Business Month November 2013

NORTHERN IRELAND BUSINESS KNOWLEDGE

November 2013 • ISSUE 36 PRICE £2.50 (Where sold)

WHY WHITE COLLAR IS PUTTING IN A NIGHTSHIFT Rebecca Kincade on the rise of overnight working PLUS: Does Northern Ireland have a unique selling point? + Selling: How hard can it be? We find out from the people who know

CONTENTS

COVER STORY

ALL NIGHT The staff who are working away while the rest of us are tucked up in bed and fast asleep

Editor’s note David Elliott

d.elliott@businessmonth.co.uk

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42 FEATURES

12 Opinion: Northern Ireland is on the cusp of recovery just as it was 20 years ago 14 Opinion: Belfast Chamber of Commerce explains what it is doing to help small companies 18 Insight: Nightshift workers enjoy great job satisfaction 26 And I’ll tell you another thing: Peter Dixon of Phoenix Energy, believes fortune favours the brave in business 28 SME: Alan Boyce went from being a milk boy to one of the most successful salon owners

FOCUS

38 Digital: Social media is being embraced by companies to sell products and services 42 Pensions: Auto-enrolment poses problems for SMEs

OFFLINE

46 Out to lunch: Joan Houston tells Joris Minne of the risks the end of the recession will bring 48 Day in the life of: Paul Stewart tells us how he keeps students on the move 50 Leave the car at home: Bentley’s Continental takes centre stage 58 The Chairman: Plenty of events to stay busy with 62 Last Word: With Aaron Taylor BUSINESS MONTH 124-144 Royal Avenue, Belfast, BT11EB Editor - David Elliott

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58 Sales manager - Jordan McCluskey Contact: +44 2890 554633 or email: j.mccluskey@belfasttelegraph.co.uk

Design and production: RE&D NI Business Month is an imprint of Independent News and Media (NI)

ELCOME to the November edition of Business Month.

As the winter chill starts to takes hold, we're warming our cockles against what appears to be a — dare I say it — more confident and robust economic outlook.

We’ve had a few false dawns in the last number of years, with the green shoots we’ve been hankering after snuffed out by an early frost, but this time there’s a gathering flow of evidence to suggest we’re firmly on the recovery path rather than a dirt road pockmarked with potholes.

And about time too.

This edition we’re asking the question on the lips of the visitors to last month’s Northern Ireland Investment Conference, what is Northern Ireland’s unique selling point?

Our cover story takes at look at our increasingly busy night time economy to find out who’s going to work while the rest of us are heading to bed; our Breaking the Mould and I’ll Tell You Another Thing features reveal some fresh ideas and some more established thinking; our Focus on spreads take a look at the art of selling and the pensions market; our travel feature heads to Norway, Jim McCauley test drives a Bentley and The Chairman shows he’s definitely not hibernating for winter.

It’s a packed magazine and, as the economy in Northern Ireland and further afield takes on a turn for the better, we hope you enjoy it.

4 November 2013 BUSINESS MONTH 3

NEWS BITES

$7.51 Norway

$5.28 Brazil

$4.56 United States

$4.02

United Kingdom

$2.61 China

$1.82 South Africa

Big Mac Index: Published by The Economist as an informal way of measuring the purchasing power parity between currencies

Nama calls for ideas from property owners NORTHERN Ireland property owners with assets seized

by Nama, the Republic of Ireland's debt agency, have been encouraged to come forward with viable investment plans to stimulate the local property market.

Nama chairman Frank Daly was in Belfast to address business leaders at an event organised by the Northern Ireland Chamber of Commerce, three years after the body, nicknamed Ireland's ‘bad bank', was first set up. Nama's debtors and receivers control 900 residential properties in Northern Ireland out of a total housing stock of over 750,000 and a number of commercial, retail and landbank interests.

House building up by 50% in the spring THE number of new houses completed in Northern Ireland shot up by 50% during the spring of this year.

The Northern Ireland Housing Bulletin revealed that just under 2,000 homes were built in the second quarter of 2013. The bulletin, produced each quarter by the Department for Social Development, analysed house construction from April to June.

Infrastructure vital to economy, says CBI THE Executive must focus on infrastructure projects to ensure the economy remains competitive, according to the CBI. The lobbyists said root and branch reform of the approach to infrastructure is needed and said improvements to energy provision are vital. The CBI called for the creation of a centralised procurement body to develop and progress specific infrastructure projects and said Stormont's Finance Minister should be given the final say on their delivery and capital budget.

SHIPSHAPE: Movers and shakers from the world of online retail came on board the SS Nomadic to celebrate the launch of Export Technologies’ latest version of its software, the International Retail Platform — an e-commerce platform that helps businesses maximise their online sales potential. A broad cross section of companies attended, including Golf Store Europe, GAA Store, Chain Reaction Cycles, online beauty retailer Life & Looks, dog and pet grooming company, Christies Direct and jewellery retailer Argento. Pictured are Nick Stevenson, Surf Mountain; Dermot Hegarty, Golf Store Europe; and Daniel Loughlin, Export Technologies

Clontibret gold mine viable, confirms Conroy MINING firm Conroy Gold & Natural Resources has confirmed the viability of its Clontibret gold mine in Co Monaghan.

The company said the gold ore, which runs along a seam into Co Armagh, can be processed effectively using environmentally friendly technology called BIOX, which recovers gold using bacterial oxidisation — an alternative to traditional chemical treatments.

Gardening centre’s new branch creates 20 jobs TWENTY new jobs are being created in Co Down thanks to the opening of a branch of a popular family-run garden centre in a £1m investment.

The Hillmount centre, which has a branch in the Castlereagh Hills, has opened

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its second premises in Bangor's Belfast Road, complete with an 80-seater restaurant, the Gardener's Rest. The business has been run by the Mercer family since 1940.

Rotary drum moved by road under escort AN industrial drum manufactured by CCP Gransden, a small engineering firm in Ballygowan, Co Down, has been transported to Cork where it will be used by a pharmaceutical company.

The 50sq m rotary drum was transported under escort on two articulated lorries overnight to avoid traffic and congestion. While it was a wide load it was just under police escort regulations.

Orders for new jet good news for Bombardier THIRTY orders for a new jet from Bombardier have been

firmed up by a US company, bringing good news for the Canadian company's east Belfast workers.

Flexjet's latest orders for the iconic Learjet 85 business jet are yet another boost for the unique patented processes conceived in the Belfast plant, which will enable the aircraft to take flight.

Caterpillar creeping to firmer footing with deal A NORTHERN Ireland manufacturing powerhouse is battling back from the brink with a new investment worth £7m, creating 100 jobs.

The company will be adding a new production line making the yellow-coloured Cat machines for which it is most famous.The vehicles will be exported worldwide for scrap sorting and handling and forestry use. Last year it cut 700 jobs as some manufacturing was moved to China.

NEWS BITES

Hamilton to spend £250m elsewhere PAUL GOSLING

▲ EMPLOYMENT Northern Ireland’s employment rate rose by 0.1% to 66.7% in the quarter ending August. The UK rate rose by 0.3% to 71.7%. ▲ RETAIL RISE UK retail sales rose by 2.2% in the year ending September. ▲ CONSTRUCTION Construction activity in Northern Ireland rose for the first time since 2007 according to the latest RICS survey. ▲ POSITIVE SIGNS Consumer confidence in Northern Ireland is continuing to rise, a Danske Bank survey has found. ▼ REMORTGAGE The UK remortgage market has rebounded strongly – it was up in September by more than 10% on the previous month and by more than 20% on September last year. ▼ INFLATION Inflation as measured by the Consumer Price Index was unchanged in September at an annual rate of 2.7%.

FINANCE Minister Simon Hamilton has reallocated £250m of public expenditure that cannot be spent as previously approved. This includes £80m of potential revenue underspends in the current financial year and £115m of capital spending freed-up by the delays on the construction of the new A5 Londonderry to Dublin road, which is currently blocked for legal reasons.

A £65m scheme to improve the A26 Coleraine to Ballymena route, including the Frosses Road, has now been given the go-ahead. Other schemes to be fast-tracked are the A31 Magherafelt by-pass and further work on the A8 Belfast to Larne corridor. The Department of Health has received additional capital allocations to build a new £15.5m children’s hospital in Belfast, plus £5m for health estate improvement work. In a further boost to the construction sector, Education Minister John O’Dowd separately gave approval to a £106m school estate improvement programme.

Mr Hamilton approved funding for preparatory work for improvements to the A6, the Belfast to Derry road, at the Randalstown/Castledawson section.

But he said the A6 upgrade for this and other sections could not be approved while the A5 remained an Executive commitment, given the high cost of the two projects. “Delivering both in parallel is unaffordable without there being a

Around £115m has been freed up to be spent on other projects as a result of the delays on the construction of the new A5 Londonderry to Dublin road serious detrimental impact on all other departmental capital budgets,” said the minister.

Business leaders expressed disappointment at the lack of progress on the A6. Philip Gilliland, president of the Londonderry Chamber of Commerce, said: “We are extremely

unhappy and disappointed at the decision. The CBI called for the scheme to be made a major priority for Northern Ireland’s infrastructure.”

Attention may now focus on whether there is a cheaper alternative option connecting Belfast and Derry.

Tax handicap for airports in north PAUL GOSLING THE abolition of the €3 air travel tax on flights from the Irish Republic from April next year has been described by the CBI as “unhelpful” for Northern Ireland airports.

Air travel from Northern Ireland already has difficulty competing with flights originating in the South, with the UK Air Passenger Duty on shorthaul flights set at £13.

Air passenger duty in Northern Ireland was devolved to the

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Assembly last year and is set at zero. Finance Minister Simon Hamilton says that to also devolve and abolish short-haul air passenger duty (APD) to the Assembly would be unaffordable — he puts the cost at £60m to £90m a year.

“I believe that the reduction of APD is a matter for the whole of the UK and I am not therefore convinced that devolution is the answer,” he said. The Executive is instead lobbying the UK Government for the abolition of air passenger duty.

A study conducted by PwC concluded that air passenger duty abolition would generate 60,000 jobs across the UK and boost corporation tax revenues by about £250m a year.

Many flights leaving Northern Ireland are uncompetitive compared with flights from the Republic. The CBI NI chairman Ian Coulter described the decision by the Irish government as “undoubtedly unhelpful to our local airports”, but did not believe it would have “a significant impact” on them.

NEWS BITES

Mayors set to bid for big prize PAUL GOSLING THE mayors of Belfast and Londonderry have been invited to submit bids for a share of €9m (£7.6m) to fund innovative and transformational projects for their cities.

Mayor of New York Michael Bloomberg, launched the project saying: “The Mayors’ Challenge has been a big success here in the United States and now we’re bringing it across the Atlantic to find a whole new set of cuttingedge ideas. On so many issues, cities are redefining the future, and the Mayors’ Challenge is intended to help accelerate that progress and spread it far and wide.”

The grand prize winner will be awarded €5m (£4.2m) and another four cities will receive €1m (£852,000) each.

The criteria are bold ideas that are transferable to other cities. EU cities with more than 100,000 residents may submit bids — so only Belfast and Derry in Northern Ireland are able to apply. The scheme is backed by the network of major European cities, Eurocities, with support from LSE Cities, a research centre at the London School of Economics, and Nesta, the UK innovation foundation.

Belfast Mayor Mairtin O Muilleoir told Business Month: “[I] am looking at it hard.” He said he received the invitation to participate on his return from a trade mission to Silicon Valley.

Derry Mayor Martin Reill, said that the challenge represented a “positive opportunity for the city”.

“The initiative focuses on innovation and would provide us with a platform to look at new ideas for the future benefit of the city,” he said. “I will be recommending that council participates in the programme and work should commence now on submitting an application.”

Mayors of participating cities need to indicate their interest by November 11 and submit bids by January 31.

Twenty short-listed will be invited to attend an ‘ideas camp’ in May to discuss proposals.

NI income tax per capita lowest in UK PAUL GOSLING NORTHERN Ireland pays the lowest income tax per capita of the four UK nations, according to analysis conducted by the Institute for Fiscal Studies.

Average tax take is £5,700 per person per year in Northern Ireland, compared to an average £7,300 per year in the UK as a whole. Total tax take per person in both Northern Ireland and Wales is significantly below the UK average.

The IFS explained: “Wales

and Northern Ireland have less income and wealth than the rest of the UK and correspondingly raise less revenue per person from all the main taxes on earnings, savings and profits: income tax, National Insurance contributions, corporation tax, capital gains tax, inheritance tax and stamp duties all yield at least 25% less revenue per person in both Wales and Northern Ireland than in the UK as a whole.”

However, residents of Northern Ireland pay only slightly

less Vat than the UK average, because more of our basic spending is subject to Vat. Northern Ireland’s high dependence on private road transport and home heating oil means that residents here spend £76 a year — 18% — more on fuel duty than the UK average.

There are also signs of a worryingly high cigarette addiction, with the population of Northern Ireland spending 79% more — £120 a year — than the UK average on tobacco duty.

Fracking job forecast far too optimistic, say consultants PAUL GOSLING SHALE gas exploration may only create around a third of the jobs that had been projected, according to analysis conducted by engineering consultants Amec for the UK government’s energy department.

The government had predicted that 74,000 jobs would be produced by largescale extraction of shale gas.

Amec also cast doubts on expectations that local people will benefit from job creation, pointing out that only 17% of people employed in a fracking operation in Lancashire lived nearby.

Jobs are likely to be shortterm, lasting from four to nine years, says Amec. This suggests that the number of jobs created and their duration is likely to be less beneficial than in the North Sea oil boom, against which shale gas extraction has been compared. The shale gas industry does not expect any significant job creation in less than a decade.

There had been hopes that 3,000 direct and indirect jobs would be created if fracking for shale gas gains approval in Fermanagh.

The chances of the project being given the go-ahead may have increased with a statement from the National Trust, which owns land in Fermanagh, indicating it has an “open mind” on the industry.

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Amec concludes that a third of the estimated 74,000 jobs will be created

NEWS BITES

Social enterprises ‘not always suitable’ PAUL GOSLING SOCIAL enterprises cannot be used as a substitute for the public sector in providing services for the vulnerable, Social Enterprise Northern Ireland’s conference has heard.

Sean Coughlan, chief executive of Social Entrepreneurs Ireland, told the delegates: “You cannot find revenue models to solve all social challenges.”

Speaking to Business Month, Mr Coughlan explained: “There are certain social issues where the provision of products or services to address social issues cannot generate revenues. In that context, you can easily imagine social enterprise models as not being appropriate.”

Examples where social enterprises are unlikely to generate revenues include mental health support services and women’s refuges.

“In those circumstances you need to look to more charitable or philanthropic models to address those challenges,” he said.

