ravello. On the day we visited, the return bus failed to turn up at the designated time, resulting in lots of impatient people, standing around in 30 degree heat. We flagged down a taxi instead with a few other disgruntled tourists. One word of warning though, taxis in the area are notoriously expensive.

For the latter part of our trip, we relocated to Hotel Minerva in Sorrento itself.

Situated on a steep road climbing out of the town, the four-star Minerva is owned by the Acampora family, who take a very hands-on approach to the running of the hotel. It's a charming place, with plenty of character. The layout is quirky (reception is a few floors up from ground-level), the furnishings are bright and funky and the restaurant is first class.

The staff, who speak perfect English (and never mocked my attempts to converse with them in Italian) are professional, efficient and courteous, making it a policy

to get to know their guests' names and treat them like old friends. There's a real home-from-home feel about the place and not surprisingly, guests return regularly.

Given its location, it's one of the best places in town to enjoy the views of the Bay of Naples, with Mount Vesuvius in the background. The vistas from the restaurant terraces are simply out of this world, enjoyed with a cold glass of Pinot Grigio as the sun sets over Sorrento.

From here, we took a guided excursion to the historical and fascinating Pompeii.

The town was destroyed by the volcano Vesuvius in AD 79 and visitors are transported back to ancient times, visiting markets, shops, bars and brothels. It was a scorching day when we went there and there's no shade at all, so bring plenty of water and a sun hat.

We also visited the upmarket and picturesque town of Positano, with its narrow streets, designer boutiques and pastelpainted, steeply stacked houses. It's also a popular haunt for celebrities.

Wayne and Coleen Rooney chose to get

married here, but don't let that put you off.

Sorrento is linked with the myth of the Sirens, three mystical creatures who lured sailors to their death. And that's the thing with Sorrento and the Amalfi coastline, the place is so seductive and enchanting, that once visited, it will leave an indelible mark your heart.

Travelonessentials:

Maureen Coleman travelled to Amalfi and Sorrento with Topflight. During the summer, Topflight operate a weekly charter flight to Naples from Dublin.

Based on September 21 departures, Hotel Minerva is priced from €1,049 pps for seven nights, including return flights and resort transfers. La Bussola, Amalfi, offers prices from €1,099, based on September departures and including return flights, resort transfers, for seven nights half board. Day trips include Pompeii and Vesuvius (€45), Capri (€68), Amalfi coast (€34) and Herculaneum (€33). To book, call Topflight on 028 97 521168.

1 September 2014 BUSINESS MONTH 55

TRAVEL

The big six: Mexican beach retreats La Semilla: Playa del Carmen

CasaSandra: Isla Holbox

THIS nine-room B&B in the resort city of Playa del Carmen features furniture picked up at flea markets across the Yucatan Peninsula.

The result is a “rough luxe” look which embraces imperfections. Salvaged planks of whitewashed wood line the walls in the rooms, where wire-frame beds, vintage road signs and old-fashioned desk fans abound. The Cocina Loft breakfast room leads on to a large courtyard.

Le Semilla, Playa del Carmen: (00 52 984 1473234; hotellasemilla.com). Doubles from US$238 (£149), with breakfast

THE owner of this casa on the island of Holbox is an artist, who has lavished the space with her creations. Works by contemporary Cuban artists, also line the walls. The 19 rooms are classically Mexican, with open-fronted decks, bright hammocks and woven fabrics. The hotel’s restaurant, which has won praise from Noma chef Rene Redzepi.

CasaSandra, Isla Holbox (00 52 33 3333 6116; casasandra. com). Doubles from US$277 (£173), including breakfast.

Matlali: Puerto Vallarta THIS new resort overlooks Bandera’s Bay, close to the fishing village of La Cruz de Huanacaxtle, on Mexico’s Pacific Coast. A place for people who crave space, it has a series of suites, with separate dining rooms, terraces and pools. Shared facilities include the Eva Mandarina Beach Club; the Matlali Club House, with infinity pools and Jacuzzis; and a spa.

Matlali, Puerto Vallarta: (00 52 322 115 7700; matlali.com).

Doubles from US$220 (£137), including breakfast.

