Business Month October 2013

October 2013 • ISSUE 35 PRICE £2.50 (Where sold)

WHAT’STHE COST? REAL THE IMPACT OF RIOTING ON NORTHERN IRELAND'S ECONOMY

PLUS: An in-depth look at the construction sector's prospects for the future + The business of education and how the public sector can impact your company

CONTENTS

COVER STORY

RED FLAG

Street violence is costing Belfast’s retailers and hoteliers business as well as damaging Northern’s Ireland’s chances of attracting inward investment

Editor’s note David Elliott

d.elliott@businessmonth.co.uk

W

14 FEATURES

12 Opinion: Shortage of mentors hampering recover 14 Opinion: The true benefits of mediation revealed 18 Insight: Now is the time for bold actions in the construction sector 26 And I’ll tell you another thing: The twists and turns of advertising 28 SME: Marriage is definitely not going out of fashion

FOCUS

38 Education: A growing number of workers are going back to study part-time 42 Public sector: There are challenges to winning public contracts but you can overcome them

OFFLINE

46 Out to lunch: Hooked on securing fishing town’s future 48 Day in the life of: Simon Campbell of Portview Fit-Out 50 Feel the Fource: Jim McCauley gets behind the wheel of BMW’s new 4 Series 54 Leave the car at home: Can you really use the bus to see the delights of LA? 58 The Chairman: The inside track on business 62 Last Word: With Aaron Taylor BUSINESS MONTH 124-144 Royal Avenue, Belfast, BT11EB Editor - David Elliott

46

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

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

ELCOME to the October edition of Business Month. As the chill of winter starts to take hold we’re hoping to heat things up with analysis and debate around the big issues.

Firstly, Paul Gosling finds out how much the summer of rioting has hurt the economy, not just in upfront costs but also reputational damage.

Secondly, we’re asking how the construction industry, that poster child of the recession, is faring now the economic outlook is more settled.

The business of education, the public sector and the world of small businesses are among the other topics we consider.

Towards the back of magazine we go car-less in Los Angeles, Joris Minne has lunch with some big fish from Kilkeel, Jim McCauley test drives a new BMW and The Chairman takes a trip to Asia.

And while you’re enjoying the magazine, look forward to the next few weeks when the biggest show in town arrives.

The global investment conference will attract scores of potential inward investors to these shores — hopefully some will sign on the dotted line. More foreign direct investment in combination with continued growth in our indigenous business base would put us firmly on the road to recovery.

All we then have to do is keep episodes such as those on our cover to a minimum.

7 OCTOBER 2013 BUSINESS MONTH 3

NEWS BITES

160% Australia

132% UK

132% Ireland

46% US

-6% Germany

-14% Japan

% change in house prices in real terms between 1975 and 2013. 1975 = 100 Source: The Economist.

North backs corporate tax rate cut for South THE Irish government has thrown its weight behind the campaign to reduce the business tax rate in Northern Ireland.

The Republic's finance minster Michael Noonan said a more favourable tax regime north of the border would be of benefit to both regions and help attract overseas investment.

He praised the work of Invest NI in attracting global companies to Northern Ireland but said his own investment agency, the Irish Development Agency, was well aware the role the Republic's 12.5% corporation tax played in providing a carrot to international investors.

Capita’s Antrim IT firm in running for award CAPITA Managed IT Solutions in Co Antrim has been shortlisted in the British Computer Society (BCS) & Computing Magazine’s UK IT Industry Awards in the category of Organisational Excellence (Large Supplier).

The Newtownabbey-based firm — known as Northgate Managed Services before it was taken over by Capita earlier this year — said the shortlisting recognised “the significant development and deployment of innovative IT systems that improve business operations or enhance public services”.

ProAx-SiS medical test kits share £25k prize A COMPANY from Queen's University, which has developed a range of medical diagnostic test kits, has scooped a share of a £25,000 prize in a Dragons’ Den-style competition.

The tests being developed by ProAx-SiS will enable routine monitoring of patients with chronic conditions such as cystic fibrosis, either within a clinic or at home. The product scooped the top prize at the

CODING THE FUTURE: ICT student Aoibheann McAleer is pictured on the first day of CodeCamp at Belfast Metropolitan College’s e3 building; a programme developed by technology company Kainos in conjunction with Belfast Met to help nurture the next generation of technology talent in Northern Ireland. Also pictured are Aidan Browne, curriculum development manager, and Justin Edwards, assistant chief executive from Belfast Met with Tom Gray, chief technical officer, and David McGlade, solution architect at Kainos Northern Ireland Science Park's £25,000 Awards ceremony held at Titanic Belfast.

The Queen's team came out on top after 20 teams gave a ‘quick pitch' back in May to a panel of 16 experts and entrepreneurs from science, law and banking.

Dog Ears in spotlight with Hollywood star A LONDONDERRY company is among the creators of a new children's show featuring the dulcet tones of latest Irish Hollywood favourite Chris O'Dowd.

O'Dowd, star of Bridesmaids, Moone Boy and The IT Crowd, narrates Puffin Rock which will come to TV screens through Nick Jnr and RTE Jr in 2015.

Derry's children's media company Dog Ears has joined the team behind the new animated show alongside Oscar-nominated Irish animation studio Cartoon Saloon and global publisher Penguin.

4 BUSINESS MONTH 7 October 2013

‘Desirable’ apartments in social housing sale THE Republic's bad bank NAMA has authorised the sale for social housing of apartments in Belfast city centre marketed in the boom as the ‘epitome of desirable’ apartment dwelling.

NAMA, set up to cleanse the Irish banking system of toxic loans on property — some £3bn of which relate to Northern Ireland — has confirmed three major sell-offs of properties on its books to housing associations.

On a visit to Belfast this summer, NAMA chairman Frank Daly said asset sales would contribute to social housing where “commercially feasible”.

New restaurants on the menu for Belfast EPICURES could be in for some exciting new menus with news that three restaurants are set to open in Belfast city centre.

Workmen are fitting out a new restaurant at 46-50 Howard Street, in a unit formerly occupied by high-end menswear store, The Bureau.

It's understood the new eatery will be known as Flame, although it's not clear when it will open.

NI home to key global aerospace suppliers NORTHERN Ireland is home to four of the top 100 aerospace and defence suppliers in the world, according to a new report.

Supply chain companies here also make products for some of the biggest names on the list.

The Top 100 Aerospace Company poll from business advisory firm PricewaterhouseCoopers (PwC) shows that measured by annual sales, Bombardier ranks 16th, followed by Thales at number 18, with B/E Aerospace and Magellan Aerospace ranked 44th and 80th, respectively.

NEWS BITES

Retail suffering as food sales fall 4% PAUL GOSLING

▲ EXCHANGE RATE The pound has strengthened against the euro, rising from a value of €1.14 in late July to around €1.19 at the end of September.

But the pound was worth €1.26 late last year. ▲ PROPERTY MARKET Most surveyors report increased house sales, says RICS in its latest Northern Ireland survey. But the vast majority expect prices to remain stable. ▲ FIRST-TIME BUYERS There has been a 45% rise in first-time UK house buyers. The number rose from 18,000 in July last year to 26,100 in July this year. ▼ MIXED UNEMPLOYMENT Northern Ireland’s unemployment rate fell by 1.2% in the last year to 6.9% in the quarter ending July. But it rose by over 5% in the year in Larne and by more than 10% in Strabane. ▼ INFLATION RATE There was a slight fall in the rate of increase in inflation.

It grew by 2.7% in the year ending August, down from 2.8% in the year ending July, as measured by the consumer price index. ▼ WAGES LAG BEHIND Average real pay levels fell in the last year. They rose by 1.1% in cash terms, but this was below the rate of inflation.

Average weekly pay in the UK, including bonuses, is now £474.

THE crisis in the high street should be addressed by a package of measures that include reform of the business rates system and more effective regeneration of towns and cities, suggests a report from the CBI and property consultants EC Harris.

The report — ‘The Next Regeneration: Unlocking local growth’ — looks at the challenges facing the retail sector across the UK. It proposes that firms should have a business rates holiday for a year if they move into empty premises. The report also recommends changes to planning law to make it easier to convert empty shops into homes, more flexibility for cafes and restaurants to trade on adjacent pavements and greater public sector investment into town and city centre construction projects.

Closer partnerships between the private and public sectors should be formed to regenerate urban areas and to bring back into productive use property that is owned but underutilised by the public sector, adds the report.

It proposes that Business Improvement Districts evolve into investment bodies that can lead, organise, design and implement area improvement plans.

Katja Hall, the CBI’s chief policy director, said: “Too many grand regeneration projects of the past have failed to deliver and public money has been wasted. We want to ensure growth reaches all parts of the

A new report proposes that businesses shoud have a rates holiday for a year if they move in to empty premises UK and that means co-ordinated action to rejuvenate our towns and cities.

“The high street is the beating heart of our towns and cities, but we can’t reinvent them as they once were. That’s why we’re calling for action on business rates to ease the pressure

on retailers and for planning laws to be relaxed to turn empty shops into homes and create more of a cafe culture. To kickstart private sector investment we need to see more creative use of public-sector balance sheets and surplus land and property being put to good use.”

Blow for HML growth ambitions PAUL GOSLING MORTGAGE administration company HML has said that growth plans for its Londonderry base have had to be scaled back, because fewer Irish banks than expected were outsourcing mortgage collections. Some staff in Northern Ireland may be made redundant as a result of the loss of a major contract and the resulting restructure.

But John Grimbaldeston, director of products and marketing, said HML would not be

6 BUSINESS MONTH 7 October 2013

cutting its total staffing levels in Northern Ireland as new contracts balanced out those that had been lost. About 30 jobs will go, but most are in its headquarters in Skipton. HML refused to disclose which contracts had been lost and won.

Grimbaldeston told Business Month that HML’s business projections had been based on winning mortgage administration contracts from banks in the Irish Republic. “The expansion of trade in the Republic has been slower than was expected,”

he said. “HML has two clients in the Republic, but we expected more outsourcing than has happened.” He confirmed that the lack of outsource work resulted from the high level of non-payments on mortgages in the South.

In a statement, Andrew Jones, HML’s chief executive, said: “It is always regrettable when a business needs to make changes which impact on people and we are working hard with those affected to help them secure alternative employment.”

NEWS BITES

High Speed 2 cash injection PAUL GOSLING THE proposed High Speed 2 train line in Great Britain could provide a large cash boost for the Northern Ireland Executive if the scheme goes ahead. Under the socalled Barnett Formula, Northern Ireland could receive around £1.3bn as compensation for not benefiting directly from the project.

The Barnett Formula is the mechanism for distributing funding to the three devolved governments in Northern Ireland, Scotland and Wales.

This is based on population, with an adjustment according to population distribution and the higher cost of servicing a largely rural population.

If High Speed 2 goes ahead, it will provide a new, faster, link between London, Birmingham, Manchester and Leeds — and potentially on to Scotland. The total cost, including new rolling stock, is likely to be in region of £50bn. The coalition government remains committed to the project, although opposition is growing.

The Welsh government has made a case for obtaining what is called a ‘Barnett consequential’ payment if the line is built, though the UK Government has responded that the line would benefit Wales and so no ‘Barnett consequential’ would be required. It is difficult to see how any similar argument could be put forward for Northern Ireland and the Department for Finance and Personnel confirmed that it will seek what is in effect a compensation payment.

A spokeswoman for DfP said: “The Northern Ireland Executive should receive Barnett consequentials in relation to the planned HS2 project, provided that this will be funded from Capital DEL [the departmental expenditure limit for the UK’s Department of Transport].

If the Barnett consequential are allocated in line with those flowing from spending on London for last year’s Olympics, Northern Ireland would receive around £1.3bn.

Republic shakes off recession but...

PAUL GOSLING ECONOMIC output in the Irish Republic rose by 0.4% in the second quarter, lifting the country out of recession and boosting hopes for significant improvement in conditions in Northern Ireland.

However, the rise in output was less than had been predicted and the country’s gross domestic product in the second quarter was actually less than in the same period in 2012.

Michael Noonan, the RoI’s minister of finance, welcomed

the economic improvement. He said: “The figures show exports reaching an all-time high both in terms of value and volume in the second quarter.”

He added there was particularly strong growth in service exports.

But, said Mr Noonan, Ireland is being hit by the so-called ‘patent cliff’ — the decline in revenues as patents in pharmaceuticals and other intellectual property reached the end of their lives. In some instances this allows production of generic drugs to begin in lower cost

manufacturing centres overseas.

“On the domestic front, the figures suggest stabilisation,” said Mr Noonan. “This is in line with the other economic data that we have seen for the second quarter, the most notable being the increase of 34,000 jobs in the year, a 1.8% growth in employment.”

Mr Noonan predicted that more recent economic data would confirm improvements in the country’s economy, with unemployment falling in August, better figures in retail sales and rising property prices.

More NI businesses believe rail network has deteriorated PAUL GOSLING NORTHERN Ireland’s infrastructure has been given a mixed report by our companies.

Businesses here are the least critical of any UK region regarding the level of deterioration of motorways and trunk roads over the past five years.

But in only one other region of the UK — the north-east of England — were companies more critical of the state of their rail network. Many more Northern Ireland companies believe our rail network has got worse in the past five years than believe it has improved — a net negative figure of 23%.

A report, produced by KPMG for the CBI, found that two out of three businesses do not believe that the UK government’s infrastructure improvement plans will have any tangible positive impact. It concluded that the UK has been left far behind by Australasia and North America in terms of infrastructure quality.

