Business Month September 2013

September 2013 • ISSUE 34 PRICE £2.50 (Where sold)

The green shoot of recovery?

We find out if more positive economic data means the recession is behind us

PLUS: A look at the growing number of companies snapped up by foreign owners + The engineering and marketing sectors come under the spotlight

CONTENTS

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Editor’s note David Elliott

d.elliott@businessmonth.co.uk

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FEATURES

12 Analysis: Find out what traits great leaders possess 16 Economy Watch: It’s agreed the DFP needs to tread a new path but in which direction?

26 And I’ll tell you another thing: Launching our new column Eric Carson touches on the ‘endless possibilities’ 28 SME: The rugby fan who has big designs on the future 32 Inside Report: We consider the pros and cons of global giants buying up Northern Ireland companies

FOCUS

38 Engineering: Collaboration is helping Northern Ireland revive its manufacturing prowess 42 Advertising: The advertising landscape has changed but many agencies are feeling optimistic

OFFLINE

46 Out to lunch: With the larger than life MD of Anaconda 48 Day in the life of: Lyric Theatre’s marketing manager 50 Motoring: Jim McCauley gets a real buzz out of Vauxhall’s plug-in Ampera 54 Travel: Aaron Millar goes in search of enlightenment on Japan’s Kumano Kodo trail 58 The Chairman: The inside track on business 62 Last Word: With John Sherrocks BUSINESS MONTH 124-144 Royal Avenue, Belfast, BT11EB Editor - David Elliott

COVER STORY

SIGNALS ARE POSITIVE After six painful years our economy looks to be on the road to recovery but it's likely to be a long journey

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

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

ELCOME to September’s edition of Business Month.

After a short summer break we’re back with renewed energy to ask a question we’ve been scared to ask for a number of years.

Obviously, we’ll have to wait to see whether we really are heading back to more prosperous times, but even the most pessimistic out there will have to agree that the past few months have produced a picture of economic stability, and in some cases even growth.

From house prices to PMIs, jobs data to confidence surveys, most indicator are beginning to show signs of life.

We’ve all been guilty of mistaking a false dawn for the real thing but this time there seems to be a basis for hope.

There will be some in the business community who believe that the media should have been trying to instil that confidence ages ago but if the past few years have taught us anything it’s that hard facts are all that matter.

Now that we’ve seen more positive data we’ll certainly get behind the improving sentiment, albeit cautiously, because cautious optimism is the mood the numbers convey.

We’ll present the facts and ask the sort of questions on the cover of this magazine.

Let’s hope the green shoots blossom in the months ahead.

2 September 2013 BUSINESS MONTH 3

NEWS BITES

UK $4.02

Ireland US $4.66

$4.56

Brazil $5.28

China $2.61

The Big Mac Index: The price of a McDonald’s Big Mac in dollars

India $1.50

SOURCE: THE ECONOMIST

IT firm wins contracts totalling £100,000 A LISBURN IT company has won new contracts worth over £100,000 within the construction industry in Glasgow and London.

The Xperience Group has also enjoyed recent export successes and growth through acquisitions and now employs around 90 staff in Lisburn, Peterborough and a recently opened Glasgow office.

Local economy tipped to grow by 1.7% in 2014 NORTHERN Ireland’s economy could grow by almost 2% next year with progress predicted for the ICT, agriculture and science sectors, according to a new report.

Danske Bank's latest Quarterly Sectoral Forecast said that GVA (gross value added) will grow at 0.4% this year and 1.7% in 2014.

The report shows that both corporate and consumer confidence are improving. However, it will take time for these to translate into increased consumer spending and business investment.

House prices climb for first time in six years HOUSE prices in Northern Ireland across all property types have risen for the first time since the start of the property collapse six years ago, the latest official figures have shown.

The cost of a home rose by 2% in the three months leading up to June this year. Prices shot up over the second quarter across all property types, including detached, terraced and apartments.

Mobile building firm’s turnover on rise again DUNGANNON-headquartered McAvoy Group has been steadily improving annual turnover since 2009 to exceed its previous best year of 2005.

JOINING THE CROWD: Belfast-based company GoPrezzo — which has offices in New York and San Francisco — are offering £50,000 of equity to ordinary investors through crowdfunding platform Investingzone.com.

Goprezzo provides a marketing integration platform which connects brands to mobile gamers, allowing people to win real-world prizes, rewards and discounts. Since launching late last year the company has secured a core group of games partners both in Europe and the US, along with global brands such as BirchBox and Paul Frank, and to date has received over £570,000 from venture capitalists and business angels. Pictured, from left, are: CEO Aaron Taylor, CTO Dr Martin Scott and developers Phil Kane and Herman Chan.

The group, which specialises in the manufacture, hire and sale of mobile buildings, had enjoyed increases in annual turnover in the years leading up to 2007, before it fell from £27m to just over £15m the following two years.