Villa del Faro: Cabo Este SOLITUDE is the name of the game at this property on the East Cape of Baja California Sur. Choose from four colourful casitas. Pick Casa Alberca for a canopied bed and living room that opens up on to Villa del Faro’s main pool; book Casa Azul for its hammock and outdoor seating area; select Casita Tres for handcarved furniture; and Casita Dos for its adjoining suites.

Explore the grounds to spot hummingbirds, iguanas and see whales surfacing offshore.

Villa del Faro, Cabo Este: (00 52 624 147 7404; villadelfaro.net). Doubles from US$167 (£104), with breakfast.

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Villa Las Estrellas: Tulum ON the shores of Tulum, Villa Las Estrellas offers a collection of nine suites, each centred on a linen-draped, four-poster bed, which shifts with the sea breeze. Go here if you seek barefoot luxury, but not if you’re after an allsinging, all-dancing resort — the remoteness of this jungle-backed region means there are no phones or TVs. Instead, drop into the restaurant for octopus and chilled margaritas, or explore the area’s clifftop Mayan ruins.

Villa Las Estrellas, Tulum: (00 52 1 9848 790 772; villalasestrellas.com). Doubles from US$200 (£125), with breakfast.

Las Alamandas: Costalegre THE Jalisco coast, which runs between Manzanillo and Puerto Vallarta, has been dubbed the Costalegre — or the “happy coast”. One reason people leave smiling is Las Alamandas, a luxury hotel owned by Isabel GoldsmithPatino, the oldest of Sir James Goldsmith’s eight children.

Endorphin-raising attributes include four private beaches, regional cuisine and a rooftop bar for watching the sun set and the stars appear.

Las Alamandas, Costalegre (00 52 322 285 5500; alamandas.com). Doubles from US$340 (£212), room only.

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Appointments

OUT AND ABOUT

with The

CHAIRMAN Our man about town is delighted that some of Northern Ireland’s top restaurants are finally getting the recognition they deserve

Shauna McDonnell has joined ASM Chartered Accountants as internal audit assistant manager. She gained a BSc in in accountancy at Queen’s University before joining the PwC graduate scheme in 2008. She has worked at the Department of Education in New South Wales, Australia.

Michael Kennedy has joined ASM Chartered Accountants as accounts supervisor. He has 10 years' experience in audit, tax, assurance, Vat and payroll, and he qualified as a certified accountant in 2013.

Previous clients have come from retail and farming.

Regan West has joined ASM Chartered Accountants as internal audit supervisor and has worked in accountancy for nine years. In 2007 he qualified as accounting technician and has mostly worked in internal audit.

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HE CHAIRMAN’S gourmet tendencies are no secret — and in recent months he’s been gratified to see the names of some of his favourite Belfast restaurants up in lights.

South Belfast venue Shu claimed the Best Restaurant in Northern Ireland gong for the third year in a row at the 2014 National Restaurant Awards – the industry's most important annual event.

For the first time, an Indian restaurant won the overall title — Gymkhana in London’s Mayfair, a place which is now firmly ensconced on the Chairman’s must-visit list for his next visit to the City.

But back to Shu — and just like the Chairman, the judges were impressed by the innovative menu created by head chef Brian McCann and by the consistency of service and hospitality provided by restaurant manager Julian Henry.

And the Chairman was happy to cheer on his pet establishment at the glittering ceremony held at the Hurlingham Club in Fulham, London — which thankfully lived up to the desorption of a ‘green oasis of tradition and international renown’ — at the start of the summer The popular Lisburn Road eatery ranked 76th in the UK, moving up 10 places from 2013.

Days later, James Street South was named Readers' Restaurant of the Year for Northern Ireland in the Waitrose Good Food Guide 2015.

The latest restaurant to be covered in glory is OX on Oxford Street — decreed the best restaurant in Ulster, in an Ireland-wide round-up of the creme de la creme.

The culinary prowess of chef

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Alan Reid, owner of Shu, with head chef Brian McCann and restaurant manager Julian Henry, as the restaurant celebrated winning Best Restaurant in Northern Ireland at the National Restaurant Awards for the third year running.

Lisa Keys from the Institute of Directors and Michelle McDonnell of HELM

Michael Howard of SHS Group who is retiring Stephen Toman, who jointly owns OX with Alain Kerloc'h, earned him the title of Best Chef in Ulster.