KPMG infrastructure partner Richard Threlfall said: “For UK business it is about profitability and international competitiveness. It is about transport networks that get supplies in and products delivered on time, energy supply that is dependable at lowest cost and digital networks that offer fast connectivity anytime, anywhere. Sadly the business verdict remains that UK infrastructure is not up to scratch.”

8 BUSINESS MONTH 7 October 2013

Many companies believe our rail network has got worse in past five years The CBI is calling for capital allowances on infrastructure projects to boost investment; greater certainty on investment returns for energy projects; an acceleration of transport

feasibility studies to enable planning to be fast tracked; and improved collaboration between government and industry to create a long-term plan for the UK’s digital infrastructure.

NEWS BITES

Ministers pledge to grow the ICT sector PAUL GOSLING FOUR government ministers pledged their commitment to growing Northern Ireland’s ICT sector when they appeared at the Digital Summit, organised by industry body Momentum.

Enterprise Minister Arlene Foster, above, Employment and Learning Minister Stephen Farry, Education Minister John O’Down and Culture Minister Caral Ni Chuilin all addressed the conference.

Momentum tabled a 10point plan at the summit which it asked the Executive to implement.

It is seeking the creation of: ■ a digital innovations fund and a finance facilitator for the digital sector ■ a mentoring scheme for new businesses ■ improved access to public procurement opportunities ■ support for local digital businesses to showcase themselves and to visit international trade fairs ■ improved connections between the sector and education providers ■ an engagement strategy to explain to children and parents the importance of computing ■ a commitment to software excellence; a support programme for students with promise ■ and the promotion of digital hubs in towns across Northern Ireland.

NAMA may have to hand back any profits to Irish taxpayers in later years if property prices continue to rise

Slump in property prices dent NAMA hopes for 10-year profit DONAL O’DONOVAN

THE National Asset Management Agency (NAMA) said it made a profit in the first half of 2013, but is only expected to break even over the course of its 10-year existence.

However, Michael Noonan, the Republic of Ireland’s Finance Minister Michael Noonan said he thinks that the State’s bad bank could end up handing profits back to taxpayers in its later years if property prices “continue to rise”.

NAMA made a profit in the first-half of the year, but warned it faces “potentially serious consequences” because it is struggling to hold onto staff.

NAMA has lost 28 staff so far this year, equal to around 10pc of the total head count, and the “exodus” is likely to continue, its chief executive, Brendan McDonagh, has told the Dail's Public Accounts Committee.

10 BUSINESS MONTH 7 October 2013

It's happening at a time when the agency needs to boost its own staff by as much as 220 to cope with the transfer of new loans from IBRC, he said.

He did not say how much of a profit NAMA made so far this year, but said details will be sent to Mr Noonan over the coming days, he said.

Property prices have fallen 25pc since NAMA was set up in 2009, but the market is now stabilising, Mr McDonagh told the committee.

The board of NAMA is no longer forecasting that the agency will make a €1bn profit over its life, Mr McDonagh said.

The agency now expects only to break even, he said.

The forecasts have been hit by falls in property prices since NAMA was established, but it expects to gain from rising rental income, he said. NAMA now expects to generate €6bn in rents over its 10-year existence, instead of the €2bn first thought.

NAMA paid €32bn to buy loans with a face value of €74bn when it was set up. It is earmarked to close in 2020.

Mr McDonagh said the agency expects to raise €39bn in cash from asset sales and rental and other incomes.

It must repay €30.9bn in senior debt owed to the banks it originally bought the loans from, as well as €3.5bn in interest plus cover its costs for 10 years, he said.

Some NAMA assets, in particular loans backed by sites in out-of-the-way parts of Ireland with a total value of €900m may never be sold, but could end up being handed over to the Office of Public Works or another state agency, he said.

NAMA chairman Frank Daly told the committee that the agency could still generate a profit over its lifetime, depending on the performance of the property market.

NEWS BITES

Conference to attract 150 inward investors

Gerry Mallon, chief executive of Danske Bank in Northern Ireland

PAUL GOSLING DANSKE Bank and British Airways are to sponsors an investment conference, which takes place at Titanic Belfast this month on the 10th and 11th.

The event aims to build on the positive profile achieved for Northern Ireland from June’s G8 Summit in Fermanagh. It is being organised by Invest NI on behalf of the Northern Ireland Executive and is expected to attract about 150 potential and existing inward investors.

Gerry Mallon, chief executive of Danske Bank in Northern Ireland, said: “As a leading European bank, we recognise how important it is to encourage and secure investment that will grow the local economy and provide quality jobs and opportunities for local people.

This region has much to offer global investors and we are proud to work with Invest NI to support the conference and its objectives.”

Simon Daly, British Airways’ manager for Northern Ireland, said its sponsorship demonstrated that Northern Ireland is

“an important location for us and our global business travellers, so we are delighted to support what is a landmark event that will put Northern Ireland firmly on the worldwide investment map”.

Enterprise minister Arlene Foster added: “By showcasing

that we have the skills and infrastructure which can exceed the demands of companies on a global scale, we can demonstrate that Northern Ireland is a strategic investment location of choice for international investors in key growth sectors.”

7 October 2013 BUSINESS MONTH 11

OPINION

Mentoring matters In a call to arms, Eoin Lambkin says that a shortage of mentors is hampering the recovery of the Northern Ireland economy

I

CAME to Belfast 10 years ago on a three-month contract and was immediately hooked. The reason was simple: I had arrived in what seemed like a business utopia.

Many regions within the UK and EU could only dream of the funding and support available here to companies and start-ups. I just had to stay and avail myself of these extraordinary opportunities.

The access to finance, grants and training courses seemed endless — and a significant number of consultants (testimony to the available pot) were on hand to guide both fledgling and established businesses to a bright new future.

However, it was shocking to find out just how many locals moaned and groaned at the prospect of actually working out how to tap into this system of support. They were blissfully unaware of how lucky they were not to be dealing with the English Development Agencies.

The existing

funding and support regime is still a significant differentiator for Northern Ireland.

In my experience, however, it is often poorly leveraged by the recipients or sometimes simply wasted.

In my view, the main reason for this is a lack of independent experienced mentors involved in the early stages to help evaluate business and social enterprise propositions.

Ten years on the story has not changed much, except for the fact that Northern Ireland finds itself in the deepest of economic challenges with only the prospect of a very long haul to recovery.

Just to remind ourselves — the UK debt to GDP is still 94% or thereabouts and that is not factoring in pension commitments and private debt, which takes you into a place you do not want to contemplate.

I would go so far as to say that mentoring could be one of the most important economic tools at our disposal

12 BUSINESS MONTH 7 October 2013

in the fight to turn around our ailing economy. There is not a region in the UK or Ireland that has not written a strategic plan that stretches out until 2020 which includes inward investment, taxation breaks, seed funding, training, increasing visitor numbers — the list goes on.

I have not seen one plan that mentions mentoring as a ‘key’ component.

Mentoring is an activity that anyone with business and social enterprise experience can get involved in with the potential to generate enormous long-term economic benefits.

For the past few years, I have been involved in a mentoring scheme run out of the Northern Ireland Science Park. As an ‘Entrepreneur in Residence’, along with my fellow mentors, I mentor start-up businesses on a ‘gloves off, no-holds barred’ understanding.

In a very short space of time ideas, assumptions, concepts and financial positions

can be scrutinised, then put through the proverbial mangle to wring out the real value and commercial opportunity.

The results of this process can be startling and inspiring for both parties, and fast tracking like this makes eminent sense when you are fighting an economic war of attrition.

Large-scale mentoring would cost nothing but an individual’s time and energy. It could and should be developed across every city, town and village in Northern Ireland.

There are many experienced people from all walks of life willing to use/share their knowledge with others and help provide a resource that no government support agency could or should deliver. Show potential mentors what is required and they will take care of the rest. It could prove infectious!

Eoin Lambkin is a business mentor of Takker

OPINION

It’a good to talk

Among the key advantages commercial mediation has over traditional litigation is cost savings, says Dorcas Crawford, backing her claim with a £5,000 versus £50,000 comparison

I

F there’s one bad thing that the 80s did for us — aside from Spandau Ballet and shoulder pads — it is the way in which it influenced how we view negotiations in business.

Whether it came from miners and government or stockbrokers and investors, there is a prevalent attitude that in the course of business dialogue, people should take up positions and hold to them fiercely — a strict ‘winner takes all’ mentality.

Litigation, which is essentially a process of escalating claim and counter-claim, encourages this approach. In fact, litigation obscures the potential for constructive solutions that can be offered through professional mediation.

At a seminar for bankers and accountants held recently, I was part of a team that demonstrated how negotiated settlements could provide quicker and more

satisfying results for both parties.

The process provides resolution without recourse to formal judgment — bringing the parties together in a neutral and confidential setting with an independent mediator.

Commercial mediation has several distinct advantages over traditional litigation — firstly, it is cheaper. A twoday listing in the High Court for a complex commercial case could easily run to £50,000 or more.

By comparison, two days of mediation would cost in the region of £5,000.

Mediation can also commence as soon as both sides are ready — instead of having to wait for a listing in a backlogged court system.

Furthermore, in those cases that do

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make it to court, the judiciary are starting to ask more and more frequently whether participants in a case have attempted mediation before coming to the court.

There’s a growing expectation in the courts that participants in litigation should have at least tried collaborative solutions beforehand.

Mediation processes do have teeth — with the consent of both parties involved, they are capable of producing legally binding agreements. But more than that, mediation is capable of fixing feelings. My experience is that ongoing trading and business relationships can be preserved — or even enhanced — by the presence of a mediator who can prevent the miscommunications and misunderstandings that undermine dialogue.

At our seminar, we outlined how mediation can help in some of the most difficult cases, such as insolvency proceedings. When businesses are unable to continue trading and banks are under pressure to recover funds, emotions can run high, so the sensitive and reactive approach offered by mediation can produce a better chance of cooperation in running businesses and maximising assets.

There will always be a role for traditional litigation — some cases require a court determination — but these cases are a small minority and in most disputes mediation is a far more attractive option.

Dorcas Crawford, senior partner, Edwards & Co, is a Centre for Effective Dispute Resolution (CEDR) accredited mediator in NI and a founding member of the CEDR Ireland Practice Group

ECONOMY WATCH

Still a way The UK economy is at long last on the experts point out, most households indicators and Northern Ireland

A

T the start of the year I highlighted that 2013 was likely to be the year of the ‘spreadsheet recovery’. The terms describes a situation whereby economic anoraks notice technical improvements in the economy, such as a pick-up in GDP growth, but outside of that, 2013 would be more of the same for households and many corporates.

Some nine months on, however, the recovery within the corporate sector has been somewhat stronger than I had anticipated, with business activity, new orders and investment intentions all on the rise.

As a result, for many firms and sectors, the economic recovery has become more tangible than the spreadsheet variety alluded to earlier.

Furthermore, the increase in demand has resulted in a rise in staffing levels too. It is also worth noting that some sectors of the economy, notably the pharmaceuticals and software, completely avoided the recession. Such sectors have struggled with skills shortages as opposed to a lack of demand.

While the ongoing improvements in business conditions are encouraging, the fact that that ‘recovery’ seems as far away as ever for households is concerning. For them, the idea that an economic recovery is underway is a case of ‘computer says yes but consumer says no’.

Speaking at last week’s Conservative party conference, the former chancellor, Ken Clarke, said that the Tories are in a difficult political position because the ordinary person is not feeling much economic benefit from the recovery.

Recently, the lack of a household recovery, or the ‘cost of living recession’ within the UK has become the centrepiece in the changing political narrative.

Indeed the battleground for the next UK election has shifted

Richard Ramsey

Chief economist, Ulster Bank from a debate about whether the economy is growing or not to one about the cost of living.

At the Labour Party Conference in Brighton, the party’s leader, Ed Miliband promised the electorate that gas and electricity bills would be frozen for all households and businesses for 20 months if Labour wins power in 2015. He also pledged to push through reforms to increase competition in the energy sector to help bring down prices. Not to be outdone, the chancellor, George Osborne, at the subsequent Tory conference in Manchester announced that he plans to freeze fuel duty until May 2015 to help motorists with the cost of living.

And though only partly attributed to the cost of living, the Lib Dem leader Nick Clegg was the first to get in on the act a few weeks ago with his announcement of funding free school meals for all infants. We can expect a ramping up of the cost of living rhetoric and policy announcements between now and the next general election.

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And when we look at the data, it’s not a surprise that the politicians are so keen to be seen to be responding to the issue. A recent report has laid bare the real cost of the financial crisis on the UK household finances and those of Northern Ireland in particular.

Five years ago Asda launched its Income Tracker report with the Centre of Economics and Business Research (CEBR). The report looks at the monthly spending habits and discretionary incomes of UK households, after tax and the cost of living have been taken into account. The Income Tracker monitors discretionary family spending power, ie the money that is left over after essential items (food, utilities, housing costs, clothing etc) are taken into account. This includes spending on eating out and entertainment.

According to Asda’s Income Tracker Special Report (An InDepth Look at the Real Cost of the Financial Crisis: 2008-2018), the average UK household now

spends £2,808 a year more (or £54 per week) on essential items than they did in 2008.

This is despite the fact that the Bank of England lowered its interest rate, and therefore mortgage costs, to a record low in March 2009.

In Northern Ireland households have seen their spending power hit much harder than any other UK region, according to the Asda/CEBR analysis.

This was due to the fact that Northern Ireland households experienced the steepest rise in the cost of living over the past five years (+16.6%) and the lowest increase in incomes (+12%) of all the UK regions. As a result, Northern Ireland was the only region within the UK to witness a fall in discretionary incomes since 2008.

