Business Month December 2013

December 2013 • ISSUE 37 PRICE £2.50 (Where sold)

WORKING WITH MUPPETS How Colin Williams’ company is making it big in the world of children’s television

PLUS: The third sector; how much does it contribute to the economy?

+ IT jobs; what do Java developers and C++ scripters really do?

CONTENTS

42 COVER STORY

FURRY FUN

Editor’s note

Meet the man who is giving Jim Henson a run for his money and educating children while he is at it

FEATURES

12 Opinion: Why corporation tax is key to our economy 14 Opinion: Why is Northern Ireland not getting its fair share of advertising spend?

18 Insight: Why is working with muppets such a rewarding experience 26 And I’ll tell you another thing: Mark McCusker marvels at the pace of change within technology 28 SME: Hazel Bill talks about taking a garden centre and growing it into a successful business

FOCUS

38 Digital: A global shortage of computer programmers is having ramifications for Northern Ireland 42 Global appeal: Northern Ireland is attracting more investors from abroad

OFFLINE

46 Out to lunch: Park Avenue Hotel 48 Day in the life of: Bobby Willis is on the right track 50 Leave the car at home: Kia’s latest stunning model 58 The Chairman: Schmoozing with the business world 62 Last Word: Giving a helping hand to entrepreneurs BUSINESS MONTH 124-144 Royal Avenue, Belfast, BT11EB Editor - David Elliott

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62

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)

David Elliott

d.elliott@businessmonth.co.uk

W

ELCOME to the December edition of Business Month.

We’ve a veritable feast of business news and insight for you this month, kicking off with a look behind the scenes at one of our most successful creative companies to be born on these shores.

Colin Williams has proved that business doesn’t have to be grey and with a little imagination and creativity can grow to be a force to be reckoned with, even if you are working with puppets.

We take another look at the much-talked about but rarely explained third sector to find how much of a contribution it’s making to the Northern Ireland economy.

Our other Focus on... section asks a question of the ITworld which we’d all like to know the answer to: just what do all those Java scripters and C++ developers really do?

Elsewhere we go for a cuppa at the DonegoreTea Rooms, hear from a primary school teacher who’s making it big in the business world, head to Cuba and test drive South Korea’s finest new car.

With all this we hope to give you an insight to the Northern Ireland business world at a time when we’re on the cusp of celebrating a return to economic normality, one we dearly hope won’t be ruined by a return to the days when normal consisted of bombs, road blocks and protests.

With a collective will we can make sure the new norm has no place for such disruption.

2 December 2013 BUSINESS MONTH 3

NEWS BITES

$7.51 Norway

$6.16 Sweden

$4.02 UK

$3.69 Singapore

$2.86 Mexico

$1.50 India

Big Mac Index – the price of a Big Mac from McDonald’s in US $ (Source: The Economist)

EY predicts economic growth of 2% in 2014 THE rate of economic growth in Northern Ireland will double next year thanks to strong consumer and net trade growth, according to a major forecast.

The EY Economic Eye Winter 2013 said the economy would see growth of 1% in GVA this year, increasing to 2% next year and 2015 — a revision up from 1.7%. Business advisors EY also predicted strong growth in business investment from next year.

Church to restaurant in £2.2m conversion A NEW 50-seater restaurant and shop in a former church is close to completion after a £2.2m investment.

Saphyre has opened its doors in the old Ulsterville Presbyterian Church on Belfast's Lisburn Road. Backed by architectural firm Kris Turnbull Studios, the projects is in the second phase of its restoration of the Grade B-listed church.

Co Antrim exports help typhoon relief PRODUCTS being made in a small factory in Co Antrim are being shipped to the Philippines to assist the aid effort following Typhoon Haiyan.

Fast Engineering, established in 1981 by Seamus Connolly, makes Fasttank, a liquid storage container for use in a number of sectors, including oil and chemical spill clean-ups, firefighting, the military, fish farming and animal rescue.

Devenish opens second facility in England A BELFAST agri-technology firm has secured a second new facility in England.

Devenish, which was set up in 1952, now has six manufacturing and research facilities in Great Britain and Ireland and two sites in North America: one in Minnesota and one in Iowa. Its recently formed international

BOARD POSTS FOR NI PAIR: AIB Group (UK) has announced the appointment of three new board directors, two of whom hail from Northern Ireland. The new appointments include Sir Bruce Robinson, former head of the Northern Ireland Civil Service and former chief executive of the Industrial Development Board; and Margaret Butler, originally from Ballycastle, who has over 42 years’ experience within the financial services industry in Northern Ireland, England, Scotland and Australia. Pictured with the pair is Steve Reid, managing director, AIB Group (UK) division is selling products in to more than 25 countries across three continents from its headquarters in Northern Ireland.

who runs the company with his brother Neal, says the award is a first for any Northern Ireland wine company.

boss Alastair Hamilton said the agency is in talks with the nine firms and hopes to make investment announcements soon.

Kettyle Irish Foods wins £1m UAE deal

Bombardier ships to Iraq in £240m contract

Belfast in top 10 of ‘good growth index’

BEEF and lamb raised in Northern Ireland will be consumed at top tables in the United Arab Emirates through a £1m deal with a Fermanagh company.

Lisnaskea firm Kettyle Irish Foods, part of Linden Foods, has scooped a distribution deal for its award-winning dry-aged meats in key Gulf markets.

PLANES part-made in Belfast will be flying off to Iraq in the latest of a series of multi-million pound deals for planemaker Bombardier at Dubai Air Show.

Iraqi Airways, the national carrier of Iraq, has signed a letter of intent to acquire five CS300 mainline jetliners in a deal worth around £240m, which could rise in value to just under £1bn if options for a further 11 aircraft are realised.

GOOD quality of life for its citizens has helped put Belfast in ninth place in a top 10 of growing UK cities published recently. Belfast outstripped even London in the ‘good growth index’ compiled by business advisers PwC and think-tank Demos, rising from 16th place in last year's index.

Top award for family firm of wine merchants BELFAST firm Direct Wine Shipments has won a top UK award. The family firm scooped the Best Independent Retailer in UK accolade in the 2013 International Wine and Spirit Competition. Peter McAlindon,

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Nine foreign companies in talks over NI bases NINE of the overseas companies which attended October's investment conference are considering setting up bases in Northern Ireland. Invest NI

Key World War Two air base up for sale ONE of Northern Ireland's key World War Two airforce bases is up for sale. Shackleton Barracks in Ballykelly, Co Londonderry, played a pivotal role in the operations of Royal Air Force's Coastal Command Development unit.

NEWS BITES

FTA predicts scaling back of A5 plans PAUL GOSLING

▲ HOUSING MARKET THERE has been a 12% increase in the number of homes sold in the last year, according to the latest official quarterly figures for Northern Ireland.

Average prices rose by 2% in the last quarter, while remortgage lending in the UK soared by 28% over the same period. ▲ RETAILERS ONLINE INTERNET sales represent an increasing proportion of total retail sales, breaking the 10% barrier for the first time in the UK, according to the Office for National Statistics. ▼ SHOPPING IN STORES THERE was a 10% reduction in shoppers’ footfall in Northern Ireland in October, on top of a 3% fall in September. ▼ JOBLESS NUMBERS UNEMPLOYMENT in Northern Ireland fell from 7.6% a year ago to 7.3% in the latest quarter. The employment rate rose by 0.9% in the most recent quarter, but fell 0.2% over the last year. ▼ MIXED SERVICE SERVICE sector output in Northern Ireland fell by 0.7% in the latest quarter, while rising by 0.6% in the UK as a whole. It is 15.6% below its 2006 peak in Northern Ireland, but has risen by 5.5% in the UK in that period. ▼ DEBT DEFAULTS THERE was a 23% fall in court judgments for payment defaults in Northern Ireland in the last year, according to figures from the Registry Trust.

NORTHERN Ireland’s Freight Trade Association predicts that the A5 Londonderry to Dublin road upgrade will not go ahead in its current form.

The FTA, which represents 280 Northern Ireland haulers and another 150 in the Republic, expects a more modest improvement scheme to be approved, with earmarked funds diverted to upgrading the A6 Belfast/Derry road, which it regards as a greater priority.

Seamus Leheny, the FTA’s policy manager for Northern Ireland, told Business Month that he believes the political will for the A5 project has flagged. “The finance is not going to be forthcoming from the Republic’s government,” he predicts.

“We supported it fully when times were good. Our members were saying it would be nice to have if times were good. But [now] they are looking for the A6 [to be upgraded].”

The FTA points out that improvements to the A6 would provide a faster route to Dublin from both Derry and Donegal: this is already the route of choice for many hauliers.

The FTA believes the A5 project has lost support since it was put on hold after a legal challenge, requiring a new environmental impact assessment.

The A6 upgrade is the FTA’s road improvement priority, with the York Street interchange in Belfast being the CBI’s first choice.

Finance Minister Simon Hamilton indicated in his recent financial statement that

The Freight Trade Association is not hopeful of the A5 road upgrade going ahead in its current form but the DRD says the Executive remains committed because of the scale and cost of the A6 upgrade, it would only be possible in the foreseeable future if the A5 upgrade does not proceed.

A spokeswoman for the Department of Finance and Personnel referred enquiries to the Department for Regional

Development. A DRD spokeswoman said: “The Executive remains committed to the A5 Western Transport Corridor scheme. The Executive will decide, taking account of other Executive priorities, when the funding can be made available to progress the scheme.”

Vacancy rates in Belfast fall 5.9% PROPERTY vacancy rates in Belfast have fallen by 5.9% in the last year to 17.2%, according to the latest Commercial Property Report from property agents Lisney.

Vacancy rates across Northern Ireland have stabilised, after years of increases, at an average of 19%.

There is now a shortage in Belfast of several types of commercial property.

The 5% vacancy rate in Grade A office stock in Belfast city centre indicates a shortage that

6 BUSINESS MONTH 2 Decem ber 2013

is likely to grow as the economy recovers.

Lisney reports strong demand in the centre of Belfast from the IT, legal and finance sectors. It concludes that there needs to be an increase in supply to support the promotion of Belfast as an inward investment location.

Declan Flynn, managing director of Lisney Belfast, says: “While finance is required to cater to the office demand, the overall research suggests that the fundamentals are in place

for a sustainable recovery within the Northern Ireland commercial property market.

“Our research indicated an improvement in secondary and out-of-town retail locations, but deterioration within prime city centre retail locations.

“This is most likely due to business rates, which are much less prohibitive for retailers in out-of-town or secondary locations.”

Lisney reported a six-fold increase in commercial property transaction volumes since 2011.

NEWS BITES

Report raises fracking hopes SHALE gas extraction in Northern Ireland may have become more likely following a report concluding that the associated health risks are low from Public Health England, a National Health Service agency.

Dr John Harrison, director of PHE’s Centre for Radiation, Chemical and Environmental Hazards, said: “The currently available evidence indicates that the potential risks to public health from exposure to emissions associated with the shale gas extraction process are low if operations are properly run and regulated.

“Where potential risks have been identified in other countries, the reported problems are typically due to operational failure.”

With good quality and management, effective regulation and environmental monitoring, the risks to public health are low, said the PHE. It added that groundwater contamination from fracking is unlikely because the fracking takes place at a depth below that of groundwater.

Decisions on whether to approve fracking in Northern Ireland are a devolved responsibility. At present, this falls under the control of Environment Minister Mark H Durkan, though this could change if the amended Planning Bill returns for consideration to the Assembly and is enacted.

Decisions could then fall to the First Minister and deputy First Minister.

A two-year all Ireland research programme to consider the potential impact of fracking on the environment and public health has just been approved. Potential fracking sites include a cross-border area covering Fermanagh and Leitrim, and a second area near the North Antrim coast.

Mr Durkan said: “Granting permissions relating to fracking operations will only take place when it has been supported by very strong evidence which indicates that fracking is safe for public health and the environment.”

NI economy set to grow 2% next year THE Northern Ireland economy is on course to grow by 1% in 2013 and by 2% for each of the next two years, according to the latest EY all-island Economic Eye. The forecast marks an increase on the prediction of 1.7% growth for next year predicted in the summer edition of the report.

Projections for the Republic have become more pessimistic.

GDP in the Republic is forecast to fall by 0.2% this year: it had

previously been expected to grow by 0.8%.

Growth projections for the Republic have been downgraded from 2.2% to 1.6% for 2013 and from 2.6% to 1.9% in 2014.

Professor Neil Gibson, economic advisor to Economic Eye, says: “Economic recovery is at last underway in Northern Ireland with employment levels rising and confidence returning.

The rate of recovery is forecast to be below the corresponding rate

in the UK and many consumers will experience little improvement in their personal finances in 2014.

“Devolution of corporation tax powers, or something similarly game changing would be required to move the economy onto a higher growth trajectory.”

EY, previously known as Ernst & Young, says our biggest economic challenge remains its dependence on public spending and its small private sector and export base.

Belfast in top 10 rankings of ‘good cities to live and work’ Belfast is rated highly for jobs and work-life balance among other things

PAUL GOSLING BELFAST has been ranked as one of the UK’s top 10 large cities in which to live and work, giving it a strong position for investment and economic growth.

Belfast is rated highly for jobs, work-life balance, house price affordability and transport.

The report, Good Growth for Cities, was produced by accountancy firm PwC and think-tank Demos.

PwC’s chief economist in Northern Ireland Esmond Birnie said: “Many large English cities are paying a high price for economic success, from increased congestion and pollution, to income inequality, high house prices and marathon travel-to-work journeys.

“Our research suggests that people prefer to live where they can acquire jobs, skills and advancement as well as enjoy affordable housing and a good quality of life; our research also suggests that investment follows the same priorities, seeking skills, talent and infrastructure.

“If you accept that the measure of a city is not just about GDP and that other factors attract both people and investors, Belfast performs well, while Londonderry shows considerable potential amongst the UK’s smaller cities. Despite these strengths, we remain overly

8 BUSINESS MONTH 2 December 2013

dependent on public sector employment, with other parts of the region not performing as well as the Belfast metropolitan area.

“Nonetheless, marketing their good growth measures could boost the potential of the two main cities as investment loca-

tions and enhance the wider attractiveness of Northern Ireland.”

The city rose significantly in the rankings from the first report, published last year. PwC said that Belfast’s position had been boosted by several recent investment projects.

NEWS BITES

NI now a top UK region for fast-growth companies FOUR Northern Ireland firms are in the UK’s top 50 businesses for high growth rates, according to Deloitte’s report, Businesses Leading Britain.