In a turnover of over £29m in 2012, £3.4m was the addition from the joint venture supported by the group.

Newry firm to supply Walmart in Mexico US GROCERY giant Walmart has bought equipment for its restaurants in Mexico from a Newry firm in a £750,000 deal.

FM Environmental, based on Greenbank Industrial Estate, specialises in grease removal and water treatment systems.

Now it will supply its Grease Guardian fat removal equipment to Asda parent company Walmart, which will use it in around 200 of its instore restaurants in Mexico.

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Relaunch of landmark pub to create 50 jobs A LANDMARK pub and restaurant in south Belfast is to be renamed, renovated and relaunched with the creation of 50 new jobs.

Lisburn Road nightspot Lily's has been christened The Albany by new owners Drinks Inc, which acquired it last year from the hospitality group led by Harry Diamond.

The venue, which started out as TaTu under the ownership of Bill Wolsey in the early 2000s, and was then renamed Monzu, will receive a £700,000 overhaul and extension, including a licensed patisserie and roof-top garden in an empty shop next door already owned by the company.

Co Tyrone plant to ship pigs’ heads to China PIGS’ heads and trotters processed in Co Tyrone will be exported to China as soon as

pigmeat firm Karro Group recevives the go-ahead, it has been revealed.

Karro Food Group — formed after a management buy-out of the pork division of Vion — is targeting China, Japan and the US in a push to increase exports already worth up to £70m a year.

Northern Ireland leads in economic inactivity NORTHERN Ireland's economic inactivity rate has been fuelled by a leap in the number of people looking after their homes and families — despite a chink of light from a fall in overall unemployment.

The number of people aged between 16 and 64 who were economically inactive grew by 10,000 to 328,000 over April, May and June, according to the Government's Labour Force Survey. That left Northern Ireland with an inactivity rate of 28.2% — above the UK average of 22.3%, and the highest of 12 UK regions.

NEWS BITES

Tax relief to encourage fracking PAUL GOSLING

▲ MORTGAGES UK gross mortgage lending rose 29% in July compared to a year before. It is now at its highest level since October 2008. ▲ BUY-TO-LET SURGE BUY-TO-LET borrowing in the UK is at its highest since 2008. ▲ PRICE OF HOUSING NORTHERN Ireland house prices rose 2% in the second quarter of this year, but they are 3% down against last year, according to the Northern Ireland Residential Property Price Index. ▲ INSOLVENCIES CORPORATE insolvencies in Northern Ireland increased in the second quarter of 2013, but are below the level of a year ago. ▲ CONSUMER MOOD Consumer confidence in Northern Ireland has risen in the last year, according to a Danske Bank survey. ▲ HOTEL OCCUPANCY Hotel occupancy in Londonderry jumped 11% in the past year to a record 83.47% in June, off the back of its UK’s City of Culture status. ▼ INCOME LEVELS REAL incomes in Northern Ireland have fallen 9.7% since 2009, compared with an 8.5% fall across the UK. ▼ CONSTRUCTION CONSTRUCTION industry activity continues to fall, according to RICS, but the rate of decline is easing. ▼ NEW HOUSING NEW housing starts in the province fell by 18% to just 1,720 in the first quarter of 2013 compared to 2012.

A SPECIAL tax relief for shale gas exploration and extraction could lead to acceleration of the development of potential fields in Fermanagh and Co Antrim.

The relief is based on allowances on oil and gas production applied in the North Sea, which the government regards as having been successful in maintaining and increasing investment — which rose to £13.5bn last year — beyond the period of peak extraction.

The new allowance will reduce effective tax rates on some production income from 62% to 30%.

The Treasury says this could lead the creation of thousands of jobs and increase tax revenues from oil and gas extraction activities.

Local communities will receive at least £100,000 per fracked well during the exploration phase, rising to a minimum of 1% of revenues from each well.

“Shale gas is a resource with huge potential to broaden the UK's energy mix,” argued the Chancellor, George Osborne.

However, the scale of any shale gas extraction in Northern Ireland remains unclear.

Professor David Elmes, head of the Warwick Business School Global Energy Group, said: “How much shale gas can be produced commercially in the UK in ways that are seen as environmentally and socially acceptable is one of the big unknowns. We still need to resolve what gas can be produced, how much is there and how to make sure it is produced in an environmentally sensitive manner

Environment minister Mark H Durkan said permission for fracking will not be given until there is further evidence of the environmental impact and with an understanding of the communities it is in.”

Newly appointed Environment Minister Mark H Durkan said that no decision would be taken on giving permission on fracking for shale gas until there was further evidence of

the environmental impact.

“At present there is no planning application for fracking in Northern Ireland,” he stressed.

“I am not going to make any decision until all the facts and scientific evidence are established.”

Shoppers’ footfall lifts retail hopes PAUL GOSLING NORTHERN IRELAND has recorded the UK’s largest increase in shoppers’ footfall outside London, in a sign that our retailing environment is improving.