That ultimate award in the gongs, which are conferred by Food & Wine Magazine, went to

record six-times winner Chapter One in Dublin's Parnell Square.

John McKenna, the Chairman’s joint favourite food critic — along with Joris Minne of this parish — has praised OX

Appointments

Marc Casey has joined Stena Line as route marketing manager (Irish Sea north). He worked for 16 years in the advertising and communications industry, devising and managing campaigns for a range of blue-chip clients.

(l to r) Tony Moore of Charles Hurst Jaguar, Tracy Hamilton of Mash Direct, Lisa Keys and Denise Falls of the William J Clinton Leadership Institute, Queen’s

Lisa Keys has joined the Institute of Directors (NI) as head of business development. She has almost 20 years of experience in the marketing and business development in the retail and professional services sectors, having worked for law firm Pinsent Masons and Westfield Shoppingtowns.

Paul Terrington, chairman of the IoD in Northern Ireland, with Des Moore of First Trust at the launch of the IoD Director of the Year Awards for its radical approach to “putting vegetables to the forefront rather than meat protein”.

A daring approach that’s made them the latest darling of Belfast dining.

----THE Chairman has enjoyed a busy and fulfiling career in Northern Ireland business, but he certainly hasn’t been devoting himself to Ulster’s corporate world all these years, just for the glory.

Still, a little bit of acclaim goes a long way (ahem), and the Chairman is always happy to champion his fellow business leaders.

Linda Brown of the IoD, Laura Jackson of BDO and Maybeth Shaw at the IoD launch He got the perfect opportunity at the Merchant Hotel, which just a few weeks ago hosted the launch of the Institute of Directors First Trust Bank Director of the Year Awards.

Pent-up demand for a good chat was unleashed during this fine occasion, one of the business get-togethers of the lean summer months. Not having been out and about in a little while, the Chairman had saved up plenty of lively debate for

dining companions such as Carol Fitzsimons of Young Enterprise, Brian Gillan of First Trust, Linda Brown from the IoD, and Stephen Smith of Lighthouse Communications — as well as Lisa Keys, the IoD’s new business development director.

Denise Falls of the William J Clinton Leadership Institute at Queen’s was radiant in an appropriately summery yellow hue.

Leanne Rice has joined the Henderson Group as brand manager (supermarkets/ large format). She has more than six years’ experience in the marketing industry working for insurance and charitable organisations, as well as the local agri-food industry.

1 September 2014 BUSINESS MONTH 59

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THE CHAIRMAN

Appointments

Kirsty McManus has joined the University of Ulster Business School as director of the Centre for SME Development. Previously assistant director at CBI (NI), she holds an MBA from the University of Ulster and has over 12 years of industry experience in both the US and the UK.

Michael McQuillan has become director of the Business Institute at the University of Ulster Business School. Mr McQuillan cofounded The Streat Café franchise with his wife Nikki in 1999. In 2010 Mr McQuillan set up McQuillan Associates.

Mike Crone has joined Smarts Communicate as studio manager. A multi-skilled designer with over 16 years' design experience, he has worked with television companies, blue chip marketing executives and celebrity management teams.

Henry and Teresa McGlone at the opening of Secrets Nightclub, Magherafelt The IoD has asked the Chairman to remind readers that they are seeking nominations in the categories of Director of the Year for a Large Company, Young Director of the Year, Director of the Year for a Small and Medium Company, Public Sector Director of the Year, Director of the Year for Leadership in Corporate Responsibility, Family Business Director of the Year, International Director of the Year, NonExecutive Director of the Year, Third Sector Director of the Year and Young Enterprise Director of the Year.

Past winners of the awards include Michael Howard of SHS Group.

And finally let’s also raise a

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glass of Shloer to Michael, who recently announced his retirement after 15 glorious years at the top.

THE opening of Secrets nightclub in Magherafelt drew quite a crowd when it opened last month.

Despite his advancing years the Chairman was delighted to join a range of Belfast-based journalists and PR professionals on a fun bus to the Co Londonderry town to enjoy hospitality in the VIP lounge.