This puts Northern Ireland as one of the UK’s best regions outside London for fast-growth companies.

“Businesses Leading Britain are at the core of UK growth as they are equipped with both the flexibility and long-term aspirations critical for our continued economic revival,” said David Sproul, Deloitte’s senior partner and chief executive.

“Understanding how these 1,000 companies have achieved such an impressive performance can provide valuable insights for the wider economy.

“In our conversations with chief executives from across these businesses, we identified three rules for growth: operate in a niche market, have a strong visionary leader at the heart of the business and have the ability to exploit export opportunities.”

Deloitte calculates that the ‘Leading 50’ businesses have growth rates that are 73 times greater than the UK national average.

The report does not name the four Northern Ireland companies, but all have turnovers that are above £30m.

Only one Northern Ireland firm was listed in Deloitte’s separate Fast 50 high growth IT businesses.

That was Sixteen South, which recorded a 2,214% growth rate.

The company is based in Belfast and produces children’s television programmes.

See Cover Story on page 18

Our economy is being weighed down by non-performing commercial debt

Economy burdened by £10bn of non-performing debt: CBI PAUL GOSLING THERE are about £10bn of non-performing commercial loans in Northern Ireland weighing down our economy, the CBI has told the House of Commons Northern Ireland Affairs Select Committee.

“I would estimate that there is probably around £10bn of non-performing loans in Northern Ireland, or advanced to Northern Ireland borrowers, between 2001 and 2007,” Ian Coulter, chairman of the CBI in Northern Ireland, told the committee. “Dealing with that

10 BUSINESS MONTH 2 December 2013

would be a major step forward.”

Asked by Ian Paisley junior MP whether the CBI was calling for debt forgiveness, Mr Coulter said: “I am not sure debt forgiveness is the right term, but dealing with that in some way.”

Mr Coulter argued that the debt burden is having a severe knock-on impact across the Northern Ireland economy.

“Most of that will be subject to personal guarantees and inter-company cross guarantees, over and above the property asset that that is secured upon.

That is a major problem for our

economy to digest. That has so many ripple effects,” he said.

Mr Coulter suggested that the total of outstanding nonperforming lending was equivalent to twice the total market for lending to SMEs in Northern Ireland. The property crash in Northern Ireland, he added, was as bad as anywhere in the world.

Mr Coulter told the committee, which is investigating the banking sector in Northern Ireland, that the banking crisis and lack of finance for business is the biggest block to economic growth here.

NEWS BITES

MILESTONE CORNER Celebrating the big milestones reached by Northern Ireland businesses

THIS month we're taking you back to 1983. . . the year Michael Jackson’s video for Thriller was first aired, the year which saw the first release of Microsoft Word and the year James Dyson produced his first prototype vacuum cleaner.

In Northern Ireland, however, 1983 was the year in which the first commercial flights landed and took off from Belfast Harbour Airport, or as we now know it, George Best Belfast City Airport.

This year the airport is also celebrating its 30 year partnership with low cost airline Flybe which began operating its regional routes from the city in 1983.

So what's it been like over the last 30 years? Chief executive of Belfast City Airport

Brian Ambrose said: “Some of our first passengers may remember having to pass through the old Nissen Hut, which acted as a purpose built security facility, before entering the terminal building.

“Thanks to continued private investment from our shareholders we now have a modern terminal with state-of-the-art facilities, all under the one roof these days I might add, to enhance the experience of every passenger that comes through our doors.

“Flybe, which was then known as Jersey European and is now our largest and longest serving airline, was one of the first airlines to recognise the huge potential of our ideal location, just minutes from Belfast City Centre.

Belfast City Airport had its first flights in 1983 “Since those early days we now have an extensive route network that is continually developing to best serve the needs of our passengers, both business and leisure, through our airline partners Aer Lingus, British Airways, CityWing and

of course Flybe. I am delighted that our growth in the last 30 years has allowed us to become a major employer in Belfast and to develop a strong relationship with our local community, having donated over £100,000 to local community groups and projects.

“Each year we handle around 2.5 million passengers and now as the only direct link between Northern Ireland and Heathrow we expect this year to be one of the busiest yet.

“On behalf of all at Belfast City Airport, I would like to take this opportunity to thank all our airline partners and passengers that have been part of our incredible journey over the last 30 years and I look forward to next 30,” the chief executive added.

2 December 2013 BUSINESS MONTH 11

OPINION

Why corporation tax is key Introduced into the UK in 1965, corporation tax has received little public recognition for almost 50 years. That all changed this year, says Eamonn Donaghy

I

n the first of two articles, I will explore some of the key reasons why corporation tax shot into the spotlight during 2013. In next month’s article, I will look at why corporation tax is so important for the economic future of Northern Ireland and what is likely to happen to this tax in 2014.

Simply put, corporation tax is payable by companies as a percentage of their taxable profits.

As a result of complex legislation, the reported accounting profits of companies can bear little resemblance to their taxable profits. Indeed when companies are part of large groups that trade across many jurisdictions the complex tax rules are compounded by economic principles which are laid down by the Organisation for Economic Development [OECD].

The media interest in corporation tax during 2013 has arisen from the fact that international tax rules, which were developed in the 1920s, have failed to keep pace with modern commercial practice. The current rules permit corporate groups to economically

justify the allocation of profits between countries based on where the intellectual property of that group is located rather than on the location of most of its workforce. As a result, large multi-nationals such as Amazon, Google, Starbucks have legally utilised current rules to allocate minimal profits to high tax jurisdictions, even though they have a substantial workforce located there. In turn, most of the profits are allocated to low tax jurisdictions thus minimising the effective corporation tax rate of such multi-nationals.

During the year, the Westminster Public Accounts Committee [PAC] have carried out an enquiry into the allocation of profits by large multi-national groups. While PAC members expressed outrage at the low tax arising from the profits allocated to the UK subsidiaries of these groups, it appears that none of the large organisations under enquiry had breached any UK or international legislation. Unfortunately, both the committee and large sections of the media pointed the finger at international corporations and failed

12 BUSINESS MONTH 2 December 2013

to properly identify the underlying issue as the outdated international tax rules. While the committee hearings created sensational headlines, they did little to move the debate forward.

Indeed, one could argue that the PAC activity made the UK a less attractive place for foreign corporations to consider setting up.

The underlying problems were more clearly addressed, however, by the OECD, and the G8. These organisations correctly identified the key issue as the outdated international tax rules and each committed to changing both domestic and international legislation such that the recognition of profits would be more closely aligned to where people carried out significant activities rather than where intellectual property is located.

While the immediate effect of these commitments will be minimal, the medium to longterm impact will be significant.

It is clear that tax base erosion and profit shifting will be difficult to achieve in the future and this will mean that the allocation of group profits to low tax jurisdictions will only be justified where real economic activity is taking place.

What impact will this have on Northern Ireland? If Northern Ireland retains the same corporation tax rate as the UK, the impact of the proposed changes will be minimal as our private sector is too small to significantly benefit from the impact of additional profit allocations. However, if Northern Ireland achieves devolution of corporation tax varying powers and the corporation tax rate is cut, the proposed international changes should have a positive impact in Northern Ireland. Multi-nationals will still want to locate in low tax jurisdictions but in order to do so will have to set up tangible operations in that jurisdiction.

If Northern Ireland was to have a low tax rate, then to justify significant profits arising in the province, significant economic activity would have to take place here. Significant economic activity results in job creation and job creation is ultimately why getting low corporate tax rates in Northern Ireland is the right thing to do.

Eamonn Donaghy is head of tax KPMG Belfast and spokesperson for Grow NI

ANALYSIS

It doesn’t ad up

Northern Ireland is not getting its fair share of advertising spend. Robert Lyle, media director at Lyle Bailey, explains why it is in everyone’s interest to correct the imbalance

L

yle Bailie International has estimated that the Northern Ireland advertising media market was worth £141m in 2012. The province punches well below its weight in terms of media spend per capita. Whereas the UK expenditure is around £220 per person, and the Republic of Ireland £132, in NI the spend stands at around £77. On a pro rata basis the NI market should be worth £390m.

Why we should care?

Without a robust advertising sector we suffer from a weakened economy and less vehicles for brands to engage with customers. We also get a less powerful and less independent media sector, less able to bring those with power to account.

With a doubling of investment in NI media, more employment would result as advertising remains a people business.

Why is there such an underinvestment in advertising in NI? A major reason is that a large

number of client decisions are now made outside NI for certain sectors such as finance, IT, travel and FMCG brands.

Many of these brands have sought to economise by centralising spends in agencies in London, Dublin or elsewhere.

Why should these national advertisers care?

Multi-media maximise reach and frequency, and prompt attitude and behaviour change at different points of the decision-making process.

National campaigns in Northern Ireland use less media channels. Evidence from Nielsen demonstrates this (my thanks to Poster Management Ltd here). Out of 18 top national advertisers across all categories (including P&O, Santander, Ford, Vodafone, etc), the average number of media channels used across the UK was seven but in NI this reduced to three.

These advertisers spent on average 0.9% of their budget in NI (when NI represents 2.8% of the UK population) — so the

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under-investment is over 65%.

Among all-Ireland brands (such as Kellogg’s, Coca-Cola, Aer Lingus) the average number of media channels used in the Republic was five and in NI again three.

Despite NI having 28% of the all-Ireland population, these advertisers were spending less than 11% of their budgets in NI — an under investment of 60%.

Thus many campaigns bought outside NI are falling well short of best practice in NI.

What can be done?

1. NI media need to think about their representation model in GB/ROI. Using sales house representation is not working. Direct representation would be more effective.

2. If media can’t afford direct representation themselves maybe a NI network, representing NI across a range of media channels would be the best way to champion our industry as a whole; making the case for increased investment here supported by hard

media research and providing easy to buy multi-media solutions.

3. Local media should also support local agencies in their efforts to get more brands bought here in NI — this is obviously in their interests as local agencies will work to ensure NI gets its fair share of budget and utilise it across as many media channels as can be afforded.

4. National and all-Ireland clients should start to respect the NI market, treat it equally and use local media at a similar weight to the rest of the campaign outside NI. It is in their interests to devolve a share of their budget to NI agencies who will sweat that budget and deliver improved local value to the advertiser.

5. Local brands should make hay — the failure of many national advertisers is creating a great opportunity for them to take market share if they are prepared to make the investment. The under-investment in NI means there is great value to be had via multimedia planning and buying.

ECONOMY WATCH

An age old We can now with confidence forecast how the jobs market is going to pan out due to the ageing population, migration

T

HE Northern Ireland economy seems to be back in growth mode following the contraction experienced after 2007. But one aspect of the local economy that has continued to grow despite the downturn has been its population. Indeed, last month, official government statistics revealed that it has actually been growing faster than previously thought.

According to the latest figures, Northern Ireland‘s population is estimated at 1.82 million; and assuming the continuation of existing trends — in terms of fertility rates, mortality rates and migration — it is expected to grow by 10,000 each year over the next decade, reaching 1.9 million by 2020. Extrapolating even further should see the 2 million mark surpassed by 2036.

The driver of the projected rise in Northern Ireland’s population is the so-called natural increase. That is, the difference between the birth rate and the death rate, with the 24,000 plus births per annum outnumbering the 14,500 deaths each year.

Meanwhile, migration is assumed to make no impact on the overall population, with the number of people entering Northern Ireland assumed to balance the number of individuals emigrating. However, this conceals net out-migration for the 18-44 years age-group.

These are official projections as opposed to forecasts. While we can have a degree of confidence in projecting birth rates and death rates, future patterns of migration are much more uncertain. Changes in government policies pertaining to immigration could significantly alter the migratory flows into and out of Northern Ireland.

The UK authorities vastly underestimated the inward migration resulting from the expansion of the EU into Eastern Europe and beyond in

Richard Ramsey

Chief economist, Ulster Bank 2004. According to the 2011 Census, there were 35,700 individuals living in Northern Ireland who were born in the 10 EU Accession countries (Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia). This is equivalent to the combined population of Antrim and Dungannon.

Next month will see the border controls lifted on Bulgarians and Romanians entering the UK to live and work. If 2004 is anything to go by, Northern Ireland is likely to see a significant number of Romanians and Bulgarians arriving from early next year.

The scale of this inward migration has not been factored into the official migration and population projections.

Clearly this growing population will have implications for the local economy in relation to things such as the provision of housing and public services.

However, Northern Ireland’s rising population isn’t simply a numbers game. Beneath the

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headline figures, the structure of Northern Ireland’s population has been and will continue to change. In turn, this will place different demands on public service provision and will provide both opportunities and threats for businesses.

One of the most significant trends is the ageing of the population. Over the decade 20122022, Northern Ireland’s population aged under-65 years of age is projected to increase by 1.5% or 24,000 people. However, the population aged over 65 years of age is expected to grow by 26%, or by 71,000 people, over the same period. The latter is equivalent to an additional pensioner population the size of Lisburn’s urban area by 2022. This ageing population trend accelerates thereafter, with the number of people aged 65 and over increasing by 44% in the next 15 years (2012-2027).

Meanwhile the oldest of the old — those aged over 85 — is set to increase by 50% from 33,000 to 48,000 by 2022.

Putting Northern Ireland’s

changing demographic trends into a longer time period highlights how much the economy has changed. Rising life expectancy is leading to ageing populations worldwide. Fifty years ago the global life expectancy was just 60 years of age. Today it is 70 years, with those economies in the western world including the UK around or above 80 years of age.

Looking specifically at Northern Ireland, it is noted that 50 years ago children (under the age of 16) accounted for 31% of the total population and outnumbered those over the age of 65 years by more than three to one.

Today that gap has narrowed significantly; although children still outnumber pensioners, with the former accounting for 21% of the population and the latter 15%. Within 15 years (by 2028), however, the >65 years of age category will have overtaken the under-16 cohort.

Looking at other age categories, it is noted that the number of people in their 30s and 40s currently exceeds the number of individuals in their 50s and 60s by 100,000.

However, from 2030 those in their 50s and 60s are set to outnumber those in their 30s and 40s.

All of this has significant implications for policy makers, not least the impact an ageing population will have on healthcare provision and the required make-up of housing provision.

A relatively smaller workingage population will also have to take the strain of a relatively larger non-working age population and their pension requirements. However, there are also opportunities, with for instance, businesses operating in sectors that are exposed to the ‘grey pound’ expected to see demand soar. And we may even become more reliant on Eastern European labour to meet this demand.

question continued economic growth but just is not so clear, as our experts note, and the new face of the labour market

T

HE UK's job-creation machine is still cantering onwards.