However, the positive news was restricted to high streets and out-of-town destinations, with visitor numbers to indoor shopping centres falling.

Aodhan Connolly, director of the Northern Ireland Retail Consortium, says: “It’s a real

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relief to see that shopper numbers are on the up again after the previous month’s steep drop.

“There are signs that retailers also read the weather and improving economic outlook well, encouraging more of us out to shop for seasonal food, fashion and other summer must-haves with broad ranges and targeted promotions.”

Glyn Roberts, chief executive of the Northern Ireland Independent Retail Trade Association (NIRTC), agrees that the retailers has improved. “Over-

all, the good weather has been good for them,” he explained.

“There has been a barbecue bounce. Some of our retailers have seen a big surge in business — the World Police and Fire Games were good for them.

“But we have a long way to go before there is any sort of sustained recovery.”

Northern Ireland still has a far higher rate of vacant shops than the rest of the UK. NIRTC says it will work with the Executive in the coming months to develop possible solutions.

NEWS BITES

Unemployment benefit numbers fall PAUL GOSLING

NI recovery will lag rest of UK, claims PwC PAUL GOSLING NORTHERN Ireland is demonstrating its first signs of economic recovery, according to PwC’s latest Economic Outlook.

Business activity, orders, exports and employment all showed positive indicators in July. Despite this, economic improvement will be slow and lag behind the rest of the UK, argues the report.

Northern Ireland’s GDP should grow by about 0.5% this year, following a fall of 0.3% last year. This will be followed by a more significant improvement next year of 1.5%, expects PwC. While good, this is a smaller improvement than is predicted for the UK as a whole of 2%, or the Republic of Ireland, which is projected to benefit from GDP growth of 2.2%. A report from Danske Bank is slightly more optimistic, predicting economic growth in Northern Ireland next year of 1.7%.

PwC predicts that claimant count unemployment will fall by around 500 over the next year, having risen slightly in the past 12 months. Average length of unemployment has risen from less than six months in 2009 to more than a year.

More positively, PwC notes a big fall in the number of redundancies. There were over 7,000 announced in 2000, with the number falling to fewer than 2,000 in 2011, before rising to more than 3,000 last year. However, the trend is strongly downward.

PwC also noted a 41% increase in the number of inward investment projects, indicating that Northern Ireland is an attractive destination for foreign direct investment.

THE latest unemployment statistics suggest a slight improvement in the Northern Ireland jobs market. The number of people claiming unemployment-related benefits fell by 500 in July to 62,400 — 800 fewer than a year before.

Northern Ireland’s rate is now 6.9%, compared to 7.3% for the UK as a whole.

Using the international benchmark ILO assessment, Northern Ireland does much better. On this basis unemployment is 7.5%, against 7.8% in the UK. On this measure of unemployment there was a fall of 6,000 in just one quarter here.

The latest employment figures show an additional 4,000 people in work in the last quarter, though this is only 1,000 up on last year. But while employment numbers were up, the percentage of people of working age in employment fell by 0.3% over the quarter and by 0.8% over the year — reflecting an increase in the number of people of working age.

Northern Ireland’s employment rate of 66.3% is substantially below the UK rate of 71.5% and is the lowest rate of any UK region. This reflects the substantial number of people who are economically inactive in Northern Ireland because of illness, caring responsibilities

or study. Our rate is the highest in the UK at 28.2%, compared to 22.3% for the UK as a whole.

Better unemployment figures underline a slowly improving economy, says Danske Bank chief economist Angela McGowan. But she warns: “There is still a need for significant public funding for active labour market policies to support unemployed people with job searches and training, even when unemployment numbers are falling.”

Enterprise Minister Arlene Foster welcomed the figures and said that Invest NI’s Jobs Fund is one reason for the improvement, having created more than 3,150 jobs.

Much of Northern Ireland in line for cut in fuel duty PAUL GOSLING THE UK Government is making arrangements to cut fuel duty in remote parts of the UK, including much of Northern Ireland.

The Treasury is obtaining information on fuel costs in 16 Northern Ireland districts.

After collating this, the government will seek permission from the European Commission to extend the existing fuel rebate scheme that applies in remote islands off Britain.

Districts where petrol prices were consistently similar or more expensive than those of the islands are likely to be supported through an extension of the scheme. In December last year, those prices were £1.39 per litre for unleaded petrol, or £1.45.5 per litre of diesel.

Treasury secretary Danny Alexander said: “We will need to prove that there are areas which are similar to the islands in terms of pump prices and distribution costs, so I would urge local areas that may qualify to provide the information we need to make the case as robust as possible.”

Northern Ireland’s Consumer Council supported the move, saying that AA Monthly Fuel Reports showed that Northern Ireland has had the highest costs for petrol and diesel for

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AA Monthly Fuel Reports showed that Northern Ireland has had the highest costs for petrol and diesel for most of the past three years most of the past three years.