According to the Income Tracker, Northern Ireland households now spend £24,100 a year on essential items (including energy, food, housing costs). This represents £3,500 more, or £67 per week, than local families spent in 2008. It is noted that only three UK regions (London, the South East and East of England) experience a higher cost of living than Northern Ireland.

The scale of Northern Ireland’s cost of living disadvantage is perhaps surprising and unfortunately the report doesn’t provide a detailed breakdown of the significance of the individual components of essential household expenditure that explain this difference.

With the report predicting a further decline in household spending power in Northern Ireland in the five years ahead, the issue is clearly significant from an economic perspective, particularly when the Bank of England begins to move interest rates upwards off their current lows.

As far as a meaningful sustainable recovery is concerned, it looks like it will be quite some time until both the computer and consumer say yes.

to go yet road to recovery. However, as our two have yet to benefit from the positive businesses still face many challenges

T

HE Northern Ireland economy may be lagging behind the rest of the UK but this, according to Begbies Traynor partner Joan Houston could be a blessing in disguise.

If the indicators are to be believed, the UK is finally raising its economic hulk out of the swamp of recession. A Begbies Traynor Red Flag Alert survey of the second quarter of this year showed that green shoots are sprouting across England, Scotland and Wales in certain sectors including manufacturing, ICT (information and communications technology), leisure, travel and hospitality.

While the construction industry still seems a long way off from complete revival, there is an air of optimism blowing through the planning offices.

But what about Northern Ireland where light at the end of the tunnel still remains very dim?

It is an accepted view that sooner rather than later, Northern Ireland will find the tide rising here too. And if this is the case then businesses need to acknowledge that they are about to face new challenges.

Surviving a recession is one thing. Being prepared for a turbulent recovery period is another.

If businesses are not careful they can quickly tumble into a series of knee-jerk reactions. These include an immediately post-recession tendency to overtrade, to borrow from unconventional sources to get around the continuing credit freeze and to recruit in a hurry.

These mistakes can be avoided. Now is a time for businesses to assess their position and plan for the future. By taking a long hard look at their business, directors will make discoveries and uncomfortable situations will arise that require attention.

Joan Houston

Begbies Traynor partner This is a delicate process where the key ingredient for growth is seen as confidence and the ability to grasp opportunities as they unfold.

Confidence is born out of our knowledge and experiences of the past, helping us to identify future developments.

Confidence will embolden us to take the investment and strategic decisions to capture the opportunities as they arise.

Success then comes as a combination of understanding and addressing the risks that face us. Then we can start taking the right decisions.

It is very difficult to see what is ahead of us if we are constantly tangled up in difficulties and problems which limit our scope to go forward. That is particularly true where finance is involved. Without dialogue and decision making from the banks and their customers on how to address funding needs, then potential future upside can be wasted or at best diluted. Some banks have told us they want more business opportunities

and will support customers. It is incumbent on the business community therefore to present those opportunities to the institutions and seek out that financial support to make things happen.

There is no doubt that we need to deal with some of the financial challenges facing businesses and individuals to make us fit to face this future.

As the real-time HMRC system has now been in operation almost six months its impact will be a feature on cash flows and there will be transparency on those who are not meeting their commitments.

How this impacts upon businesses in the next six months and how HMRC use this realtime information on businesses in arrears will remain to be seen.

But if you have problems then it would be foolhardy to ignore them, as the new systems give the authorities transparency on your situation.

When Begbies Traynor advises clients on how to deal with the

recession, we emphasise some important key business drivers to understand and manage cash flow, know your customers, match supply to demand as much as possible and make your PAYE and VAT payments on time.

In a period of growth this advice is even more important.

Identifying where you can make decisions to meet those day-to-day commitments will create the headroom you require to take advantage of new business.

Necessity is the mother of invention. When emerging from tough times there will be many changes in your circumstances which will dictate how you have to react.

I believe that there are still unresolved property issues, land bank issues and funding gaps which are unlikely to recover in the short term.

This has been a big problem, and while much progress has been made there is still much to do.

If you are struggling with some of those issues, you need to keep working away at the problems, chipping away at the areas where there is scope to do something.

To do nothing is always the base line in any option appraisal. No change will be achieved if you do nothing. It is always recommended to seek help in those situations and face the problem with as much expertise as possible, as that gives you the best understanding of the range of choices available allowing you to evaluate all the advantages and disadvantages of each option.

If you are trading, and traditional sources of funding, customer or suppliers in your business are no longer fit for the future, now may be the time to consider taking expert advice to develop a plan to take the company forward, thereby ensuring that you are yourself, fit for the future.

7 October 2013 BUSINESS MONTH 17

INSIGHT

BUILDING A NEW FUTURE A

TTEMPTING to re-evaluate what had been a seemingly perpetually declining construction sector in Northern Ireland isn't easy.

“It's the bear, waking up, and starting to emerge from hibernation. It's starting to go out foraging”, says economist Neil Gibson.

The now head of the Northern Ireland Centre for Economic Policy doesn't want to paint a picture of an ailing industry on the mend, with construction in the region still lagging behind the rest of the UK. The industry suffered severely, along with almost all of Northern Ireland's economic sectors, in the past six or seven years.

And it was the hardest hit.

The industry was in free fall from 2007, with property prices collapsing beyond all modern recognition.

But those within the industry — alongside the latest business

With the outlook for the construction sector looking brighter, now is the time for boldness, John Mulgrew is told indexes — point to a bottoming out of construction and a marginal rise in property prices, with firms and individuals alike hoping we have already reached an absolute low with only one

18 BUSINESS MONTH 7 October 2013

place to look — and that's up.

In the last few weeks, business surveys have shown a rise in economic activity across the majority of sectors — prompting cautious optimism among economists and analysts as to

Northern Ireland's financial recovery.

“In 2013 there has been a strong sense that the construction industry in Northern Ireland has finally reached the bottom,” said John Armstrong, managing director of the Construction Employers’ Federation.

“Market conditions are still extremely tough, but for the first time in six years workloads have stabilised and are expected to hold up over the next 12 months.”

Construction has also been seen as a litmus test to an over-

all improving outlook — deemed “the biggest, single, tangible example of what recovery will look like”.

The latest headline to boost confidence in business building came with the announcement of a potential 2,000 jobs being created in Belfast's burgeoning Titanic Quarter.

Plans for a £20m office were unveiled — theoretically making it one of the biggest commercial developments in the city since the start of the downturn.

“What it shows is that the private sector may be coming back to the table,” said Neil Gibson.

“However, industrial building is still quite slow — keep in mind we haven't exactly had huge amounts of economic activity in the last 10 years.”

Many of the region's firms are still relying on business across the Irish Sea and beyond to keep them buoyant during lean times.

“Many companies are working outside Northern Ireland and are in a good position to take advantage of improved economic circumstances,” said John Armstrong.

“However, annual construction output in Northern Ireland is now, in real terms, over £1bn lower than it was at the turn of the

Finally there is light at the end of the tunnel for Northern Ireland’s construction sector

century.” The collapse of the family-run Patton Group — a firm which had been operating for a century — showed just how vulnerable some of the industry's local giants could be.

And, of course an enterprise of that size had a knock-on effect — with a host of subcontractors suffering as a result of the company going under.

It followed the loss of fellow old-timer the Carvill Group, which entered administration in 2011.

However, some of Northern Ireland's biggest names in construction have managed to weather the storm — including Olympic builders H&J Martin and Lagan Construction.

But despite surviving the past seven year lull, neither wanted to comment on how they had dealt with the slump, along with their own plans for the future.

“It has been a very painful time,” said Mr Gibson. “It will certainly be a slow road to recovery.

“Aside from large firms, small companies can begin picking up work, such as fixing, building and improving properties whose owners haven't done any work in recent years.”

The latest Ulster Bank Northern Ireland purchasing managers' index highlighted the region's businesses experienced their best month since 2007.

Yet another survey indicated that prices within the housing market were in fact rising — following on from government data which which reported a 2% rise in average costs across all types of property between April and June this year.

>> Turn to page 20

7 October 2013 BUSINESS MONTH 19

INSIGHT

>> From page 18 “Having fallen fastest and furthest, private house building is already on the mend,” said Mr Armstrong.

“Completions in 2012/13 were up on the previous year and houses are selling again.

“House prices are now affordable and buyers want to get on the housing ladder now before prices start rising again.”

However, despite this, there are still concerns surrounding construction spending in the public sector – accounting for around half of the industry.

“This is due

20 BUSINESS MONTH 7 October 2013

to the reallocation of capital funding back to revenue funding and the lack of project delivery on the ground.”

So, what is the outlook for construction as a whole, and what can firms do to ensure they can improve their balance sheets?

“The future for the local construction industry is looking brighter. It will be a long and difficult road to recovery,” said Mr Armstrong.

“Whether or not there are more casualties along that journey will very much de-

pend on the approach of the banks.”

And, with a glimmer of hope at a bottoming-out within the sector along with a marginal boost in house prices, companies should not be holding back, – according to former director at Oxford Economics Mr Gibson.

“As difficult as it may seem, it's a time to be brave,” he said.

“Firms can't hold back and be overly cautious.

With less companies around, those who are still in the market cannot hold back.”

NEWS ANALYSIS

Digital disruption Head of engineering for Deloitte Digital UK, Mike Robinson wonders if we are ready for the changes which are affecting every business

T

HERE is no doubt that digital technology has opened up a world of opportunity. However, the pace of change brought about by cheap broadband, smartphones, tablets and lower cost e-commerce solutions, for example, is forcing business owners to reconsider their entire operational models.

These changes are affecting not just individual companies but entire economies as well as reinventing the relationships between organisations, suppliers and consumers.

As was highlighted by a range of speakers at last month’s Digital DNA summit in Titanic Belfast, digital disruption is being caused by a new wave of attitudes, brought about by faster and cheaper connectivity, cloud solutions and an ‘always connected’ culture through tablets and mobiles. Consumers now have different expectations and businesses needs to become smarter in order to target and

access these needs.

Technology can be used to provide better services and there will always be a digital strategy that will suit your consumer requirements. Whether it means developing a mobile app, recruiting through online resources or advertising across social media, you can experience the upside of digital disruption and optimise your business processes accordingly.

Deloitte Australia recently released a paper called ‘Short Fuse, Big Bang?’ which anticipates to what degree organisations and sectors will be disrupted. This report can help businesses in Northern Ireland to adapt accordingly.

They found that businesses in the ‘short fuse, big bang quadrant’, such as finance and media, retail and information technology, will already be feeling the effects of digital disruption; increased competition and falling revenue streams will demand urgent action. Longer fuse sectors, such as education, agricul-

22 BUSINESS MONTH 7 October 2013

ture and health will feel the big bang further down the line, but they still need to be prepared.

This disruption can either be dealt with as a threat or treated as an opportunity. Already large companies such as Rolls-Royce, Adobe and John Lewis are changing their business models to prepare for this ‘big bang’.

Their new strategies are focused on how they can match their digital capabilities with their customers’ need to provide a better experience. Other organisations using new business models to disrupt existing established businesses include Spotify who have introduced a ‘rent rather than buy’ approach to listening to music, and Skype who operate a ‘freemium’ policy that allows users to make free calls over the internet or pay to call landlines or mobiles .

The key to success is to build a business proposition around your customers. Structure your company so that

the right people, tools and processes are in place to meet their expectations and respond quickly to their feedback.

Local firm Chain Reaction Cycles has taken a forwardthinking approach to digital disruption. What began as a small family shop in Co Antrim has grown to be the world’s largest online bike store by adopting a strategy which saw them taking advantage of the digital era. The company had the vision to adopt a global platform through mail order and online selling a long time before many had given any consideration to what impact these technologies could have on their trading abilities.

There are both threats and opportunities posed by digital disruption and the clock is already ticking for business owners to get ahead of this trend.

BREAKING THE MOULD

Time to Shnuggle up?

With the days of juggling a full-time job while growing a business hampered by a lack of finance now in the past, Sinead Murphy is sleeping like baby

S

HNUGGLE is a small, global company based in Northern Ireland.

Co-founded by Sinead and husband Adam Murphy in 2009, Shnuggle designs and manufactures innovative products for babies.

We got into business because... we had an idea for a product and we could not see anything else like it on the market. We had our first baby and she slept in our room in a traditional wicker Moses basket. While I loved how portable it was there were some things I thought could have been improved; it creaked every time our little girl moved in her sleep which kept me awake, the hood would never stay up and it was not easy to clean.

Adam had always wanted to design a product and see it through the manufacturing and testing stages to the shop shelves — the Modern Moses Basket provided the opportunity.

Building up a business enough to pay salaries was not going to happen quickly so we ran the business part-time while working in our day jobs.

We reached a stage when we either had to dedicate all of our time to the business or accept that it would only ever be a hobby. We decided to manage Shnuggle full time and with help from Invest NI began to grow the business.

We didn't always do this...

Adam and I met at university in England. He was studying engineering and I was studying psychology. Adam began his career in the motor industry, while I trained to be a specialist debt adviser.

Latterly Adam worked for companies such as Kingspan and Bombardier while I managed Money and Debt Advice Services in Northern Ireland.

These jobs helped us to develop the skills we would need for Shnuggle.

The best thing about our work is... the variety. We are the accounts department, the marketing department, customer services and so on, so

Shnuggle co-founders Sinead and Adam Murphy

every day is different. We have great flexibility with our work and lovely customers.

The people we take inspiration from when it comes to business are... those who have started with nothing and built a successful business by hard work. We are fascinated by other people’s stories and pay close attention to other entrepreneurs especially those in the nursery industry.