The private sector continues to create three new jobs for every one lost in the public sector, which is encouraging, but wages are still dropping in real terms, which is not encouraging — or at least not in the sense that living standards are still stagnant.

All this is pretty much as expected. If people were surprised, they were not paying attention, for since the economy has continued to create some jobs right through an uneven recovery, it would be odd if it did not create rather more when the economy picked up more pace.

So that is where we are; what happens next? The unemployment rate has taken on extra significance as a 7% level has been elevated as a trigger for interest rate cuts. (Mark Carney, the Bank of England Governor, did not quite make it as explicit as that, but that is the main message.)

There has therefore been a string of estimates as to when unemployment might fall to that level, and this “unexpected” decline naturally brings that magic number closer.

But behind this narrow debate, important for the money markets but narrow nonetheless, is a wider and more interesting one. This is about what is really happening to the UK labour market.

The thing that has astounded almost all economists, even relatively positive ones, has been the way employment held up through the downturn.

In terms of published GDP, this has been the weakest recovery since the Second World War; in terms of employment, it has been the strongest.

We are, according to the figures, still 3 or 4 percentage points off the peak, but we have

Hamish McRae

Financial journalist and commentator substantially more jobs than ever before.

The conventional explanation for that is to say there has been a sharp fall in productivity, but that is not really an explanation at all — for productivity is calculated as a residual. It is the number that pops out when you put all the other figures in.

My own guess, and it is only a guess, is that the explanation is a combination of two factors.

One is that we are now undercounting activity in the service industries, but we overcounted it at the top of the boom. (How do you measure the output of a highly paid but unutterably foolish banker who makes duff loans?) So the fall in output was not as big as published because the peak was not as high as we thought, but output now has recovered more than the figures suggest.

The other is that there is indeed quite a lot of slack, particularly in the service industries, as employers have cut their costs by trimming wages and hours but tried to retain

staff so they could quickly boost output if demand warranted it.

The first would explain some of the puzzle but not all of it.

The second is what matters now. Demand is clearly rising quite swiftly, at around 3 per cent annual rate, which is quite a bit faster than the trend growth of the economy of 2-2.5%. If this swifter growth continues, it should mop up spare labour. But maybe employers in the service industries are set to meet much of the increase by boosting the hours of their existing workforce, perhaps by asking part-timers and people on contract to work a slightly longer week.

We simply don't know, but we can make some guesses.The peak rise in unemployment in 2009 was just over two percentage points, which coincides with a 6 % fall in GDP. Kevin Daly of Goldman Sachs, who did this work, concludes that though there has been some divergence in the past couple of years – ie we have created more

jobs than you might expect despite slow growth – the two broadly do fit together. He reckons that even with faster growth, it will take quite a while to pull unemployment down to 7%.

A somewhat differently nuanced view comes from Chris Williamson at Markit, the researchers. He plots business activity as signalled by purchasing managers’ indices alongside demand for staff as reported by recruitment agencies.

In both cases, anything above 50 signals expansion, anything below contraction. What is striking about his calculation is the surge in demand for staff, which closely tracks the rising optimism of employers more generally.

The conclusion you would draw is that there is still a lot of slack in the job market. But you could also say demand for labour is already climbing fast.

Which is right?

Well, they both are in that they reflect different aspects of a hugely complex, changing economy. We work in quite different ways from five or 10 years ago. There is much more self-employment, there are many more young immigrant workers from the Continent, more retirees still at work, more part-timers, more contract workers, and so on.

Demand for labour is very uneven across the country and across skills — more uneven than it was a decade ago.

But if both are right, which is more useful as a guide to the trend of unemployment in the future? Actually we won't have much of a feeling for several months but I think by the end of this year we will begin to see the steady fall in unemployment that would justify the financial markets' expectation of a rise in interest rates either late in 2014 or early in 2015.

But whatever the timing of that, the creation of more jobs cannot be bad news.

2 December 2013 BUSINESS MONTH 17

COVER STORY

ENTERTAINING MR WILLIAMS Success has done nothing to change ‘Big City Park’ film-maker Colin Williams, as Jane Hardy discovers

C

olin Williams, managing director of Sixteen South, looks happy in his central Belfast office. Which is no great surprise given that the 39-year-old founder of this children's entertainment company has more industry awards and accolades than most kids have DVDs of his shows.

There's the Scottish Bafta (for Big City Park), the two Emmy nominations, the Cine Gold Eagle (for Sesame Tree). The list goes on and Sixteen South has just been listed number two in the Deloitte Fast 50 list.

That's appropriate as a few weeks back Mr Williams travelled to Dublin for a black-tie event as one of the finalists for Ernst & Young's Irish Entrepreneur of the Year award.

He didn't win but Mr Williams wasn't disappointed.

“I met some good people and to be honest, I didn't even know at the start I'd been nominated.

Ernst & Young were chasing me on the phone and I was busy so I didn't take their calls. When they finally got through and told me I was one of the finalists, I was amazed.”

He shouldn't have been as Sixteen South, which Mr Williams established at the start of the recession in 2008, spent £2.5m on its latest show,

Driftwood Bay. He employs nine core staff, add on 75 freelancers — some in office, some outsourced — and you get the picture. This is big business.

Underlining the point, Mr Williams had something of state visit recently from First Minister Peter Robinson and deputy First Minister Martin McGuinness to announce the Jim Henson Company would be distributing the film.

The exchanges were fruitful.

“I told them we need to get work into Northern Ireland and into Belfast. I wouldn't move to London, although we have a head of development based there, as I like the pace of life here and think we have some of the best production people.”

Mr Williams, who believes in rewarding excellence, pays his staff London wages. He is an enthusiast for Northern Ireland, for his work and for what good children's TV series can achieve. Sesame Tree, Sixteen

18 BUSINESS MONTH 2 December 2013

South's 2008 hit, was partly created to teach kids about accepting people from different backgrounds. But done, of course, via brightly coloured shaggy puppets from the Jim Henson production line and therefore not overly didactic.

Mr Williams says: “Queen's University tested children before and after they'd watched an episode and measured an increase in tolerance. It's science, not something we've made up!”

That's impressive. Judging by the row of screens showing Sixteen South's greatest hits, including Driftwood Bay, which has sold to 100 countries, you might assume the children's entertainment market is booming. After all, Peppa Pig herself switched on the Christmas lights in Belfast this year. But according to Colin Williams, it remains tough in his sector.

“I think people are working harder to get ideas off the grid.

There are more kids' TV shows

around but investors aren't investing money as they did and it is a hard landscape.” He adds that the shifts in the way TV companies acquire children's shows hasn't helped. “The BBC is buying in shows, they also produce in-house so it's more difficult for independents like us. We're pitching ideas to them at the moment but they didn't take Driftwood Bay. And ITV is pulling out of pre-school programming, the three to six age group, which is what we do.”

Mr Williams, who share a home in Holywood with his wife Rachelle and children, Sophie (11) and Ben (8), doesn't work nine to five. It's more like 10 to seven. But he has a rule about not working at weekends so he can see his children.

Mr Williams' background is design. Before entering the world of dreams and mauve bears, he made commercials as

>> Turn to page 20

2 December 2013 BUSINESS MONTH 19

COVER STORY >> From page 18 Inferno. His move into independent film-making was brave and involved a tough chat with his wife. Mr Williams smiles as he says: “It was what I wanted to do and we didn't have money so I remortgaged our house.”

He's not a man who measures success in material things, although there are some serious guitars around the office. “No, I haven't moved house or bought big

cars. I believe in reinvestment, and putting money back.” He invested £40,000 of his own cash to develop the Driftwood Bay promo film as he knew instinctively it was a winner.

This latest project is about a little girl called Lily who creates a world using the flotsam and jetsam on the beach near her home.

“We get ideas every day, most of which aren't ready for production, but this was different.” Scottish artist Joanne

20 BUSINESS MONTH 2 December 2013

Carmichael's whimsical, ecologically sound story went down well and after pitching it at industry fair MIP Junior in Cannes, Mr Williams sensed it was a winner.

He then had to audition for the vocal star of the film, Lily.

Over 200 little girls showed up. Orlagh O'Keefe got the job because she wasn't a theatre school kid. “As soon as I heard her speak, I knew. She sounded a little bit gravelly, not over produced, just right.”

Now he's working the next

batch of shows including Wildwoods, which involved finding the right tracts of Northern Irish countryside to illustrate the craggy landscape. “I like filming out of doors and one of the places we looked at was Tollymore. I also Googled some areas and we'll be filming in Canada.”

Colin Williams' philosophy extends beyond money to involve ethics and soul. As he sums it up: “My belief is you do some good, make some money and have some fun.”

PROFILE

Specialists to watch Lunns Jewellers deals in prestige watches – new and classic timepieces skilfully refurbished by its watchmakers. And its website has changed with the times

Lunns Jewellers has three watchmakers on its staff

A WATCHMAKER is one of those crafts which you wouldn't expect to find in Northern Ireland. Switzerland yes, where there are more watch manufactures than you could shake a Rolex Oyster Perpetual at, but what call could we have for such a skill base on these shores?

Quite a lot, it turns out.

Lunns Jewellers has not one watchmaker but three, able to make a 50-year-old watch which may have quite literally been through the wars look and operate like new.

These skilled craftsmen work predominantly in the company's pre-owned division, one which as the name suggests sells prestige watches which have had a previous owner.

This part of the 60-year-old family business's operation sounds simple, but in actual fact is generally a time-filled intricate process, as managing

director John Lunn explained.

“All the watches are service and refurbished before they go into the window and when you buy one it comes with a guarantee,” he told Business Month.

“For us it's not as simple as just buying and selling watches; it could be three months from when we buy a watch before it arrives in the window.”

From the aforementioned Rolex to Patek Philippe to Cartier to Tag Heuer, the pre-owned watch division has a wealth of names to chose from and is also making a name for itself. “We want people to know that we're developing a brand with the pre-owned division,” John said.

Not only is Lunns developing a brand on the high street through its stores in Queen's Arcade and Victoria Square in Belfast as well as Shipquay Street in Londonderry, it's also forging ahead with a new online offering. The company’s

22 BUSINESS MONTH 2 December 2013

website has been revamped and will be equipped with ecommerce capabilities across all products, meaning customers can buy watches and jewellery online.

If help is needed to make what is often a statement purchase, an online concierge service is available to guide you through the myriad of choice.

“If you've got a question the consierge takes you through avenues which help you find out information and make an informed decision. Eventually, we'll also have live chat so if you're sitting at home and you have a query on your watch, someone can come straight back.”

While this new online capability opens Lunns door to a wider, global audience, John sees the offering more as a complement to its high-street stores.

“Just because we're moving into ecommerce it doesn't mean

our stores are less important,” John said. “Our offering is stronger than it's ever been because we know how important the stores are. We see the website as a facilitator for our customers to get all the information they need and if there's anything else they can come into our stores.

“They'll get just the same instore service but with the added benefit of online as well.”

For a business which is about to celebrate its 60th anniversary, Lunns is grabbing hold of the future with both hands and, through its new website, sharing its secrets of success.

“We've been told we're the best kept secret in Northern Ireland and we want people to know all the things we do,” John said. “We have three watchmakers, a service team with a huge amount of experience and a total dedication to customer service.”

BREAKING THE MOULD

Adding fun for results

Primary school teacher turned businessman Franz Schlindwein tells how a passion to see children engaged in mathematics led to him giving up a 22-year career

Name: Franz Schlindwein Company: Qubizm I got into business because...

I believe in the commercial potential of a variety of unique and radical active learning products I have designed for the education sector and I wasn’t going to have the opportunity to pursue this to the nth degree while in the employment of others.

I’m passionate about children engaging with mathematics and the nurturing of a positive approach to learning from a young age, an attitude also encouraged by the annual Maths Week Ireland festival which took place recently. It’s an absolute delight to see over 170,000 people having such fun and enjoying fresh and innovative ways of experiencing mathematics.

I didn't always do this...

For the past 22 years I have worked as a teacher, the last 13 of which were spent as head of mathematics in a post primary school. While teaching, I spent a lot of time working on a variety of initiatives in primary schools from how pupils like to learn to the effects of transition on pupil performance. I have also developed strong links with many schools in both sectors over the last five years via the LASCO Maths Challenge www.lascomaths.com, a charity event I created to raise money for projects that provide education and healthcare support for the impoverished street children of South America. To date more than 30,000 pupils have taken part. The event runs for two weeks every February.

The best thing about my work... is witnessing the level of curiosity and enthusiasm aroused in young people by using our products and how well this complements the demands of the existing curriculum. Every child needs to be seen, heard and recognised, and when chil-

Franz Schlindwein celebrating Maths Week 2013 with the roll out of his innovative educational maths resource IZAK 9. Having fun with the large assemby hall version of Izak 9 are his children Zara, 8, Lorcan, 6, and Orlagh, 5.

dren are happy, the learning becomes much easier. Not only do they gain valuable new capacity building skills, but they grow in the confidence and self-belief essential to be able to shape their own future.

The person I take inspiration from when it comes to business is...

Thomas Edison. Not the 99:1 perspiration to inspiration but his brilliance and resilience in equal measure. His belief that sales levels are a direct indicator of benefit to the user is an invaluable tenet for a company like mine, wherein improvement in pupil performance is as paramount as commercial success.

The biggest obstacle I've come up against in business... is a hurdle I have yet to meet.

24 BUSINESS MONTH 2 December 2013

Thus far we have completed a successful pilot programme in schools and a collaborative design project with the Department of Design and Creative Technologies at Magee, during which I got to work with the most talented of product and graphic designers, web developers and animators. The extensive support from Invest NI and the peerless Propel Programme enabled us to launch Izak9 at Culture Tech 2013 and helped us go into full production making us market ready in November. I’m sure challenges will arise in the future but it’s fingers crossed at present.

My advice to someone thinking about starting up their own business... is to make sure that you are passionate about what you want to do and focused on

what you want to achieve. If you have a vision, a strong work ethic and a solid business plan with some export potential, then with the unparalleled level of support available from Invest NI, Northern Ireland is the best place in the world to start a business.

In 10 years’ time I hope to be... running a company synonymous with putting life into learning and that Qubizm will be recognised as a leading provider of inspirational and innovative immersive learning opportunities for children of all ages and abilities that are stimulating, rewarding and fun.

I couldn't go to work without... the car filled with five kids, five schoolbags, five coats —no brighter start to every day.