The districts being considered are Antrim, Armagh, Ballymena, Ballymoney, Banbridge,

Coleraine, Cookstown, Down, Fermanagh, Larne, Limavady, Magherafelt, Moyle, Newry and Mourne, Omagh and Strabane.

NEWS BITES

DEL opens review of labour market reforms PAUL GOSLING THE Department for Employment and Learning (DEL) has opened its review on the possible reform of employment law in Northern Ireland.

This follows significant reforms that have taken place in Great Britain, reducing the rights of employees to access tribunals and making the labour market more flexible.

Employment and Learning Minister Dr Stephen Farry said: “Historically, we have sought to mirror Great Britain with respect to employment law matters.

However, where it is in the best interests of Northern Ireland, I am committed to developing local solutions that meet our community’s specific needs.

“I want the review to inform recommendations designed to stimulate business confidence, whilst maintaining the rights of individual employees.

“Getting the right balance will always be challenging and will require partnership and a degree of flexibility if we are to create an employment relations system that enhances competitiveness and also offers employees the right working environment.”

The consultation explores options for extending the Labour Relations Agency’s dispute resolution services and considers a range of employment law reforms relating to unfair dismissal, collective redundancy consultation, compromise agreements and public interest disclosure.

The CBI welcomed the consultation, but regretted that reform was not taking place quicker. The consultation will continue until early November.

Overall there are signs that the recovery within the eurozone is starting to look more sustained

Outlook for eurozone at its brightest since Greek collapse JIM ARMITAGE

A KEY survey has revealed the eurozone's largest monthly increase in business activity for more than two years — raising hopes of a sustained recovery.

However, the picture painted by the August PMI survey from analysts Markit remained mixed, with German firms toasting their fastest rate of output since January but France suffering an accelerating decline.

The “peripheral” countries of Spain and Italy saw an improvement in growth as exports to neighbouring nations picked up.

Markit chief economist Chris Williamson said: “Structural changes made in countries like Spain, such as reducing labour

10 BUSINESS MONTH 2 September 2013

costs, are filtering through.

Arguably, a winding back of austerity in some countries has also helped.

“Overall, there are signs this recovery in the eurozone is starting to look more sustained.”

He said the outlook in the region was now at its brightest since early 2010, before the Greek crisis erupted.

The PMI Composite Output Index, in which any figure above 50 indicates growth, rose from July's 50.5 to 51.7 in August.

Employment levels fell for the 20th successive month with the pace of job losses accelerating in both manufacturing and service sector firms.

Germany's position as the powerhouse for the region was

heightened by rising demand for its goods both domestically and in its export markets, despite concerns about weakening growth in Asia.

Many economists have been concerned about the impact on global demand of the forthcoming reduction of the $85bn (£54.6m) a month quantitative easing programme from the US Federal Reserve.

Minutes from the Fed's most recent meeting did little to dispel expectations that this so-called “tapering” could begin as early as next month.

Markit's figures on France's weak performance added to scepticism over the accuracy of the surprisingly strong official GDP data for the country in the second quarter of the year.

NEWS BITES

NI’s not for profits turn over £1.2bn PAUL GOSLING NOT-for-profit enterprises — social enterprises and the business arms of charities and voluntary bodies — generate £1.2bn a year for Northern Ireland, about 2% of our total business activity, according to a study conducted

by PwC for the Department of Enterprise, Trade and Investment and the Department for Social Development.

This combined ‘third sector’ employs around 42,000 people — nearly 6% of total employment — and is supported by another 46,600 volunteers.

A substantial majority of the 473 social enterprises and a small majority of the 3,821 charitable and voluntary bodies reported a profit or surplus in the 2010/11 year.

Third-sector groups are more commonly urban than rural —

A small majority of charitable and voluntary bodies recorded a profit in the 2010/11 financial year while 12% of Northern Ireland businesses are based in Belfast, nearly 30% of not-for-profit businesses are located in Belfast. Derry also has a concentration of not-forprofit businesses.

The most common objectives of the third-sector bodies were to strengthen communities,

support employability and to improve the environment. A quarter of third-sector bodies provide community, social or personal services, with 16% providing health or social services and 14% education or training services.

PwC makes 10 recommendations to support the expansion

of the third-sector in Northern Ireland. It urges the Executive to launch an investment readiness fund for the third sector, to establish a supporting growth pilot programme and to take additional steps to encourage public sector procurement from the third sector.

2 September 2013 BUSINESS MONTH 11

NEWS ANALYSIS

Are you a great leader?

Comfortable with your flaws? If so, then you meet one of the criteria that makes you ideally suited for leading people, according to Philip Bain

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HAT is a great leader? There have been literally hundreds of books on the subject and numerous conferences on leadership so the answer should be on the tip of our tongues.