The biggest obstacle we've come up against in business is... the lack of finance. We started Shnuggle by borrowing money personally and reached

24 BUSINESS MONTH 7 October 2013

a point where we were stuck in a cycle of having to sell stock, to pay suppliers and then order more stock. We never seemed to be able to get ahead.

We approached Halo, a network for matching companies with angel investors in Northern Ireland. We pitched to them in a Dragons’ Den style. Thankfully, we secured investment from a number of ‘angels’ and now we are focused on delivering what we have promised.

Our advice to someone thinking about starting up their own business is... to do your research. If it a product or

service, speak to lots of potential customers. Find out if there is a demand and be realistic. Is it something you want to offer in Northern Ireland only or can you see it going international (we don’t have a very big population here so you need to study your market carefully). Also, don’t expect to become a millionaire overnight.

In 10 years we hope to be... running other businesses and maybe by then helping other new companies to do the same.

I couldn't go to work without... a coffee machine and a sense of humour.

AND I’LL TELL YOU ANOTHER THING

‘Expecting the unexpected’ Despite operating within the certainties of the laws of science, every day businesses have to try to anticipate an inevitable rush of unpredictable twists and turns Name: David Lyle OBE, chief executive of advertising agency LyleBailie International My first job was...

In 1972 I started out as advertising and sales promotion assistant in Oneida Silversmiths, a large cutlery manufacturing plant in Bangor.

Being US-owned, it gave me great training in the nuts and bolts of advertising and the lethal importance of deadlines and accuracy.

The person who taught me how to succeed in business is... the late Bill Bernbach, the Madison Avenue legend who founded the revolutionary Doyle Dane Bernbach agency in 1949. He famously said, “the most powerful element in advertising is the truth” and this has stuck with me relentlessly across five decades in the business.

He expanded on this saying: “The truth isn't the truth until people believe you, and they can't believe you if they don't know what you're saying, and they can't know what you're saying if they don't listen to you, and they won't listen to you if you're not interesting, and you won't be interesting unless you say things imaginatively, originally, freshly.”

I still despair at how many unimaginative, unoriginal and stale attempts I still see published today.

My business mantra is... love. First love the client, then love the customer who is the end consumer of what we do.

Then love the work to make sure it is engaging and effective.

Without love, failure is certain.

It’s all changed since I started out... it’s not just the technology explosion. It’s the knowledge explosion. We have been

David Lyle: ‘I get so exhilarated by how neuropsychology is transforming the advertising business.’ employing in-house psychologists since 1993 and today I get so exhilarated by the discoveries of neuropsychology and how it transforms our ability to connect with people and influence their behaviour.

In 10 years’ time the business world will look... awesomely accountable. New technologies and the dominance of big data will mean that precise measurement will become so sophisticated that there will be no hiding place left for bluffers and spinners.

26 BUSINESS MONTH 7 October 2013

My one regret in business is... not spending more time with my family in their formative years.

My one piece of business advice is... to satisfy customer needs, profitably, is still the essence of a successful business. Strip away all the management “guru speak”. It is all about satisfying customers first. Not the shareholders, not the stock markets, not the analysts, but the customers who need and deserve better choices, easier choices, satisfying choices.

Then all the rest falls into place.

I couldn’t start a day’s work without... praying for wisdom. The paradox of the universe is that we all operate within the certainties of the laws of science and yet every day we face the certainty of the unexpected and the unpredictable. I crave wisdom to cope with the unpredictable twists that come rushing at us. Wisdom includes judgement, a crucial quality in advertising, because without finely tuned judgement, it’s so easy to get it wrong, for advertising to misfire and fail. That’s why measuring effectiveness is so important to us.

SME WATCH

G

ETTING married in Northern Ireland is a multimillionpound business with an average spend of £18,500 for every couple who says ‘I do' — the highest in the UK. And with 8,366 couples walking up the aisle every year in the province it seems you cannot put a price on love.

Wynn Penton, director of Penton Publications and Exhibitions. the name behind Ireland's Wedding Journal, says the big-ticket items are the wedding dress, the number of guests on the big day and the honeymoon.

“Brides will not scrimp on a dress and you can pay anything from £800 to £5,000 for a dress. Women are not influenced by the recession when it comes to buying a wedding dress — they want the one they want,” she says.

There is one notable cultural change, though: “Brides are

Brides will not scrimp on a dress and will pay up to £5k

Rachel Morgan, owner of The White Gallery, used her own wedding to inspire the direction of her business

What price love?

Recession or not, marriage is definitely not going out of fashion.

Helen Carson reports on the robust market which has stood up to the economic downturn

28 BUSINESS MONTH 7 October 2013

becoming more canny and will ask retailers if that is their best price. Prior to the recession this was unheard of.”

It is our love of family, though, which is the biggest expense for those tying the knot with at least 120 guests at most local weddings: “We want people around us, and that is something no-one here is prepared to compromise on,” says Wynn.

And if £18,500 seems hefty, bear in mind this only accounts for the core items such as dress, venue and rings. A honeymoon and other other incidentals, which have now become standard, such as bridal make-up, nails and hair, add another few thousand pounds to the bill.

Rachel Morgan is a public relations director turned bridal boutique owner who stocks an exclusive range of designer

dresses at The White Gallery in South Down. Looking for a change of career just over a year ago, she used her considerable marketing nouse to find a business that suited her.

“I wanted to do something different and thought: What do people keep doing? In Northern Ireland 8,366 couples get married every year. With over 20,000 marriages in the Republic of Ireland this is a big market. I also knew I needed a USP as there are over 100 bridal dress outfitters in the province.”

Market research aside it was Rachel's own wedding six years ago which was the defining point in honing her business.

“There was very little choice of designers when I got married and modern brides really do want something unique.”

Using her passion for fashion she sourced a creative new wave of designers from overseas, including Yolan Cris from Barcelona, UK-based New Yorker Elizabeth Stuart, Australian Sarah Janks and South-African-born Clinton Lotter, along with Lara Hannah who specialises in vintage dresses and US designer Anne Bowen for red carpet-style.

The average spend for a wedding in Northenr Ireland is £18,500

7 October 2013 BUSINESS MONTH 29

ASK THE EXPERTS I HAVE a sales team that consistently miss targets and underperform – what can I do?

WHEN sales people underperform, there is usually an underlying issue affecting their performance. It could be the targets are too high?

It may be they are not trained correctly? They could be demotivated? Or maybe they have issues in their personal lives? You need to establish the cause.

Your first step should be to have an ‘open workshop’ where you engage the team to extract valuable information, which should form part of your strategy. By asking something like: (1) “What three things are making it hard for customers to give us their money?” (2) “What three changes could we make to improve the customer experience/service?”

This strategy is geared to interact with the team. The ideas and conversations will flow, so when change comes their way, your team will not be surprised because they have been engaged in the process.

Secondly, you need to understand what motivates your team. Once you understand your team’s ‘hot buttons’, all you have to do is ‘push them’. A popular strategy is to introduce incentivisation programme — this can work well if implemented correctly. Having a multilevel programme geared to reward high achievers and push underperforming team members to perform works every time.

And finally, a sales team should be constantly trained, monitored and encouraged.

Regular sales meetings are paramount too as they will keep the team focused with a level of accountability.

If you are not achieving results after implementing the above, then engage a consultants to help you develop and implement a strategy to achieve maximum results.

TV

Graeme Scott Head of design strategy BT Ireland

Ralph McGuicken Director of financial planning

Bloomfield Corporate Consultancy

Tom Verner Managing director

Momentum Business Development

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

I RUN a rapidly expanding financial services company and would like to look at the advantages that the internet can offer us, such as a move to cloud computing. However, I am concerned that embracing these options will leave us open to security risks. What should I be aware of?

C

LOUD computing for business owners is more about trust than it is about technology. Well-known service providers and technology companies have invested millions in providing cloud services with appropriate security.

As long as you are working with a reputable brand you should not need to be too concerned about security, as these organisations have thought long and hard about the risk and have the right experience behind them.

When choosing a provider make sure that you ask about their security policy, security standards, the privacy of your data, encryption of confidential data and of course resilience; ensuring that the cloud has a fall back in the event of a disaster.

After all these clouds are simply data centres with lots of servers and storage that are located elsewhere.

Cloud computing therefore, is about giving up your technical and architectural opinions and letting a provider fully own and manage it for you.

All that you should be concerned about is ensuring that you are getting efficient business applications to your screen.

MY company is expanding and needs to borrow. What life assurance, if any, do I need?

IT is likely that any bank or organisation raising or lending capital to your business will require some form of life assurance so that in the event of your premature death the debt will be repaid.

Many lenders may insist on you having protection plans in place against the event of critical illness and in some cases may also require ‘key man’ insurance if there are specific employees crucial to the success of the business.

More often than not an individual plan will be required that is tailor-made to your circumstances — this is where it is important to get expert advice. There is a wide range of plans that may be suitable from straightforward term assurance to packaged protection products covering a range of options and eventualities.

Cost will also be a major factor and consideration must be given to the types of policy used as well as looking at arrangements such as relevant life policies that may be much more cost effective than traditional plans. Protection insurance can vary enormously and budget has to be balanced against achieving the right level and type of cover.

Finally, consideration must also be given to the use of trusts and how all of this may interact with your personal and business circumstances — it is always better to take a comprehensive approach when reviewing these matters. It may be uncomfortable to think about these matters but getting it wrong could lead to serious financial problems for those left behind.

RMcG

There are lots of options and most businesses aren’t throwing everything into the cloud straight away but rather increasing the volume as they develop more trust along this journey. To begin with there may be one service or a set of applications which are costing

you money and giving you issues — I recommend that you work with a provider to help prioritise your options for gradual adoption of the cloud.

There are plenty of agile services and better cost options out there in the cloud.

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 7 October 2013

GS

COVER STORY

ECONOMY GIVEN Street violence is costing Belfast’s retailers and hoteliers business as well as damaging Northern’s Ireland’s chances of attracting inward investment,discovers Paul Gosling

R

ICHARD Haass will try over the next few weeks to break the parading and flags deadlock that has so badly damaged the image of Northern Ireland internationally. The former US Special Envoy to Northern Ireland — who is liaising closely with US Vice President Joe Biden — has a tough job. But it is one that is vital not just in building a shared future for Northern Ireland, but also to ensure that the recent tentative steps towards economic recovery in Northern Ireland are maintained.

Northern Ireland secretary Theresa Villiers spelt it out bluntly in a recent speech: political disputes over flags and parades that spill out into street violence are bad for business. “It damages Northern Ireland as we seek to compete in the global race for investment and jobs,” she said.

There are strong indications that much damage has already been inflicted. The numbers of people out shopping this August were down 1.5% on a year before – a worse performance than the UK average. And there was a rise in visitors to out-of-town retail parks, at the expense of city centre shopping centres. This is despite the positive impact in Belfast of the World Police and Fire Games.

Retail analyst and University of Ulster business lecturer Donald McFetridge said the figures showed that as far as retail is concerned, “we appear to be the weakest region in the whole of the United Kingdom”, suffering both from a slow economic recovery and the street disturbances.

“The volatile political situation in this region has no doubt had a negative impact on progress in the retail sector and, while this continues,

progress will be difficult and will ultimately remain behind other geographic regions,” he said.

Independent retailers have particularly felt the pressure, says Mr McFetridge — an opinion confirmed by NIIRTA, the Northern Ireland Independent Retail Trades Association. Its chief executive Glyn Roberts said: “Retailers in Belfast have taken a significant hit and the same is true with the hospitality sector.

“There was an immediate disruption of trade, particularly in Belfast city centre, for the retail and hospitality sectors. But the longer term worry is that because of the ongoing problem on parades and flags and the disruption, there will be a perception among shoppers that Belfast is not safe to shop in. We are extremely worried about that and we are concerned that the city centre may be seen as a no-go area.”

32 BUSINESS MONTH 7 October 2013

NIIRTA is making representations to Richard Haass on the economic damage of the political impasse, urging the parties to reach agreement. Mr Roberts explained: “We do need to get parades, protests and flags resolved if we are to get a shared future. Unless we do make better progress we are never going to reach our full economic potential. These pictures of protest are being seen right across the world, which damages inward investment.”

One of the worst flashpoints of the summer was July 12 in Belfast, despite attempts to promote the parading as a family event, the ‘Orangefest’.

A review of the day conducted for Belfast City Centre Management spelt out the negative commercial impact, with 81% of traders reporting a loss of business and 80% reporting low shopper numbers.

“The main problem is in altering the wider population’s perception of the city centre on the 12th of July,” concluded the report. “The tensions that surrounded the

run up to the main parades this year did not help, indeed, one can argue that the protests and civil disorder has set back the Orangefest programme. Until this type of publicity is eradicated, the response of tourists is exceptionally pertinent as it highlights a non-biased view and it is, on the whole, negative.

“Reports from tourists and businesses alike stated that the return leg of the parades was accompanied by intoxicated spectators creating a dirty and repelling place, this is a key issue that needs to be addressed.”

This ‘brand damage’ for Belfast is not just a problem for the retail and hospitality sectors, but also for investment. This is true despite a strong recent performance by Invest NI in attracting investors and the impact being talked down by the agency.

A spokeswoman for Invest NI said: “Invest NI has not been contacted by any potential investors with concerns following the summer disturbances.

Invest NI has continued to work closely with existing and potential investors to minimise the impact of any negative perceptions and reassure investors that Northern Ireland remains a safe and competitive place to do business. No planned visits by potential investors have been cancelled and all recent scheduled visits have taken place without disruption.”