The keynote speaker at the conference was Liam Black, who has been a social enterprise champion for the UK government. He told the conference of his ‘A to Z’ of good practice in the sector.

“A is to avoid anxiety and Z is to get enough sleep,” Black said. “Focus on customers, work hard to generate finance, get the culture of the company right.”

With passenger journeys up by 1.5mon last year alone, theTranslink infrastructure is operating close to capacity

Plans for new public transport hub at Europa centre unveiled PAUL GOSLING OUTLINE plans have been revealed for a new public transport hub at Belfast’s Europa centre on Great Victoria Street.

Regional Development Minister Danny Kennedy said: “With passenger journeys up by around 1.5m on last year alone, the current Translink infrastructure is now operating close to capacity. I am committed to supporting the

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growing number of passengers who use public transport and I wish to improve infrastructure to meet future demands.

“We live in challenging economic times and public money must be used wisely. It is only right that we plan ahead and invest for the future. This exciting and ambitious project will provide a firm foundation for the development of public transport for generations to come.”

Translink intends to use the new Europa hub as the city’s main transport centre, with cross-border Enterprise trains running from the Europa instead of Belfast’s Central Station.

A source close to government said that private finance is being examined for the project, which could be structured as a Private Finance Initiative or Public Private Partnership.

NEWS BITES

Enterprise zones still on cards, says Hamilton PAUL GOSLING PROGRESS on the establishment of enterprise zones in Northern Ireland will continue, says Finance Minister Simon Hamilton, despite the withdrawal by Environment Minister Mark H Durkan of the Planning Bill.

Amendments to the Planning Bill had been tabled by Peter Weir of the DUP that would have enabled the First Minister Peter Robinson and Deputy First Minister Martin McGuinness to over-rule planning decisions by the Environment Minister in the case of “economically significant planning zones”.

Mr Durkan withdrew the Bill last week, saying that he had received legal advice that the amended Bill would, if enacted,

Plans: Peter Robinson and Martin McGuinness breach the European Convention on Human Rights by limiting the capacity of stakeholders to initiate judicial reviews.

In addition, said the minister, its passing could open departments to infraction procedures by the European Commission where planning decisions

breached European rules on the protection of wildlife.

Mr Hamilton insists that the focus on enterprise zones in Northern Ireland is on tax incentives and is therefore unaffected by the deadlock on the Planning Bill.

The Finance Minister says:

“This does not impact on our work to consider the creation of enterprise zones that would offer enhanced capital allowances alongside our existing planning, rating and broadband measures, where the Executive has had its own policies in place for some time.”

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OPINION

Reasons to celebrate Northern Ireland is on the cusp of recovery just as it was 20 years ago when O’Connor Kennedy Turtle was born, says Brian Turtle

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S we light 20 candles on our birthday cake, it’s an occasion to look back at where Northern Ireland and O’Connor Kennedy Turtle were in 1993 and how far we’ve both come.

It’s an even better time to look ahead with confidence.

Northern Ireland was a very different place in 1993 when O’Connor, Kennedy and Turtle got together to set up our commercial property practice.

The region was emerging from conflict, daring to believe that lasting peace awaited around the corner.

Our newest city landmarks were barely blueprints. Yet 1993 shares similarities with 2013. The economy was showing the first signs of recovery. For our young company, being on the threshold of a new era was exhilarating.

I detect glimmers of optimism once again. But, in significant ways, we’re now in a better situation than 20 years ago, having experienced a decade-plus of growth and stability.

Then and now, OKT acted for clients across the UK and this island from our Belfast and Coleraine offices. We were at the heart of many head-

line investment and development projects, bringing companies and properties together, and still are.

Peace brought outside investment pouring in. Major urban regeneration projects flourished and industrial and commercial premises mushroomed, as did new retail parks and shopping centres.

Transport links benefited enormously. Remember what Belfast City Airport and driving to Dublin used to be like?

The buoyant economy fuelled development in universities, R&D and communications. Our bright graduates stayed home and talented emigrés returned.

So when recession came, Northern Ireland was fortunate to have a valuable legacy. The world-class infrastructure created during the boom is a springboard

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for renewed economic activity.

Through the downturn we continued to build on these foundations. Belfast’s industrial heartland became a hub for innovation. Sectors including financial services, IT, agri-business and manufacturing forged ahead.

Another peace dividend — vibrant cities, new hotels and enhanced convention and leisure amenities — brought conferences, cruise liners and tourists. 2012 was our opportunity to showcase the new Northern Ireland to the world with the iconic Titanic building, the MTV Awards and the Irish Open golf.

This year we’re once again back in the limelight.

The G8 summit, World Police and Fire Games and Derry/Londonderry UK City of Culture 2013 signal votes of confidence in Northern

Ireland. What next? Developments on the horizon will give the economy a further boost.

The University of Ulster is moving to a new city centre campus in Belfast, bringing a huge influx of vitality and commercial activity.

The Titanic Quarter development company has also produced £20m development proposals which includes 190,000 sq ft of new office accommodation. This represents a confident statement about where the economy is heading in the future.

Government has made a commitment to help farmers diversify and to our agri-food industry, major drivers of growth. This investment in competitiveness and innovation is already reaping results.

Big-screen blockbuster Dracula is being made here, alongside series four of TV hit Game of Thrones, showing Belfast’s exciting prospects as a centre for film and television production.

The most important lesson I’ve taken through the swings and roundabouts of the past 20 years is that opportunities are present even in the most challenging times.

Recovery is on its way — with job creation making news, property prices stabilising and signs of growth in manufacturing. OKT are getting increased demand for warehousing and distribution centres; two key indicators that firms are thinking about expansion and investment.

It’s early days. But every small step forward gives me reasons to feel cheerful.

Brian Turtle is a partner at O’Connor Kennedy Turtle

ANALYSIS

Pinpoint growth

Paul McMahon, president of the Belfast Chamber of Commerce, explains what the organisation is doing to assist local companies and what all businesses can do themselves. . .

Laurence Burrell, The Wicker Man is pictured with Paul McMahon, President, Belfast Chamber of Trade and Commerce

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INCE I came into office back in May 2013, I have been working closely with council members to tackle issues on behalf of our members at local, regional and national levels.

The Chamber not only provides a rational and articulate voice for our members, but we also work in partnership with other organisations to improve the prosperity of the city, and to consolidate Belfast's position as a leading UK retail, trade and leisure destination.

But there are a number of proactive initiatives which businesses can adopt themselves in order to attract customers through their doors.

1. Marketing and promotion — whether done in-house by an external agency. If you don’t promote what you are doing

and ‘sell’ it to the best of your ability, then how will people know about it? Don’t be afraid to use social media, it’s free and allows you to access a global audience.

2. ‘Think outside the box’ — from how you incentivise and train your staff, to how you present your products and shop windows. One of our members, Irish gift store The Wicker Man on High Street, recently provided an excellent example of thinking outside the box. Aware that the World Fire & Police Games was likely to attract many tourists into the store, the owner, Laurence Burrell, came up with the idea of a globe, home-made from polystyrene and hand painted with a map of the world.

Visitors to the store were invited to place a flag on their homeland. The response to this

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was phenomenal with over 400 flags placed by the end of the summer, and a real talking point for visitors who then tweeted and Facebook pictures of themselves with the globe inside the store. Very simple, cost-effective, but visual and memorable.

3. Customer service — this is something which Northern Ireland is getting better at, but I believe has a long way to go.

The staff you employ are the ambassadors for your business and our country — so make sure they are friendly, approachable, helpful and well briefed. Seems simple, but many businesses still fail to get this right…

These are simple steps which all businesses can do today to make a marked improvement.

Belfast is our capital city. It is also the gateway to the rest of

Northern Ireland and the success of the whole country will depend to some extent on the success of Belfast. We must work together, from retail, entertainment, hospitality to professional services to showcase just how good our city is.

BCTC is hosting two workshops in November to help Belfast businesses achieve excellence in retailing. The ‘Social Media Masterclass’ will be held on Tuesday, November 5. The ‘Be Good Shopkeepers’ event, which is aimed at improving customer service and marketing, will be held on Tuesday November 12. The both events will be hosted in Ten Square, Belfast and will last for one hour, with an optional networking opportunity afterwards.

Register on the events page on the BCTC website www.belfastchamber.com

ECONOMY WATCH

Squeezed A spate of high-profile events has seen hotel profit margins are below 2007 problems and ways to realise the full

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ITH Northern Ireland’s tourism industry burgeoning in recent years — think MTV Awards, World Police & Fire Games, Titanic Belfast and the UK City of Culture — hoteliers must have been making a killing, right? Indeed, record visitor numbers in 2012 and record hotel income in that year too would suggest that this might well be the case.

But the reality is that profitability in the hotel industry in 2012 was actually well down relative to 2007. The record highs in visitor numbers have simply not translated into record profitability. So what it going on?

To explain this, we need to look at what has been happening within our nearest rival market, the Republic of Ireland, and, related to this, what has been happening within the cost base of Northern Ireland’s own tourism industry.

In recent weeks, the tax differential between Northern Ireland and the Republic of Ireland in relation to Vat and air passenger duty (APD) has hit the headlines.

The Republic’s tourism and hospitality industry currently benefits from a Vat rate of just 9%, which compares favourably with 20% for the UK. Meanwhile, last month’s Irish Budget saw the temporary Vat reduction (from 13% to 9%) extended beyond the end of this year.

In addition, the €3 (£2.56) APD charge on each flight entering or exiting the Republic will be scrapped next April.

Again this compares favourably with a current rate of £12 per flight in the UK/Northern Ireland.

While the tourist industry has focussed on the tax differentials between the UK/NI and the Re-

Richard Ramsey

Chief economist, Ulster Bank public as influencing price competitiveness, little attention has been paid to the more shocking and significant consumer prices index (CPI) differential.

The UK has experienced one of the highest cumulative rises in CPI within the EU-28 economies over the last six years (+21%).

Conversely, the Republic of Ireland has experienced the lowest cumulative rise in inflation (+3%) of any EU-28 economy over the same period.

Therefore the reality is that one of the most inflationary economies and the least inflationary economies within the EU-28 are bordering each other and competing within a single all-island market.

A look at some of the hotel deals south of the border compared to Northern Ireland gives some insight into the price competitiveness this has helped bring about.

Looking at the CPI index provides an indication of the

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cost pressures being experienced by the tourist industry’s customer base (households) in Northern Ireland and also the cost base of the tourist industry itself. Remember 2007 was a record year for hotel income and profitability.

But how have consumer prices and average earnings of UK households changed over the last six years? It is noted that UK CPI has risen by 21% since August 2007 while average weekly earnings have risen by less than 11%.

This ongoing squeeze on disposable incomes, this makes it difficult for consumer sensitive sectors, such as the hotel industry, to pass on price rises.

Meanwhile, food prices have increased by 36% since August 2007 with gas (+76%), domestic heating oil (+84%) and electricity (+47%) posting even larger price rises.

Due to market conditions, hotels have been unable to pass on all of these costs to customers. Indeed, when inflation is taken into account, the

average room rate and revenue received per available hotel room in Northern Ireland has fallen by 14% in real terms between 2007 and 2012.

Part of this fall in the room rate is linked to the changing hotel mix in Northern Ireland and the increased supply in the number of budget-hotel rooms. In turn, this is adding downward pressure on the non-budget hotel room rates.

Given that costs are rising, the net result is profitability is being squeezed.

According to Michael Williamson of ASM Chartered Accountants, an oracle on the tourism industry, the Republic has seen room rates slashed by 20% in recent years. This can partly be explained by an oversupply of hotel rooms in the Republic, and the fact that 300 out of 800 hotels in the Republic are in financial difficulties, according to a recent report highlighted.

This has given rise to the term ‘zombie hotels’, with prices slashed for firms to stay afloat and in some cases in order to keep the tax breaks entitled to those hotels that stay open for seven years.

Republic hotels have simply not had the inflationary pressures that their counterparts north of the border have had to endure. Startlingly, food prices in the Republic are no higher than they were six years ago which compares with +36% for the UK/NI. So overall, while Northern Ireland’s tourism industry has certainly fared better than many other local sectors of the economy, visitor numbers and income don’t tell the full story. So the next time you’re sitting in a hotel Jacuzzi or in a well-lit dining room in a Northern Ireland hotel, spare a thought for how the rise in energy costs and food prices has been preventing the owner from fully reaping the benefits of all of our big events.

hoteliers tourists flocking to our shores. Yet, levels. Our two experts consider the potential of this important sector

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HERE are 139 hotels in Northern Ireland, giving the region just under 8,000 hotel bedrooms. There has been limited hotel development over the past number of years, due to a tightening of available funding and the challenges facing businesses in the hospitality sector. Hotels remain very much the backbone of serviced accommodation, providing over 70% of the rooms sold within Northern Ireland in 2012.

The Northern Ireland Hotels Federation, recently launched an analysis of the current economic contribution of the industry to Northern Ireland.

Here, Janice Gault, the NIHF chief executive, outlines some of the thinking behind the report: Northern Ireland’s hotel industry, like the rest of the private sector, has come through some tough times since 2008. However, we’ve knuckled down and turned things around, especially with some of the very successful initiatives such as ‘2012: Our Time, Our Place’ working so well. But we can’t rest on our laurels, and we’ve recently launched a very well received new economic report, which calls on the executive to lobby Westminster hard for a reduction in Vat and for the publication of a much delayed tourism strategy for Northern Ireland.

Tourism is a major economic driver here, but it could be even more so.

Hospitality and tourism directly employs around 60,000 people in Northern Ireland and supports many more jobs. The sector contributes £860m to the economy annually from 4,900 businesses. However, we believe that we can do better.

In the UK the tourism economy is worth £115.4bn. Northern Ireland has just 15% of the island of Ireland’s tourism spend from overseas visitors.

The tourism performance in

The Federation recognises the benefit of events and campaigns such as NI 2012 and Derry-Londonderry UK City of Culture and we would like to extend our support of the DETI minister’s energetic approach.

As part of a tourism strategy, we would like to see: ■ An event plan, with at least one world-class event staged in Northern Ireland each year; ■ Business tourism run by a business-focused body, which benefits from a pooled funding source.

TRAINING

Janice Gault

Chief executive of the Northern Ireland Hotels Federation 2012 was greatly assisted by the NI 2012 campaign, which brought in an additional £42m.

However despite all of the recent successes; it is our belief that we are only scratching the surface of the potential this growing industry can bring.

So what can be done?

Firstly, it should be said that the Minister of Enterprise, Trade and Investment (DETI) Arlene Foster is very supportive and has been a strong advocate of the sector. When we briefed her on the contents of the report, she was positive and engaged. The same goes for the DETI committee, whose chair, Patsy McGlone, helped us launch the report.