However, it seems that everyone has a different view on what makes a leader great, and perhaps because leaders are all in many ways so different, there can never be one single definition.

However, in my experience, there are three common qualities that I have noticed in all leaders that, in my view, make them great.

Great leaders want to change the world Great leaders have a desire to change the world and make it better. The world is in a pretty chaotic state and we need great leaders in every realm of society, not least in business, to drive change that can ultimately benefit all of us.

A great leader is someone who desires to do something greater than just improve the bottom line.

They want to make the world better; better for the people who work for them, for the community around them and even society as a whole.

Through their integrity and commitment to quality, great leaders improve performance in not only their own teams and organisations, but also have a positive impact on us all by generating the economic growth the

economy so desperately needs.

As a leader, you have the power to create an environment where people love coming to work, where they feel valued, where their opinion matters, and where staff are empowered to make decisions and achieve things they never thought possible.

You can make the world better for others. Or you can choose to create an environment that is filled with tension and disengagement. What choice have you made?

Great leaders want to be redundant Poor leaders want to be indispensable. They want to be considered so critical to the success of the business that even going on holiday will cause the company problems.

They love the fact that everyone waits in anticipation for their return so they can restore order to the company that has been shuddering in their absence.

Unfortunately this is poor leadership because

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they haven’t created a team that can function in their absence, or created systems and processes capable of running smoothly without their input. And if the truth be told... many leaders want it that way.

Chartered Management Institute research shows bureaucratic, secretive management styles are increasingly common, which means that managers haven’t empowered people to make decisions, haven’t delegated responsibilities, and haven’t invested in people development.

But it’s open, empowering, entrepreneurial styles — which the research shows growing companies are using — that we need more of. What bad managers fail to realise is that they are harming their business by failing to develop their staff.

Great leaders build capacity in the organisation and encourage others to up their game, to take on new responsibilities, to be creative, to make decisions and to create an environment in which they are effectively not needed.

This allows great leaders to think strategically and to focus on taking things to the next level. Do you as a leader want to be made redundant?

Great leaders are comfortable with their weaknesses They almost love to talk about things that they are not good at. Yes, self-belief is important, but I would argue having bags of humility is even more important. Poor leaders tend to hide their weaknesses.

They want to give the impression that they know everything, that they need to be involved in everything and that their opinion is all that matters.

Having humility means you accept you don’t have all the answers and you embrace those who do! Great leaders ask for help, seek the advice of wiser heads, and they don’t try to cover up mistakes. They are open and honest and regularly seek help. They succeed because they are always wanting to learn, to acquire further professional qualifications, to develop and to strive to be better.

If you are comfortable with your weaknesses, you will be comfortable delegating, empowering, promoting and trusting people’s judgment.

Get comfortable with your weakness and you will build a truly great team that will do things more effectively than you ever could.

Philip Bain is the chairman of Chartered Management Institute and co-owner of ShredBank

NEWS ANALYSIS

Peace of mind for SMEs Insurance against the twin perils of bad debt and buyer insolvency is not beyond the reach of small and medium-size buinesses advises, Nigel Birney

A

SURVEY conducted by BDO in partnership with the Northern Ireland Chamber of Commerce revealed that a significant number of businesses are trading without any protection against bad debt.

The poll of nearly 500 local businesses also showed the threat posed to business stability by bad debts to be a worsening problem which is threatening the growth and even survival prospects of many companies — a frightening but harsh economic reality.

As small and medium-sized enterprises are generally more vulnerable to the potentially fatal financial impact of bad debt, two of the major global

Nigel Birney credit insurers Atradius and Euler Hermes have both recently developed new policies, at very affordable premiums, specifically designed with the requirements of the SME sector in mind.

The Atradius Modula First policy and the Euler Hermes Simplicity policy both provide

protection against the two main commercial risks faced by companies trading on credit terms — default in payment by a buyer and buyer insolvency.

With a credit insurance policy the policyholder will have access to critical market intelligence on their buyers to enable them to make more informed commercial decisions. The key benefits of both policies include: • Fixed pricing to simplify financial planning; • Up to 90% of the value of losses caused by payment default or insolvency of the buyer covered by the policy; • Complementary in-house credit control systems; • Cover on both domestic and export debt; • Free debt collections service to help improve cash-flow and manage customer debt; • Online policy management service to minimise administration; • Easier access to trade finance.

There is a misconception that credit insurance is expensive and the price makes it prohibi-

tive for SMEs. However, as an example of how competitively priced these policies are, a company with a turnover of £1m, selling to buyers within the UK, could pay as little as £2,799 for a policy. If a company with a similar turnover had a mix of domestic and export turnover the price would increase marginally to £3,110.

One of the other big advantages is a free debt collection service that some credit insurers can offer as an integral part of the policy. This can be an enormous benefit, as many SMEs can spend huge amounts of time and money chasing payment when, under a credit insurance policy, the insurer can provide this service free of charge.