Those close to the investment community are more open about investor concerns. One advisor, who asked not to be named, said there is clearly damage to the prospects of inward investment. “It’s more about perception than reality,” he said. US media outlets have frequently broadcast not only recent but also old video footage

>> Turn to page 34

FLAG WARNING

Political disputes over flags and parades that spill out into street violence are bad for business

7 October 2013 BUSINESS MONTH 33

COVER STORY >> From page 32 of Belfast rioting, so damaging the image of the city through what is being termed the ‘CNN effect’. This has discouraged executives and their advisors from even visiting Northern Ireland to discuss possible investment.

To win investment, a destination has to do more than offer the right financial and skills package — it also needs to sell itself as a desirable place to live.

“Investors need managers to come over for two or three years, bringing their wives, families, children,” said the advisor. “The wives are extremely influential,

particularly if they are bringing over young children. When they are here they are incredibly impressed by the education system and by the size of Belfast — everything is so close. It’s not just about winning over the CEOs.” But at present, managers and their wives are reluctant to see what the city is really like.

A senior accountant — who also asked not to be named — reports a similar attitude. “I spend a reasonable amount of my week in London, speaking to people who might be potential new investors.

They are incredi-

34 BUSINESS MONTH 7 October 2013

bly sensitive to news coverage of Northern Ireland’s internal disputes. And they are from Canada, or Korea and even the Middle East. It is world-wide distribution of bad press. We try to sell the Northern Ireland economy, saying that we have people to fill senior roles, yet we have people on the news [who are rioting] that you would not want to have working for you for love nor money.

“That

makes life much more difficult for us.

It also makes it more difficult that this media background influences people’s business decisions when comparing Northern Ireland with the Republic, or elsewhere. When it’s a close run thing, it puts Northern Ireland into second place.”

People of good-will obviously wish Richard Haass well for the good of Northern Ireland. Business leaders and their advisors also recognise that solving parading, flags and shared future issues are, in addition, fundamental to the creation of a healthy and viable economy.

TICKERS

The month’s local indicators at a glance Ulster Bank economist Richard Ramsey gives a rundown on the latest key pointers THE Quarterly Employment Survey (QES) for Q2 2013 was published last month. This measures the number of jobs as opposed to the number of individuals in employment. The QES excludes the self-employed.

It should be noted that the QES coverage and methodology used to estimate the number of jobs in NI has changed. This explains the apparent surge in job numbers in Q4 2009. Revisions to earlier data now reveal that NI has posted five consecutive quarters of employment growth. Furthermore, the increase in job numbers in Q2 2013 of 3,240 jobs (+0.5%) represented the largest increase since Q1 2008 (excluding Q4 2009).

The private sector accounted for the vast majority (85%) of these net job gains. The number of seasonally adjusted jobs peaked in Q2 2008 at 733,040 and troughed in Q1 2012 with 691,580. This represents a fall of 5.7% or 41,460 jobs. During the subsequent five quarters, NI has recouped one sixth (6,810) of the jobs lost during the downturn.

This highlights the scale of the job creation challenge facing NI.

It is encouraging that NI's economic recovery appears to have moved to the next stage, a meaningful recovery in employment.

The steady stream of Invest NI-backed investments over the past year, promising jobs in the near future, alongside improved business confidence and rising

investment intentions, should keep employment growth on an upward trajectory. At a sector level, the most impressive growth occurred within manufacturing which posted a 1.6% quarterly increase of 1,160 in Q2 2013. Manufacturing employment is now at its highest level

since March 2009. Meanwhile, the services sector recorded a quarterly rise of 0.4% (+2,190).

The most disappointing aspect of the QES was the further decline in construction employment which has now fallen by more than 37% from its predownturn peak.

FULL-TIME employees have borne the brunt of the job losses in the UK, NI and the RoI. However, all three economies posted a simultaneous annual rise in full-time employment in Q2 2013 for the first time since Q1 2008. In Q2 2013, the UK and RoI posted year-on-year increases of 1.9% and 1.6%, while NI posted a more modest

rise of 0.4% y/y or +1,670 jobs.

Despite this recent rise, the number of full-time jobs in NI in Q2 2013 remains 6.6% (or 32,000 jobs) below the Q2 2008 figure. For the UK the corresponding fall was just 1.4%. The RoI has suffered the largest decline in full-time employment at 19.2% below where it was five years previous.

FULL-TIME employment and male employees have borne the brunt of the job losses. Males have accounted for 65% of the net fall in jobs between June 2008 and June 2013, due to the concentration of job losses in male-dominated industries such as manufacturing and construction. Male (+0.5%) and female (+0.2%) full-time employment

have both posted rises over the past year. However, part-time employment saw the largest gains. Male part-time employment rose by 2.4% y/y in June 2013. As a result, male part-time employment was over 3% higher in Q2 2013 than it was in Q2 2008. Female part-time employment increased by 1.1% between Q2 2012 and Q2 2013.

36 BUSINESS MONTH 7 October 2013

STOCKWATCH

UPSHARES-DOWNSHARES Humble scribe left shamefaced but no stopping Tony ‘Infuriatingly Profitable’ Axon REGULAR readers of this feature may have guessed this introduction is written by the editor. Normally the fact one of the traders is scribbling these words doesn’t cause a problem, but this month you may notice a morose tone to the copy given the horrific loss for your humble reporter of more

Joanne Stuart

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

Sep 26 value 79,291 139,429 175,840 29,653 424,212

Change 2,154 607 -4,056 1,157 -137

97,349

-2,651

Wildcard: Experian I AM opting for a safer haven with Experian. It is a global business, best known for enabling consumers to identify their credit score. The company has expanded both the range of industries it services and its geographic reach which has helped it to come through the recession largely unscathed. The latter has seen it offset sluggish growth in UK and Europe, with Latin America showing the strongest growth. As a result of the banking crisis and economic challenges, the demands for its services should continue to grow.

than £21,000 which has left him back in negative territory.

With the difficult truth out of the way, I suppose we’d better look at how the others are doing. Tony ‘Infuriatingly Profitable’ Axon continues his success with a stash of £31,000 for the past few weeks trading.

He is now only £75,000 from

doubling his original £400,000 investment. Barry Byrne took a £9,000 hit on Tate & Lyle but still managed to pull in an overall profit of nearly £3,000 thanks to BSkyB and SAB Miller. Joanne Stuart suffered a £137 loss but remains well in profit after a storming performance over the summer.

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

Barry Byrne

Tony Axon

David Elliott

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

Sep 26 value 127,353 153,979 127,544 107,703 516,579

Change 6,065 -738 6,759 -9,344 2,742

101,579

1,579

Wildcard: AstraZeneca ASTRAZENECA is a biopharmaceutical business that focuses on the discovery, development and commercialisation of prescription medicines. The European Medicines Agency has accepted its marketing authorisation application for a new drug to treat ovarian cancer. For the 60% of ovarian cancer patients for whom the disease has spread by the time of diagnosis, the five-year survival rate is less than 50%. So there is a real need for therapies beyond current standard of care, which is platinum-based chemotherapy.

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

Sep 26 value 161,878 186,151 206,327 171,331 725,688

Change -1,934 13,489 0 19,625 31,180

101,698

1,698

Wildcard: Burberry GOOD old Red Ed has started on a path bound to make owning energy shares fraught for at least the next three years. Meanwhile I’m anticipating that Gorgeous George will go for another bite of Lloyds which should spark a further rise. And just to confirm my allegiances I will buy Royal Mail at the first opportunity, just to keep it out of German hands.

And who said the high street was dead? My Next shares are returning nicely and I’m also sticking with Burberry for my wildcard. One hand on the trophy, I reckon!

Editor of Business Month

Standard Chartered BP Carnival Pearson Total Wildcard Rio Tinto

Sep 26 value 91,667 89,004 106,007 102,202 388,880

Change -852 971 -16,305 -5,465 -21,650

100,772

772

Wildcard: Persimmon “A building company?” I hear you cry, “are you off your rocker?”

Certainly that would have been the overriding opinion had anyone plumbed for any constructionrelated stocks only a few short months ago, but that's all changed.

Booming housing markets, in London at least, mortgage approvals at five-year highs and the rushing through of the government’s help-to-buy scheme mean the likes of Persimmon should have a bright future. That’s the theory anyway.

2 September 2013 BUSINESS MONTH 37

FOCUS ON: EDUCATION

GETTING BACK A growing number of workers are studying part-time, Rebecca Kincade finds out how

A

CRUNCH in the job market has seen business people in Northern Ireland doing everything they can to boost their skills and increase their employability. Many have chosen to gain further qualifications by studying in universities and colleges while working.

Gareth Quinn, chair, MBA Association of Ireland, is one such person who returned to education to learn more about the detailed workings of business. He hoped that the lessons he learned in academia could be applied to his role at the time with Belfast City Council. Mr Quinn said: “In 2008 I decided to undertake a Masters in Business Administration (MBA) at the University of Ulster part time while continuing to work within Belfast City Council. The course lasted two years and it was one of my most rewarding experiences. As someone who had completed a course in computer science I had lots of technical knowledge on programming, operating systems, computer architecture and multimedia design but had little by way of leadership, managing human resources, financial management, strategic development and economics.”

The MBA course that he studied is seen as the cream of the business postgraduate courses and Mr Quinn felt it was the best to help him learn new skills and become more involved in the strategic work of the council. Since completing this course Mr Quinn feels that it has undoubtedly helped him to progress through the ranks in his career.

“I now have the confidence to know that no matter what is-

Academic courses give students in employment fresh insights into the business world sues arise professionally I can overcome them. I can use my technical knowledge and my experience, I can research and explore best practice, I can collaborate and ask for help.

The MBA taught me to value myself and to have the confidence to deliver on and improve on whatever project I was involved in.”

While Mr Quinn would still rate on-the-job experience over his qualification, he admits that without the qualification he wouldn’t have had the same career progress. He feels that the course not only benefited him,

38 BUSINESS MONTH 7 October 2013

but his employers as well. He continued: “In addition to professional development, if training is invested in by the organisation it can leave employees feeling valued as a vital contributor to the success of the business. It also prepares them to respond to changing customer and business requirements.”

Nicholas Read, business development manager, Ulster Business School, University of Ulster, has noticed an increase in business people upgrading skills through the school’s courses. Often they are being

supported by their employers.

He said: “There are a few very good local businesses that are actively encouraging their staff to join one of our courses on a part-time basis, allowing them to work and study at the same time.

We have many undergraduate and post-graduate courses in areas such as event management, accounting, international business, tourism development and marketing.”

More recently the business school has begun developing

>> Turn to page 40

TO LECTURES rend is enhancing the chances of promotion while also benefitting employers

7 October 2013 BUSINESS MONTH 39

FOCUS ON: EDUCATION >> From page 39 off-the-shelf courses to suit the needs of employers and specific sectors. These courses are written to ensure that the academic skills are contextualised so that they are appropriate in the business environment.

Mr Read said: “We are the biggest business school on the island of Ireland with access to a lot of experts and subject areas.

The offerings are there and organisations should take advantage of it. The students who go back into the workplace do contribute more. We have a business improvement course for those in management positions where the coursework is to go back into the work place and improve one aspect before coming back and reporting on it. The organisations that invest in their staff will get that investment back.”

Mr Read mentioned one of the school’s past students, Chris Dears, general manager, Chesapeake Pharmaceutical Packag-

ing, who did the business development course. He was able to generate cash savings of almost £1m by thinking about his business model in a different way, changing his cash flow and looking at other markets and products. Mr Read continued: “It is tough with bottom lines at the moment and training will be cut first but we can see how it does benefit businesses.

Academia has allowed our students to see their job from another point of view, they can see what other people do and how they fit into the business overall. The lessons learned not only come from the lectures and tutorials. They come from speaking to fellow students.”

Many courses on offer in the schools and colleges across Northern Ireland are also accredited by professional bodies such as ACCA, CIMA, CIPD and CIM. This means that students are able to become educationally qualified and professionally qualified at the same time.

40 BUSINESS MONTH 7 October 2013

FOCUS ON: PUBLIC SECTOR

IT’S TIME TO GO Rebecca Kincade talks to companies on the challenges faced in winning government contracts and how to overcome them

F

INANCE Minister, Simon Hamilton, has entered his new role with public-sector reform firmly at the top of his agenda. He has pledged to increase the efficiency of the public sector to help the private sector grow. With a £3bn procurement programme promising so much for businesses in Northern Ireland, we spoke to several companies who already do business with the public sector to find out what they needed to do to secure these contracts.

Patrick McAliskey, managing director, Novosco, set up his IT infrastructure business 20 years ago. In the past two years they have expanded their operations significantly, aiming for £20m turnover by the end of this year across the UK and Ireland. Much of this, he says, is down to the work they have secured with the public sector.

“Our biggest customers at the moment are the Belfast Trust, Southern Trust and South Eastern Trust. We found that once we had secured our first contract this helped us to show relevant experience for other work. We are now working in GB on several public-sector contracts as well, replicating what we have done well over here.”

Most of the company’s public-sector work has come from responding to tenders.

They have a team of three that closely reviews each tender to decide if the com-

pany has a chance of winning it. If the team agrees to proceed, senior engineers are brought in to help complete the process.

He said: “Responding to tenders isn’t something you can just jump into. You have to be able to identify how your services

42 BUSINESS MONTH 7 October 2013

are relevant and meet all the requirements. We always try to build knowledge of the

PUBLIC customer and make sure we have a strong chance of winning before we respond. You generally have to answer a prequalification questionnaire (PQQ) to make sure that you have the resources to handle the workload.”

When Novosco decided to target public-sector contracts they knew they would have to stand out from their competition. They have several wellrespected partnerships with market leaders including Cisco, EMC and VMware and have developed a list of accreditations which show they are qualified and capable. The company strives to employ and retain the very best people and they have been included on the Sunday Times Best Companies to Work For list this year.