VAT

Lowering the Vat rate could make Northern Ireland a more accessible destination. Its relatively high rate of Vat puts it at a distinct disadvantage to other European countries — particularly the Republic of Ireland. While we understand that Vat is not a devolved issue, and

that there is likely to be a long road before it might be achievable, we would like to see our Executive agree to push it hard, along with Scotland and Wales.

STRATEGY

We believe that the industry needs an agreed, over-arching tourism strategy supported by all departments. This strategy needs to focus on growth and set out clear and concise responsibilities. A draft strategy was written in 2010 but has never been adopted.

The Federation would ask that a tourism strategy be adopted as a matter of urgency.

The NI 2012 campaign and its successes need to be built upon and, in order to maximise its legacy, a cohesive strategy is required.

TARGETS

The NIHF would like to see a full scoping of the sector, setting defined targets, areas of need and the infrastructure required to maximise tourism potential.

COHESIVE MARKETING

We would like to see: ■ A single delivery agency to provide training and qualifications for the sector similar to the CERT/Failte Ireland model in the Republic of Ireland; ■ A commitment to training and focus within education on the hospitality and tourism sectors.

All of the above are deliverable and modest, and we look forward to working closely with the Executive to deliver on all of the above, to creating jobs, and bringing more people to Northern Ireland.

The hotel sector is keen to see business grow and to continue to invest in the local economy.

The NIHF believes we can add significantly to the job market in Northern Ireland, offering real career opportunities to a wide range of skilled and unskilled workers. The only way we believe that the real potential can be realised is by making the changes we have asked for.

This year has thrown up a number of challenges which have highlighted the fragility of recovery.

The first quarter was very challenging with a slow start to quarter two. The summer was very strong with a couple of key events and a good leisure performance. As we look to quarter four, there is nervousness about business levels but are hope that trade will hold up over the Christmas period.

4 November 2013 BUSINESS MONTH 17

COVER STORY

ALL NIGHT LONG F

OR the majority of us, our weeks follow a pattern. From Monday to Friday, from 9am until 5pm, we go to work. At the end of each day we come home and go to bed at a reasonable time to get up and do it all over again the next morning. But as we sleep, business around Northern Ireland continues. The lesser spotted night owls of our corporate world are a rarely heard from group, yet in the UK there are over four million people working unsociable hours. From call centres to street cleaners, media monitors to factory workers, there are some jobs that have to be done at night and, it goes without saying, there are some people who have to stay up at night to do them.

Cheyane Quinn, Allen & Overy, works within a Belfastbased document services team that provides essential support for the group’s offices across the globe on a 24/7 basis. His usual hours are 2pm to 10.30pm, Monday to Friday.

Mr Quinn said: “A night team is essential with teams of lawyers often working late into the night across different time zones. When our evening team start, our Allen & Overy offices in America are right in the middle of their day and the Australian and Asian offices are just starting their day. The demand is often higher at this point than at any other time in the Belfast office, usually due to the European offices closing for the day.”

Mr Quinn has found that with gyms, shops and supermarkets staying open 24 hours a day, it is much easier to adapt to a more unusual timetable for

Workers who toil while the rest of us sleep enjoy full social lives and high job satisfaction, writes Rebecca Kincade

work. He continued: “I don’t finish work until 10.30pm on a Friday night, but I still have my usual Saturday and Sunday free so I can still spend time with family and friends. I also have time during the day before work so I can meet people then. The disadvantages would be not having the typical evening time to relax, especially for anyone who has been in

18 BUSINESS MONTH 4 November 2013

the workforce for some time and is used to this routine like myself. You have to switch everything around and create a new routine but when you get used to this it can be nice.”

Working an evening shift does come with its own benefits that can make it an attractive option to employees, as Mr Quinn explained: “Of course the extra money for working

unsociable hours is nice, but you also have time during the day to go into town and pursue outside interests. I understand that night time work will not suit everyone, but I think that there is a preconception that if you work an evening shift you will have no social life. With my shift pattern I still have my normal weekend and have the morning to do whatever I like. I also think that while working these hours you really get the feel for how global our support role is. You are also tasked with dealing with critical projects with deadlines that have to be met. You gain great experience working closely with your team leader to make sure that happens.”

Over at Henderson Wholesale, warehouse coordinator Lukasz Ucinski also burns the midnight oil. He ensures that their operations run as smoothly and efficiently as possible from 3pm until midnight on Monday through to Thursday.

He said: “Henderson Wholesale delivers the freshest goods to our retailers and timing is essential to ensure this happens every day. We work to a schedule with our delivery truck drivers who are working through the night to deliver the next day’s fresh produce, bread and milk to our retailers, so it

>> Turn to page 20

4 November 2013 BUSINESS MONTH 19

COVER STORY >> From page 18 makes sense that our hours are nocturnal. My hours are not set in stone due to the nature of our work, so there are times when I start earlier and finish later.”

Working just four nights out of seven means that Mr Ucinski doesn’t feel the burden of an unsociable work pattern too much, but he has had to make a few sacrifices. He continued: “Obviously, it would be nice to work the common nine to five. I do not go to the movies and the theatre as often as I used to.

“I miss a lot of football matches and I do not see friends as much as I did before, but I do not complain and do not think about it that much.”

According to Mr Ucinski, one of the lesser talked about advantages of the night shift is that there is

a great atmosphere in the warehouse.

Fewer employees in the offices means the team work closer together and form firm friendships. Mr Ucinski said: “With the proper approach, you can achieve a lot of job satisfaction.

About 2530% of employees in the western world work an alternative shift and, while this is probably surprising to some people, this demographic will probably increase and perhaps in the near future.

More people will be working on the night shift than during the day to meet cer-

20 BUSINESS MONTH 4 November 2013

tain demands in different industries. I think we need to adjust, as the times change. People used to wake up with the sun, work during the day and go to bed when it is dark.

We live in the 21st century and we can work any hours that we choose.”

Mr Ucinski is correct. As Northern Ireland continues to attract and develop companies working on a global platform we are likely to see a growing need for nightshift employees who are willing to meet the needs of the worldwide, 24/7 demand.

Our encounters with the lesser spotted night owls will become more frequent in the years to come.

NEWS ANALYSIS

Flying the flag C

HENGDU doesn't rank up there with the world's greatest metropolis in terms of fame. It doesn't roll off the tongue in the same breath as London, Paris or New York and if you've even heard of the south western Chinese city then you are probably an aficionado of pandas.

But the home of the nattily titled Research Base of Giant Panda Breeding more than competes with the perfume bottle cities when it comes to population and looks set to overtake them in the next few years if the town planners over there have anything to do with it.

At nearly 8m of an urban population, it's ranked the 39th biggest city in the world and the fourth largest in China. But statistics, by their very nature, are quickly out dated and the authorities in China will tell you that figure is closer to 20m if you take the time to count.

I'm certainly not going to argue, having witnessed first hand the colossal plans for developing a city which already possesses the sort of infrastructure which would be the envy of governments the world over.

As part of a press trip on board the inaugural British Airways flight from London Heathrow to Chengdu, we got the hard sell from the Chengdu administration

With British Airways putting on more flights to the Chinese city Chengdu, there is no excuse for businesses to miss out on this growing market, as David Elliot finds out

on the building work that's going to keep them busy over the next few years.

From vast four lane highways to a new metro and train system, there is no end of plans afoot to make sure the quickly evolving city has all it needs to be an economic superpower.

Even the airport, one which is handling around 30m passengers a year, is to be replaced with a four runway behemoth in a matter of years.

All this we got to see on a scale model, itself covering half a football pitch and housed in a govern-

22 BUSINESS MONTH 4 November 2013

ment building which smacked more of grade A office material than down-at-heel town hall.

Such potential is the reason an airline like BA has started flying three times a week to the capital of Sichuan Province, and indeed to other of China's so-called secondary cities. But it's not just potential because a quick tour of the city shows the huge scale of economic progress which has already been achieved with hundreds of office and apartment blocks, the world's largest building (the New Century Global Centre if you fancy wondering around a behemoth of a

shopping centre/water park) and a god-like praise of entrepreneurship which saw roads blocked off to allow traffic-free passage for some of the country's most important business people to a conference in our hotel on the morning we were trying to get back to the airport.

It's no secret China is one of the world's great untapped export markets, what with an increasingly affluent population demanding more and more goods and services from the west, but the double digit GDP growth of six years ago seemed to be a thing of the past.

Latest data shows the Chinese economy picked up pace in the third quarter of this year and although it's still down on the halcyon days of old, at nearly 8% it's still the envy of most other globalised nations.

There has been a question mark over the reliability of those figures but still, it's a market any seriously ambitious business should be trying to break into.

The UK as a whole is getting there with around 4.3% of total exports heading to China, but there's significant room for improvement from Northern Ireland's companies.

for prosperity

Only around 1.3% of our total exports end up in China — around £100m — most of which is made up of power generating equipment, electronic control equipment and, interestingly, animal hides to make leather.

It's a market waiting to be taken advantage of and one which will pay dividends for those willing to familiarise themselves with the customs and processes involved in doing business there.

Certainly Chengdu is pleased to see the UK market open up with the new direct flight, as the fire engine salute which greeted our Boeing 777,

itself was decked out in a painted panda face for the trip, will testify. The numerous welcoming conferences for BA chief executive Willie Walsh, and a constant endeavour to present the accompanying journalists with the best Chengdu has to offer also revealed how important a direct flight to London means to the city.

That may sound like competition for businesses here but is more likely to mean tourists, not just for London but for Northern Ireland, given the government's decision to make the process of getting a UK visa easier for Chinese nationals.

And there's an obvious draw

for UK tourists to go to Chengdu: the pandas.

The morning we visited the panda centre, one which followed a night of jet lagged pacing around a hotel room, I must admit a certain level of diffidence but that quickly evaporated when we got within feet of these magnificent bears, contentedly munching on breakfast bamboo. It's easy to see how they'll prove a big draw and make up in number the extra distance you'll have to travel to see them over their Edinburgh

Zoo contemporaries. We were even lucky enough to see a group of 14 baby pandas ranging in age from three to one months on their first day on display, a sight that none of us will forget in a hurry.

The firey hot Sichuan food is also a big draw, and although the hot pot might not be to everyone's taste, there's a wealth of options to make sure even the pickiest palate is satiated. Culturally it's a must for anyone who wants to take a step away from the norm and experience what it feels like to be part of one of the fastest evolving communities anywhere in the world.

From a business perspective a trip to Chengdu is an eye opener, one which will leave you with the feeling that to ignore such a burgeoning market place as China is foolish.

Ignore it at your peril.

• British Airways flies three times a week direct to Chengdu Shuangliu International Airport. The route is operated by a Boeing 777 with a four-cabin configuration, featuring 14 seats in First, 48 fully flat Club World seats, 40 World Traveller Plus seats and 122 World Traveller seats.

• Flights operate on Tuesday, Thursday and Sunday. The BA89 departs Heathrow at 3.30pm, arriving in Chengdu at 8.55am the following day. The return BA88 departs Chengdu at 10.55am, reaching Heathrow at 3pm.

The inaugural BA flight (main) from London Heathrow arrives at Chengdu Shuangliu International Airport to a fire truck salute; (top left) the panda cubs at the Chengdu Research Base of the Giant Panda; (top) the aircraft used for the inaugural flight gets a Panda paint job; (above inset) stuffed panda greet BA air hostesses

4 November 2013 BUSINESS MONTH 23

BREAKING THE MOULD

Success is child’s play Sisters Lorraine and Mary McAleer explain why Learning SPACE has flourished in spite of the recession, and what led to them spotting a gap in the market

L

ORRAINE and Mary McAleer are the sisters who run Learning SPACE, an awardwinning, educational toy and resource company in the heart of Belfast city centre that provides a wide range of products to meet the needs of children of all abilities.

Their business, which is celebrating its sixth birthday, has gone from strength to strength by selling through its website, store and catalogues to parents, teachers, schools, and organisations.

Lorraine and Mary McAleer, founders of Learning SPACE

We got into business because… we wanted to find educational products for our younger sister who has special needs, but it proved difficult. It became even more apparent there wasn't much on the market to Lorraine, who was previously a teacher, and was struggling to find suitable products to meet the needs and interests of children as well as somewhere to direct parents and fellow teachers for learning and educational resources.

She believed that parents, teachers, therapists and more specifically children, deserved better when it came to accessing suitable resources and getting advice. Lorraine knew of parent/teacher stores in other countries and found there was a gap in the market for a similar place in the UK and Ireland.

We didn’t always do this… before starting Learning SPACE Lorraine was a teacher while Mary was a qualified social worker.

The best thing about our work is… the opportunity to expand, having control of our own futures, and knowing that what we do makes a difference to parent, teachers and children’s lives. That's shown in the positive feedback from customers.

Life Orphanage in Kenya as well as our business advisor, Kevin Martin, who has provided us with excellent advice and helped make the idea become a reality. Although the work ethic and motivation to succeed stems from our mother and father, our determination and strong headedness comes from our brother.

The people we take inspiration from when it comes to business are… our aunt and uncle Mary and Kevin Maguire who set up and run The Good

The biggest obstacles we’ve come up against in business are… include taking the initial step into the business world and gaining funding. However,

24 BUSINESS MONTH 4 November 2013

the main obstacle came within five months of opening our business, as it was then the recession hit. But that helped us learn to diversify our business.

Our advice to anyone thinking about starting up their own business is… three simple pieces of advice: firstly, do as much research as possible on what business you want to go into, secondly, speak to as many people as possible to get a wide range of viewpoints and lastly, just do it, take the jump and go for it.

In 10 years time we hope to be… on a yacht. More importantly we'd like to be to help more children with their educational and learning needs by seeing Learning SPACE go global.

We'd also like to be on the tip of the tongue of anyone looking for educational resources or to entertain their kids.

We couldn’t go to work without... each other, chocolate and buns. We also couldn’t do without our strong support network, great team, staff and customers who believe in the business and its ethos.

AND I’LL TELL YOU ANOTHER THING

‘Fortune favours the brave’ The company boss who started his career as an apprentice gas fitter places great store in education, hard graft, the benefits of working with talented people and good luck Name: Peter Dixon, group chief executive of Phoenix Energy Holdings My first job was...

with little to no qualifications to my name I joined the Gas Corporation in Liverpool as an apprentice gas fitter in June 1976.

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

Peter Burt. Over the past 37 years I have been fortunate enough to work with many talented people. In the midEighties, I was seconded to British Gas HQ where one of their senior team, Peter Burt, took me under his wing. His first bit of advice was to ‘be yourself and continue to come with ideas that will make things happen’. He also pointed out that going back and securing a second and third level education, even in my late 20s, would benefit me later on.

British Gas needed people who could make things happen.

Studying at night school gave me the badge of respectability that some interviewers needed.