Removing this debt collection burden could be a considerable cost benefit as it would potentially free up to time to allow the company to concentrate more of their efforts on growing their business.

As banks’ lending criteria becomes more stringent it is our experience that if a company has their turnover protected by credit insurance, access to trade finance can be a lot easier.

Nigel Birney, is the UK regional director at Trade Credit Brokers

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ECONOMY WATCH

Let’s get

Both our Economy Watch writers the DFP. There is, however, a subtle emphasis on competition while the

I

N many ways, it is the Department of Finance and Personnel (DFP) of all the government departments that has the most potential to influence the economy given its key role in deciding how much public expenditure is spent and where these resources are allocated.

Furthermore, the terms and conditions of public sector employment can significantly influence the performance of the public sector and its attractiveness as a place to work relative to the private sector.

It is encouraging that the new minister has already placed significant emphasis on the positive role that the public sector can play in driving the economy forward, but it is important that he utilises all aspects of his brief to achieve this, as the ‘personnel minister’ as well as the ‘finance minister’.

The minister has set the challenge for Northern Ireland’s public sector to be the most innovative in the world. To meet this challenge he is right to stress ‘the relentless pursuit of one aim — reform’. This includes reforming our attitudes and ambitions. If Northern Ireland is to be successful in this regard, it has to be more proactive in reform than its counterparts in Great Britain, Ireland and Europe. This requires a focus on structures, processes and people that are best in class too.

At a CBI breakfast, the minister asked: “Why shouldn’t we aim for public service excellence delivered by excellent public servants?” The skills and experience within our public bodies need to reflect this key role.

Excellence requires the investment in and development of specialists. We would not expect GP’s to perform cardio-thoracic surgery. Similarly, specialists, as opposed to generalists, within the public service are needed to achieve best in class.

We need to devise and implement world-leading economic

Richard Ramsey

Chief economist Ulster Bank strategies. We require international-class experts in planning, procurement, public-sector delivery, economic strategy, policy development who could hold their own in the best equivalent organisations in Europe. This is something that lies within our control. Being porous to external influences and attracting international experience to key positions is something our public sector and our economy at large need to do.

Over the years we have successfully levered in financial resources from the US, Brussels and Westminster. Perhaps we should fix our attention on levering in human as well as or rather than financial resources.

Experts in public sector and economic reform from Washington, London or Brussels could add a lot of value. Radical reform requires an infusion of radical reformers.

Delivering reform requires the electorate to have an understanding of the public finances.

To achieve this, the new Minister should continue his predecessor’s frank ‘telling it as it is’ style and indeed formalise this.

A lack of appreciation of public

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finances in any economy fuels unrealistic expectations of what can be afforded and how far revenues can be stretched.

This strategy would require greater transparency over revenues, subsidies, public expenditure and benefits take-up.

Throwing sunlight on what and where money is spent is the most effective way to highlight waste and inefficiency and change behaviours. Effective communication with the electorate will enhance understanding and pave the way for unpopular but necessary policy decisions. Northern Ireland cannot afford to ring-fence inefficiency. That’s why a renewed focus on public-sector productivity and a redefining of ‘value for money’ are required in a more hostile era of fiscal restraint.

A State of the Nation public information address by the DFP Minister highlighting our annual fiscal deficit would be worthwhile. Headline per capita expenditure and revenue comparisons with other UK regions would also be included in the annual rates bills. How much public expenditure is spent on frontline services as opposed

to back office functions? Does there need to be a rebalancing of resources between the two?

In recent years, Northern Ireland has been bombarded with the narrative of austerity without anywhere near as much of the reality as elsewhere. There has been some relief that these prophecies of fiscal doom and gloom have not materialised.

For example, Northern Ireland has been spared the swingeing cuts that departments in Great Britain have experienced.

Perhaps, however, in some respects, this was not an ideal outcome, as the urgency and need for reform has been deferred by not eliminated.

Traditionally, the view has been that maximising the size of the block grant is in the best economic interests of Northern Ireland. However, while Northern Ireland enjoyed an expenditure boom throughout most of the last decade, it didn't narrow the prosperity gap with the UK. Northern Ireland does not suffer from a lack of public expenditure to deliver worldclass public services. The challenge is the delivery. To this aim, benchmarking public sector processes and performance against the world’s best is required.

If Northern Ireland’s public sector is to meet the minister’s vision of becoming the most innovative in the world, this attitude must percolate through its institutions, people and processes. Innovation thrives from competition.

The public sector must be opened up to greater competition not only between the public and private sector but within the public sector.

The new minister has made an impressive start and although he has a hard act to follow, he has in many respects been a breath of fresh air.

He has set out a clear vision.