Mr McAliskey continued: “Before targeting public-sector work you need to create a niche market for your company. We picked healthcare as we already had great reference customers in this area.

Once in the tendering process it is very competitive. You could be working on it for up to a year. We recently got down to the final two and didn’t win the work. That process can cost the company £50£100k and, thankfully, it doesn’t happen too often.

“In Ireland we would find that there are about six companies we are up against for each tender. In GB this increases to about 20. We spend a lot of time on marketing and run events to bring the public and private sector together. We want them to see that we are experts in our field.”

>> Turn to page 44

7 Octoberber 2013 BUSINESS MONTH 43

FOCUS ON: PUBLIC SECTOR >> From page 42 With so many hoops to jump through, it is not surprising that many companies opt not to compete in the tendering process.

Paul Stewart, managing director, NIParcels.com works with several public-sector clients through a different avenue.

His company is a courier reseller for brands such as Parcelforce and FedEx. Businesses that only send packages on an irregular or one-off basis can

send them through NI Parcels and still enjoy the low shipping costs usually reserved for larger courier contracts.

Mr Stewart said: “We have found that there are two ways to generate work from the public sector.

“The tender process is too long and costly for a small business like mine. We have a few public sector clients that have contacted us for smaller orders that require a quick turnaround. They need packages sent at short notice, sometimes

44 BUSINESS MONTH 7 October 2013

to Brussels for the next day.

These orders don’t require tender processes and can be expensed instead.”

Mr Stewart knows that the public sector is a “hard one to crack”.

He puts his success in gaining this work down to his presence online. “With public sector cuts affecting all departments it is obvious that there is a lot more price comparison going on behind the scenes. In the past we would have seen orders being confirmed on the spot whereas

now there is a delay while they source other quotes. We are fast, reliable and price fairly. . .

I would recommend that smaller businesses avoid tenders. Speak to people in the know and find out if there is work in your area. You can’t take a hard sell approach to the public sector. Don’t cold call but do network to develop contacts.”

While the work is out there for the private sector, it can often be a challenging journey to secure it.

OFFLINE SECTION

MOTORING

DAY IN THE LIFE

TOUR DE FOURCE

SIMON CAMPBELL

BMW’s new coupe

MD of Portview Fit-out

MAN ABOUT TOWN

THE CHAIRMAN

Inside track on Northern Ireland business

MY LA STORY

IS IT POSSIBLE TO DITCH YOUR CAR AND SEE THE DELIGHTS OF LOS ANGELES BY BUS?

7 October 2013 BUSINESS MONTH 45

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OUT TO LUNCH

Hooked on securing fishing town’s future

Joris Minne with Alan McCulla and Davey Hill

Alan McCulla, chief executive of the Anglo North Irish Fish Producers’ Organisation, and Davey Hill, managing director of Anglo-North Irish Off Shore Energy Services, tell Joris Minne of plans to halt the exodus of young people from Kilkeel

A

LAN McCulla and Davey Hill have that brand of relaxed charm and old-fashioned politeness you find among men who lead intensely hard lives and who have to deal with frequent tragedies.

But whatever hardships they have known as fishermen and businessmen making a living from the sea, they now face the hardest challenge of them all: to reinvent Kilkeel.

Judging by a number of economic reports, surveys and analyses of the Northern Ireland fishing industry, Kilkeel by rights, ought to have been abandoned about 25 years ago. After all, fishing was a sunset industry, the harbour was isolated and hours from anywhere else and young people were leaving in their droves to seek work in the cities.

But for McCulla, Hill and a dozen other business people, Kilkeel is far from flat lining. In fact, they believe the patient is showing strong vital signs and they are hopeful of a full recovery soon. Kilkeel now accounts for 50% of the entire UK langoustine catch and exports are healthy.

“It’s got to the point now where Kilkeel Harbour is so scaled back, so efficient and so well serviced, that the only way is up,” says Alan as we eat hake, megrim and queenies in Belfast’s Mourne Seafood Bar (Bank Street, Belfast).

The two men joined forces with other business people in the harbour and with

46 BUSINESS MONTH 7 October 2013

help from Invest NI recently established a collaborative network. The objective was to build a new economy for the town and harbour based on the emerging opportunities of the prawn fishing sector and the offshore renewable energy developments.

“The two sectors do not go hand in glove,” explains Davey, “there are clear tensions between the two; yet opportunities in both are unparalleled for anyone who is experienced in fishing, navigation and marine life as we folk in Kilkeel tend to be.”

Breathing oxygen into a town which has been losing up to 800 people a year through migration of the young to the cities can’t be easy.

But for Alan and Davey the argument is simple. They want to help create a new economy which will make it too attractive for their children to leave.

“This is a grass-roots, business-led initiative and it will work because we, the business community, are committed to leaving Kilkeel in better shape for the next generation,” says Alan.

Bringing the harbour’s activities into play with the town is part of the strategy. Regenerating the harbour economy will have a direct impact on the town, its trade and its future, the men agree.

In many ways, the components necessary for an economic recovery are all present: a business community willing to invest; a long-established development agency, the Kilkeel Development Association; a

supportive local authority; Invest NI; and an optimistic harbour chief executive (the harbour is managed by DARD). “What we now need is acknowledgement and recognition to build a sense of confidence without which a small town like ours cannot succeed,” he says, “but this is coming!”

What may also be on its way is an ambitious plan to expand the harbour. Whereas the last harbour expansion 20 years ago bizarrely involved digging back towards the mountains, the next plans are to build a breakwater and new pier to create a much larger, more modern and fit-forpurpose harbour. Such a harbour would accommodate new fish businesses, offshore energy service facilities and even a nautical academy.

“These are ambitious plans but unless Kilkeel tackles this issue, the future is bleak. Quite simply, we will get left behind and other ports along the Irish Sea coasts of Ireland, England, Wales and Scotland will take our business from us.”

Mourne Seafood Bar Chowder Potted herring Mackerel pate Megrim Hake Queenies linguini Total

3.75 6.00 5.50 12.50 13.00 14.50 55.25

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SHOP FRONT

Streetview No.37: Discovery Glass, Comber Ron McBride

S

HOULD you like your glass half-full, rose tinted or perhaps fused, sea washed or slumped, an artisan in Comber is at hand. For over two millennia there’s been an awareness of glass in its natural form, obsidian and of working glass using various techniques. Today, firing in a kiln at various temperatures adds depth, relief and shape to the finished work, be it slumped or fully fused. Fused glass is used to create art glass, tiles and jewellery whereas the slumping technique is used for larger, functional pieces like dishes, bowls and plates. Since the 1970s companies have been producing glass specifically for fusing in a kiln and former teacher Irene McBride has been using hers for over 20 years in Discovery Glass.

Irene uses a former dentist’s surgery in Comber in premises which may be aptly described as compact. The single-storey

building has a window full of colourful pieces, including lightcatchers, in a variety of styles and sizes. Near the door there is an impressive artistic plaque. It is a shop-cum-studio which people visit because of its reputation or come across its frontage as they walk around the square.

On entry there is a small showroom packed with jewellery, leaded lights and stained glass. A favourite for many are the angels and little jewel boxes. Tiffany glass lamp

shades catch the eye as do many larger pieces. All the work on display is original and made by Irene who won a professional award from the Worshipful Company of Glaziers and Painters of Glass. The adjoining room is the workshop with the electric kiln. This is Irene’s domain and it is crowded with sheets of glass and ongoing project work.

Irene is not confined to her workshop and runs classes in places as distant as Larne. She also holds classes and taster sessions in the studio where participants can create their

own light catcher in a day. An attractive and informative website plays an important role. It is here that fine examples of architectural and interior work can be browsed, that one gets an idea of the artistic flair involved in Irene’s work.

Discovery Glass not only makes stained glass windows but also carries out repairs. Irene undertakes commissions for individuals and public bodies Online shopping is possible although it is nice to touch the individual pieces which look so good when displayed together.

The complimentary gift wrapping service is a boon. Bridal headwear can be commissioned involving the use of beads, silver wire and pearls.

Anyone looking for a gift and wishing to explore the colours and textures of quality workmanship should visit Comber and Irene’s passion will shine through.

Discovery Glass, 3 Killinchy Street, Comber, BT23 5AP 02891 870181

7 October 2013 BUSINESS MONTH 47

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DAY IN THE LIFE

Meet the man who’s ever keen to fit global brands in and out

Simon Campbell with fellow Portview Fit-out Director Paul Scullion, left

Simon Campbell MD of Portview Fit-Out, Belfast 5.30am

AT Portview Fit-out we work with global brands, many of whom call on our expertise to fit out their retail premises.

Today it's an early start as I'm off to London for a pitch to a new client who is due to open a restaurant in the City. I drive to George Best Airport for my flight to Gatwick. While in London I will also visit one of our sites and have a conference call.

7am

On the flight I catch another hour’s sleep.

8am

On the Gatwick Express I catch up on emails and phone the office which also starts at 8am.

9am

I head to the Institute of Directors' business centre in Pall Mall to take a conference call with a client in Belgium.

9.45am

Settled into the room I have booked for the call. This facility

is really useful as it provides a quiet space where you can make calls, and it enables you to have conversion in private.

The call is productive.

11.15am

I take the Tube to Goodge Street for a project at Tottenham Court Road we are two weeks away from handover. It is for an American client and as well as being their first retail outlet in the UK, they are a new client for Portview Fit-out.

It is around a month since I last saw the site so it has transformed from structural works to decorations and finishes in the interim. Our site manager John Brazier gives me a tour. I have a chance to speak to the American unity supplier who is supervising the installation of the client’s bespoke items to see if we are fulfilling his expectations in terms of workmanship and time — I'm happy to say he is delighted with the progress and impressed with the standard of craftsmanship of our team. The finish line is in sight and I leave content that things are on track and in good hands.

48 BUSINESS MONTH 7 October 2013

12.15pm

A quick coffee and sandwich in Pret a Manger across the road before taking the Tube to our potential client’s offices in Southfields near Wimbledon.

manage to extend it into a 40minute meeting as we quickly established a rapport with them. A long way to go for a short meeting but the prize will be amazing if it works out.

1pm

3pm

I am met at the destination Tube station by my fellow director Paul Scullion and our business development manager Stuart Norman to be greeted by the news as we walk to the 1.30pm meeting that the client is running an hour late. After telling myself the client is always king and hastily rearranging my flight home due to the delay we settle in a nearby coffee shop to review our pitch and discuss strategy for the meeting.

2.15pm

When we get in front of the client, we are advised that due to time commitments for the company’s chairman the originally allocated 40-minute meeting with him, three other directors, two investors, two designers and the client’s project quantity surveyor is to be squeezed into 20 minutes. We

Back to the Gatwick Express for me. Paul heads back to managing his project in Knightsbridge for a large department store and Stuart is off for dinner with a director from Harvey Nichols, another client.

4.30pm

Emails and phone calls on the train.

5.30pm

At Gatwick I meet up with one of our contract managers in one of the major fit-outs we have done there. Flight back to Belfast is spent catching up on some reading.

6.45pm

After landing I head home to get changed before heading out with my wife to see Ruby Wax at the Waterfront Hall. Light relief after a long day.

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THE 65th International Auto Show opened its doors in Frankfurt in mid September, amid the guarding towers of the city's financial area. The 11 exhibition halls hosted in the region of 1,000 exhibitors from more than 34 countries, all keen to display the latest design trends and technological innovations.

The show cars usually top the bill, but increasingly the stands are the main talking points, and this year was no exception. Audi grabbed the headlines with their inverted display showing cars driving along upside down on aerial roadways between cityscape tower blocks and trees dropping foliage first from the rafters. Not to be outdone, BMW had a raised roadway running above their main stands on which visitors could drive a selection of their electric vehicles.

And BMW provided the star of the show, combining both tantalising design and technical supremacy in their latest production car. The i3 (pictured) heralds the company's move into electric propulsion with a compact four-seater built around a high-tech carbon fibre and aluminium chassis.

The theme of the show probed beyond the body beauti-

Technological wizardry on show in Frankfurt ful to expose the underlying technologies and almost every manufacturer complemented their show car with stripped away detailing of what was underneath.

Opel/Vauxhall provided the most stunning show model,

range of concept vehicles, closely backed by Citroen and Peugeot who introduced unprotected copper as a bodywork element which would be allowed to weather and oxidise to change colour as it ages.

However, the common theme

bringing back the Monza badge for their gull-wing sports model, while Kia asserted its blossoming reputation with the Niro, a concept giving strong clues to a possible new B-segment contender. Both cars combined electric power with an internal combustion engine.

Renault responded to the German dominance with a superb

among all manufacturers was the underlying technologies which focused on both the structural materials and engineering advancements.

F1 technology is now entering the mass market with carbon fibre and aluminium alloys used in several new cars. Sectioned models and exploded displays revealed the engineering ad-

MOTORING NEWS

vances with electric power in either hybrid support or standalone plug-in now as well established as the internal combustion engine itself.

Interior design was also comprehensively addressed with nearly all of the prototypes featuring lightweight seat mouldings as opposed to the upholstered comfort we are used to.

Bridgestone was even showing what the inside of a future tyre might look like — not a void for air, but a complex series of interlinked discs that replace the need for air.

In recent years, motor shows tended to be fragile events resting on the edge of a market downturn of unknown depth.

But Frankfurt this year was very sensible, the appeal of the show cars drawing the visitor to examine the developing technologies. There was confidence among the exhibitors, whose spending was hopefully graced with the approval of those in the financial towers, their crossing shadows on the exhibition halls a reminder of how important the automotive industry is to the European economy.