Having many strings to your bow can make it easier for people to ‘make a leap of faith’ when it comes to appointments.

Studying also improved my own perspective on problem solving and understanding more aspects of people, finance and business. I like to think that Peter Burt’s initial faith in me put me on a career escalator.

My business mantra is...

get the right people in your company. Surround yourself with strong talented people and treat them how you would wish to be treated. If your management team are not better than you at doing their individual jobs then you are selecting the wrong people. Do every job, no matter how small, to the very best of your ability. Never think you are any better or more important than anyone else and don’t believe your own propaganda. If someone asks you to do something — then do it yourself or follow through the request to ensure it is done

Peter Dixon: ‘Following the path less travelled doesn’t mean you’re lost . . . you’re beating a path for others to follow’ to the highest standard. People you meet today could be your most important customer tomorrow.

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

I actually don’t think so — opportunity still comes dressed in overalls looking like hard work!

Good, talented, hard-working, reliable people are still hard to come by in my experience.

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

the only difference will be that those people not operating out of Northern Ireland yet will wonder why they are 10 years late. If you have a great product, or widget or you can service someone’s needs better than anyone else can, then, as long as you can make it easy for people to deal with you — you can

26 BUSINESS MONTH 4 November 2013

succeed. Yes it is hard work and yes at times you feel like you are failing more than you are succeeding, but if it was easy then anyone could do it. The fact is that whether it is now or in 10 years the business world will look like a tough place to be — but fortune favours the brave.

My one regret in business is...

I don’t have any notable regrets as I have been immensely fortunate and at key times very lucky right throughout my career.

Seventeen years ago British Gas decided to invest in Northern Ireland by bringing natural gas here for the first time. The Phoenix business has gone through a number of different ownerships and continues to thrive having recently attracted a new investor in Hastings (an Australian infrastructure fund).

Leading a utility company and serving the community is a privilege that I am very aware of.

My one piece of business advice is...

if you are unhappy, move on.

Sometimes you have to take the path least travelled; that doesn’t mean you are lost, it may mean you are beating a path for others to follow.

When people do follow, they sometimes pinch your ideas — don’t be put out by this; as it often means that your competitors are always running to catch up — imitation can be the greatest form of flattery.

I couldn’t start a day’s work without... listening to the news with a strong cup of tea.

SME WATCH

A

LAN Boyce was aged just nine when he started his first job, working on a delivery round in the Braniel estate with milkman Jim Meek. Five pounds a week may seem like small change now, but to a schoolboy in the early Seventies it was a small fortune. It was certainly worth his while to get up well before the crack of dawn and arrive at Braniel Primary long after assembly had finished.

“The teachers turned a blind eye to it,” he explained, “even though I was usually tired and found concentrating very difficult, they seemed to respect the fact that I obviously had enough determination and business savvy to hold down a job at such an early age.”

Nevertheless his school work was already suffering. The fact he had undiagnosed dyslexia made matters worse and by the time he moved up to secondary school — the trouble-stricken

Teachers turned a blind eye to me regularly bunking off

Rachelaness

Hair’s to success

Frances A Burscough discovers how a boy from Belfast’s notorious Braniel Estate, with dyslexia and a limited education, became one of the most successful salon owners in Ireland

28 BUSINESS MONTH 4 November 2013

Lisnasheragh School in east Belfast — he was far more interested in making money in the real world than anything they were teaching him at school. Or at least trying to.

So when his business partner, Jim the Milkman, started a new lucrative sideline selling bomb and smoke damaged gear, Alan was quick to switch trades along with him.

At the age of 13, Alan was a fixture at markets all around the province where he learnt the importance of banter and good customer relations.

“We were making a fortune selling anything and everything that came from damaged stores for a fraction of the original price,” he said By now Alan was bringing home about £150 a week, was able to treat his hardworking

mum to the odd takeaway and was revered by his peers like he was lord of the manor around the Braniel estate.

But being on the road all week didn’t leave much time for homework or even attending school for that matter. Alan was regularly bunking-off but, once again, teachers overlooked it.

“Actually, there was so much going on in Belfast in the Seventies — particularly in and around the Braniel — that you could easily get away with wagging off school.”

Alan left school at 14 with no academic qualifications but with a sales pitch second to none.

But how on earth did he make the seismic shift from barrowboy to the ultra-chic world of international hairstyling?

After continuing to make a living doing “a bit of this and a bit of that” until his late teens, he met a charismatic hairstylist called Adele and was so impressed by her (and her craft) that he decided to give it a try himself. He also knew that the only way to shake off his image as a “wide-boy” tearaway and to win her attention was to become a part of the scene himself.

It was the determination to

be a success and the ability to recognise and hone potential partnerships that stood Alan in such good stead and enabled him to break into such a polar opposite industry. With no relevant qualifications whatsoever, Alan approached the gents hairdresser Guiseppe whose salon in Holywood was hugely successful in the 1980s.

He worked there for a year with no pay, quickly learning the tricks of the trade from a master. It was something he was good at and his friendly approach made him an instant hit with clients, who started to book Alan even though he was still a junior apprentice.

Being naturally ambitious, his next move was to form his own business. In 1985, Alan’s mother — who was a hardworking and successful tailor with her own shop on Templemore Avenue and all the contacts that came with it — was able to help him find and rent suitable premises.

This was the start of his career as a salon owner. Along with Adele who was now his partner — he founded Company Haircutters on Belfast’s upmarket Bloomfield Avenue. Before long the salon was the talk of

the town. International success soon followed as Company Haircutters picked up awards and editorial recognition in the world’s top hairstyling journals.

Now the pair were able to train and recruit new talent — Paul and Lisa Stafford, Andrew Mulvenna and Patrick Mulholland to name but a few of today’s great stylists who started their careers at Company Haircutters.

But it was only a matter of time before Alan was tempted away from Belfast to London.

Leaving Adele to run the business back home, Alan became immersed in the London scene where he forged a new friendship and an incredibly opportune business partnership with Anthony Mascola — of Toni & Guy fame. And the rest, as they say, is history.

Having secured the master franchise of the Toni & Guy brand for Ireland — both sides of the border — Alan was poised to revolutionise regional hairdressing.

“Ireland had never seen anything like this — sleek, sophisticated, high-tech hair salons run by award-winning stylists who really had their fingers on the

pulse of international trends,” he said.

The first Toni & Guy salon in Ireland was launched in South Anne Street, Dublin, in 1993.

At the helm were Alan and his new partner, the brilliant stylist Caroline Armstrong. Before long they were scooping prestigious awards, including every category of the coveted L’Oreal Colour Trophy — an achievement never attained by any other salon or group in the country.

A bigger salon — as well as its own training academy — was opened just around the corner on Dublin's Dame Street. Two salons quickly became three and before long Toni & Guy were in every major county across Ireland as well as a flagship salon on the Lisburn Road in Belfast.

Fast forward to 2013 and, as Alan himself will tell you, it hasn’t all been plain sailing. A world-wide recession resulted in some salons closing along the way. Nevertheless, what Alan has built and maintained through these troubled times is one of the great business success stories of the 21 century.

Not bad going for a tearaway truant. “Go on yer boy, ya!” as they say in the Braniel.

4 November 2013 BUSINESS MONTH 29

ASK THE EXPERTS WHICH regions and sectors hold the best potential for equity investment in the next few months?

THE eventual withdrawal of quantitative easing will symbolise, for us, that the central bankers are giving the US economy a clean bill of health.

We would, therefore, still recommend clients place a good deal of their investment faith in the country’s equity markets, although the majority of exposure is best achieved via passive funds.

The case for Europe, ex UK equities, remains similarly strong, with the European corporate sector likely to benefit from the nascent recovery in underlying economic activity.

We still see the UK underperforming these two markets, on account of — among other things — its heavy resources exposure.

Investors should position themselves to be neither harmed nor hindered by the performance of Japanese equities relative to the benchmark.

Our convictions remain higher at the regional level (and highest of all at the asset class level), but a more cyclical slant to your sector allocation seems wise given the brightening economic picture.

For investors with sufficient risk appetite, banks in Europe look interesting, while those in the US may still have further to go in our view.

For those looking for income, bond yields will likely rise with the eventual arrival of tapering, and the relative attraction of those more economically landlocked dividend payers such as utilities and Telco’s will likely wane.

As always, we do emphasise that investing in shares is not for everyone as their value can fall and you can get back less than you invest. If you are unsure, you should seek independent advice.

JD

Mark Hutchinson Managing director H360

Jonathan Dobbin Barclays Wealth and

Investment Management NI

Alana Jones Employment law specialist Workplace Solutions

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

I run a small to medium-sized business and am dealing with a harassment case for which I feel ill prepared. What steps should I be taking to deal with it?

A

S a first step, consideration should be given to arrangements to ensure that the employee (the complainant) feels safe while the matter is addressed.

For instance, reporting lines may be altered on a temporary basis. The arrangements should not be to the complainant’s detriment as that may result in a successful victimisation claim.

Some cases can be successfully dealt with informally if the conduct complained of is not too serious and the complainant does not wish the matter to be addressed through a formal process.

Typically this is where the alleged wrongdoer is unaware of the impact of their actions and is willing to change their behaviour once a manager explains that they are making a colleague feel uncomfortable.

Alternatively, it may be beneficial to offer the parties the option of mediation facilitated by an independent mediator.

Mediation may prove particularly helpful where the relationship between colleagues has deteriorated and they are willing to try to resolve their differences and to reach agreement on future behaviours.

If the individual wishes the matter to be addressed formally

I WANT to develop a product idea to get it to market, but without engineering or design experience I’m not sure what to do next.

THE hardest step in the process is coming up with the idea. So don’t give up now — assuming you have done some market research into what is currently available in the market and whether or not your product will sell then the next step is the design.

Don’t worry about not having a background in design, right now it is about taking your concept from inside your head towards reality. A pen and paper is enough for you to sketch out all your ideas and include as much information as possible.

Working with our team of designers doesn’t require 2D or 3D drawings, we can do this all in-house for you and by working closely with a design engineer you can move a step closer towards a prototype.

Turning your invention into a commercial product will require significant development, and your initial idea will go through a number of adjustments and tweaks to get to the manufacturing stage. Our engineering-based approach allows us to design a prototype that actually works.

MH

or if the harassment alleged is of a serious nature, follow your harassment complaints procedure, or, in the absence of such a procedure, the grievance procedure.

Check that the internal procedure reflects the requirements of the Labour Relations Agency’s Code of Practice on Disciplinary and Grievance Procedures.

The allegations should be thoroughly investigated and the process should ensure that both the complainant and the

alleged harasser have the chance to fully explain their positions.

The complainant has a right of appeal against the outcome and it may be necessary to initiate the disciplinary procedure if the complaint of harassment is upheld.

It can prove difficult to ensure that there are sufficient personnel available to deal with the various stages of the procedures and it may be necessary to outsource certain steps in the interests of impartiality.

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 4 November 2013

AJ

INSIDE REPORT

NI’S MISSING INGR Various changes are needed for Northern Ireland to establish itself as a high valueadded economy, not least a lowering of corporation tax, discovers Paul Gosling

T

HE mantra has been that we have to move away from dependence on the public sector, to ‘rebalance our economy’. Yet announcements of new foreign direct investment (FDI) in contact centres and support centres in Belfast have led to an inevitable question: have we merely moved from being a fairly highwaged public-sector services economy to a low-waged private-sector services one?

Or, as one commentator put it: have we gone on a long journey from the linen factories in order to have the law factories?

“I think — not by policy statement, but in reality — we are moving towards being a lowpaid service economy, alongside a strong public sector,” says economist John Simpson.

“All those statements about going for a high value-added economy, it’s just not happening. We don’t really have a coherent economic policy.”

Mr Simpson argues that government departments need to work together and with the private sector, improving both Northern Ireland’s infrastructure and skills base. “We actually need to have a public sector that operates as a broad front, not just DETI or DEL, and not one that does not cooperate with the private sector.

At the moment, the private sector shouts at the public sector, and the public sector shouts back at the private sector.”

This is a good moment, Mr Simpson suggests, for the Executive to take stock of its capacity to grow NI’s economy and where the economy should be positioned. “After the investment conference, we really need to be asking where are we going and admit that we have not really been serious.”

It certainly feels as if much of

NI’s employment growth is in the lower paid service sector. In the most recent major job announcement, in October, Stream announced that it is in the process of creating 1,000 jobs in its Belfast contact centre.

But Richard Ramsey, Ulster Bank chief economist, makes the point that the service economy can also be high value, as with the Herbert Smith and Allen & Overy legal support services in Belfast. Mr Ramsey believes that NI has to make more of an effort to market itself imaginatively, based around the low cost of living, good quality of life, an attractive culture, excellent communications network and making a reality of it as being a friendly and tolerant society.

The trouble with that, though, is that events such as the flag protests make it very difficult to promote NI to outside society. “I sometimes think politicians and policymakers don’t see the importance of this,” says Mr Ramsey.

“There is no point in having positive marketing for 360 days a year — and then for five days a year having negative stuff.”

But as things stand, believes

32 BUSINESS MONTH 4 November 2013

Mr Ramsey, it is difficult to suggest a single USP for NI. “We have a portfolio of different aspects,” he says. Some of this is in the high-value areas that deserve support, including aerospace, pharmaceuticals and ICT. “Ideally we would want to have more high value added than we have.” But, he adds, “the cost angle is always going to be there — the low cost, low wages is still going to play a part”.

Libby Jackson, director of the Belfast office of London’s Herbert Smith Freehills, said: “Clients are increasingly placing value on a more systemised approach to the documentintensive aspects of cases, but are looking for solutions which further enhance quality while allowing costs to be controlled more closely. Our Belfast office [offers] clients just that.”

Esmond Birnie, chief economist with PwC, says there is “an element of truth” in the claim that NI is at risk of being a lowvalue service economy. But, along with Mr Ramsey, he stresses that some of the services attracted here are examples of the type of high-value activity the province should cherish.

The ideal, suggests Mr Birnie, is to improve productivity in Northern Ireland. For this to happen, the quality of management in businesses here needs to rise. “It’s not just the number of degrees managers have, but it’s also about the subjects and how they use them and whether they are business related.”

Future success also depends, believes Mr Birnie, on the aspirations of businesses and employers, looking to exports and recognising the role of innovation and research and development. “The most recent data from 2011 does show that Northern Ireland R&D (research and development) jumped up. But even given that, we are quite far behind other small open economies in Western Europe, for example Finland.”

One of the key reasons why NI is over reliant on the service sector — both low and high paid — is that we are not sufficiently attractive for profit-generating activities when compared to our neighbours in the Republic. Even after the next cut in corporation tax rates in April 2014, we will still have a main corporation tax rate that is 8.5% higher than in the Republic. Inevitably FDI is drawn here as a low-cost base for service activities, rather than as a place for profit generating activities.