Delivering it may at times be Mission Unpopular, but it is not Mission Impossible.

radical

agree that change is needed within difference with one placing the other is focused on greater enterprise

S

INCE my appointment as the new Minister of Finance and Personnel, much of the focus of media interviewing has understandably been on what I and my department can do to assist our ailing economy.

We’ve been through tough times. Six years of growing unemployment, contraction in key sectors such as construction and retail, and the bursting of the property bubble have made their mark on our economy.

There are encouraging signs that we are at least entering the foothills of economic recovery.

The recovery will be slow and stuttering. We might well take two steps forward and one back but I sense we are definitely moving in the right direction. I agree with a leading businessman who recently suggested to me that a year from now we’d look back at 2013 as the beginning of better days.

Indicators such as Ulster Bank’s Purchasing Managers’ Index, which showed marked growth in business activity to the highest levels since August 2007, and the UK Trade and Investment report which showed how Northern Ireland is one of the UK’s most successful regions for attracting inward investment, are very encouraging.

They don’t, however, reflect the lack of consumer confidence caused by wage freezes or cuts and the rising cost of living.

Hearteningly, however, a Danske Bank survey found consumer confidence has risen recently following the biggest monthly fall in unemployment in 11 years.

The Department of Finance and Personnel (DFP) doesn’t have the same sort of economic development role that DETI does but our responsibilities as part of a strategic centre allocating scarce resources, means we are an economic department.

The procurement of billions of pounds worth of goods, services and capital projects annually

Simon Hamilton MLA Finance Minister

and administering the most attractive business rates regime in the UK are two examples of how what DFP does can be an economic driver.

But where I see the DFP contributing to a bigger economic dividend in the years ahead is in our role in making reform a reality. The state has long played a key role in encouraging economic activity. Some would argue too key a role in Northern Ireland.

They are right in some respects. Our economy has been too dependent on the public sector for jobs and growth and our private sector has been far too small.

Conventional wisdom is that Northern Ireland’s big public sector not only imbalances our economy but is an active impediment to developing a dynamic, competitive, export-orientated economy.

Government’s economic role is in fact crucial. In ensuring that the fundamental foundations of our economy are right, it is often the investment of public money that puts those basic building blocks in place.

The skills we need to compete

in the global fight for jobs and investment are provided for in our universities and colleges or government-backed training programmes. The telecommunications system that we need to stay in touch in an interconnected world is there because of public investment in 100% broadband coverage and a direct link to the US east cost in the form of Project Kelvin. And the road infrastructure we need to get the goods our companies produce to market are the result of spending taxpayers’ money.

For many, creating the conditions for the private sector to thrive should be the sum total of government’s economic role and responsibilities.

But government can go beyond that. Professor Mariana Mazzucato, of the University of Sussex, recently published a book entitled The Entrepreneurial State. In it she argues that governments have historically invested, taken risks and innovated every bit as much of not more so than the private sector.

She uses Apple to illustrate her argument pointing out how it received early funding from the US government’s

Small Business Investment Company and how many of the key features of the iPhone and iPad, including GPS and touchscreen technology, were statefunded in their development.

Apple’s Steve Jobs brought these technologies together, packaged them beautifully and marketed them brilliantly but he benefited from initial public investment.

We shouldn’t be afraid of our public sector. Instead we should embrace its potential as a driver of the economy. As an entity that can inspire innovation and entrepreneurship.

We must re-evaluate and reinvent the role of the government when it comes to the economy. Envisage an economy where the public sector drives the economy forward and doesn’t drag it down.

Imagine a public sector that’s every bit as innovative and creative as the economy we want for Northern Ireland.

I fundamentally believe that a reformed public sector is one of the cornerstones of a vibrant and dynamic economy.

Clearly assets like skills, infrastructure and telecommunications are critical but surely a strong, smart government is also a stimulus for economic development.

Entrepreneurial governments attract investment. That’s one of the reasons I will establish a Public Sector Reform Division within DFP. Making our public sector more efficient and effective and innovative mirrors places like Singapore and the Nordic countries whose economies are the sort of competitive and export-orientated economies we’re trying to build in Northern Ireland.

Enterprising governments produce enterprising economies. Let’s start to see our public sector as something that can be an advantage, working with business to build the better economy Northern Ireland so badly needs.

2 September 2013 BUSINESS MONTH 17

COVER STORY

POSITIVE SIGNALS

After six painful years our economy looks to be on the road to recovery but it’s likely to a long journey,writes John Mulgrew

‘W

HAT word? Recession? What should we call it then?” “I don't care. Call it a boat show, or a beer garden, or a bagel.”

It's the cautious reverence used in the often witty and occasionally selfaggrandising US political drama The West Wing in order to avoid using the ‘R' word — a word now in common usage throughout Northern Ireland.

We've come to accept ‘recession' and the slightly more alarmist ‘financial meltdown' as everyday catch-all terms for our severe lack of fiscal buoyancy.