Jim McCauley

7 October2013 BUSINESS MONTH 49

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MOTORING

TOUR DE FOURCE

BMW’s coupe has just got even better with the new series, writes Jim McCauley

I

T is very much a case of one-upmanship for the new BMW coupe as its 4 Series badging moves it a step up the ladder from the 3 Series five-door range. And while the underlying architecture retains its 3 Series roots, the new car is longer, wider and most importantly has a lower centre of gravity. The 3 Series coupe

has been a big success for BMW, with the current generation E92 accounting for 50,000 sales in the UK during its seven-year life cycle.

The new model has increased visual appeal with strong shoulder lines, a much wider rear track and a lower roofline that sweeps further back into the rear deck to give a more assertive coupe profile. Front-

50 BUSINESS MONTH 7 October 2013

end detailing includes a lower and more elongated kidney grille stretching out to slim headlight units under which sit two air intakes that exit in the vented front wings.

Initial engine choice comprises three turbocharged units — two petrol and one diesel — all supported with BMW's ‘efficient dynamics' technologies.

A tempting choice at the car's

launch was the 435i which offers the classic BMW straight-six power unit. This 3.0 litre engine produces 306 HP with a massive 400Nm of torque available and is capable of taking the car from rest to 62mph (100km/h) in just 5.4 seconds, while top speed is limited to 155mph.

(250km/h) Driving through its standard six-speed gearbox, the 435i is classic BMW, precise to

BMW 435i Coupe Engine: 3.0 litre, 306bhp, 400 Nm torque Drive: Via six-speed manual gearbox to rear wheels. Start/ stop technology Performance: 0-62mph (100km/h) in 5.4 seconds; max, 155mph (250km/h) Fuel on combined cycle: 34.9 mpg (8.09l/100km) CO2: 189 gms/km: VED Band J Trim: M Sport Price: £41,435 Insurance: N/A Warranty: Three-year/unlimited mileage with extendable option Benefit-in-Kind: 29% Euro NCAP: N/A Available extras: Head-up display, £825; internet, £95; edia package, £1,000; reversing camera, £330; variable sport steering, £250

the touch and solid to the feel, conveying confidence and satisfaction in equal measure. The test car was fitted with the optional adaptive M Sport suspension at £515 as well as M Sport brakes at a similar price which no doubt adds to the car's appeal, while a strengthened front section — 60% stiffer than that of the current 3 Series coupe — improves steering feel.

The car's standard Dynamic Stability Control (DSC) system incorporates a range of electronic support packages to maintain optimum safe handling as well as a hill-start assist function which prevents the car from rolling back when starting off on gradients.

To accommodate individual preferences, all models feature

a Drive Performance Control switch which allows the driver to select from a range of powertrain responses from Eco to Sport+.

The interior of the car provides four-seater comfort with front sports seats and the rear bench moulded to provide adequate support for long journeys.

Instrumentation is clearly presented in the raised binnacle while the console-mounted iDrive controller outputs information onto a coloured 6.5 inch central display. This latest generation system features a larger control knob with an integrated touchpad.

Although the cars enter the market at a slight increase in price over the current 3 Series coupe, this is more than offset by the additional list of standard equipment which includes Xenon headlights, front and rear parking sensors, twozone air conditioning, Bluetooth connectivity, and automatic functioning of lights and wipers.

In addition to the standard SE trim, four additional levels are available, Sport or Modern specification adding £1,500 to the price of the SE, while Luxury and M Sport

respectively come at £2,500 and £3,000 over the standard car.

Despite the performance potential of the 435i, its economy surprises with an official combined fuel consumption of 35.8mpg. The model as tested in top M Sport trim is listed at £41,435 and the standard warranty can be extended after three years. A five-year/50,000 mile service package at £425 is an option not to be passed over.

The new model goes on is on sale from this month with deliveries expected early in next year. The engine range will be expanded in the months ahead with the additional availability of the company's X-Drive all-wheel drive system at a £1,500 premium on selected models.

7 October BUSINESS MONTH 51

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TECHNOLOGY Nokia Lumia 1020 Smartphone, £37 p/mt on O2 @ www.nokia.com The Lumia 1020 is unlike other smartphones on the market today, as the 41-megapixel camera helps produce some of the sharpest images created by a digital camera. This is made possible by leading hardware technology combined with Nokia Pro Camera, which makes it easy for anyone to take professional quality images. With an interface that visually demonstrates the final photo or video, Nokia Pro Camera makes it easy to capture, edit and share your work. Although Lumia is available in various shops and networks, O2 has got the exclusive on the 64GB version, in three stunning colours.

LG G Pad 8.3 Tablet £200 (approx) @ www.lg.com/uk The LG G Pad 8.3 tablet boasts the first full HD display on an eight-inch class tablet, a unique userexperience and wide range of connectivity features.

Despite its large display, it’s slim enough to hold comfortably in one hand. The device squeezes in a powerful battery for long-lasting usage time but is still as light as a newspaper at just 338g. The G Pad is equipped with a 1920 x 1200 WUXGA (Widescreen Ultra Extended Graphics Array) display capable of delivering picture quality with even higher resolution than a standard Full HD display.

Galaxy S 4 flip cover, £45 @ www.samsung.com The Samsung Galaxy S 4 flip cover was developed with the user’s lifestyle in mind. This case, designed to protect the Galaxy S 4 smartphone without adding bulk, is the perfect combination of style and durability. The case is constructed to withstand even the most active lifestyle, while allowing the user to display their sense of style. Many smartphone cases make you choose between protection and fashion — with the new Flip Cover for Galaxy S 4 you get both.

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BMW i8 Plug-In Hybrid Sports Car , £100,000 @ www.bmw.com The BMW i8 is far from a budget option, but BMW says a hybrid plug-in will save on petrol, without scrimping on performance. It can do 0-60mph in 4.4 seconds, boasts 113mpg efficiency and has a 1.5l three-cylinder turbocharged engine, working with an electric motor. The latter can be charged from a household electric socket (from 0 to 80% takes two hours, says BMW). It’s an interesting trait for a 362hp car capable of 155mph. With a full fuel tank and charged battery, it has a 310 mile range and the hybrid pairing means you'll not face a lengthy recharge once the battery runs flat. The interior has a fully digital instrument display and integration with the ConnectedDrive system, to connect to the world and your smartphone, with all the mod cons. It is now available to order with deliveries expected in July next year.

GMcG

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Winter Woollies

Wool mohair jacket, £320; wool mohair trousers, £160, @ Jaguer

Grainne McGarvey

W

new fascination from luxury ITH a noticefashion houses such as able chill Ralph Lauren, in the Chanel, Burberry air it’s and Louis Vuitton. time This season, coats, to fight the elements hats and even skirts and snuggle up in a are embracing this material that has natural materilong been out of al and giving favour. After years us an opporof being out in the tunity to cold, wool is back in wrap up in a fashion and proving range of more popular than Linea @ HoF styles and ever, fuelled by a Victoria Square, colours. £60

FASHION

Boiled wool coat @ Land’s End, £120

Grey wool tie @ M&S, £29.50

Navy-blue knit polo neck @ East, £69

Wool fedora @ Primark, £8

Grey wool biker @ Dorothy Perkins,£65

Camel wool zip mini @ M&S, £69

7 October 2013 BUSINESS MONTH 53

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TRAVEL

CAR-LESS IN The car’s the star in LA, but what if you’d rather walk, cycle or take the bus? Sanjiv Bhattacharya left his Honda at home and hit the road

T

WENTY seconds. No, 10.

That's how long it takes before the rapping starts.

The kid's maybe 18 or 19, his name's Deshawn and he clocks me as soon as I get on the bus.

“Hey, wassup man! You going to the beach?” His big dorky smile suggests he doesn't realise we're complete strangers. I'm thinking: not the sharpest tool in the box, but harmless.

“I'm going to the beach to help the kids stay off drugs, uh-huh,” he says.

“Because I love Jesus, I read a lot of Bibles. You like gospel rap?”

“Well, I can't say I've…”

“Bfft, p-tsch! Bfft, p-tsch!” He's tapping his feet and nodding. “Oh Lord, almighty master, won't you save us from this terrible disaster, we go to church but don't listen to the pastor….”

And this is all before 11 in the morning. Normally, I'd be pulling out of my drive in a 2007 Honda, joining a jostling stream of other vehicles. But not today — today, I've decided, after 12 years in this city, to try to get about without a car for a change. LA Tourism has launched a “Car Free in LA” campaign promoting new bikeways and tailored itineraries to help visitors explore various neighbourhoods. I'm setting myself my own test, however: I want to see if I can make a loop around the city via some landmark spots.

So far, I'm loving it. It sounds daft, but the novelty of getting a bus from

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the end of my street in Mid-City is kind of thrilling. In LA, the bus is another country — an almost exclusively non-white world, mostly Hispanic and low-income, with Spanish language TV up at the front. Incredibly, many of my friends have never ridden the bus and don't intend to. I've only taken it occasionally. While you could ask most New Yorkers how to get from Midtown to Brooklyn on the subway, Angelenos are hopeless. Here, there are public transit people and there are drivers, and — ugly though it sounds — they're practically split by socioeconomics, culture, class and even race. All those barriers that public transport breaks down so effectively in other cities are magnified here.

Buses are practically taboo.

But on the buses, there's camaraderie. Noticing the newbie flapping his bus map, passengers help me out. I get off at Venice Beach, the home of ageing musclemen, tourist traps and rollerbladers. If you want a view of the water and beach life, Santa Monica's the place for that, only a couple of miles up the coast. So I figure, hey — why not rent a bike from Perry's rental in Venice, enjoy a touristy ride along the beach and then drop the bike off at Perry's in Santa Monica? Before I know it, I'm in a convoy of tourists pedalling down the coast, wind in my hair.

My next destination, however, is a far stiffer challenge: Hotel Bel-Air. It's

an unspoken assumption in LA that if you don't drive it's because you can't afford it. And this hits home in the rich neighbourhoods where buses don't go and sidewalks have disappeared. It takes me two buses and a humbling march past all the mansions in the blazing heat to reach Bel-Air. I arrive with aching calves, a clinging shirt and a burned neck. Never mind, I'm in the Hotel Bel-Air now. Yes, a $30 cocktail would be lovely. Why, yes, I'll take the suite tonight.

The next morning I realise I've bitten off more than I can chew. Griffith Park has terrific views, but is murder to get to without wheels. Buses lose their allure when you're waiting for eons at one sunbaked bus stop after another. And then I'm hiking up hills in the merciless heat.

But a kind of tunnel vision sets in and I can't stop. I head to Rattlesnake Park where I'm hoping to kayak south on a recently opened stretch of the LA River. Alas, the kayaking company is shut. Still, it's all about finishing now — making the loop, just to say I did it.

I bounce back down the hill to jump on the first bus heading south.

Finally, I arrive Downtown at Union Station. Here at last are swarms of commuters, pouring up and down escalators, flowing through tunnels. So what if the underground's still new and strangely barren? That's the thing about tunnels. They're always in the shade.

LOS ANGELES

7 Octoberr 2013 BUSINESS MONTH 55

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TRAVEL

The Big Six: Luxury camps Cresto Ranch, United States Dunton Hot Springs is an old ghost town in the Colorado Rockies that has operated as a five-star wilderness retreat since a renovation in the Nineties. Its latest addition is Cresto Ranch. Located four miles downriver, the camp has eight canvas tents fitted with gas stoves and six-foot bath tubs. The centre point is a main lodge, hewn from a 19thcentury farmhouse, that houses a modern-day dining room, bar and wraparound deck. It’s open from June to October.

Cresto Ranch, Dunton, Colorado, US (001 970 882 4800; duntonhotsprings.com).

Doubles start at US$1,400 (£933), all inclusive.

Chamba Camp, India Last month saw the launch of the Ultimate Travelling Camp, a nomadic Indian retreat that explored the Ladakh region.

Pitching up in Thiskey during September, it offered a fivenight itinerary that visited the area’s 12-storey Buddhist monastery and the city of Leh, taking in the Indus River and Himalayan scenery, before returning to rest each night in one of the lavish tents. Next year, the camp relocates to Uttarakhand, Uttar Pradesh, Bihar and Nagaland.

Chamba Camp, various locations, India (020-7808 5691; thechambathikseycamp.com).

The five-night itinerary costs £2,295pp, all inclusive.

Glamping Sandat, Bali This bucolic camp (pictured) recently opened last month amid the rice paddies that surround the hill town of Ubud, in central Bali. It offers a choice of five canvas tents, propped up on bamboo and mahogany frames, plus three splitlevel huts with thatched roofs.

Glamping Sandat, Ubud, Bali, Indonesia (00 62 813 5306 0409; glampingsandat.com).

Doubles start at US$460 (£307), including breakfast.

Ikara, Australia Ikara opens in the foothills of the Flinders Ranges National Park this month, bringing a safari-style experience to South Australia's largest mountain range.

There will be 15 tents, bedecked with king-sized beds and ensuite bathrooms.Outside awaits a landscape defined by gum trees, stalking emus and the Wilpena Pound, a natural amphitheatre of rugged peaks.

Ikara, Flinders Ranges NP, South Australia (00 61 8 8648 0004; ikarasafari camp.com.au). Doubles start at A$180 (£120), room only.

Perdue Hotel, Turkey Though this camp is only a half-hour drive from the package-holiday hotspot of Oludeniz, it couldn’t feel more apart. Opened in May on a secluded cove, with endless views of the Mediterranean, it hides eight safari-style tents with drawback canvas fronts and private balconies, strewn with deckchairs and a Jacuzzi.