Among the gang on this funfilled evening out was freelance journalist-about-town Amanda Ferguson, the Sunday Life's Patricia Devlin, Daily Mirror Northern Ireland fashion

journalist Niamh McEneaney and the always charming PR boss and chairman of the CIPR, Chris Love.

The Chairman was thrilled to rub shoulders with the guys and gals as they marvelled at a fire-eater entertaining the throng in the impressive new venue.

The Chairman also enjoyed one or two sherries.

Purely for medicinal purposes of course.

Secrets is the latest venture of eresa and Henry dynamic duo Te McGlone. Opening Secrets has meant the end of their old place, Dorman’s and the Opera, but the Chairman is pleased to see the licensed trade moving with the times.

THE LAST WORD

with John

Sherrocks

Is it the right time to ask our banking staff – all 440,000 – to swear an oath of office just like all our doctors do? The Netherlands have already beaten us to it...

N

OT surprisingly, the suggestion that bankers should swear an oath as a means of raising accountability and standards within the ranks of the titans of the finance sector has been greeted with more than a tad of scepticism.

The Guardian’s Stuart Heritage declared: “I can solemnly swear I’ll eat my own legs if it works.” City grandee Sir Richard Lambert, chairman of the Banking Standards Review Council, dismissed the notion as “just hot air”, while a retired financial services compliance officer, in a letter to The Independent, said the proposal “made me wince”.

Management Today magazine responded with its own satirical version: “I will not try to manipulate rates, even when others are begging me to; I will leave this operation to be performed by central banks.”

It’s easy to mock the idea of an oath — one of a number of otherwise sound recommendations contained in a report by the independent think-tank ResPublica — but what can actually be done to bring an end to the Wolf of Wall Street culture that still seems to prevail despite a slew of new regulation?

Bailing out the banks in the UK at the height of the meltdown cost taxpayers a mind-boggling £133bn. The industry appears to have no shame. The attitude of some within its ranks is epit-

In medieval Catalonia, bankers who went bankrupt were publicly disgraced 62 BUSINESS MONTH 1 September 2014

omised by Goldman Sachs chief Lloyd Blankfein’s comment to The Times back in 2009 that bankers “do God’s work” and that banks served a “social purpose”.

For ResPublica, among others, the key to sorting out wholesale banking lies, somewhat ironically, in Blankfein’s “social purpose” claim — the culture of the industry needs to change so that the focus is actually on serving the public.

As ResPublica director Philip Blond has pointed out the “countless scandals demonstrate... Britain’s bankers lack a sense of ethos and the institutions they work for lack a clearly defined social purpose”.

If the UK was to officially force its 440,000 bank employees to take an oath it would not be the first country in Europe to do so. The Netherlands has beaten us to it.

Starting this year, 90,000 Dutch banking employees now honour a pledge upon pain of fines, blacklisting or suspension.

The idea trades and professions swearing to uphold certain standards is hardly revolutionary. It was required of master craftsmen in the Middle Ages, and the Hippocratic Oath for doctors dates back to the 5th century BC. Today, lawyers have to swear an oath to be admitted to the bar. But would moral safeguards have saved us from the 2008 catastrophe? Part of the problem is

that banking is not a homogenous industry.

Those in favour of an oath claim that it would do no harm. I disagree — it would distract from the urgent need to introduce real accountability and meaningful punishment for offenders.

In medieval Catalonia, bankers who went bankrupt were publicly disgraced and given nothing but bread and water to eat until creditors were paid off. If, after a year, the bankers had not fully reimbursed the depositors, they would be executed and their property sold off to pay their debts.

I’m not suggesting anything as radical as that but more individual bankers need to be seen to pay for their crimes. After all, doctors who break the Hippocratic Oath may suffer severe consequences.

Despite the havoc and misery wreaked by the industry, very few bankers around the world have faced legal sanctions. In Britain, not one senior banker has gone on trial over the failure of a bank. In the US, the Bank of America has agreed to pay $16.7bn to the government over the mis-selling of mortgage-backed securities. Despite this being the country’s largest such settlement with a single company, no individual has been legally held to account. If individual bankers are going to escape being banged up they should at least be hit with penalties.

That would go a long way to restoring public confidence and faith in banking.