For Mike Smyth, a former University of Ulster economics lecturer and campaigner for reduced corporation tax in NI, it is the tax challenge that dominates all others. “We are never going to be able to do that [break out of service-sector dominance] without a major change in the policy regime,” he says. By which he means the tax position, specifically.

>> Turn to page 34

REDIENT... A USP

4 November 2013 BUSINESS MONTH 33

INSIDE REPORT

>> From page 32 But Mr Smyth has become convinced that corporation tax will be devolved to NI from April 2015 and he expects this to be announced once the Scottish referendum is out of the way next year. “I am pretty confident that the announcement will be made by this time next year,” he says.

Mr Smyth predicts there will be agreements to devolve tax policy to the Scottish and Welsh devolved administrations on income tax, stamp duty and air passenger duty, which will create the opportunity to devolve corporation tax setting to the NI Assembly.

He accepts that matching, or beating, RoI’s tax rate would not of itself overcome the problems of the North’s low employment rate, low wages and low productivity, but he believes it would unlock the other ingredients that are required to create an effective package that would generate jobs and growth. For example, the demand for well-paid jobs would

34 BUSINESS MONTH 4 November 2013

lead to more graduates returning home, with others commuting from across the border. Moreover, with perhaps a year between an announcement and the lower tax rate being introduced, there would be a period of adjustment and recruitment.

An academic study into Ireland’s success in attracting FDI was clear that its low-tax rate was the primary factor, backed by a highly skilled workforce that speaks English, good infrastructure, access to transport and an acceptable cost base. Mr Smyth points out that the Republic’s equivalent to Invest NI — the Industrial Development Agency — was given the authority to virtually dictate the country’s vocational education policy once there was sufficient demand for workers from foreign investors. That was driven by the lower corporation tax rate and Mr Smyth believes a similar process would take place here.

“Given the choice of all the policy options, I would take the corporation tax rate,” says Mr Smyth. “It gives us the chance to do all the other things that we need to do.”

TICKERS

The month’s local indicators at a glance Ulster Bank economist Richard Ramsey gives a rundown on the latest key pointers WHILE indicators pointing to an economic recovery continue to come in thick and fast, inflation remains public enemy number one as far as consumers are concerned.

Not only has the UK consumer endured a sustained period of above-target inflation, they have also experienced a prolonged period of extremely subdued wage growth. The net result has been a severe squeeze on household incomes for the past four years.

Recently the lack of a household recovery, or the ‘cost of living recession’, has become the centrepiece in the changing UK political narrative and should feature prominently in the run up to the next general election.

In September 2013 the annual rate of UK consumer prices index (CPI) stood at 2.7%. This represented the 66th of the last 73 months that inflation remained above the Bank of England Monetary Policy Committee’s 2% target.

Meanwhile, average UK weekly earnings (excluding bonuses) in the three months to August increased by a paltry

0.8% y/y and by less than 11% since the credit crunch officially began in August 2007. Headline inflation has now been rising at a faster rate than incomes for the past four years. Since August 2007, UK CPI inflation has risen cumulatively by 21% which compares unfavourably

with most of its EU-28 competitors. For example, 15% for the EU-28 economies average, 13% for the eurozone and just 3% for the Republic of Ireland (RoI).

Indeed, the RoI has experienced the lowest cumulative rise in consumer prices of any EU-28 economy since the credit

crunch began. While most of the EU-28 economies would swap their unemployment rates for the relatively low rate prevailing in the UK, the UK consumer would happily swap the UK inflation rate with the equivalent rate in the eurozone and the RoI in particular.

THE annual rate of UK food and non-alcoholic beverages inflation stands at 4.3%. Since August 2007, UK food and drink prices have soared by 36%, almost double the EU average and compared with just over 14% for the eurozone. Within EU, only Hungary experienced a higher rise over this period. Food and drink prices in the RoI in September

2013 were much the same as they were over six years ago. Indeed, the RoI has enjoyed the lowest food and drink inflation of any EU 28 member states since the credit crunch began. The severity of the RoI’s recession, alongside healthy profit margins that were not evident in other economies, has kept food and drink inflation to a minimum.

ELECTRICITY price hikes have hit the headlines, with politicians suggesting policies such as scrapping green measures, introducing price caps, promoting greater competition and imposing a windfall profits tax on energy companies.

Since August 2007, the UK Electricity, Gas and Other Fuels consumer prices index (CPI) has

risen by 61% (over 5.5 times the increase in average UK earnings). This rise compares with 29% for Ireland and 38% for the EU-28. Within the EU-28, the Netherlands posted the smallest rise (12%). Since August 2007, UK electricity prices have risen by 46%, gas prices have increased by 76% and the price of home heating oil is up 84%.

36 BUSINESS MONTH 4 November 2013

STOCKWATCH

UPSHARES-DOWNSHARES

A bumper month for the team, thanks to the mainstays of the average couch sports fan FOOD, television and beer were the biggest winners on this month’s UpsharesDownshares trading bonanza, one which yielded an overall profit of £75,000.

Leading the charge this month was security guru Barry Byrne who benefited from a boom for Associated

Joanne Stuart

Director of Attrus and chair of Arts and Business NI BG Group Kingfisher Whitbread Evraz Total Wildcard HSBC

Oct 22 value 82,174 133,500 194,612 31,065 441,350

Change 2,883 -5,929 18,772 185 15,911

102,919

2,919

Wildcard: Sports Direct Intl (Last month: HSBC) THIS month I am going for Sports Direct International. A UK sports goods retailer founded by billionaire Mike Ashley, the company has enjoyed a good run of results which earned it promotion to the FTSE 100 in September. The demise of its main rival, JJB Sports, helped Sports Direct International to consolidate its position as the UK’s number one sports retailer. The company has over 400 stores, owns the brands Dunlop, Slazenger and Lonsdale, and operates in Northern Ireland through a joint venture with Heatons.

British Foods and BSkyB. Hot on Barry’s heels was that old profit monger Tony Axon who saw Prudential and banking giant Lloyds proffer a handsome return.

Joanne Stuart registered the biggest share profit of the month with £18,000 for Whitbread. Unfortunately,

however, she was left hamstrung after a disappointing performance by B&Q owner Kingfisher.

The editor did okay with an £11,000 profit but remains despondent with an overall strategy based on big oil, difficult banks, sinking ships and a pink paper.

THE RULES Each trader is given £400,000 to spend, £100,000 each on four sets of shares, which they must hold in their portfolios until the end of 2013. They will also be given £100,000 to spend on a wildcard share, which must be changed at the end of each month.

Barry Byrne

Tony Axon

David Elliott

Managing director of G4S in Northern Ireland SAB Miller ABF BSkyB Tate & Lyle Total Wildcard Interserve

Oct 22 value 125,482 169,893 136,991 111,341 543,708

Change -1,871 15,915 9,448 3,638 27,129

98,379

-1,621

Wildcard: Rolls-Royce Holdings (Last month: Interserve) ROLLS-ROYCE has signed a £22m contract to supply thrusters and deck machinery for two semisubmersible drilling rigs to be built at Samsung Heavy Industries in Korea for Stena Drilling. The contract includes options for deliveries of three additional rigs. Rolls-Royce is a leading supplier of large thrusters and deck machinery to the offshore drilling market. The thrusters — part of a rig’s propulsion systems — are used to propel it to and from drill sites and accurately maintain its positioning during drilling operations.

Media director of Navigator Blue Prudential Next Lloyds Arm Holdings Total Wildcard Burberry

Oct 22 value 173,343 187,950 214,911 171,331 747,534

Change 11,464 1,799 8,583 0 21,846

96,228

-3,772

Wildcard: Royal Mail (Last month: Burberry) A SURPRISING month. Prudential moved on well and made up for Lloyds slowing but the financial sector has been good all year for my portfolio. Retail is risky and Next slowed but I’m expecting a pre-Christmas spurt. With the economy improving and the South East boom, the hold on interest rates may about to be reviewed. In the meantime my wildcard pick is obvious, it’s got to be the Tory give-away of the century — Royal Mail! And a side bet on the ‘Royal’ being dropped soon!

Editor of Business Month

Standard Chartered BP Carnival Pearson Total Wildcard Rio Tinto

Oct 22 value 92,579 89,735 108,077 110,196 400,586

Change 912 731 2,070 7,993 11,707

110,640

10,640

Wildcard: Marks & Spencer (Last month: Rio Tinto) I’M plumbing for M&S this month.

The thinking is simple: it’s coming up to Christmas and there's no busier shop in the run up to the festive period than the food arm of the old St Bernard. Food has been struggling to keep pace with the stellar growth of clothing, but it seems Marksies is focusing on what it does best, with plans to open a further 150 Simply Food stores over the next three years. With any luck that will lead to a boost for the share price as consumers loosen the purse strings at Christmas.

4 November 2013 BUSINESS MONTH 37

FOCUS ON: SELLING

SOLD ON THE

Social media is being embraced by companies to sell products and services but the

I

T'S the foundation of any successful business — the ability to sell. Without that, a company is little more than a variety of sharp suits filling up open-plan city-centre office space.

“Many of the elements of selling haven't changed,” according to Les Curran of Belfast-based digital sales firm Export Technologies. “Knowing what value your proposition has and knowing where it adds the most value for your potential customer — that's key. Finding the target audience that is most likely to benefit from it and taking on battles you can win, rather than ones you can't.”

And while much has changed within the global trading landscape, where terms such as e-commerce and digital marketing have slipped into the lexicon, Northern Ireland businesses can, and should, be based around the same basic principles, according to one sales expert.

“The first thing is identifying the customer, then building a model of how to sell to them,” said Colly Graham. “That's followed by the engagement — making initial contact, before the ‘qualification' stage. Then presenting or proposing your product idea and getting to understand what they need.”

But, inevitably Northern Ireland companies have had to adapt and move with the changing tides, embracing digital selling and utilising the many emerging channels open to firms of all shapes and sizes.

While most businesses have some form of online presence — be it Twitter and Facebook, or their own company website, digital selling can be used effectively, if done correctly.

Digital marketing is a valuable tool but the basic principles of selling have not changed “When connecting to prospective customers, whether it be on Twitter or LinkedIn, it's vital to treat it as a high-level marketing strategy,” says management consultant Linzi Conway. “I often hear the line a lot, ‘we do social media — our receptionist is on it all the time'. It's not as simple as that, and those doing it have to be trained sales people.”

One area the web has advanced business relationships, while cutting down on time and costs, is through video calling such as Skype or Google Hangouts.

“Companies in Northern Ireland are using a lot more of this kind of communication as it saves time and travel costs,

38 BUSINESS MONTH 4 November 2013

as well as putting a face to the name. That being said, nothing beats that handshake — the face-to-face contact when you go to make your sales pitch.”

According to social media expert Davy Sims, there are small things companies can do — with a degree of organisation — to boost their profile.

“Even small businesses can do certain things — anything from YouTube videos for promotion or connecting with customers using social media,” he said.

“Even when it comes to business to customer sales, a company can boost its profile and reputation as long as you it's adding value to the products.”

But, it isn't necessarily for everyone. “I would encourage

people to think about how they are using it — it's not simply just a time-saving device,” he said.

“Working with businesses and customers remains essential and it doesn't replace those basic business skills.”

Aside from business-tobusiness selling, when it comes to retail, Northern Ireland boasts

>> Turn to page 40

DIGITAL WAY successful ones don’t just leave it to the receptionist, learns John Mulgrew

4 November 2013 BUSINESS MONTH 39

FOCUS ON: SELLING

>> From page 39 one of the most successful young companies, which helped build its multi-million pound success story in only a few years using online sales.

Chain Reaction Cycles has grown into an internationally renowned firm, turning over almost £140m a year thanks to its ability to sell huge quantities of product outside the UK. And it began doing this thanks to the ingenuity of Northern Ireland firm Export

Technologies, which has been providing companies with an online selling platform for the past decade — with some £1bn worth of sales going through its software from NI firms since its inception.

“The second generation of family businesses are coming around to the digital market — they already have good knowledge and brand access,” said chief operations officer Les Curran.

“The key thing is you need to have the grounding as you

40 BUSINESS MONTH 4 November 2013

normally would, such as good stock, funds and purchasing power.”

So, what can small and medium-sized companies across the sectors do to get on the digital bandwagon.

“Use the internet for competitor analysis and concentrate on the marketing side of driving targeted traffic to the company website,” said Olive Hill, Invest NI's director of innovation and technology.

“Understanding that to sell online requires a reasonable

level of skills and resources, and you still need to remember the core fundamentals of business. It's not for every business — it’s not always a straightforward transition from offline to online.”

Whether it be face-to-face relationships and the handshake, Northern Ireland has a natural flair for it, according to Colly Graham.

“People here are just great at conversing and building relationships — we're some of the best at it.”

FOCUS ON: PENSIONS

CLOCK TICKING Small businesses not preparing for auto-enrolment face upheaval and the risk of heavy fines,discovers Rebecca Kincade

O

VER the past year, nearly two million employees in the UK have been enrolled in a workplace pension through the government’s auto-enrolment system. The ‘pension revolution’ started in October 2012 and has so far only affected companies with over 120,000 employees.

However, over the next two years, thousands of small- and medium-sized businesses in the UK will have to take on the daunting task of launching workplace pension schemes under new regulations.

Financial Professionals (NI), based in Bangor and Newtownabbey, is authorised

and regulated by the Financial Conduct Authority. Michael Kennedy, director, explained that there are two main reasons why compulsory enrolment has been introduced: “Primarily, we are not saving enough to afford a comfortable retirement.

Recent research from fund manager Barings showed a third of those questioned, or 12.5m of the UK population, admitted they had no pension in place. Secondly, we are on average living longer and an increasing number of us will spend at least 20 years in retirement.

“By 2020 half the UK population will be aged 50 or older, meaning fewer future taxpayers to bankroll a greater number of pensioners. The government, faced with this impending pension funding crisis, felt it had no alternative but to take action to encourage people to start to contribute to a pension.”

Auto-enrolment requires all employers to enroll all eligible employees into a workplace pension scheme, with contributions coming from

both the employee and employer. Employees, if they don’t want to be in the scheme, then have to actively opt out. Eligible employees are classified as being aged between 22 and the state retirement age and earning more than £9,440 per year.

After a phased introduction, from October 2018 all firms will eventually have to contribute at least 3% of their employees' salary, with employees contributing 4%, and 1% coming from tax relief, making 8% in total. Employers will be responsible for the on-going maintenance of the scheme and have an obligation to keep certain records, which must be provided to the Pension Regulator when requested.

As the SME sector form the core of the local economy, accounting for over 90% of all businesses in Northern Ireland and employing around 347,000 people, auto-enrolment will pose a particular challenge to the local business community.