AND I’LL TELL YOU ANOTHER THING

‘Being curious opens doors’ The owner of one of the world’s leading assistive technology companies marvels at the pace of change within the industry and predicts the inexorable rise of mobile devises Name: Mark McCusker, CEO of Texthelp My first job was...

After I left Queens University Belfast, I didn’t have a job so I went to work for a consultant engineering firm for free just to gain experience. In the corner of the office I worked in, was a Commodore Pet, complete with 8K of RAM and a tape cassette deck for loading and saving programmes. I was immediately captivated by this and so in between completing drawings for the firm I taught myself to programme on the machine and from there I developed a passion for programming.

Soon after, the owner of the consultancy and myself opened up a small computer business, one of the first in Northern Ireland and now, today, I manage Texthelp, one of the world’s leading assistive technology companies whose products change the lives and achievements of their users.

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

Dennis Lavelle, my first employer at the consultant engineering firm. Your first employment is typically a large learning curve; Dennis taught me the fundamentals of business during my time with him. With his help, I was able to hone my skills and from there I moved to a number of local consultancies, where I was responsible for developing and selling specialist software systems to new and dynamic markets.

My business mantra is...

Enjoy what you do; you will hopefully be doing it for a long time.

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

Working in the technology industry, naturally change is rapid. More recently, however, the rate of change has accelerated dramatically. When I started out 1MB of storage would have cost you about £3,000, now, however, you can buy 1GB of storage for less than £1,

The cost of developing technology is dropping at a rapid pace, says Mark McCusker, CEO of Texthelp that is a 1,000 fold increase in capacity for 1/3000th of the original cost.

The landscape of computer hardware has also changed drastically. The Commodore Pet was the forerunner of the PC, which then made way for the laptop, which is now being replaced with tablet devices. The rate at which mobile devices are being developed now is also astonishing.

quite astonishing. From an economic perspective, it’s quite frightening as far as the mobile market is concerned. Current business models won’t work in the mobile world and some businesses may not survive as a result. The cost of developing technology is dropping at a rapid pace and we will rely more on innovative marketing and selling to get our software out there to be recognised.

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

Massively mobile. More and more companies are looking to develop apps and software for the mobile market. The rate at which apps for mobile devices can be developed is

My one regret in business is...

About 10 years ago we had the chance to buy out our main competitor. We didn’t, but in hindsight we should have. However, if I had the same chance today, I wouldn’t. What was a great opportunity then is not now.

26 BUSINESS MONTH 2 December 2013

This demonstrates the rate of change in the technology sector.

My one piece of business advice is...

Be curious. Curiosity can lead to lots of new business opportunities or opportunities to diversify. Another good piece of advice is to strike a good work/life balance. I do enjoy my work, but at the same time I enjoy time away from the office.

It’s important to work to live and not live to work.

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

I don’t have any rules for starting a day. No two days are the same for me. If you enjoy what you do, you shouldn’t need to start the day with a set routine.

SME WATCH Hazel Bill, centre, with staff at the Donegore Tea Rooms

T

he Donegore Tea Rooms is set in the scenic Antrim hills above Templepatrick and has been open for just over four months.

Built on the site of a former garden centre, the Tea Rooms is the brainchild of former financial services worker and mother of two Hazel Bill.

As well as the Tea Rooms, which offers seasonal produce and baked goods, the adjoining building has been purpose-built to house the Fun Emporium, an exclusive children's party venue which offers a new kind of children's party experience.

Hazel tells me why she thought the local area needed such a business.

“It was while looking at the previous uses of the building that I decided that a coffee shop would be a good place to start. The brief was to create a concept that could be taken anywhere: Belfast, Dublin, London, a look that was high

We were blown right off our feet by the response

On a growth curve Having kicked off with a tea room on the site of a former garden centre, Hazel Bill tells Jack Brennan of the children’s Fun Emporium and retail centre waiting in the wings

28 BUSINESS MONTH 2 December 2013

end, modern, comfortable and multifunctional, that would cater for businessmen, families and groups.

“The idea for the Fun Emporium came about through my own frustration in trying to get a different party experience for my own children, that was actually tailored for their age, needs, enjoyment and imagination,” she added.

Hazel said that in choosing a name for the business it was important to keep it simple.

She said: “It made good business sense to work with the already-established business that was there, by taking the name of the area in which we were located.

“My overall aim is to make Donegore Tea Rooms & Deli a lifestyle brand which is transferable to any location and any

high-end product or gift that we wish to associate our name with,” she said.

Of course the food at Donegore is the star attraction and this comes down to quality, seasonal produce, Hazel said.

“I was very keen to promote high-quality local produce and to try to keep it seasonal as much as possible, and that is a philosophy shared by our head chef Trevor Quinn and his team. We regularly visit suppliers and see their business working at ground level. We are also very keen for small producers to approach and work with us promoting the best that Northern Ireland has to offer.”

Hazel said she decided on a quiet opening for her business, only putting up one poster in a local shop. Despite this she says that she was stunned by the amount of customers who poured into the shop. She said: “We were blown right off our feet by the response, although we still have people to this day saying that they had no idea that we were here until they heard it from a friend.”

Although the majority of her business comes from word of mouth, Hazel is also using

social media to advertise her business. She said: “Our Facebook page is also a wonderful way to connect with our customer base,” she added.

The menu at Donegore is both varied and seasonal.

Hazel explains that even though the business is called a Tea Rooms, the food on offer is

far from just tea and cakes.

“From a bowl of warming homemade soup and freshly made sandwich on our own bakehouse bread on our lunch menu, to a fantastic Irish pigeon breast, black pudding puree with a sweet potato & blackberry sauce on our Christmas menu.”

And Hazel has big plans for

the future of the Tea Rooms, including a gift shop which will be open in the near future.

“We will be opening our retail section in the run up to Christmas, and are furiously working away trying to get Santa on the go. I think that it is of the upmost importance to get each area of the business up and established and working properly before starting on a new section, hence why we have staggered the deli and retail areas.

“Once we have these up and running properly, we will then move on to opening the children’s party business.”

Hazel admits that although setting up her own business has been a challenge, it has been one that she has very much enjoyed.

She said: “I would have to say that it has been a steep learning curve, but it has been fantastic. I have learned more than I could have ever imagined, met some wonderful people within the industry with a wealth of knowledge and experience, and have thoroughly enjoyed every challenge that building this type of business has thrown at me.”

2 December 2013 BUSINESS MONTH 29

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e steps. us food

managecould

ASK THE EXPERTS I WOULD like to develop a wider range of services, but I’m concerned that my core business will suffer – how do I implement a diversification strategy that allows me to spread the risks and protect my core business?

Diversification uses change as an opportunity to expand the business.

Businesses diversify for a host of reasons. For some, it’s a survival strategy for others it’s an opportunity to grow. It can take many forms; you may be considering diversifying by adding complementary goods or services, brand extension or trading under different brand names.

By trading under a different name, you can ringfence one business from another in terms of public perception and reputation.

Or by extending your goods or services, you can either sell more products to your existing customer base, or reach out to new markets which can help spread the risks, improve your cash flow and achieve growth.

Many would say it’s not advisable to consider diversification until your core business is stable and profitable. If you’re still struggling to manage your core business offering, then opting to diversify may mean you risk taking your eye off the ball. Launching a new product or business will divert attention from other parts of the operation.

You need to make sure you have the right people in place and have undertaken thorough market research.

It’s important that any new venture is properly funded and that the correct corporate structures are in place.

The decision to diversify will always be a calculated risk, but by ensuring your have the correct balance of planning, leadership and opportunity – at the right time – the prospects for growth are excellent.

CG

Roger Gilpin Partner

Gilpin Executive Search

Cathal Geoghegan Managing director

The Mount Charles Group

Pamela Jordan Service advisor

RiverRidge Recycling

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

I have been invited to a second interview for a job that I applied for; how should I negotiate the salary?

N

o salary negotiation should take place at the interview stage unless you are asked what your salary expectations are.

In this instance, a confident answer stating a reasonable figure will be required. It is unlikely that an offer would be made at this stage unless it has been decided that you have been successful.

Once you have accepted a job offer, then usually no further terms and conditions can be discussed. Therefore, if you receive an offer, do not make a quick decision but instead, plan your negotiation strategy.

When planning, make sure that you are aware of how much you are worth, both in wider industry terms and also how much you can bring to the organisation.

It’s important to consider the whole package when negotiating, for example holiday entitlement and bonuses, and do not focus purely on money.

Having planned your negotiation strategy, always remember to negotiate from a reasonable position. Ask, do not demand.

Remember, if the negotiation is successful, you need to work for those that you were negotiating with. Some employers expect negotiation but they do

Is it possible to have a zero waste restaurant?

THE hospitality industry has made great strides to minimise its impact on the environment and it is great to hear of another local company looking to do the same.

According to Wrap (Waste and Resources Action Programme) the UK hospitality sector (hotels, pubs, restaurants and quick service restaurants) could save £724m a year by tackling food waste. That’s an astonishing figure and if you think about how tight your margins are in the current economic climate, I’m sure you are keen to do as much as possible to minimise your waste management costs.

Businesses we have worked with have reduced the amount of waste they send to landfill by an average of 82%, with just a few simple steps. Waste should be viewed as a valuable resource and there are a number of measures that you can put in place to prevent leftover and surplus food being sent to landfill each year.

With waste disposal and treatment costs continuing to rise, a waste audit could help you adopt a logical and proactive approach to waste management. Not all food waste is inevitable and a few simple steps, including implementing more rigorous segregating policies in your restaurant, could lead to increased recycling rates and cost savings on sending waste to landfill.

PJ

not want to feel hard done by. A win-win is what is needed.

Put forward a rational argument by referring to the market rate for the position (research will be required about the high and low salaries for someone with your skills and experience) and the value you will add to the company’s bottom line.

Alluding to facts and figures, such as how much money you saved your last employer, will

show the company that you have done your homework.

Don’t assume that salaries are not negotiable. A successful negotiation will be one that has been well prepared for and one in which you are not afraid to ask for what you feel is warranted. However, you must also show willingness to be flexible, while maintaining a positive and assertive attitude throughout.

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 2 December 2013

RG

INSIDE REPORT

SIGNING UP TO THE Social enterprises and charities are set to play a key role in society as the public sector continues to shrink. Paul Gosling discovers how government can help and learn

S

ocial enterprises, charities and voluntary groups — the so-called ‘third sector’ — are set for rapid expansion as Northern Ireland’s public sector shrinks. That, at least, is the prediction of Ulster Bank chief economist Richard Ramsey.

“I think the third sector is going to be more important when the public sector is under financial pressure and there is a need to look for alternative ways of delivering public services,” says Ramsey. “I think it is going to grow and grow.

“More needs to be done to open up the public sector. It is seen as almost a binary choice — public or private.

There is a significant grey area in between, which may be more efficient. The third sector provides an important alternative model for the delivery of public services where the public sector isn’t efficient or cost effective.”

In some cases, Mr Ramsey argues, the private sector is either “not appropriate” to deliver public services, or else cannot make a profit from delivering them. He points instead to the significant role that the Bryson Group, in particular, already plays not just as a provider of socially important services, but also as an economic player and even as an exporter. (See box.)

It is the social enterprise part of the third sector that could see the biggest expansion.

At present there are around 500 social enterprises in Northern Ireland, collectively generating an annual turnover of around £600m and employing more than 12,000 staff, according to the latest government statistics.

To provide both greater coherence for the sector and to improve its lobbying capacity, a new representative body, Social

Enterprise NI, was formed last year. It is a consortium of 12 leading social enterprise members including Bryson Group and Employers for Childcare.

SENI receives active mentoring support from the sector in Scotland, which is strongly supported by the Scottish Government.

Chief executive Juliet Cornford wants Northern Ireland to emulate Scotland. She explains: “There are huge developments in Scotland, for example with community banking and asset transfers [from the public sector].” The asset transfers are used by social enterprises to access finance using the assets as guarantees.

SENI wants the government in Northern Ireland to be more supportive of the sector, though Ms Cornford praises the incoming Finance Minister for his indications of support.

“I am very encouraged by what Simon Hamilton is saying at the moment,” she says. But she urges all our government

32 BUSINESS MONTH 2 December 2013

departments to recognise social enterprises’ capacity to be innovative to offer more effective and holistic solutions to social problems.

Ms Cornford would like the government in Northern Ireland to help open-up finance for social enterprises. “There is not a good track record of [banks] lending to social enterprises [in Northern Ireland],” she says. “The Ulster Community Investment Trust and the Charity Bank do lend, but the minimum loan is £50,000. Not all social enterprises are in a position to borrow that much.

We would like to see a mix of risk and loan capital that enables the sector to take some risks to achieve innovative solutions.”

Belfast’s Bryson Group is listed by RBS as the third largest social enterprise in the UK. Chief executive John McMullan says that the organisation’s long history —it was founded in 1906, making it as old as City Hall — plays into its continuing

success. The group today has absorbed the lessons of many generations’ activities, says Mr McMullan, including through its “capacity to be flexible and adaptable”.

Bryson’s values have remained constant since it was founded.

“The background was to address poverty,” explains Mr McMullan. “We just do it now in a different way and on a scale that would have been difficult to contemplate then. Today we provide 23,000 services every day, on a typical day — services that reflect our social policy focus.

“About 15 years ago we shifted from a charitable model to a social enterprise model, with a commitment to excellence, service innovation and strong cost control, with good governance.” That commitment to strong corporate governance is central to Bryson Group’s success, says Mr McMullan.

The group recruits nonexecutive directors who have relevant professional experience, who can and will challenge the Group’s managers, as well as support them. Despite already being respected professionals, they are provided with additional skills training to fulfil their roles. “They would not be providing good governance if they did not challenge us,” says Mr McMullan. “At the same time they provide encouragement and support.

“Strong governance is important on a number of levels. It gives confidence to people receiving services, to funders and it is incredibly helpful to staff that they can present ideas that are understood.”

Mr McMullan is confident that the Northern Ireland Executive is on the verge of adopting a more positive and

>> Turn to page 34

E THIRD WAY

The Bryson Group The Bryson Group comprises seven subsidiary social businesses: Bryson Recycling, Bryson Energy, Bryson Care, Bryson CareWest, Bryson FutureSkills, Bryson Intercultural and Bryson LaganSports. Turnover across the group is £34m. It generated a trading surplus of £1.5m last year, which was used to increase investment reserves to nearly £13m. The businesses employ 690 staff and engage 128 volunteers.

Bryson provides a range of services, including kerbside recycling collections, refurbishment of electrical goods, social care provision and skill retraining.