Inside, they exude a resoundingly restful feel with plump double beds and plush bathrooms. An infinity pool and open-air restaurant add the final flourishes.

Perdue Hotel, Faralya, Fethiye, Turkey (020-7722 2288; perduehotel.com).

Doubles start at £250, room only.

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Bedouin Oasis, UAE Arabian Incentive currently offers a desert experience in the emirate of Ras al Khaimah, where guests journey out in 4x4s to dine amid the dunes, before returning to their hotels. But from November 15, the company opens a second resort in the neighbouring state of Umm al-Quwain, an hour's drive from Dubai.

Here, visitors will be able to spend a night in one of 50 atmospheric bell tents.

Bedouin Oasis, Umm alQuwain, UAE (00 971 4 2666020; arabianincentive. com). Doubles start at AED900 (£154), half board.

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Appointments

OUT AND ABOUT

with The

CHAIRMAN Our man about town feasted on gems of wisdom, whetted an appetite for Ferraris and visited the land of pandas and hotpots

Alana Coyle has been appointed associate director, head of retail of CBRE Belfast. Alana is responsible for a wide range of retail work, including acquisitions and disposals in shopping centres and high-street locations throughout Northern Ireland.

Ciara McCusker has been appointed as associate director and head of property management at McConnell Chartered Surveyors. She has more than 12 years of property management experience.

Judith Jones has been appointed assistant solicitor in the expanding private client department at Cleaver Fulton Rankin Solicitors. She previously worked in a family practice in Belfast.

C

HAMPING at the bit for some selfimprovement, The Chairman didn't waste much time last month asking a former John Lewis chairman for tips.

Sir Stuart Hampson is now the chair of the Crown Estate and was in Belfast to impart a few of the leadership techniques he helped install at the famous retailer during his many years at the helm, to Northern Ireland's bosses. His words of wisdom in relation to the partnership model gave everyone food for thought, no more so than The Chairman who has in the past followed the “do as I say, not as I do” model.

Sir Stuart wasn't the only speaker to impress, with Seamus Connolly, that symbol of all that is great about entrepreneurship in Northern Ireland from Fast Engineering, giving insight into how he keeps his troops in bullish mood.

And Mickey Harte, that stalwart of Tyrone GAA, was able to draw some very close parallels between the sporting and business worlds. That put The Chairman in mind of Alan Millar, a rugby coach he once served under who, rather than work players into an excitable frenzy, called for two minutes of silence in the changing room before big matches to focus the mind. So successful was that strategy that, now that he thinks about it, he's going to implement a similar ploy in Chairman Plc on Monday morning. Certainly the silence will be appreciated.

----UTTER the name of Pat Burns in certain circles and you will witness looks of awe. That is because the magazine scribbler

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Howard Hastings, managing director of Hastings Hotels, joined Stephen Meldrum, general manager of the Slieve Donard Resort & Spa, and deputy general manager Ciaran Murtagh to celebrate the hotel being crowned the supreme winner of the Irish hospitality industry at the 25th Hotel & Catering Review Gold Medal awards in Dublin

Excellent customer reviews have ranked all three hotels in the McKeever Hotel Group in the top 10% of the world’s hotels. The company was presented with the TripAdvisor Certificate of Excellence. Pictured are Martin Toner, Corr’s Corner Hotel; Eugene McKeever, managing director; Stella Grant, Adair Arms Hotel; and Martin Boon, Dunsilly Hotel is the stuff of legend in the motoring world where his rallying days, love of temperamental Italian engineering and shouts of “flat to the mat” ensure there's narrative around every corner.

What joy it was then for The Chairman to have the benefit of a day at the coalface of motoring

journalism in the company of the good people of Charles Hurst. Colin McNab and Richard Sinton certainly know how to put on a press conference, hosting the assembled hacks for a bacon butty breakfast in Titanic Belfast which ran so smoothly you'd think PR guru Nicki Larkin was pulling

Appointments

Jonny Crooks has been appointed as area manager for Ogilvie Fleet. With over 20 years’ experience in the motor industry, he has spent the past four years in a senior role within the local contract hire and fleet management sector.

The Minister for Employment and Learning Dr Stephen Farry and Ken Webb, principal and chief executive at SERC, welcome the third cohort of students to the Software Testers Academy. Also pictured are graduates Olivia Baxter, from Saintfield, and Christopher Scullion, from Glenavy, who both expressed how much they are enjoying the course

The Donnelly Group’s Mallusk showroom is celebrating after being awarded the coveted status of number one UK sales dealer by manufacturing giant Fiat Group Automobiles (FGA). Pictured with Fiat Group zone sales manager Peter Lynch, is Eddie Black, sales director at the Donnelly Group in Mallusk, and Richard Sinton, Alfa Romeo brand manager at the Donnelly Group in Mallusk. the strings. And the breakfast was only the start of a day that will live in The Chairman's memory for years to come.

Suitably fuelled we were then let loose in a couple of none too shabby motors for the morning, ones from none other than the stable of Enzo Ferrari.

The Chairman was paired up with a man who knows the Northern Ireland magazine world better than most in the form of Richard Buckley and couldn't have asked for better

Joyce McFaul has joined Ogilvie Fleet as customer services executive, team leader. She is responsible for all aspects of office management. Her previous experience includes five years in sales support and as a key account co-ordinator in the fleet management sector.

Irwin’s Bakery is to supply own-brand bread products to Musgrave Retail Partners’ 120 independent SuperValu and Centra stores across Northern Ireland in a deal worth more than £1m a year. Seamus Gillespie, Irwin’s Bakery ‘s sales manager, joins Lisa Muldoon, Musgrave Retail Partners NI, to celebrate the new deal. Pic: Darren Kidd/Press Eye

company on the 50-odd mile trip to Ballywalter and back.

Needless to say the F430 was a joy to drive, although The Chairman was a little disappointed to return for lunch at Charles Hurst's Boucher road HQ to find out that Pat Burns had been practising doughnuts in his Ferrari. The Cookstown man had been paired up with this magazine's own Jim McCauley, a man whose in-depth knowledge of the motoring world is incomparable.

William Scholes was also enjoying the Thursday morning run out and replaced Gary McDonald on The Chairman's Irish news monthly press trip checklist. It's not clear whether the piper has overcome his disappointment at missing out on a mention in an issue earlier this year and The Chairman can only urge him to up his societal appointments to avoid such an oversight occurring again.

>> Turn to page 60

Lianne McConville has been appointed customer service executive with Ogilvie Fleet. She will support the sales team. Lianne holds a BSc in marketing and an advanced diploma in management practice from the University of Ulster.

7 October2013 BUSINESS MONTH 59

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THE CHAIRMAN

Appointments

David McNeill has joined Ogilvie Fleet as area manager, responsible for growing the business throughout Northern Ireland. Having worked in corporate sales and fleet management for more than 25 years, he has extensive experience across all vehicle manufacturers and suppliers.

Pictured at the official opening of Outsource’s new premises in Antrim are, from left: Outsource directors James Thompson, Kieron Moore, Terry Moore and Peter Gibson with Professor John Simpson, Northern Ireland economist >> From page 59 A great day was had by all and with any luck it won't be long before The Chairman will be dropping by to pick up his own Ferrari from Charles Hurst.

Lorraine Mason has joined Eircom as service desk manager from Northgate where she spent several years in the roles of incident manager and service desk manager. More recently she had been working in the client services management team.

Steven Braden has joined Eircom as service desk analyst from BT where he was on-site support for clients. He has over 20 years of IT industry experience, with a wealth of knowledge spanning VOIP technologies to Cisco-based networking skills.

----THERE can only be one answer when asked to visit one of China's fastest growing cities, and it certainly isn't: “I'm too busy.” So it was The Chairman found himself heading to Chengdu in the west of the country, home of the panda and some of the most interesting hot pots this side of Lancashire.

British Airways was the very kind host on this inaugural flight to the region and International Airlines chief exec Willie Walsh was leading the trip, a man who made sure the accompanying press pack was fed with titbits of news and a soupcon of culture. The Chairman was over the moon to bump into old chum Michael Ward, who heads up Harrods, and it was pleasure to spend time in the company of a bevy of journalists, who know their capex from their pre-tax. And of course, the good people at BA made sure we got the most out of the trip, fiery hot hotpots and all. . .

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Anne McCullough, a Northern Ireland Hospice at Home nurse, joins David Smyth, from Coca-Cola, to launch a new charity partnership. Coca-Cola employees are currently fundraising to support Northern Ireland Hospice in its project to build a new £11m in-patient unit on Somerton Road, Belfast

Appointments

Belfast Italian restaurant Coppi has been awarded a prestigious Bib Gourmand from Michelin as part of its 2014 Guide for Great Britain and Ireland. A Bib Gourmand recognises the best places where customers can eat three courses for £28 or less (€40 in Ireland). Pictured celebrating this accolade are chefs, management and owners of the Saint Anne’s Square restaurant

The Minister for Finance and Personnel, Simon Hamilton, hosted a private dinner with BDO Northern Ireland and their clients in September at Parliament Buildings to discuss new ideas for generating economic growth within the province. Pictured, from left, are Brian Murphy, BDO business restructuring partner; Peter Burnside, BDO managing partner; Laura Jackson, BDO principal; Simon Hamilton MLA; and Nigel Harra, BDO senior partner

Women in Business NI members, Rosemary Morrison, of Directus NI, and Fiona Rice, programmes director at Next Level Impact, have been awarded Certified Business Adviser status with the Institute of Consulting, a first for Northern Ireland. They were presented the prestigious status by Ann Francke, chief executive of Chartered Management Institute, and Roseann Kelly, chief executive of Women in Business NI.

A McLean marketing manager Megan McKeown (left) and NI Cancer Fund for Children’s Amanda Steele are urging businesses to sign up to the charity’s Hug in a Mug coffee morning. The bookmakers previously raised a phenomenal £6,000 for the charity by holding a Hug in a Mug event in every store across the province.

This year they are aiming to smash that record and are challenging other businesses to follow suit.

Gregory Gout has joined Eircom as unified communications engineer.

Orginally from France, he has worked in a variety of ICT roles for companies across Europe and America. For the past six years he had worked as a senior network engineer at Aggreko, Glasgow.

John Dickey has joined Moy Park as operations manager of the Ballymena site. He was previously with Dale Farm, where he was site manager of Dromona Creamery. He holds a post-graduate diploma in Food Safety Management from Queen’s University.

Paul Longstaff has joined Moy Park as supply chain operations manager. He was previously with Microsoft where he was channel operations director for two years, responsible for customer service across UK, France and Germany.

7 October2013 BUSINESS MONTH 61

THE LAST WORD

with Aaron

Taylor We all have a responsibility to ensure meritocracy is all important, says the founder and CEO of GoPrezzo as he contemplates what the future holds for his young daughter

A

S the father of a two-year-old daughter, I was in conversation with a friend recently about her and my hopes for her future. When we brought up role models for younger people, it wasn’t long before the subject of WAGs came up.

He casually mentioned how some WAGs were in the habit of refusing to share the same transport as team staff.

Stories like this feed into the popular criticism of WAGs. That they mistake proximity to talent as substitute for having some. I want my daughter to know that there is no substitute for talent. I want her to know that she can do anything she chooses. But let’s be honest, how true is this?

Take the business world. Yes, two of the world’s largest companies — Facebook and Yahoo — have women at the helm but female entrepreneurs just aren’t as prevalent as men. In fact, Facebook COO Sheryl Sandberg’s has written a great book called Lean In, which deals with precisely this issue.

In Northern Ireland we have several female entrepreneurs who are doing great things; people like Mary McCall at TreatTicket, and Grainne Kelly at BubbleBum. But is great talent rewarded equally in Northern Ireland? How do I convince my daughter that the life of an entrepreneur is something she should aspire to when it’s apparent to people like Sandberg that a glass ceiling still persists?

At every level in business, you have women doing great things. A quick glance in the direction at public relations would have you believe this is a women only domicile, but that’s not true of business generally. There are just three female CEOs in the FTSE 100 and only 4% of the Fortune 500 have female CEOs. Why is the fall off so high and how do we go about taking women from having roles within a company to actually running the company?

But do we really want to change it?

No matter what way you look at it, men dominate business at the very cutting edge.

Asking these same people who control the

powerbase to look at options in reducing their number is like asking turkeys to vote for Christmas. Before I started thinking about the future my daughter might have, I was ambivalent to the plight of the lesserspotted female at the top table. But now, as I look to her future, I firmly believe we all have a responsibility to make that top table as open and meritocratic as possible.

For any long-lasting and permanent change, a generational mindset must happen.

At the moment in Northern Ireland, there’s a significant amount of work going on with organisations like Women in Business who are working tirelessly to help make it a more open playing field for all. CoderDojo is a great organisation and is helping to get kids involved in programming.

CoderDojo has identified getting girls into programming from their formative years as an absolute necessity for culture change. Although this awesome work is happening, it needs supported through education in schools where the Young Entrepreneurs Network and Sentinus are doing great things.

As I look to the future and figure out what that future looks like for my daughter, all I can really do is bring her up to be aware of everything that’s out there. I want to make sure that whatever she decides upon, it’s something she’s got a passion for and above all, it’s something she’s happy and fulfilled doing. I want my daughter to deal with bigger decisions than having to figure out which bus she has to travel on. I want her to feel that there’s no glass ceiling, that the sky’s the limit.

Daisy, if you’re reading this decades hence, I hope that you can tell me what life is like as a female entrepreneur in a more equal world. And I hope you can tell me you have no idea what a WAG is.

Daisy, I hope that in decade hence you can tell me that you have no idea what a WAG is

62 BUSINESS MONTH 3 June 2013