Mr Kennedy continued:

“It is the smaller employers — those with up to 50 staff — with little experience of pensions who are more likely to find it difficult to cope with the administrative and cost burden of auto-enrolment, rather than large firms well versed in workplace schemes. Medium-sized companies will be expected to enroll from April 2014, and firms with fewer than 50 employees start in June 2015, with all eligible workers enrolled by 2018.”

The employer duties are not optional. The regulator will ensure employers comply with the new duties. Although their approach will be to educate and encourage compliance, employers will face substantial fines if they don't comply.

John Joe Muldoon, pensions specialist, Verity Pensions, warned that many companies in Northern Ireland haven’t started to prepare for this scheme: “Employers are sticking their head in the sand when it comes to the approaching deadlines for auto-enrolment. The fines are going to be punitive and based on the number of staff within the business. We are recommending that our clients start to get organised eight to nine

>> Turn to page 44

42 BUSINESS MONTH 4 November 2013

FOR SMES

Jackie Nesbitt

Wealth management director at BDO on auto-enrolment BDO are working with numerous companies in Northern Ireland to help them comply with their statutory obligations concerning autoenrolment. Our priority is to assess the financial impact auto-enrolment will have on individual companies and to ensure this is built into company budgets. The impact of autoenrolment on a business is not only the financial cost of pension contributions but also the initial and ongoing time costs for management, human resources and payroll staff.

It is important that employers understand the options available under the regulations to allow them to utilise those which are beneficial to their business.

Communication is key to a successful auto-enrolment outcome. BDO work with employers to develop personalised project plans to ensure all parties within an organisation are engaged with the end result being a qualifying pension scheme which meets the needs of both the employer and employee.

4 November 2013 BUSINESS MONTH 43

FOCUS ON: PENSIONS

months ahead of the implementation of their scheme.

Employers who already have pension schemes in place need to check if these meet the new regulations.”

With start dates, staging dates and deadlines available online, the practicalities of selecting and understanding a suitable scheme are being left until the last minute by many companies. If this continues,

employers won’t have enough time to find the correct scheme to suit them and their employees.

Mr Muldoon continued: “There isn’t a one-size-fits-all approach to this process. Companies need to research the scheme that will best work for them, before communicating this to their staff to explain why the changes are happening and how much it will cost.

44 BUSINESS MONTH 4 November 2013

Employee uptake within these schemes has remained higher than government predictions.

We would recommend that employers take time to carefully consider the scheme that is most appropriate for them.

“Employers need to realise that this will be a labour intensive process that could involve changes to internal systems, software and packages.”

As pension provision changes from a company perk to a legal necessity, there is growing concern from financial advisers that Northern Ireland employers are under prepared and under informed.

The message to these employers is clear. Start to prepare now to ensure smoother transition and less upheaval when the time comes to tackle the auto-enrolment process.

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OUT TO LUNCH

Well versed in spotting telltale signs of danger

Joris Minne with Alan McCulla and Davey Hill

Insolvency ‘rescuer’ Joan Houston tells Joris Minne of the risks the end of the recession will bring for businesses, and what makes the difference between salvation and perdition

I

N the world of insolvency, Joan Houston is a trailblazer. Not for the earnest tone, the humourless demeanour or the graveside manner. Joan Houston’s approach is based on the premise that the end is not nigh, that an economic recovery is on its way and will soon be here and if you smarten yourself up now, you will survive the storms a recovery brings with it.

For Ms Houston, the Tyrone farmer’s daughter, business owners and managers in Northern Ireland are the great invisible force which have kept the country going for the past 40 years, refusing to go under in the face of violence and depression and maintaining a sense of dignity, togetherness and survival.

“Northern Ireland people are the toughest in the world, and the most well mannered,” she remarks over lunch in Belfast’s James Street South. “I have worked in business here for 30 years and as an insolvency practitioner, I’ve had to confront very difficult times and share these with business owners and their employees.”

This former Young Businesswoman of the Year is so well versed in the darker areas of business, when things go wrong, jobs are lost and money is owed, that she can spot a problem well in advance of it happening.

“The most dangerous period in the economic cycle is not the recession,” she

46 BUSINESS MONTH 4 November 2013

explains. “It’s the recovery. Companies start over-trading, recruiting too quickly and borrowing on less sound footings — whereas there are many other ways of surviving this period.”

For her, the important thing is for companies to identify where things are going wrong early enough and before they do damage to the business.

“I work with all sorts of analysts and experts to find out where the problems are, and it is this specialist knowledge that very few business owners would have which can make the difference between salvation and perdition — this is why many stumble and fall after it’s too late,” she says. “I can step in when they’re at the stumbling stage and actually prevent the fall.”

Ms Houston epitomises that famous Ulster common sense which is particularly prevalent among farmers and country folk.

If Begbies Traynor wanted to colonise Northern Ireland and reassure the natives by appointing a governor who spoke the native language, they could not have chosen better. Joan Houston is both a corporate player with huge expertise and a local business person with the common touch.

“Business people here do not like to be seen to fail or have anyone talking about them,” she says. “This is partly the reason why some fail when they might have survived had they been willing to call in the rescue services.”

Does she see herself as a rescue service

rather than an undertaker, then? “Definitely! I firmly believe that if I can get to a business which is approaching trouble and possibly in financial distress, chances are, the firm can be rescued, revitalised and relaunched,” she says.

“Business people are good at what they do but they might not have the forensic abilities of an insolvency practitioner who is firstly trained to track down the problems, whether these be through mismanagement or criminal intent and secondly, someone who is not emotionally attached to the job in hand,” she says.

“But I can’t help but be human so I tend to share the emotional burden my clients are going through. This is a good thing as it is provides huge incentive to get the job fixed as quickly as possible.”

The Bill Quail Rabbit saddle Antrim beef fillet Brill Fries Apple tarte tatin Pannacota Albarino white

£8.50 £6.50 £22.00 £19.50 £3.00 £6.50 £7.00 £29.50

Total

£102.50

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SHOP FRONT

Streetview No.38: Quails Fine Foods, Banbridge Ron McBride

L

YNDERG Dimitri, the four times champion bull, is part of a pedigree herd of Limousin cattle built up by the Quail family so it is no surprise to see the plaque with ‘Limousin: Distributeur agréé’ behind their counter.

Quality beef from both their herd and from local selected suppliers is the hallmark of this fourth-generation family business run today by father of three, Joe Quail.

Joe’s great grandfather, Matthew Alexander, set up the business in 1898, moving to the current location in 1900 when the upstairs was the family residence.

As in many Ulster towns, the premises were extended by purchasing an adjoining shop, in this case a shoe shop.

Quails has evolved from a small butcher’s shop into today’s food hall, delicatessen and cafe.

The business occupies a modern building with a clean fresh

exterior, a large display window and good signage. From outside it is obvious that there is plenty of floor space with both the butcher’s counter and delicatessen displays enough to draw customers in.

Visitors to the town would find it attractive and be pleasantly surprised to come across the cafe towards the back. The self-service licensed cafe has a good range of coffees and light meals. It supplies sandwiches for take-away.

All this modernity came from rebuilding and planning after a bomb wrecked the business in

its centenary year: the new building has been operational since 2000.

Reorganisation was to see the prep rooms and kitchen moved upstairs and the presence of a lift shaft gives potential for expansion in the future.

Joe points out the ‘flow’ of the design with the curving counter merging into that of the selfservice cafe. Quails run a sister cafe at the FE McWilliams Art Gallery outside the town.

This family business with around 20 staff has been built on the experience of generations, evolving through the

years. The shop has a buzz and the regular customers have a rapport with the friendly staff who are trained both in-house and at local training centres.

There is no delivery service using company vans but a comprehensive online ordering service is available using couriers with delivery throughout UK and Ireland. Outside catering is also offered and meats such as venison which are not regularly stocked can be ordered. The shop frontage boasts an array of Bridgestone Guide awards dating from 2000 and in 2008 they received their first Great Taste Award from the Guild of Fine Foods, reflecting the quality and traceability of their beef.

With Christmas approaching it may be the time to think of hampers, of turkey, of cakes and puddings. Quails are prepared.

Quails Fine Foods 13-15 Newry Street Banbridge BT32 3EA 02840 662604

4 November 2013 BUSINESS MONTH 47

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DAY IN THE LIFE

Meet the man who keeps students on the move Paul Stewart MD of UniBaggage.com 8am

I wake up and get ready. I have my breakfast at home, which is usually porridge. I then check emails and sales figures on my phone over a cup of tea before jumping in the car. I am lucky that I live so close to work — it’s only a 10-minute commute to the Titanic Quarter.

9am

Arrive in work. Quickly talk to the team that are already in the office so they brief me on anything I need to deal with.

I then sit down at my desk and create a list of things that I need to achieve today, I am old fashioned and work from pen and paper. I scan though my emails and reply to ones that need to be dealt with quickly.

10am

I usually speak with my web developer and catch up with his progress of our new website, which will go live early in November. I start working though my list. As I work in a

relatively small team, each day is very different and I will be working on different parts of the business on different days.

best. I will make notes before speaking with the marketing team later in the afternoon.

10.30am

Lunch, I usually nip out for lunch and use this time to clear my head and to meet with people. During our busy periods we usually have lunch in.

I work though the sales figures from the following day and the current week to make sure we are meeting our targets. We have large amounts of data about which courier routes are the most popular and the seasonal demand for them, this data allows us to plan resources around peak times.

11am

1pm

2pm

Back in the office to manage any customer queries. We have exceptionally high customer feedback and operate 98% of deliveries on time, but we resolve issues as soon as possible.

Tea time, we love a cuppa in the office and this gives everyone a chance to catch up and have a break.

Drink more tea. Maybe have a biscuit.

12pm

4pm

Before lunch I usually take a quick look at our marketing efforts to check to see what is working and what is not as effective.

Most of our marketing is spent online so we can quickly analyse which campaigns work

48 BUSINESS MONTH 4 November 2013

3pm

Marketing time. We plan out our email newsletters and social media post for the coming week. Most of our customers book online, so social media is a big one for us as it drives a large amount of sales with Facebook being our

biggest, followed by Twitter. We engage with our customers and potential customers as much as possible online. I’m very lucky as all I need is a laptop with an internet connection and a phone.

5pm

At the end of the afternoon I usually work on chasing up all the loose ends of the day, things that need to get done, emails that need sent. I will check in with my customer service team to make sure that all orders have been processed and customer inquires have been dealt with.

5.30pm

Pay any invoices.

6pm

Run over my check list and highlight anything that needs looked at the next day.

Jump in the car and drive home. The office closes at 6pm but at busy times we can stay until 8pm and our website is open 365 days 24/7. We have even had orders from students at 4am!

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Cloning warning for buyers of used cars VEHICLE history check expert, HPI, is warning used-car buyers to be on their guard against stolen log books (V5) after receiving a spate of consumer calls expressing concern over recent purchases.

Criminals are using these documents to accompany stolen vehicles that have had their identity changed to match that of a legitimate vehicle. The practice, otherwise known as cloning, is costing car buyers tens of thousands of pounds, says HPI. The company says that although the theft of 130,000 blank registration forms from the DVLA happened back in 2006, they remain very much in circulation today and are catching out unsuspecting car buyers.

RoSPA repeats call for lower drink-drive limit THE Royal Society for the Prevention of Accidents (RoSPA) has made renewed calls for the drink-drive limit to be lowered as latest figures show a rise in

the number of people killed in alcohol-related accidents.

Provisional estimates for 2012, newly released by the Department for Transport (DfT), show there were 290 people killed in drink-drive accidents in Britain — a rise of around a quarter compared to the previous year.

As a proportion of all reported

Northern Ireland and Scotland, who have already agreed to the change the law.

Volkswagen deal for Northern Ireland

road fatalities, the number of drink-drive deaths was 17% in 2012, compared to 12% in 2011.

RoSPA is calling on the government in Westminster to lower the drink-drive limit from 80mg of alcohol per 100 ml to 50 mg per 100 ml blood and follow the lead of ministers in

Ireland purchasers but have compensated in other ways.

In lieu, the manufacturer is offering generous deposit contributions and finance allowances on up!, Polo and Beetle models. While the younger driver may lose out on the insurance incentive, those

VOLKSWAGEN has stopped short of offering its current free insurance incentive to Northern

MOTORING NEWS

with a good insurance record will probably fare better financially with the discounted offers.

Insurance discount for caravan buyers THE stolen vehicle recovery company Tracker has joined forces with a leading caravan and motorhome insurance specialists, Caravan Guard.

The exclusive deal will give consumers purchasing any 2013 Swift Group caravan, access to 25% discount off the price of their caravan insurance premiums with Caravan Guard due to standard fit battery powered Tracker Owners of other caravan makes who choose to retrofit a battery powered Tracker Retrieve can also benefit from a 15% discount.

Tracker has helped recover over £474m worth of stolen vehicles and continues to recover on average £1m worth of stolen vehicles each month. 95% of stolen vehicles fitted with a Tracker are reunited with their owner, and 86% of these are recovered within 24 hours.

4 November2013 BUSINESS MONTH 49

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MOTORING

BABY BOOMER

With lots of torque Bentley’s Continental is no forgotten sibling, says Jim McCauley

I

T might be the baby Bentley in terms of the company's three-model range and engine types, but when it comes to substance and performance the V8 GT is more than a match for its larger engined winged ‘B' stablemate.

The Continental has been the mainstay of the company's recent world-wide success with

more than 50,000 sales, and the latest model carries sharper panel detailing presenting an altogether more assertive bodyshell than its predecessor.

This V8 variant is distinguished by its gloss-black matrix grille with bright chrome surround and divider, three-segment lower front bumper with black air intakes, twin ‘figure of eight' exhaust

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tailpipes and red enamelled winged ‘B' badges. Underneath is the company's most modern power unit, a 4.0 litre twinturbo V8 as opposed to the 6.0 litre W12 engine in the range topping models. Like the rest of the car, the engine is built in Crewe and delivers 500 bhp at 6,000 rpm with 660 Nm of torque available from 1,700 to 5,000 rpm. This drives all four

wheels through the standard ZF 8-speed automatic transmission to take the car from rest to 60mph in under five seconds and onwards to a potential top speed of over 180mph.

Behind the wheel, and pressing the start button initiates the alternating V8 burble.

Increase pressure on the right foot and the sonorous tones of the power unit intrude into the

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MOTORING

Bentley Continental Engine: 4.0 litre V8, 500 bhp @ 6000 rpm. 660 Nm torque @ 1700-5000 rpm.

Drive: Via eight-speed automatic transmission with permanent drive to all wheels.