Children of Roma families in Northern Ireland are educated through a Bryson programme. Bryson Energy delivers services to those living in fuel poverty, which include heating and insulation measures.

The group has service contracts in Northern Ireland, Wales and the Republic of Ireland.

2 December 2013 BUSINESS MONTH 33

INSIDE REPORT

>> From page 32 supportive approach to the sector. Like Ms Cornford, he unprompted praises Simon Hamilton. “I think he gets it,” says Mr McMullan. “He was talking the other day about social investment. That will drive other government departments in due course.”

Social enterprise offers two significant benefits to government, believes Mr McMullan.

Firstly, the rebalancing of the economy should not be a discussion merely about growing the size of the private sector

and reducing that of the public sector — it should also be about growing the third sector.

But also, he argues, social enterprises offer the scope to be innovative in ways that the public sector cannot. Mr McMullan points to material recycling. District councils collect items for recycling, with little regard for what happens next. But Bryson takes a more holistic approach, focusing on end use of the materials.

As a result

34 BUSINESS MONTH 2 December 2013

80% of the collected materials are reused in the UK or Ireland — and 34% of the materials are reused in Northern Ireland. Bryson calculates this has generated around a thousand jobs in Northern Ireland alone.

Bryson also demonstrates its social conscience by investing in training its social care staff to provide high-quality services to the elderly, assisting them to live longer in their own homes. But to continue to provide that kind of quality service,

Northern Ireland has to avoid copying England’s focus on cost savings if it moves to service privatisation.

“A lot of contracts are competed on price,” points out Mr McMullan. “If they were rather on the quality of service outcomes it would be much more satisfactory.”

It is service outcomes that social enterprises focus on.

Surprisingly, this is not always the case with the public sector — which could learn from social enterprises, as well as contract services out to them.

TICKERS

The month’s local indicators at a glance Ulster Bank economist Richard Ramsey gives a rundown on the latest key pointers ACCORDING to DFP’s Residential Property Price Index (RPPI), Northern Ireland (NI) residential property prices posted a second successive quarterly rise of 2% in Q3 2013.

Furthermore, they were 1% above their corresponding level in Q3 2012. This represents the first quarter in almost six years (Q4 2007) that NI residential property prices have posted a year-on-year increase. Four of the five areas within NI recorded a quarterly rise in Q3 2013.

The north of NI was the only region not to post a quarterly rise in the past quarter (0%).

The west and south of NI and Belfast recorded the steepest quarterly increases in Q3 2013 with both reporting a 3% q/q rise. Meanwhile, prices in the east of NI and outer Belfast rose by 1% q/q in Q3 2013.

Following the latest figures, NI’s standardised residential prices (housing and apartments) are still 54% below the Q3 2007 peak. This compares with a peak-to-trough fall of 56% between Q3 2007 and Q1 2013. An alternative residential property price index produced

by the Office for National Statistics (ONS) includes only properties purchased via a mortgage (excludes auction / cash sales). This survey revealed two consecutive quarterly rises in NI’s average house price in Q4 2012 and Q1 2013.

However, the ONS survey

signaled a 0.6% q/q decrease in Q3 2013. This suggests the RPPI survey’s recent rise may be driven by cash sales.

Using this ONS survey, NI’s average house prices in Q3 were 49% below their Q3 2007 peak. The latest surveys suggest that NI’s residential

house prices appear to be entering a much needed period of stabilisation.

It is noted that residential property prices in the Republic of Ireland are also on the rise. Average prices (based on mortgage sales only) are now 48% below their 2007 peak.

PERSONAL or individual insolvencies in Northern Ireland have more than doubled since 2007.

However, the latest figures for Q3 2013, released last month, posted a 15% decline relative to the corresponding period last year.

In the latest quarter, 717 individuals were either declared bankrupt (or chose bankruptcy)

or entered in to either an Individual Voluntary Arrangement (IVA) or a Debt Relief Order (DRO). This represented a decrease of 20% relative to Q2’s record high of 894.

The latest quarterly decrease was driven by a 33% fall (-122) in bankruptcy orders, a 17% decline in DROs (-28) and a fall of almost 8% in IVAs (-27).

THIRTY-SIX per cent of NI’s domestic electricity customers pay for electricity in advance of use. A sustained period of inflationary pressures has triggered a change in consumer behaviours. Six years ago 26% of NI’s electricity customers paid for electricity (via pre-payment cards/meters) before they used it. This proportion peaked at

38% in Q2 2012 and eased to 36% in Q2 2013.

NI has the lowest proportion of domestic electricity customers within the UK paying by direct debit and the highest proportion paying via prepayment methods.

This is significant as direct debit is the cheapest payment type while pre-payment is the most expensive.

36 BUSINESS MONTH 2 December 2013

STOCKWATCH

UPSHARES-DOWNSHARES This month was less fraught than usual for our trading team — the big surprise aside IN the past month there have been the usual machinations in financial markets as the ‘are we?’ or ‘are we not?’ questions are asked about whether we’ve managed to pull ourselves out of recession. For our own band of merry traders, it’s not the overall market we’re worried about, more whether our own

Joanne Stuart

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

Nov 19 Value 83,400 138,571 196,871 26,366 445,208

Change 1,226 5,071 2,260 -4,699 3,858

97,523

-2,477

Wildcard: Sports GKN

ENGINEERING company GKN is responsible for making most of the cars around the world move.

It designs and manufactures drive shafts and axle joints, dominating its field through its division Driveline. The company had a good month in November on the back of positive announcements from Toyota and the 4% rise in UK car sales.

GKN sales were up 16% in the third quarter and their stock should continue to gain traction in the market.

particular shares rally or not.

This month’s tally-up was less fraught than usual for the editor, who at last managed to pull himself out of negative equity by adding over £7,000. Still, it wasn’t enough to outclass the security man who topped the month’s winnings table with over £12,000 profit, despite a

big loss for BSkyB. Joanne Stuart managed to pocket nearly £4,000 despite another slide for Evraz, but it was Tony Axon who provided the surprise this month. He made — and I type this slowly — a loss of over £7,000.

All prices based on the closure of the LSE on Nov 19.

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 Ass Brit Foods BSkyB Tate & Lyle Total Wildcard Interserve

Nov 19 value 127,137 191,961 119,913 117,118 556,128

Change 1,654 22,067 -17,078 5,777 12,420

108,619

8,619

Wildcard: GKN

EASYJET have announced a special dividend which led to a more than doubling of its dividend yield to 6%, thanks to its 50% jump in pre-tax profits for the year ending September.

EasyJet’s policy change on assigned seating and renewed focus on business travel has helped the company avoid the demand weakness which its Irish rival Ryanair has been reporting of late. A third of easyJet's capacity touches on France, Italy and Switzerland.

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

Nov 19 value 174,862 196,763 206,547 162,116 740,288

Change 1,519 8,813 -8,363 -9,215 -7,246

110,724

10,724

Wildcard: Whitbread

IT WAS quite a difficult month just past with two sure bets faltering, but I still reckon that it is merely a temporary blip with a strong rebound surely to follow in the months ahead (here’s hoping). I still think that I might just make the goal of doubling my investment. Of course, if Labour’s Ed Balls had been in charge I would have done that long ago on the back of some expansionary government spending! Still not long to wait now.

Editor of Business Month

Standard Chartered BP Carnival Pearson Total Wildcard Rio Tinto

Nov 19 value 89,112 97,496 113,024 108,401 408,033 101,330

Change -3,467 7,762 4,947 -1,794 7,447 1,330

Wildcard: Tesco

AT half-time in Ireland’s rout of the All Blacks last month there may have been euphoria but there wasn’t an overarching confidence that the men in green would walk away with a win. Rather there was a niggling doubt that rather than fell a giant, we had merely prodded it into action. And so it was. And Tesco has been the All Blacks of the retail trade for the past few years, suffering at the hands of hungrier rivals. But will they lie down? Heck, no!

2 December 2013 BUSINESS MONTH 37

FOCUS ON: IT

CRACKING THE

A global shortage of computer programmers is having ramifications for Northern Ireland

V

isit any recruitment page and you will see that IT companies are crying out for Java scripters, C# developers and C++ developers. For those lucky people already qualified in these areas, this is undoubtedly great news. To the rest of us, otherwise known as the non-tech savvy crowd, these technical terms mean very little.

Thomas Mulhern, IT recruitment specialist, Grafton Recruitment, knows that there is a struggle to find suitably qualified candidates due to the continuing high demand for these roles. He said: “When it comes to finding experienced candidates with two to four years’ experience, there really is a big shortage. We have a strong flow of graduates coming through and companies bring them straight into their own training programmes.

Thankfully this won’t be an issue in a few years to come.”

Mr Mulhern told me that titles such as Java, C#, pronounced C ‘sharp’, and C++ all relate to coding languages. Java is a programming language best suited to providing backend support for mobile applications. Those qualified will create applications suitable for use on smart phones and tablets, for clients such as banks, retailers and the gaming industry, to name but a few.

He continued: “Coding can be a monotonous job as there is so little room for error. Code that is written one day can go on to testers who will wipe it if they find any mistake, the process will then begin again from scratch. These people

The strong demand for Java scripters, C# developers and C++ developers is pushing up salaries need to have strong problemsolving skills and a good teamwork ability. We are encouraging people qualified in Java to look into doing a conversion course in C# as this is a similar language that is in great demand by employers. C++ developers and web developers will work on the front end, user facing experience of programs, similar to the work of graphic designers.”

Recruitment for the IT sector seems to have no limits. If the companies working here are able

38 BUSINESS MONTH 2 December 2013

to show that they have the access to the necessary talent then more work and more projects will come their way.

Every role is in demand and nearly every company is recruiting.

Mr Mulhern said: “It is really exciting times for this sector. We are finding that candidates are driven by what they will learn in their role as they all have to keep up to date with new technologies.

Our clients will be looking for university level computer science and computing degrees. While there are

BTEC courses, these aren’t viewed as highly by employers.

Employers are also looking for graduates from fields such as maths and science as they have the technical skills necessary to learn a language easily through intensive courses.”

With the IT sector growing so quickly, the impact is being felt across other industries.

Mr Mulhern has noticed an increase in manufacturing clients requiring programming and electronic skills for support roles.

He said: “This is a competitive market with fantastic opportunities. Employers have

>> Turn to page 40

SKILLS CODE but steps are being taken to resolve the problem, finds Rebecca Kincade

2 December 2013 BUSINESS MONTH 39

FOCUS ON: IT

>> From page 39 to tempt job seekers with the right environment of career progression, stability, team gatherings and flexible working arrangements.”

Martin Lyons, managing director, Zenith Networks, provides outsourced IT solutions to companies requiring support. This company recruits and trains staff for support positions and network management roles that offer an alternative career path to programming.

Mr Lyons said: “People who work in IT tend to be multiskilled when they complete

their courses so this means that we are trying to recruit against big global firms that are used to paying large salaries. It is difficult to get good people with a broad base of experience because of the competitive rates on offer.

However, the work that we have is varied and interesting, with different networks, clients and technologies every day.”

Mr Lyons recruits for positions that require knowledge of multiple applications, software and day-to-day computer problem-solving skills. He said: “There are roles out there for people who aren’t interested in

40 BUSINESS MONTH 2 December 2013

programming. We have thirdline support positions that involve a high level of specialised knowledge and these people can come in and save the day for our clients when it seems like everything is going wrong. We also have project management roles that require an overview of knowledge on the technologies available but rely more on people management and organisational skills.”

When it comes to these positions, Mr Lyons says that they are willing to consider not only those qualified, but also those people who can show a clear passion and knowledge of the sector. He said: “A CV

that shows that a person is self-taught and a self-starter can count for a lot. Passion and experience of implementing solutions will be considered as good as academic qualifications. At the moment we are training all of our staff in virtualisation as this is a popular cost-effective and energyefficient solution for our clients.”

While it seems to outsiders that the IT sector is all about technical codes and secret languages, in actual fact those who have selected to pursue a career in this area have the opportunity to decide just how technical they want it to be.

FOCUS ON: FDI

OUR FOREIGN

Word-of-mouth praise combined with targeted marketing is wooing investors from abroad, finds Rebecca Kincade

required. For financial services, we would be up against other cities in the UK and the US, as well as eastern Europe. Business services and contact centres would look at India, South Africa and the Republic of Ireland, taking advantage of their corporation tax rate.

Mr McBride said: “New investors will start with a small project to see how it works out on a low-risk basis. To keep securing this business we need to keep doing what we are doing. Our politicians have been joined at the hip

T

he recently held investment conference in Titanic Belfast was heralded as a major success, with Prime Minister David Cameron standing alongside our First and deputy First Ministers to sell Northern Ireland as a top destination for inward investment. In 2012/13 there was a total of 27 new foreign direct investments (FDI) into Northern Ireland, supported by Invest NI, with the potential to create 519 new jobs.

However, if you take into consideration FDI expansions and diversifications, there was a total of 166 FDI-led projects, supported by Invest NI, in 2012/13 with the potential to create 2,790 new jobs.

Barry McBride, executive director of international business, Invest NI, said that it is not just one unique selling point that keeps our country on the radar of growing companies: “The main thing in terms of our selling point is the high level of skills and talent we have on offer, but we are able to combine this with cost competitive rates.

There are cheaper locations available, but they may not be located as close to Europe and they might not have the same skills set that we do.”

When it comes to getting companies to sign on the dotted line and commit to investment, Mr McBride feels that testimonials from business

>> Turn to page 44

leaders already succeeding in the Northern Ireland market have the strongest impact. One of the most publicised statements from the investment conference came from Suren Gupta, technology and operations executive vice president, Allstate, who said that his firm has “saved over a billion dollars” due to its decision to set up in Northern Ireland 15 years ago. In the same speech he also said that Allstate NI was the firm’s premier software development team, reinforcing the combination of quality talent at reasonable costs.

Mr McBride continued: “Investors don’t beat a path to our door. We take a very targeted and focused approach to seeking out opportunities. We have a market research team for each geography and sector.

The US is an important market for us at the moment and our attentions are on Silicon Valley, New York, Chicago and Boston.

Our team does cold, hard research, looking through annual reports, keeping up to date on Twitter and looking for key words that indicate a company will be expanding to Europe in the coming years.”

42 BUSINESS MONTH 2December 2013

So who are our main competitors for FDI? That depends on the sector and the skills

APPEAL

2 December 2013 BUSINESS MONTH 43

FOCUS ON: FDI >> From page 43 in their commitment to ensure that Northern Ireland is seen as open for business and this is working for us.