Performance: 0-62mph (100km/h) in 4.8 seconds; 0100mph (160 km/h) in 11.1 seconds, max, 188 mph (303km/h) Fuel on combined cycle: 26.7 mpg ( 10.5 l/100km) CO2: 246 gms/km; VED Band L Trim: GT Price: £126,200 Insurance: ABI group 50 Warranty: Three-year/unlimited mileage Euro NCAP: N/A Available extras: Special paint, £3295; Bluetooth phone, £340; Naim premium audio, £5,475; upgraded 21-inch alloys, £2,425; carbon ceramic brakes, £1,0405; space-saver spare wheel, £500.

cabin just enough to appreciate its contribution to forward progress, which is much more rapid than it appears.

Positioned low in the cabin and cosseted in the surrounding leather, you are reminded that this is a luxury tourer in the mode of past classics from the marque. But with a larger engined stable-mate, comparisons have to be made. Driving on home roads the relative lightness of the V8 and seemingly smoother uptake on the throttle wins the day for the range baby, endowing it with greater agility augmented by the exhaust note which can be provoked at will. With eight ratios on offer in the transmission, movement between gears is smooth while manual override is just a finger stretch away on the column mounted

paddles. Sensibly, these are mounted on the column rather than on the steering wheel, so can always be immediately located.

In addition to the price gap of around £12,000 between the V8 and W12 power units, the 4.0 litre delivers 40% improvement in fuel efficiency and CO2 emissions with significant differences in fuel consumption that gives the smaller engine a range of over 500 miles on a single 90-litre tank of fuel. Part of the contribution to economy is the ability of the engine to switch to just fourcylinder operation under light throttle load, and with a given combined fuel consumption of 26.7mpg clearly outstrips the 19.5mpg of the W12.

Even with a choice of four suspension settings, the ride is

acceptably comfortable overall given the size and weight of the car, with very good suspension insulation to maintain the ambience of the cabin. And it is within the hallowed confines of the 2+2 interior that owners can relish their individual preferences.

While a range of colours and finishes are available in the standard price specifications, a pre-purchase visit to the factory will open up a world of choice from exterior colours on the production line to the range of upholstery combinations and veneer choices for the instrument panel and interior cappings. The factory visit also highlights the time and care taken to build the cars, where unlike a robot dominated mass production facility, the Bentley factory majors on

hand-built quality where only 55 cars are completed each day.

As a result, the customer purchases a very individual car with personal design input, finished to very exacting specifications.

When experienced, the V8 will reveal that while it may be the baby of the range, it lacks nothing in performance, and indeed in many cases will emerge as the preferred engine choice to the W12 whose benchmark 0-60mph performance figures pare just 0.3 seconds of those of the V8. The Continental GT Coupe is listed at £126,200 and is covered by the company's three-year unlimited mileage warranty.

Although the standard car is lavishly equipped, most owners will enhance the specifications to assert the car’s individuality.

4 November 2013 BUSINESS MONTH 51

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TECHNOLOGY

Sharp Chop-Syc wi-fi chopping board Your chopping board usually doesn’t provide a lot of inspiration for what you’re going to have for dinner, but Sharp’s aiming to change that with its Chop-Syc. An interactive chopping board, it boasts wi-fi, a touch-screen, scales and a handy recipe book — all built in. Thanks to the Chop-Syc you will be able to box many of the books clogging up your kitchen as you’ll have access to online information and recipes at the swipe of a finger.

You might imagine that chopping on a screen would leave a few marks, but Chop-Syc is made from a toughened, scratch-resistant glass and has a 2mm edge around the board to stop spillage. The screen is also slightly slanted and tapered on one end to make it easier to transfer Piamo Expresso Cup, approx £30, available through the chopped food to a pan. The Chopcrowd funding @ startnext.de/piamo Syc can be placed onto a rechargeable Piamo is being branded the world’s first espresso mat, removing the need for wire maker that works in the microwave. It creates a fresh ports or batteries. The revolutionary cup of espresso within 30 seconds. The instructions are product will be coming to a store near simple: fill with water and insert an espresso you later this year. pad or ground coffee. Stack it, flip it and place the cup in your microwave, where the heating pressure builds up and makes the water run through the coffee, creating your fresh espresso straight into your cup. Piamon is available through crowd funding on Startnext, Germany’s equivalent of Kickstarter.

Lytro camera, from £399 @ www.johnlewis.com The Lytro’s ability to capture all rays of light available in a particular scene provides capabilities that haven’t been seen in a camera before. The pocket-sized device offers a powerful 8x optical zoom and f/2 lens in an iconic design that can be endlessly refocused. It features a light-field sensor that collects the colour, intensity and the direction of every light ray flowing into the camera, capturing different data from the same scene.

This provides users with two initial light-field capabilities, including the ability to refocus once a photo is taken and shift the perspective in a scene. The camera has just two buttons (power and shutter) and an intuitive glass touchscreen that enables pictures to be viewed and refocused on the camera.

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Adidas miCoach Smart Run, approx £350 @ www.adidas.co.uk Adidas miCoach Smart Run is a watch that includes pulse-based heart rate tracking to help improve your running. It has builtin GPS tracking to chart your runs and provide real-time coaching. The accelerometer counts every step, while the GPS measures your speed so you know exactly how fast you’re running, how many steps you ran and the route you took. You can load your favourite tunes onto the watch, and push them via Bluetooth to a pair of wireless headphones. You can receive training suggestions from your very own digital coach, who’ll tell you speed up, slow down or offer guidance for specific workouts. Although more expensive than Nike’s new FuelBand, the heart rate monitor makes miCoach a competitive package.

GMcG

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Cosy Coats Grainne McGarvey

O

NE of the best things about the change of season is the chance to buy a new winter coat.

If weather reports are to be believed, we all need to choose something warm and snugly. A key trend for women this AW is oversized,

Nelson coat, £160 @ Debenhams

Best of British, £599 @ M&S

Peplum coat, £89 @ Next

FASHION

Vaseshaped wool coat, £399 @ Jaeger

or pieced with a hint of leather or faux fur. The cape is also big on the catwalk and adds a touch of glamour even if you keep it dark or plain. Men should try tweed, double-breasted pieces that look smart but will also keep you ahead in the fashion stakes.

Cape, £69.99 @ H&M

Maroon coat, £89 @ Very.co.uk

Wool-blend pea coat, £275 @ Reiss

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TRAVEL

SHOCK AND An epic trail along the Norwegian coast

Sankha Guha braves the Norse gods’ anger – and an exchange rate which would strike terror in the heart of most travellers – on a journey to the vertiginous Pulpit Rock, via dramatic fjords, colourful towns and the art of Edvard Munch

T

HE Norse gods are playing ping pong with my plane as it descends into Stavanger. Thor, Odin, Tyr and Sif are in a foul mood. They've sent hellfire, thunder and torrential rain to greet new arrivals. The message is loud and clear — anyone entering here should abandon all hope of ever seeing the sun again.

Two hours later I am having lunch, al fresco, in Stavanger harbour, which is bathed in Mediterranean-style sunshine. I have reached one conclusion already.

Whatever else happens on this week-long fly-drive, there will be a lot of weather.

Stavanger can offer numerous museums for a rainy day, though the Canning Museum or the Petroleum Museum may initially seem a bit niche to some. The Canning Museum is in effect a sardine-packing factory preserved in near working condition.

In contrast, the Norwegian Petroleum Museum is a much slicker (no pun intended) affair. The severe stone-clad geometry of

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the outline references the bedrock of the North Sea which has yielded such riches for Norway. Inside, one exhibit highlights the dangers inherent in harvesting “black gold” in such unforgiving conditions. It is part of the bracing — or what was left of it after a rig collapsed in 1980 killing more than 100 oil workers.

The structure was engineered from twoinch-thick plate steel — but here it is, bent, twisted and ripped like a discarded paper cup.

About 100 yards from the museum is the shopping area of Ovre Holmegate, where the traditional wooden buildings have been painted in

eye-smacking tropical colours. Ovre Holmegate has a bohemian feel to it. But my mellow vibe comes to a jarring halt when I get the bill for a small beer in a studenty cafe: 72 kroner which translates as £7.70. Be afraid, drinkers. Be very afraid. This is the land of The Fifteen Pound Pint. The Business Insider website ranks Stavanger as the third most expensive city in the world.

In No 2 slot is Luanda in Angola. And No 1? That's Oslo, the city where I will end my journey.

First stop though is Preikestolen, or Pulpit Rock, one of the truly iconic landmarks in a country with an embarrassment of natural wonders. Seen from a boat the rock is an impressive granite cube

top of a 2,000ft wall that rises from the depths of Lysefjord.

Experienced from above it is terrifying.

The hike to Preikestolen is no walk in the park. It's not particularly long, about 2.5 miles each way, but the vertical ascent is about 1,300ft. The terrain is an unforgiving mix of steep rocky trail and bogland yet it attracts more than 150,000 visitors per year.

Norway is a nannyish state. Speed limits are painful, alcohol sales in shops are strictly regulated — but here on Pulpit Rock, with certain death just inches away there are no rails, no fixed ropes and no warning signs. The key photo moment on Pulpit Rock is to pose on the corner with your feet dangling over the 2,000ft drop. Some lift their arms and wave, while others lean forward so the balance of their weight is shifting forward. For me, just looking at these idiots is enough to bring on a panic attack.

My next stopover is Bergen. The stay is all but rained off. The oldest building here — the 13th-century Hakon's Hall — would have been a rainy-day standby but it is being renovated. Eating out is out — Bergen's prices are consistent with Stavanger's. What else is there to do? There is the Leprosy Museum, but I decide it is unlikely to lift my dampened spirits.

In the end, my partner and I relent and have dinner at Enhjorningen, a fish restaurant housed in the Bryggen, a group of wooden Hanseatic warehouses (a Unesco World Heritage Site). The interior is delightful — wonky beams and undulating floors. We have one course each which is

nice enough, but I calculate that a threecourse dinner with wine would cost £100 each.

The drive next day takes in a succession of lakes, mountains and waterfalls. The route disappears into tunnels, emerging into squint-inducing glare to reveal new delights. The road descends to Hardanger Fjord, one of the longest in the world. It has an operatic splendour. The preternaturally blue skies, the Folgefonna glacier across the water catching the evening light, the gentle ripple of waves on the rocky shoreline. This route joins my list of unforgettable drives alongside the Amalfi Coast, Route 66 in Arizona, and Chapman's Peak Drive from Cape Town.

The Brakanes Hotel occupies the prime position at the head of Ulvik Fjord, one of the fingers of Hardanger that reaches deep into the mountains. The hotel was originally built in 1860. The current version is a post-war affair, as most of Ulvik was destroyed during the Second Word War. It retains an improvised charm despite its many remodellings. I am ushered to a suite on the fourth floor with glorious views. The interior, though, is schizophrenic. It is a 1980s corporate boardroom with testosterone chrome and grey/black furnishings, feminised by a chandelier that hangs over a rustic wooden dining table.

In the morning I wake to find myself eyeball-to-eyeball with a multi-storey office block that has materialised in the fjord. We are more than 100 miles inland

but an ocean-going cruise liner has turned up. Three tenders are disgorging hundreds of passengers on to the hotel jetty.

A day later, having crossed the barren wastes of the Hardangervidda and passed through more divine scenery than any single country should be entitled to, I am in the capital. Oslo is a metropolis with the cultural heft one would expect. Modern landmarks include the opera house (opened 2008) and the Renzo Piano-designed Astrup Fearnley Museum of Modern Art (2012).

I choose the Munch Museum which is hosting an exhibition to celebrate the 150th anniversary of Edvard Munch's birth. The Scream is here, fresh from its restoration following its theft in 2004 and subsequent recovery. It bears an ugly stain from its ordeal but the iconic image still has the power to evoke Munch's desperation.

He was an irascible character with a drink problem. His dark themes and moods are well documented here. But there is another side to Norway's most famous artist. One of his final works, Self Portrait With Bottles, features an almost cartoonish rendition of himself. It is an unflattering self-image devoid of pomp with a clearly humorous edge. There is nothing grey or wintry here; there is light, energy and vivid colour. Bright green glass, red bottle tops, sunny yellow labels, purples and oranges swim around the canvas like a bright dawn over the fjords.

You can reach Oslo’s main airport on Norwegian from Edinburgh, Gatwick and Manchester; on SAS from Heathrow and Manchester; and on BA from Heathrow.

Staying there Radisson Blu Royal, Stavanger (00 47 51 76 60 00; radissonblu.com).Doubles from NOK908 (£95), with breakfast.

Scandic Strand, Bergen (00 47 55 59 33 00; scandichotels.com).

Doubles from NOK893 (£92), room only.

Brakanes Hotel, Ulvik (00 47 56 52 61 05; brakanes-hotel.com). Doubles from NOK1,545 (£160), B&B. Hotel Grims Grenka, Oslo (00 47 23 10 72 00; firsthotels.no). Doubles from NOK1,491 (£154), B&B. More information Visitnorway.co.uk Fjordnorway.com Visitoslo.com

Travel essentials Getting there Stavanger is served by Norwegian (0843 3780 888; norwegian.no) from Gatwick and Manchester; by Eastern Airways (0870 366 9100; easternairways.com) and Wideroe Flyveselskap (00 47 81 00 1200; wideroe.no) from Aberdeen and Newcastle; and by SAS (020-8990 7000; flysas.com) and British Airways (0844 493 0787; ba.com) from Heathrow.

4 November 2013 BUSINESS MONTH 55

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TRAVEL

The Big Six: Beach retreats in Kerala Soul & Surf, Varkala Billing itself as the region’s first dedicated surf hotel, newly opened Soul & Surf promises the perfect getaway for those wanting to combine physical thrills with time on the beach in this seductive south Indian state. Led by British couple Sofie and Ed, the team will provide daily transport to the best waves and lessons for all abilities.

For non-surfers, there are plenty of other ways to relax.

Soul & Surf, Varkala (02081235643; soulandsurf.com).

Weekly stays from £185pp, including breakfast and surf lessons.

Surya Samudra, Kovalam The perfect mix of traditional Keralan charm and up-todate comfort, Surya Samudra has 31 cottages just minutes from a secluded beach in Kovalam. Enjoy ocean views from the sparkling infinity pool or have a ‘spice massage’ treatment at the Ayurvedic spa, before feasting at Cafe Samsara or the cliff-top Essence, both of which have views across the Arabian Sea. Surya Samudra, Kovalam (00 91 471 248 0413; niraamaya.in). Doubles start at £81, including breakfast.

Karikkathi, Trivandrum The scenic location where Karikkathi now stands was first discovered by owners Sajjad and Shaina on their travels across India. Today, the scene remains as picturesque as ever, with dense palms hiding a single whitewashed villa, set back from the sand. The two rooms inside can be rented individually or as a whole property. If you tire of lolling around and generally doing a lot of nothing, the bustling state capital, Trivandrum, is just half an hour’s drive away.