With a cut in corporation tax we could achieve untold levels of success.”

Firstsource Solutions, one of Northern Ireland’s largest private sector employers, is celebrating the seventh anniversary of its operations here. This global provider of business process outsourcing services employs over 2,000 staff at four contact centres, two in Belfast and two in Londonderry.

Fraida Silver, UK marketing director, Firstsource Solutions, said: “When our firm first came to Northern Ireland it was announced that we would be creating 1,000 sustainable jobs. Through steady growth and strategic partnerships with our clients, Firstsource has more than doubled that figure. Northern Ireland was chosen over a number of other UK locations, mainly for the quality of education, good quality infrastructure, connectivity with the rest of the UK and Ireland and the availability

of good quality employees.”

Firstsource were looking for locations that not only provided a high standard of well-educated staff with a strong customer service ethic, but were also accessible from other parts of the UK. While Northern Ireland scored strongly on all counts, there are selling points that Ms Silver said we could build on to improve our FDI opportunities.

“It would be advantageous if

44 BUSINESS MONTH 2 December 2013

there was a more diverse portfolio of quality premises available. Potential investors will need a space which is suitable for their needs and fit for purpose. Transport (above) and infrastructure will be a major consideration for potential investors. While the road network is relatively good, good public transport is essential.

For example, we want to encourage an increase in the frequency of night bus routes to

allow our staff to get home safe at night.”

Those companies who have invested here are happy to share their stories about the success they have enjoyed. Any areas for improvement are minor in comparison to the leaps and bounds that have been made over the last few years. Northern Ireland is very much open for business and standing tall alongside its competitors worldwide.

OFFLINE SECTION

MOTORING

DAY IN THE LIFE

MAN ABOUT TOWN

Kia Proceed GT

MD of Rallymaps

Inside track on Northern Ireland business

TOP FLIGHT

BOBBY WILLIS

THE CHAIRMAN

PICTURE PERFECT

A SNAPPY LOOK AT CUBA 2 December 2013 BUSINESS MONTH 45

offline

OUT TO LUNCH Mandy Patrick with Joris Minne at the Park Avenue Hotel

Championing hotel sector comes naturally Mandy Patrick, general manager and director of the Park Avenue Hotel, has a fifth sense that is being put to good use to achieve hoteliers’ five Ts, discovers Joris Minne

M

andy Patrick’s rise from washing cups and saucers to chairing the Northern Ireland Hotels Federation is the stuff of local legend. She represents the third generation in the family business, the Park Avenue Hotel built in 1963. From the Sixties through the Troubles and into the 1990s the hotel bumped and scraped along, largely unnoticed by the Northern Ireland Tourist Board, doing its best to fill rooms and serve steaks.

It wasn’t until Mandy had completed her long apprenticeship and started to take the reins of the place towards the end of the 1990s that a serious dilemma was answered.

“We need to talk about the hotel,” Mandy gently nudged the family. Within a few months, she had convinced them that £2m should be spent refurbishing rooms, building new kitchens, doing away with that vast hangar of a function room and extending the conference facilities — and off she went.

She completed her task but this was only the start of a much longer trajectory because Mandy Patrick had bigger ideas still.

Within a year of reopening, the Park Avenue Hotel was listed by NITB as a threestar. A bit more money was spent to bring it up to four-star status and next thing Mandy knew, she was on the board of the NITB, employing 120 people and hitting very high

46 BUSINESS MONTH 2 Decvember 2013

occupancy levels in the 54 bijou rooms.

It takes a fifth sense to determine what your regular customers will put up with when you start playing around with the bar they’ve known for 40 years or more, or updating the menu which they have come to love for a generation. It’s precisely this gift which makes Mandy a stand-out hotelier so it is no wonder that she should be asked to share her knowledge.

This knowledge has been put to great use in recent years. She has sat on the boards of Belfast Visitor and Convention Bureau, now Visit Belfast as well as Tourism Ireland and the NITB. Her recent elevation to the presidency of the hoteliers’ federation is further acknowledgement of her talent.

But she wears all this honour (and an MBE) without any airs. The light of hospitality burns fiercely and even when we share a lunch as we did in the bar of the hotel, I notice how attentive she is to every detail: the way staff operate and talk to clients, the cleanliness and general attractiveness of the bar, the quality of the presentation of the food; all these factors are under subtle but intense scrutiny.

She applies the same dedication to the NIHF Tourism 2020 Strategy, based on some of the most in-depth analysis of the sector. I did not know there are 139 hotels

in Northern Ireland, or that the £1.5bn tourism sector generates 4.9% of our GDP and employs 60,000 people.

“We can do more,” declares Mandy.

“Hotels could support 40% more jobs by 2020. But we need help in the area of the five Ts.” She reels them off fluently and it’s clear she has rehearsed them for repeated delivery at Stormont and to anyone willing to listen. They comprise: tourism, taxation, targets, trading and training. The help being called for includes a reduction in VAT to 5%, an in-depth study into the future needs of tourism, more events and cohesive marketing and a greater focus on skills.

“I love the people in this sector and even though we all compete, we also understand the need to co-ordinate our efforts. My job is to see how far I can get with the five Ts in the next two years.”

Lunch is over as quickly as it started but I feel I have been well looked after.

The Bill Prawn Cocktail Crispy skewered mushrooms Mixed fish grill Ulster pork belly

5.75 5.25 9.95 8.95

Total:

30.15

offline

SHOPS WITH FRONT

Streetview No.39: Jackson Sports, Belfast Ron McBride

W

alking the dog in winter on the Lagan towpath, standing around on the set of Game of Thrones, climbing in Australia’s Blue Mountains or surfing on Ireland’s west coast are among activities shared by customers of Jackson Sports. Others, be they in New Zealand, USA or at Everest Base Camp are happy with their purchases.

Dion Jackson, the owner, remembers his father selling fishing gear from the family home in the late 1960s. The business was opened in Belfast and occupied various locations before moving to High Street in 1977. By 1979 the business expanded by taking over two other premises, creating the large heavily stocked shop of today. Jackson Sports has an imposing double frontage with well-stocked windows. On entry there is an enthusiast’s dream with a vast array of outdoor clothing and equipment for hill

walking and mountaineering.

The other half of the shop is packed with gear for water sports. Dion emphasises the point that they are specialists.

They don’t deal with racquet sports, rugby, hockey or cycling.

In a sense a different world opens up, on entry, to those unaccustomed to the sporting life, for here are brand names and countless accessories known to the aficionado.

Marmot, Montane and Lowe Alpine feature among the 200 brands available. Indeed, Jackson Sports are involved with the latter in sponsoring the Mourne Mountain Marathon. Dion and

his staff, including Brian and Jonathan, are adept at giving advice.

Newcomers to the mountains may be fascinated by the trends in gadgets for cooking and the availability of increasingly lightweight tents and sleeping bags.

Specialist clothing can be very expensive, reflecting its technology, and Dion can direct customers away from the jacket at £300 or more towards something less expensive but adequate where applicable.

Such shops with specialist knowledge and good customer service have nothing to fear

from the multiples. Dion uses a first-class business model in having a superb website.

Several hours a week are spent on it and the Royal Mail arrives daily to collect orders which are sent worldwide.

The fact that items are very competitively priced, and are tax-free outside the EU, has opened up a market in Norway, Australia, New Zealand and the USA. Post-free delivery is a real boon to customers throughout the British Isles. Hundreds of customers have reviewed the company, lauding their superb service.

Those thinking of taking up hill walking or some serious mountain climbing would enjoy investigating a superb website and visiting a friendly shop.

For anyone considering water sports, Christmas is an ideal time for ‘splashing out’ even if it’s only with a gift voucher.

Jackson Sports 70 High Street Belfast BT1 2BE 02890 238572

2 Dedember 2013 BUSINESS MONTH 47

offline

DAY IN THE LIFE

Meet a driving force for the Circuit of Ireland Bobby Willis

MD of Rallymaps and events director of Circuit of Ireland

8am

After breakfast, usually cereal, I head to the office in east Belfast — I’m usually at my desk by 8.30am trawling through emails.

9am

Rallymaps, the company I founded nearly 40 years ago, supplies specialist mapping to top rally teams globally. First thing I get cracking with is preparing maps for the Monte Carlo Rally in January 2014. Working from the office we’re able to prepare and cost-effectively deliver high- resolution geographic data to anywhere in the world.

10am

While Rallymaps is my business, rallying is my passion. I work in a voluntary capacity for the Circuit of Ireland which takes place on April 17-19 next year — just six weeks before the Giro d’Italia. We recently announced that the 2014 circuit will be a round of the European Rally Championship (ERC), so most mornings are

spent on either the computer or the phone planning the event with executives from ERC promoters Eurosport Events.

2pm

I balance tasks between Rallymaps and the Circuit of Ireland — aided by the fact the two fit hand in glove! Midmorning, mug of tea in hand, I continue with map preparation — this time for the 2014 Dakar Rally which starts on January 5.

While we haven’t revealed the route for the 2014 Circuit of Ireland, it will include Belfast and counties Down and Antrim.

Afternoons tend to feature discussions with regional council executives to hammer out event plans and finalise stages so we can help councils show off the best attractions in their region.

As the 2014 circuit is a round of the ERC we expect the event to attract a huge number of visitors.

12pm

3pm

11am

We also work closely with motorsport media and sports editors to generate publicity.

My remit is to attract top teams to enter the Circuit of Ireland.

Entries are set to open mid-January, therefore part of my time is spent talking to potential drivers and team managers.

We’re looking forward to bringing the cream of the crop to Northern Ireland in April 2014.

4pm

1pm

5pm

Lunch is normally a bowl of soup or a sandwich eaten while I catch up on emails or prepare for afternoon meetings.

48 BUSINESS MONTH 2 December 2013

The Circuit is one of 12 rounds of the ERC and I’m also creating maps for next month’s Austrianbased Jannerrallye.

The ERC, including of course the Circuit of Ireland, will be broadcast by Eurosport so when planning routes we bear

in mind the chance to show off some of Northern Ireland’s key tourist locations to more than 10m viewers globally.

Late afternoon I’m working with the Eurosport team on the official launch of the ERC calendar which will take place in Paris this month. It provides an excellent opportunity to meet teams and competitors face to face and secure entries for the Circuit of Ireland.

6pm

Ahead of our weekly Circuit of Ireland management meetings our clerk of the course joins me for a working dinner to go through plans ahead of our team meeting. I do the cooking and I can rustle up a mean bolognese!

7.30pm

The Circuit of Ireland relies on over 700 volunteers who do a terrific job. The key operational activities are managed by a team of 10. We’ve usually finished our meeting by 10.30pm. After following up on emails I’m in bed by midnight.

offline

Audi tops survey of 600,000 for reliability AUDI is the UK’s most reliable manufacturer, according to a survey of over 600,000 company car drivers served by the most prominent leasing companies.

The survey, commissioned annually by Fleet News, asks the top 50 (by fleet size) leasing companies to rank the best vehicles and manufacturers for reliability, and then filters each category into a Top 10.

Two Audi models — the A3 compact hatchback and the A4 compact executive Saloon and Avant — appear in the Most Reliable Cars Top 10, the A3 rising from seventh position last year to fifth in 2013 and the A4 from third to second place.

The A1 premium subcompact, the Q3 compact SUV and the TT sports car also climbed the rankings in this year’s results.

Call for compulsory CCTV cameras on HGVs A LEADING road safety expert has called for all lorries to have compulsory side, front and rear CCTV cameras following the death of the 12th

cyclist on UK roads this year.

Melvyn Hodgetts, who was in charge of safety on Royal Mail’s entire lorry fleet for over 20 years, said: “These tragic cycle accidents illustrate how hazardous our roads have become.

“One essential improvement would be to push for greater incab technology to reduce driver blind spots.

“The latest on-vehicle camera systems not only provide blind spot coverage to give the driver vital vision of moving cyclists around them, but also gather data on driving behaviour, vehicle speed and positioning.”

Panda 4x4 clears tough obstacles to win award BRITAIN’S best-selling magazine for off-road fans, 4X4 Magazine, has named the Fiat Panda 4X4 Winner Mini 4X4 Class in its 2014 4X4 of the Year Awards.

The Fiat Panda 4X4 not only

saw off its direct competition during the award adjudication, conducted at a dedicated and challenging off-road circuit, but it also acquitted itself admirably in the final five-vehicle shootout.

Nigel Fryatt, editor of 4X4 Magazine, said: “We used a test facility that was designed to demonstrate the abilities of far bigger — and much more expensive — vehicles.

“Allowing for limited ground clearance and power, we still managed to crawl the Panda over and through some significant obstacles. You needed care, and perhaps we took it further than most owners would, but that’s irrelevant. The point is that the Panda 4x4 could do it, with some style.”

Jaguar Land Rover out to help young find work AS the latest UK unemployment figures highlight the on-going

MOTORING NEWS

challenge facing young people in their search for fulfilling employment, Jaguar Land Rover is launching a new youth training programme, ‘Inspiring Tomorrow’s Workforce’.

The initiative, designed to support young people aged 16-23 who are not in employment, education or training, is based on the traineeship model and will help participants develop the skill necessary to take on an apprenticeship or other sustainable employment within the automotive sector.

‘Third of sellers in dark over true value of car’ ONE in three motorists who plan to sell, or trade-in, start out believing their car is worth more than it really is, according to independent car information experts CAP Automotive.

The findings come from customer feedback on CAP’s free used-car valuation website which was launched earlier this year.

It also reveals that going into negotiations armed with an independent and accurate value helps 90% of sellers ultimately achieve a good trade-in price.

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MOTORING

KIA Proceed GT Engine: 1.6 litre, 201bhp @ 6,000rpm. 265Nm torque @ 1,750-4,500rpm.

Drive: Via six-speed manual gearbox to front wheels.

Performance: 0-60mph in 7.4 seconds; max, 143 mph (228km/h) Fuel on combined cycle: 38.2mpg (6.6 l/100km) CO2: 171gms/km; VED Band H for £190 annual car tax (second year onwards) Trim: GT Price: £19,995 Insurance: ABI (1-50) Group 29 Warranty: Seven-year/100,000 miles Benefit-in-Kind: 26% Euro NCAP: N/A Available extras: Tech pack £2,500, Care-3 all-inclusive threeyear service plan £399.

FREE TO PROCEED

Kia’s performance hatchback fits right in with the old hands, says Jim McCauley

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tunning at every angle; menacing and a thing of beauty. Kia has set the cat among the pigeons with its first foray into the performance market. The Proceed GT has a clear ‘Don't mess with me' look, but can it hold its own against the competition?

Benchmark competition comes from a quartet of performance

hatches from Ford, Vauxhall, Volkswagen and Renault, all of which have a development provenance.

But what of the new kid on the block? Power for the GT comes from an upgraded version of the Korean car maker's well established 1.6 litre petrol engine, the turbocharged unit now producing 201 HP with a deliciously supporting 265Nm

50 BUSINESS MONTH 2 December 2013

of torque. The statistical return is a 0-60mph time of 7.4 seconds with the potential to top 143mph. And while this is not enough to trump the competition, it is the delivery of the power and the fluidity through the gears that endears you to it.

Mid-range enthusiasm is shown by a 37 to 60mph time of 5.4 seconds and a 50-75mph time of 7.3 seconds, keeping the

car instantly responsive to the slightest tip on the throttle. A rework of the suspension sees increased firmness and greater roll resistance, yet produces sufficient initial ‘give' to maintain a degree of comfort. Steering is also sharpened for the GT, and while not providing surface rendering feedback, nevertheless delivers the accuracy required expected in a performance car.

WITHOUT DOUBT The interior features figurehugging Recaro front seats in the all-black five-seater cabin.

Upholstery is part leather and part suede with red stitching, echoing the red base line on the lower grille. Instrumentation is clearly presented while the LCD multi-function display allows the driver to switch between analogue-type or GT performance digital information. In performance mode it shows the car's speed, engine

torque, turbo boost pressure and engine coolant temperature.

The three-door GT may be the new kid on the block but has nothing to learn when it comes to presentation and performance. The established icons have to respect the new arrival and surrender sales to this well-sorted competitor.

The new model is available in two options, standard GT and GT Tech at a £2,500 premium

over the standard car's price of £19,995. The European built car will be sold only in Europe.

A launch edition of just 50 models have been assigned to the UK with cars available in black, red or white. The launch edition, with several extra features including a sunroof, highgloss cabin inserts and ambient interior lighting, is available only in Fusion White metallic.

All derivatives come with air conditioning, cruise control,

automatic lights with cornering function, reversing sensors and Bluetooth connectivity.

Average fuel consumption is given as 38.2mpg, while a CO2 emissions of 171gms/km puts it in Band H for annual car tax.

The seven-year warranty is subject to a standard servicing schedule. Kia's ‘Care-3' all-inclusive servicing plan covers the cost of the first three 12-month/10,000 mile services for £399.

2 December 2013 BUSINESS MONTH 51

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TECHNOLOGY Alcatel 1010 Pay as Go Phone, £5 @ ASDA Asda has launched the nation’s best value phone costing the same price as a pack of dishwasher tablets. The TMobile Pay-As-You-Go Alcatel 1010 handset is available in-store or online and is expected to prove popular with customers looking to purchase a ‘spare phone’ to rely on if the battery on their smart phone goes flat. It could appeal to elderly shoppers who want to keep in touch with relatives at a minimum cost. The lightweight handset comes with 3MB of memory, inbuilt MP3 player, wireless FM radio and a handsfree function. Bear in mind that it is a basic function phone so don’t be expecting any bells or whistles.

Doxie Flip Scanner, £114.95 @ www.amazon.co.uk Scanning is made as easy as ABC thanks to the batterypowered Doxie Flip. About the size of a book, it works with just about everything. Just flip it over, and you can see what you’re scanning through the window. Once you’ve scanned, transfer your images from the SD card to the Doxie app to organise them. The lid pulls right off too, so you can put the Doxie Flip on your photos and documents without danger of damaging them.

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Watchman Anywhere Monitoring Device, £110 @ www.watchmananywhere.com This nifty gadget by Kingspan Environmental allows the 500,000 or so oil tanks in Northern Ireland to alert their owner when they need refilling. The Watchman Anywhere monitoring device is simply attached to the top of the oil tank, whether it be steel, plastic, single skin or bunded. It uses ultrasound techniques to measure the oil level. The amount of fuel in the tank can then be viewed instantly through the app which can be downloaded for free for smartphone or tablet access. The ease of use makes this gadget particularly appealing to those who don’t want to pitch up at their holiday home to find it freezing cold, and the elderly whose relatives can keep an eye on their oil levels.

BANK CUSTOMERS GET CONNECTED First Trust Bank is the first local bank to roll out free wifi access across all its branches.

The wireless hotspots will allow customers to use their own laptops, tablets and smart phones to access the internet in branch. Online banking ‘champions’ will assist customers with downloading and using the mobile banking app or online banking. They will also deliver tutorials for those of all technical abilities on a range of topics, from checking your balance, to bill payments and money transfers. Tutorials for business customers are available on iBusiness Banking at the customers’ premises.

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Dress To impress Grainne McGarvey Skull cufflinks, £85 @ Paul Smith

Grey floral blazer, £110 @ River Island

FASHION

Sparkle top, £79 @ Phase Eight

tones such as purple and green will look rich and luxurious without looking tacky. Guys can be subtle by introducing it to a bow-tie or detail on a suit lapel or opt for texture in their look such as velvet, patent or satin which can also give the desired effect.

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he month has finally arrived when you can dress up in your best outfit for the annual staff night out. Even if black or grey is your staple office wear throughout the year, a few strategically placed sequins can create some festive sparkle to any outfit. Ladies have the luxury to bling up clothing as well as accessories and this year jewel

Karl Largerfeld, £279 @ House of Fraser Velvet bow tie, £10@ Next

Collezione brogues, £59 @ M&S

Grace Kelly shift dress, £45, Gok @ Sainsburys

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TRAVEL

PICTURE IT

More to Cuba than icons of the revolution

A family holiday reveals how to capture the best images of a photogenic country, from the cigar-rollers and Cadillacs to its mountain ranges and cowboys, as Mike Unwin finds out

54 BUSINESS MONTH 2 December 2013

B

ehind the opulent carved front door it's a typical colonial Cuban living room. Framed Spanish ancestors glower down on to antique furniture; afternoon sunlight streams through wroughtiron window bars across the tiled floor.

Typical in all respects except, perhaps, the two horses that stand patiently between the bamboo easy chair and mahogany coffee table.

My daughter is dumbstruck as we edge past the animals to the tray of welcome drinks. “This is Luna,” explains our host, Julio Munoz, patting the larger beast, “and this is her foal.” The youngster has been unwell so he's brought her inside to keep an eye on her.

As you do. To be fair, Julio — photographer, horse whisperer and local celebrity in the Unesco World Heritage town of Trinidad — is probably not your average Cuban. But, one week into our tour, “average” is proving tricky to pin down. Cuba seems to be one bizarre juxtaposition after another — rumba dancers jiggling in front of revolutionary slogans, old ladies chewing on cigars — and we are learning to expect the unexpected.

It is such images, of course, that make the island so famously photogenic. I'm here, with my family and four others — our children ranging in age from eight to 15 — on an innovative tour. The idea is to combine a holiday, taking in some of the island's classic sights, with a basic photography course.

Julio is the second of two local photography guides on our trip. Already he has led us on a walkabout through town while we clicked away at his promptings: stooping low to capture a rose-pink 1960s Cadillac before the crumbling Convento de San Francisco; panning wider for a full street tableau — barefoot children, pastel houses, skinny gent with pet iguana. Now, back in his living room, we are learning the theory.

“See how it leads the eye in,” Julio explaining the one-thirds principle of picture composition, uses his own slide show to demonstrate that placing the subject at the intersections in an imaginary grid of thirds, rather than centering it, gives the viewer a sense of expectation. “Aaah!” we chorus, as he illustrates the point with one stunning image after another.

Our clicking began a week earlier in Havana, where government tour guide Ari Perez met us at the airport. Over the past week, driving from A to B, he has been regaling us with the virtues of his homeland, how it has clung to its ideals through five decades of US imperialist aggression.

His commentary has not been without its subtext: a frustration at the lack of passports,

internet access and other Western indulgences. But all that may be about to change.

Once the first trickle of private enterprise opens the floodgates, so popular opinion has it, the island's unique qualities will — for better or worse — be swept away in a deluge of bland Western consumerism.

For a nation squeezed into austerity, the place seemed brimful of life. At a tourist restaurant — ice cream for youngsters, mojitos for parents — the toasties were unimpressive (Cuba is not for foodies) but the house rumba band was fabulous.

The following day saw us high above a valley, 175km to the west of the capital, gawping at the panorama of Vinales. “Switch to aperture priority and try a low F-stop,” suggested Harold, the young photography guide who had joined us in Havana. We scrolled through one another's images, try-

ing to decide who had best captured this improbably chocolate-box landscape.

Farming in Cuba remains highly traditional, the collapse of the sugar industry after the demise of Soviet Russia having spelt the end of large-scale production. This, after all, is a country with one of the lowest per capita carbon footprints on Earth. It all made for an appealing mix the next morning as we set out on foot to explore the Vinales valley. We snapped away as pigs rootled beneath grenadilla hedgerows, a farmer led his bullock through an arrowroot field and a heron flapped over the spiky palisades of pineapple plants.

At the end of a village track were the tobacco sheds, wrinkled leaves arranged on drying racks in the dark. Nobody dared interrupt Ari's spiel with awkward questions, however, as he explained how the traditions are passed down through generations, that cigars are in fact good for you and how all that imperialist anti-smoking propaganda was just aimed at destroying Cuba's economy.

Deep in Cuba's pastoral interior it is easy to forget you are on a Caribbean island. But it was the Caribbean that provided our next

stop. The Bay of Pigs, in the island's southwest, is best known for the ill-fated American sponsored “invasion” of 1961. It was in the warm, shallow waters of Playa Giron — near our beach hotel — that a CIA-trained team of 1,400 exile paramilitaries came ashore, only to be defeated by Castro's revolutionary guard. Among the relics at a nearby museum, colourful rhetoric celebrated the deeds of the heroes — one of whom, before expiring, had scrawled “Viva Fidel” in his own blood on the side of a tank.

Cold War history — along with cameras — were abandoned the next morning as we headed to the nearby coral lagoon of Caleta Buena for a spot of snorkelling.

As we continued east, via the Frenchinfluenced coastal town of Cienfuegos and the beaches at Costa Sur, Ari warmed to his themes. Tongue-in-cheek complaints about “our American friends” had become more vehement as he bemoaned the suffering wrought by sanctions, but just as quickly dissolved into a grin. “In Cuba,” he explained, with a wink, “we solve all our problems with rum, cigars and ‘cushy-cushy'.” Indeed.

And so to Trinidad, tucked away among a picturesque cluster of hills halfway along the south coast. Having met Julio and his horses on day one, day two sees us clambering into the saddle and trotting after him into the lush countryside. We wind among sugar plantations and splash through streams before reaching a hacienda, where raw cane is crushed into syrupy drinks and an oldtimer belts out Spanish love songs on a battered four-string guitar.

Finally we dismount for a lavish lunch at La Finca de Leonardo, Julio's family home, where a table is laden with rice, beans and shrimp salad, and a pig turns slowly on a spit.

Julio does not forget his responsibilities.

After lunch we pull over at a ford where, parked in the river — rear wheels in the water — is a classic red Cadillac. Julio lines us up on the bank, with the light behind us and then plays his trump card: a cowboy gallops into the shallows and, with dazzling horsemanship, makes circuit after circuit around the vehicle, sending plumes of spray across the gleaming fenders. We snap away from every angle.

Cadillac, cowboy … all we need to complete the cliche is Che Guevara chomping on a cigar. But these images are famous for a reason. Yes, our tour has doubtless given us a rose-tinted impression of Cuba and glossed over its numerous difficulties. But it's a gorgeous place, we're on holiday, we've got our cameras and now — at last — we're not afraid to use them.

some meals, transport and services of a local tour leader. It also offers tailor-made tours for families or groups (minimum two people) which can include photography tuition and assignments, prices on request.

Thomas Cook (0871 230 2406; flythomascook.com) flies from Manchester and

Gatwick to Holguin and Cayo Coco; Thomson Airways (0871 231 4787; thomson.com) flies from Gatwick to Holguín; and Virgin Atlantic (0844 209 7777; virginatlantic.com) flies from Gatwick to Havana.

More information Travel2cuba.co.uk

For a nation that is squeezed into austerity, the place seemed brimful of life

Travel essentials Getting there Mike Unwin travelled as a guest of The Adventure Company (0845 450 5316; adventurecompany.co.uk) which offers a 12-day Viva Cuba! family holiday, from £1,670 for children and £1,855 for adults, including flights, hotel accommodation,

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TRAVEL

The Big Six: Aussie backpacker beds Minima, Adelaide Minima stands at the northern end of South Australia’s ‘Garden City. Open since 2008, the hotel was recently transformed, after handing over a batch of its rooms to a group of emerging artists. Each takes you somewhere new, from Gary Seaman’s childlike figurines on the walls of Room Five to Seb Humphreys’s water-like waves that ripple across Room Seven.

Minima, Adelaide, South Australia (00 61 8 8334 7780; majestichotels. com.au). Doubles from A$110 (£69), room only.

Base, Magnetic Island Magnetic Island (pictured) lies offshore from the city of Townsville in Queensland’s tropical north. It’s home to a national park, a bird sanctuary and the Base hostel, which offers beachside doubles and dorms, raised above granite boulders and a golden crescent of sand. Spend time sinking a cocktail at the Island Bar, chilling out beside the palm-shaded pool or scuba diving in the coral reefs.

Base, Magnetic Island, Queensland (00 61 7 47785 777; stayatbase.com).

Doubles from A$100 (£63), room only; dorms from A$27 (£17).

PK’s Jungle Village, Daintree Daintree is the largest rainforest on mainland Australia, extending up Queensland's coast from the Mossman Gorge to the Bloomfield River.

In the centre, where Cape Tribulation juts out into the Coral Sea, stands PK's Jungle Village. It offers a fuss-free base amid the wilderness, with cabin, dorm and campsite accommodation, plus a long a list of low-cost tours. By night, sink a drink at the bar as a symphony of animals sounds out across the night.

PK's Jungle Village, Daintree, Queensland (00 61 7 4098 0040; pksjunglevillage. com.au). Doubles from A$96 (£60), room only; 56 BUSINESS MONTH 2 December 2013

dorms from A$25 (£16).

Outback Pioneer, Uluru The more-affordable sister to luxury camp Longitude 131° just across the road, Outback Pioneer provides authentic Aussie hospitality in simple digs. This is the ideal base for those who’d rather splash the cash on a sunrise camel trek (A$119) or perhaps even take to the skies to spy the dramatic sandstone bluff of Uluru on a helicopter ride (A$140pp).