Karikkathi, Trivandrum (00 91 471 272 0238; karikkathibeachhouse.com).

Doubles start at £76, full board.

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Neeleshwar Hermitage, Kasaragod Neeleshwar Hermitage offers the best of both worlds, with 16 cottages pitched just seconds away from the coastline and in close proximity to Kerala’s exotic backwaters — a series of interconnected lagoons and lakes that run parallel to the coast. Guests can enjoy breakfast on the beach and then embark on a cruise aboard a beautiful houseboat.

Neeleshwar Hermitage, Kasaragod (00 91 467 228 7510;neeleshwarhermitage.c om). Doubles start at £129, with breakfast.

Marari Villas, Marari This collection of three serviced villas offers a home from home on a secluded beach mid-way up the Keralan coast.

Ranging in size from one bedroom to three, there’s a villa to suit most people. The two family cottages each have a private pool, while the larger Palm Villa opens straight on to the beach. A chef provides meals on request, but guests are also free to enjoy their own slice of heaven undisturbed.

Marari Villas, Marari (00 91 99 47 948707; mararivillas.com). Doubles start at £76, with breakfast.

Vivanta by Taj, Bekal This Vivanta hotel by the Taj group allows guests to experience the best of the beach and the backwaters as the two converge on the resort’s grounds. There are 71 luxury rooms, some of which feature a private plunge pool and the resort is just seconds from Kappil Beach on the lesserknown north coast. Kayaking, fishing and trekking are offered; a dinner of Keralan cuisine at the Latitude restaurant or laxed barbecue beside the pool await at night.

Vivanta by Taj, Bekal (00 91 467 661 6612; vivantabytaj.com). Doubles start at £75, room only.

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Appointments

OUT AND ABOUT

with The

CHAIRMAN Our man about town was entertained by democracy in action, invested some time fruitfully and enjoyed some fine wines

Richard Charles has been appointed head of IT services at Rainbow Communications. With over 21 years’ experience in the IT solutions industry, he will manage and develop the new IT services department, providing support to the company’s customer base.

Roy McLean has been appointed senior IT consultant at Rainbow Communications.

He will be responsible for sales within the new IT services department. Mr McLean has over 27 years’ experience in the IT industry.

Julie McNeilly has been appointed as customer relations coordinator at Rainbow Communications. She will be responsible for service and account management in Northern Ireland.

T

HE Chairman is a big lovey. There's nothing he likes better than shuffling along to the theatre of an evening to enjoy some high-brow drama in one of Northern Ireland's excellent venues.

Last month it was a trip to the Lyric Theatre in Belfast which took his fancy and what a show. Pending Vote takes the idea of audience participation to a new level and there was certainly some memorable performances from the accompanying group, particularly from numbers man Richard Ramsey who was wondering whether economists had been barred from voting.

One man who was making sure his vote was heard was Symon Ross who, along with the bold Margaret Canning, was attempting to rage against the democratic process and bring down the dubiously elected government.

It was all for the show of course, as was the unanimous vote for an indoor snow storm which impressed John Campbell and Julian O'Neill, the stalwart BBC men.

Hosts for the evening were Gillian Orr and Dan McGinn who orchestrated everything with the usual finesse, and it was a pleasure to see Ellvena Graham who entered stage left after Waiting for Godot along with MAC boss Anne McReynolds. A great night was had by all but perhaps the greatest winner was democracy.

IN the spirit of economic prosperity, The Chairman trotted along to the Northern Ireland Investment Conference the other week to see what all the fuss is about. A lot, as it turns.

The bevy of potential inward investors which turned up from

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Start-up bio-tech company SiSaf has secured around £500,000 in funding to carry out clinical trials of its new drug delivery system. Pictured, from left, are: John Hartnett, president, ITLG & SVG; Suzanne Saffie-Siebert, CEO, SiSaf; Mayor of San Jose, California, Chuck Reed; and Lord Mayor of Belfast, Mairtin O Muilleoir

MB McGrady & Co partners Seamus McLernon, Mal McGrady and Conaill McGrady step into the future with their new online service offering an up to date and accurate accounts platform for SMEs all over Northern Ireland all corners of the world were treated to a splendid rundown of all the best the province has to offer by the likes of Invest NI's chief executive Alastair Hamilton, Enterprise Minister Arlene Foster and Education Minister Stephen Farry. But the undoubted stars of the show were the inward investors who

have already set up camp here, ones who were more than ready to stand up and give testimony to others thinking about coming to these shores.

Pierre Beaudoin from Bombardier gave a tremendous review of his company's time in Belfast, Jay Roewe from HBP waxed lyrical about the benefits

Appointments

Niketa McClenaghan has joined Gaelectric Developments as project assistant. She previously worked for a lighting design company as a personal assistant to the company’s directors.

Norman Emerson Group MD, George Emerson (seated); along with Kenny Crooks, sales and marketing director; Colin Emerson, operations director; and Julie Timlin, PA, catch up on some reading ahead of the release of the new Hollywood movie, ‘Thor: The Dark World’, which features one of the Co Armagh-based company’s ready mixed concrete trucks.

Former maths teacher Franz Schlindwein celebrates Maths Week 2013 with a display of his educational maths resource, IZAK 9, involving Rosemount Primary School pupils Lauren Burton and Patrick O’Kane-Duddy.

The product consists of 27 coloured cubes displaying different combinations of colour, number and shape.

Groups are guided through a series of learning modules by on-screen animated characters Abacus and Helix which Northern Ireland has over other regions, Libby Jackson from Herbert Smith Freehills revealed the stellar growth of the London-based law firm at its Belfast office, Karl May from Vello said his experience of setting up here has been a joy and Suren Gupta from Allstate gave a glowing report of the US company's growing presence here.

And on the way out The Chairman popped in to see old pal Dave Cameron who happened to be in Belfast for a bit of a talk at Bombardier

George Best Belfast City Airport’s Community Fund has surpassed the £100,000 donation milestone. Michelle Hatfield, human resources and corporate responsibility director at the airport, celebrates with members of Music Theatre 4 Youth (MT4Uth) and pupils from Avoniel Primary School and St Joseph’s Primary School, all of whom have benefitted from the Community Fund

and a piece of shortbread. It's always great to see the old boy.

FINE dining, fine wine and fine company? You don’t have to ask The Chairman twice! This was a celebration hosted by United Wine Merchants at Cafe Vaudeville to toast award-winning Australian winemaker McGuigans, which has sold one million cases in Northern Ireland.

Chief executive Neil McGuigan was in fine fettle, pouring drinks for guests and waxing lyrical about his

favourite tipples. Raising a glass to a beautiful shot of an Australian vineyard being beamed on a flat screen television behind us, he enthused “That’s my back yard!”

Assembled guests included fine wine fan Gary McDonald, the entertainments and arts journalist Liz Kennedy and the BBC reporter Kelly Bonner, who revealed she and her husband had visited a McGuigans’ vineyard on their honeymoon Down Under.

>> Turn to page 60

Alice Murphy has joined Gaelectric Developments as a Geographical Information Systems (GIS) project officer. She is responsible for the GIS function, which supports the company’s wind analysis, energy storage, planning and business development teams.

Laura McCarthy has been appointed as head of investment property management at Colliers International. She has 13 years’ retail property management experience and is responsible for eight surveyors within her team.

4 November2013 BUSINESS MONTH 59

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THE CHAIRMAN

Appointments

Eddie Cullen has been appointed managing director of corporate and institutional banking at Ulster Bank. He has worked in corporate and international banking in Ireland and at Natwest/RBS subsidiaries in the UK. Mr Cullen trained as a chartered accountant in KPMG Dublin.

Mike Todd, general manager of Down Royal Racecourse, is pictured with James Nicholson, board member of Down Royal Festival Committee and key sponsor of the JNwine.com Champion Chase, and famous Grand Nationalwinner and popular Channel 4 Racing presenter Mick Fitzgerald

Daniel Braden-Astbury has been appointed as business development director for Ireland at Stanley Security. He has extensive experience in specialist security design skills. His primary focus will be to drive customer development.

Orla Hanna has joined A&L Goodbody as associate, banking and finance. She will advise lending institutions and borrowers on a wide range of finance transactions.

She has experience in structured finance, property finance and securitisation.

Guests were greeted on entry with a cheeky little sparkling rose, before settling down to a mushroom soup with a semillion blanc. Roast scallops were accompanied by sauvignon blanc, while a slow-cooked ox cheek was washed down with a cabernet sauvignon. Both wines were from the brand’s new Black Label Reserve Range. To finish there was a delightful lemon tart partnered with a Black Label Moscato.

THE CHAIRMAN was chuffed to see his old chum, Liberal Democrat Business Secretary Vince Cable drop in to Brookvent in Dunmurry to talk to the Enterprise Minister Arlene Foster about how companies here can access finance.

Overheard in the canteen (where visiting dignitaries and reporters were being offered bacon baps!) the lady behind the counter was heard telling a colleague: “That politician over visiting is a lovely man, a real gentleman.” High praise indeed, and evidenced when good old Vince leapt to pick up some papers dropped by Clare Weir, business reporter of the Belfast Telegraph, following a marathon session of press interviews. A gentleman indeed — can you see Mr Cameron doing that? Cable for Prime Minister.

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Young Farmers’ Clubs of Ulster recently held a rural women in business seminar and sponsored walk at Parliament Buildings, Stormont, which brought together more than 100 female YFCU members to hear about female entrepreneurship.Guest speakers Rosamond Bennett, CEO of Christian Aid and All-Ireland FBD (Irish Farmers Journal) Women in Agriculture Agribusiness and Innovation winner Tracy Hamilton, from Mash Direct, get ready to walk the grounds at Stormont with YFCU Deputy President Roberta Simmons

Appointments

A group of media representatives from Brazil visited Northern Ireland recently on a fact-finding trip hosted by the Northern Ireland Tourist Board. While here they toured Belfast City Hall, Crumlin Road Gaol, the Ulster Museum, SS Nomadic and Titanic Belfast before visiting the MAC and Victoria Square. They also sampled some of Northern Ireland’s culinary delights at Deane’s Deli, the Mourne Seafood Bar and the Bar and Grill at James Street South.

Pictured are two of the Brazilian media group, Samira Menezes and Valmir Martins, visiting Crumlin Road Gaol with NITB’s Aileen O’Neil

SME suppliers from across Northern Ireland and the cross border counties of Louth, Monaghan, Cavan, Sligo, Leitrim and Donegal are being encouraged to apply now for a place at a Meet the Buyer event taking place on November 27 in Monaghan. The event forms part of the Gateways to Growth cross-border initiative and is being promoted by Melanie Fitzpatrick, Dundalk Chamber of Commerce; Toni Forrester, Letterkenny Chamber of Commerce; and Martina Crawford, Northern Ireland Chamber of Commerce

Pictured celebrating the centenary of the Association for Consultancy and Engineering is Phil Carson, Northern Ireland chairman of ACE; Enterprise Minister Arlene Foster; and Dr Nelson Ogunshakin OBE, chief executive of ACE

Marie McMullan, head of consumer sales, BT, and Deborah McConnell, Business in the Community, share the Employee Passport initiative with Karen Pearson, Diversity and Inclusion Champion for Workplace 20:20

Gemma Horisk has been appointed senior surveyor of investment property management at Colliers International. She is responsible for the management of retail, business space and industrial properties throughout the UK. Ms Horisk has a BSc (Hons) in property investment and development.

Declan Leonard has been appointed graduate surveyor within the investment property management team at Colliers International. He recently graduated with a BSc (Hons) first class in Property, Investment Appraisal and Development.

Chris Davis has been appointed chief operating officer, joining Ulster Bank from Royal Bank of Scotland where he served as chief operating officer for the UK corporate banking division. Prior to joining RBS, he was an account director in KPMG.

4 November2013 BUSINESS MONTH 61

THE LAST WORD

with Aaron

Taylor Efforts to attract inward investment to Northern Ireland are to be applauded but just as importantly, more local businesses need to be hungry to climb onto the world stage

T

HE Prime Minister’s conference at Titanic Quarter seemed to be a good event. It captured a lot of attention, not least media attention. I happened to be walking past the event and somehow ended up on BBC News 24 talking about local technology and investment.

Always good, but a heads up for a shave wouldn’t have gone a miss — I looked like a cross between Worzel Gummidge and Wolverine, surely not the look for any aspiring entrepreneur!

What’s clear at the moment is that there’s a big appetite for what goes on in Northern Ireland — lots of goodwill to see us grow and develop economically as well as politically.

An example being the incredible response given to the 20 local companies who took part in the recent trade mission to Silicon Valley. Organised by Belfast City Council and Invest NI, companies such as VenueBooker, Sian’s Plan and the Brewbotmaking company Cargo, grasped their chance to display wares on the big stage.

It really is the season for going out and making the case to global investors right now. David Cameron came here to sell to inward investors, then George Osborne went East to sell to the Chinese.

When it comes to fund raising, combining ambition with absolute faith in the quality of your product is key to getting investors to part with their money. It’s something that we have to do as entrepreneurs, and it’s great when organisations — and prime ministers — can do it and do it well.

Northern Ireland has got so much going on. Our cultural, creative and technological output stands up against anything happening anywhere else. But as with all back slapping and bear hugging, usually an elephant lurks somewhere in the room.

At first glance, getting access to capital, especially in a region that has been defined, as being in ‘market failure’ would appear to be everything. But is it really?

In reality, money is simply a commodity.

What Northern Ireland needs now more than anything is not more money.

There’s a number of funds open or opening shortly — including the NISPO Fund (with NISPO II on the way), the Co-Investment Fund, the recent funds won by Crescent Capital and Kernel — but what we need now is to focus on networks and gaining visibility in export markets, be that for sales, investment or partnerships. We need people who can open doors, guide, cajole, advise and otherwise raise the ambitions and capability of local businesses to become major global players.

So when the prime minister does his stuff in Silicon Valley and New York to bring companies into Northern Ireland, I happily applaud him. But a part of me wants a similar amount of effort to go into pushing local companies into the world-leading tech hubs.

Invest NI does a great job on this with their teams throughout the globe along with NISP Connect, who have some impressive plans in place for the next few years, but ultimately until companies take the reins and force people to take notice, it’s going to continue to be a long process.

GoPrezzo is the first Northern Ireland company to go into the RocketSpace Accelerator in San Francisco, one of the top three accelerators in the US. I would love to hear more local accents in the building. Networks, more than money, made the difference for us. If resources got ploughed into this area it would make the difference to dozens of other tech businesses.

We need people who can open doors, guide, cajole, advise and raise ambition in firms

62 BUSINESS MONTH 4 November 2013