Outback Pioneer, Northern Territory (00 61 2 8296 8010; ayersrockresort. com.au). Doubles from A$198 (£124), room only.

Beaches of Broome, Broome Broome is the jumping off point for Western Australia's vast, untamed Kimberley region. Here, set back from the near-flat sweep of Cable Beach, guests can check in to Beaches of Broome for cool, contemporary accommodation at accessible prices.

As well as standard dorms and doubles, there’s also a pool, cinema room and communal kitchen.

Beaches of Broome, Broome, Western Australia (00 61 8 9192 6665; beachesof broome.com.au). Doubles from A$140 (£88), B&B; dorms from A$24 (£15).

Tune, Melbourne The first property in Australia by low-cost hotel chain Tune opened in Melbourne last month. If you’re familiar with the brand’s outposts in Asia — or indeed its four hotels in London — you’ll know the the onus is on keeping costs down. But that doesn’t mean the end result is left lacking.

At the new property, you get the benefit of a central location in Carlton, known for its Victorian architecture and garden squares, with 225 basic-but-functional rooms, a lounge, cafe and on-site store.

Tune, Melbourne, Victoria (Bookings via tunehotels.com). Doubles from A$65 (£41), room only.

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Appointments

OUT AND ABOUT

with The

CHAIRMAN Our man about town got into the spirit of things as a Pub of the Year judge and rocked at the Chamber of Commerce dinner

Thomas Devlin has joined Sentel as service desk team leader, responsible for the quality of service and technical support afforded customers. He also provides professional, strategic and administrative leadership to the service desk team.

Blake Jones has been appointed client executive at Sentel. He has more than six years’ customer relationship and account management experience gained working with global brands PwC, T-Mobile, Cisco and BSkyB.

Andy Lynch has joined Sentel as chief technology officer.

He is responsible for product research and development, the future direction of the business systems and infrastructure as well as large scale project management.

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he Chairman has been honoured on many occasions in his time (still holding out for the CBE — nominations welcome) but being invited to judge the Pub of the Year awards was a very special moment.

It was a tough job, but someone had to it, so The Chairman joined Gary McDonald of the Irish News, the Sunday Life’s Martin Breen, Nicola Daly of Hospitality Review and Symon Ross of Ulster Business to road test the province’s finest hostelries under the calm and good humoured supervision of Pubs of Ulster man Joel Neill.

We took in the Harbour Bar in Portrush, Holywood’s Dirty Duck, then Belfast’s Kelly’s Cellars, Horatio Todds and the Garrick.

Eventual winner, the Harbour Bar publican Willie Gregg, regaled us with his stories and props, and we heard how it has played host to distinguished guests like Darren Clarke and Gee-Mac — no, not our friend Gary McDonald, but golfer Graeme McDowell.

A great time was had, but the absence of ex-News Letter business editor and former judge Adrienne McGill, now at the Chamber of Commerce, meant the Dubonnet Test of whether or not the pub stocked the Queen Mother's second favourite tipple was one ritual we missed this year.

Events were rounded off in the Garrick, where, as luck would have it, we ran into FarmWizard’s Terry Canning on his way to see synth maestros Depeche Mode. Given the hectic pace of black-tie dos which business people have faced in recent weeks, we Just Can’t Get Enough of the prospect of some down time in the run-up to Christmas.

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Chairman of the Institute of Directors (Northern Ireland division) Paul Terrington; keynote speaker Mike Southon and programme director for the IoD chartered director programme, Peter Martin, presented local directors from the 2012/2013 programme with their certificates and diplomas at the IoD NI’s annual lunch. It was a full house as hundreds of local directors attended the event, sponsored by Rainbow Communications, at the Hilton Hotel in Belfast.

Bank of Ireland UK hosted a seminar at Ravenhill Rugby Ground as part of Enterprise Week. From left: Sean Sheehan, regional manager NI, Bank of Ireland UK; Kieran Byrne, director, Wastebeater; Niall Olden, managing partner, Kernel Capital; and Clare Guinness, regional business manager, Bank of Ireland UK. The final of the Pub of the Year at La Mon was a lively affair, hosted with moustachioed Movember panache by ex-Apprentice contestant Jim Eastwood. We were welcomed

by Sinead Doyle and Paul McErlean of MCE, and fellow diners at our table included Fiona Rutherford of Cool FM

and Gee-Mac (the non-golfer).

Connor McCready of Coca-Cola HBC popped over to say hello to The Chairman and chat about old times and absent friends.

----NOVEMBER is always a month packed with functions. For some

Appointments

Kenneth Morton joined Leaf as infrastructure consultant from NITEC. With 10 years’ experience in the ICT industry, he will be responsible for implementing and assisting infrastructure projects for new and existing clients.

Rory Girvan and Aaron Donaghy at the launch of CrossFitHENCH gym on College Street in Belfast, which will create 10 jobs. The 5,000 square foot facility will include a cafe, a clinic offering soft tissue therapies, an infrared sauna (one of only two in Northern Ireland), a state of the art functional training room and a private training studio.

Colin Patton has joined Leaf as technical team leader.

He has worked in the ICT industry for 13 years. Mr Patton will be responsible for the day-to-day running of the support desk, liaising with customers and the scheduling of on-site work.

Chairman of the Institute of Directors (Northern Ireland division) Paul Terrington was joined at the IoD NI’s annual lunch by keynote speaker Mike Southon, and Stuart Carson, sales and marketing director of the event’s sponsor, Rainbow Communications. The event at the Hilton Hotel in Belfast was attended by hundreds of local directors. it could become wearing but for The Chairman it's an absolute pleasure to have the opportunity to pull on a dickie bow and spend time with some of the best minds in business.

One of the highlights was the Northern Ireland Chamber of Commerce's annual dinner which was themed NI Chamber Rocks. Initially The Chairman was under the impression there would be a strong focus on geology at the event but it turns out it was more White Snake than Grey Marl. As a guest of

Gareth Tancred, CEO BIFM, with Fiona Hegarty and Vincent Lavery, Niamh Mental Wellbeing (Northern Ireland Association for Mental Health), winners of FM Team of the Year at the BIFM Ireland Recognition Awards, with business journalist Jim Fitzpatrick

British Airways, it was once again an absolute pleasure to see Brenda Morgan and Karen Duckett whose hosting was second to none.

The evergreen John Simpson was in fine fettle and didn't bat an eyelid at Symon Ross's unconventional choice of tie, nor indeed Simon Hamilton's plans to help fix the Northern Ireland economy. It was also great to see PR guru Sarah Eakin and the Fitzwilliam Hotel's Siobhan O'Sullivan who were both on sparkling

form. Another PR afficionado at the dinner was Stephen Smith as well as Carl White who regaled The Chairman with tales of old. Mark Nodder told the assembled business people of his plans to get the Northern Ireland economy “rocking” and Who Wants to Be A Millionaire? originator Paul Smith got a grilling from Mark Simpson, as well as a little ribbing about his schooling. All in all — apart from the amazing

>> Turn to page 60

Robin Johnston has been appointed sales manager for Connect Telecom’s Scottish market. He has extensive experience in telecoms, with expertise in mobile security and mobile computing gained as the former enterprise and commercial manager of BlackBerry UK & Ireland.

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THE CHAIRMAN

Appointments

Paul McIlwrath has been appointed fresh foods category planner for Henderson Wholesale, part of the Henderson Group. He brings 14 years’ sales and account management experience from previous roles at Kerry Foods.

Gareth Walls, right, head of employment law and partner with A&L Goodbody, and Shirley Blair, associate with A&L Goodbody, aim to keep HR professionals on the right track at two events focusing on employment law at Down Royal racecourse next month. Showing the technology tothe pair is Conor Dumigan, business development executive with Turning Technologies. dearth of taxis — a great night which The Chairman enjoyed immensely.

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Christopher McWilliams has been appointed head chef at Oregano Restaurant.

He previously worked at Balloo House in Killinchy, The Parson’s Nose at Hillsborough, and as head chef of Lisbarnett House, near Comber.

Arlene O’Connor has been appointed as a client manager to MCE’s public affairs team.

A law graduate from Queen’s University Belfast, she joins from the British Medical Association Northern Ireland with a number of years’ experience in government relations and lobbying.

AN invitation to Newry is one of those which warms The Chairman's heart. It's rare to find hospitality as fine as that in the border town and so it proved at the Greater Newry Area Business Awards Ceremony.

Hosting the fine event was none other than Gerry Kelly, a friend of old from his chat show days, and what a master of ceremonies he proved to be.

Picking up gongs were Brionn McConville and Niamh McConville from Lagan Construction, as well as the effervescent Tanya Hughes and Terri Brosnan from Horst First. And there were big wins for Brian and Rosemary Ennis from The Funhouse as well as for David Loughran from Armatile who picked up the Best Customer Service Award.

Handmade cosmetics company Lush were awarded Best Retail Premises Award and were ably represented by Mary O'Hare and Bronagh McCullagh while FPM Accountants' Theresa Campbell picked up a prize for Corporate Social Responsibility.

All-in-all one of the best nights on the business calendar.

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Irish language enthusiast Noelle McCrory launched the Book of the Year roadshow with modern-day storyteller Liam Mac na Baird. The all-island roadshow, which was sponsored by Foras na Gaeilge, travelled across the country to schools and community groups, highlighting the shortlisted books in this year’s awards.

Appointments

Belfast-based Medizar Sanitiser Products, a specialist in hospital and clinical sanitiser products, has won its first business in the Gulf, following participation with Invest Northern Ireland at this year’s Arab Health Exhibition and a follow-up Invest NI supported market visit. Pictured are Dr Vicky Kell, Invest NI; and Jeffrey Prince, Medizar Sanitiser Products. Picture: Michael Cooper

Jacqueline Byrne, BIFM committee; Vincent Lavery and Fiona Hegarty, Niamh Mental Wellbeing (Northern Ireland Association for Mental Health), winners of BIFM FM Team of the Year.

Courier company UniBaggage.com has beaten off stiff competition from across the UK and Ireland to be crowned best Micro Business in the prestigious Smarta 100 – awards celebrating the most resourceful, inspiring and disruptive small businesses in the UK. Pictured is foudner Paul Stewart with his award.

County Tyrone firm LW Surphlis & Son has just unveiled a new 22,000 sq ft bulkstorage facility as part of a five-year investment programme supported by Ulster Bank. Ellvena Graham, head of Ulster Bank Northern Ireland, is pictured with Maurice Surphlis, managing director, LW Surphlis; and Cormac McKervey, senior agriculture manager, Ulster Bank.

Itradein.com, founded in Belfast, has been named on this year’s ‘Silicon Valley Comes 2 The UK’ (SVC2UK) 100 Club list; a list compromising companies in the UK which are believed to have the potential to reach £100m in revenue within the next three to five years. Itradein.com was founded by brothers Gerry and Adrian O’Reilly, pictured, with the aim of changing the way in which trade takes place in the global food and drinks industry.

Jim Stewart has been appointed chairman of Precision Group, a managed services companies. He is MD/owner of Training Solutions NI, and chairman of Sentinus, an educational charity delivering programmes that promote engagement in STEM (Science, Technology, Engineering and Mathematics).

Anna McClimonds has been appointed assistant solicitor at Cleaver Fulton Rankin Solicitors. She studied law at the University of Newcastle Upon Tyne and completed the legal practice course at the College of Law, York where she graduated with distinction.

Christopher McCluskey has been appointed assistant solicitor at Cleaver Fulton Rankin Solicitors. He graduated from University of Ulster, Jordanstown with a degree in law in June 2011 and went on to complete his training contract at Cleaver Fulton Rankin.

2 December2013 BUSINESS MONTH 60

THE LAST WORD

with Aaron

Taylor Business people drawing up lists of gifts to give this Christmas should not forget those aspiring entrepreneurs whose survival may well depend on access to a sounding board

O

ver the past few weeks I’ve had the privilege of spending time with a lot of aspiring entrepreneurs at the Web Summit and mentoring on various start-up programmes throughout Belfast.

There are a lot of really super talented people doing great things out there. However, most are in need of the appropriate structure, guidance and role models to help them shape their personal and business goals. They are experiencing issues more established entrepreneurs have had to deal with or are still dealing with.

With Christmas around the corner it got me thinking about what we as entrepreneurs can do to give back; what can we do to help those who are coming through?

Christmas is not all about receiving. I reckon now is the time to look at what we can give back to those whom we work with. Whether it be people in our own company who need to be empowered to have the belief to do their job better; or an entrepreneur we know who could benefit from a regular coffee and someone to bounce ideas off.

One of the things that makes start-up hubs like Silicon Valley, London and New York so successful is the willingness of people to give up their time to help those around them. This altruistic culture of giving keeps self-starters going when times get tough. It inspires them to chase their dreams. It also keeps them focused on the tasks at hand.

Being an entrepreneur is oftentimes a lonely existence. You can doubt everything: that you can’t share your concerns with your board for fear of spooking them; that you can’t share your concerns with your team in case you demotivate them; that you can’t force change and make things happen. For a lot of entrepreneurs, there is no outlet for unburdening, for sharing and restoring confidence.

As a community, we need to make sure we are the people who can offer a sounding board to these aspiring entrepreneurs. We need to remember what it was like for us

starting out, to remember the help, guidance and hand-holding we required to get from stormy waters into calmer seas.

Right now, there’s companies out there who are on the verge of great things and who could use some guidance and advice — companies such as VenueBooker; Little Deli app; Comprized; and Mindflood.

With Christmas in mind, and as it’s the season of goodwill, I would recommend anyone with time and value to add, to drop these guys an email and arrange to grab a coffee to hear what they are doing and to see if it’s something that you can help with.

Sometimes having access to a sounding board is all that’s needed.

As a small community we really need to come together and help each other maximise our chances of being successful. Only by pulling together and supporting each other can we truly maximise our chances of putting Northern Ireland on the global map. We can be a start-up environment that’s going places, driven by entrepreneurs who receive support from entrepreneurs.

Recently a group of us from Belfast set up a meet-up group called the Friday Night Mashup. Our aim is to connect, engage and inspire the current and the next generation of entrepreneurs, to give them the belief that everything is achievable. This group aims to offer support as they strive to make things happen.

My hope this Christmas, is that when you read this, you too will have that same aim, and look at how you can support and inspire those around you.

We need to remember the help we required to get from stormy waters to calmer seas

62 BUSINESS MONTH 2 December 2013