But in the past few weeks and months, a host of what are often termed as ‘business barometers' — including economic activity, house prices, unemployment and car sales — have pointed to an upturn in the region’s outlook, and for us all to ask, is that it?

Two cautiously optimistic leading economists have said Northern Ireland has both “turned the corner” and “it's just the beginning for us — but we're starting to grow slowly” — only days after the ‘official’ sixth birthday of the downturn.

“The recession was like falling off a cliff, and then walking back up the stairs to the top,” said Neil Gibson, a director at Oxford Economics.

Ulster Bank PMI report for July, the latest, showed the region had witnessed its first rise in business activity since November 2007 — led by the manufacturing industry — despite continuing to lag begin the rest of the UK. “The PMI is a good way of looking at it. It's saying, up until July you were having some firms reporting growth, some reporting declines, but from July the balance had shifted,” said Ulster Bank’s chief economist Richard Ramsey.

“Almost a third of firms reported higher levels of activity, month on month.”

Unemployment levels have also fallen to below the average for the UK, based on the latest labour force survey.

18 BUSINESS MONTH 2 September 2013

Yet despite a further 500 less on the dole queues, the number of those classed as economically inactive grew by some 10,000 over the last quarter — significantly higher than that of the UK average.

Northern Ireland also suffers from above average levels of youth unemployment.

One recent initiative, proposed by the Executive, is aiming to rejuvenate what has been one of the worst hit groups of the recession, by introducing 50 new apprenticeships for younger people — bringing an opportunity to those keen to join the ICT (information and communications technology) workforce in Northern Ireland.

It's a sector which, in the past few months and years, has witnessed a tranche of technology companies dipping their toes in the chilly waters of Northern Ireland, or, in some cases, further expanding already wellestablished operations.

US firm Allstate announced in May it was to create up to 650 new posts in Belfast, Londonderry and Strabane — the second largest single tranche of jobs since devolution in 2007, and further bolstering Northern Ireland's position as a tech-hub.

Put simply — Northern Ireland's ever-burgeoning portfolio of top-end tech-savvy firms from across the water is bigger than it was in the most recent pre-recessionary days.

And according to Neil Gibson, inward investment has an often unintended effect.

“We are a small business economy and there is no doubt that in terms of confidence, as well as the shot in the arm it gives us, it’s very impactful,” he said. “The symbolism, the jobs. People hear about the new posts, suppliers then hear about that.”

But while some areas of the service sector and local manufacturing giants

>> Turn to page 20

2 September 2013 BUSINESS MONTH 19

COVER STORY >> From page 18 such as Wrightbus continue to fuel a return to growth, the impact of inflation is also a “silent killer”, noted Richard Ramsey.

“The recovery in the economy is taking hold, but the recovery in household standards of living is probably not at that stage yet — that's the difference,” he said.

Northern Ireland faces a more difficult climb out of the doldrums, due to its diminutive private sector.

“Structurally, Northern Ireland is likely to lag somewhat because we have a smaller private sector — we have a very big public sector,” said Mr Gibson.

“However, we have a much greater potential for picking up in the housing market and construction sector. We should have significantly more demand in property, but not necessarily at the moment.”

As the costs of homes see some form of stabilising, according to the latest figures, we may not want to see a return the big-ticket prices in the days before the property collapse.

“We would like to get back our transactions. But, we have to very mindful, basing them on a solid foundation, rather than

While the economy seems to have turned the corner, the recovery in household standards of living is still lagging a bed of debt,” said Mr Gibson.

On a wider scale, although Europe — and more specifically the eurozone — has suffered from an often crippling economic situation, last month it managed to pull itself up by the coattails and produce growth — albeit modest.

It's the first time that output in the single-currency bloc has risen since the end of 2011.

So, if we’re on the right track,

20 BUSINESS MONTH 2 September 2013

but haven't yet reached a plateau on which both businesses and consumers can sit back, what indicators should we be looking for? According to the two senior economists, there’s one key sector which can be used as a litmus test.

“The biggest, single, tangible example of what recovery will look like is the construction sector,” said Mr Ramsey. “After losing jobs for five or six years,

once you get jobs there, that is a key sign to things turning for the better.”

Mr Gibson said “the real potential will be to get the construction industry going”.

“The whole thing — it’s the start of a challenging and long journey, but at least we are on it.

“My view is we really have turned the corner, but turning the corner is the start of a longer process. But it is getting better.”

NEWS ANALYSIS

Plan to avoid penalty Pensions auto-enrolment cannot be ignored, says Iain Ferguson of Belfast-based Workers Pension Trust, who warns against delay

T

HE largest UK companies have already completed the process and every business with more than 62 employees has a legal obligation to comply with the legislation by July 2014.

Those with smaller employee numbers will then have a staging date after summer next year but should also start to plan early to ensure the process is as smooth as possible.

Many of the larger employers have reported that auto-enrolment has been implemented smoothly and with low employee opt-out rates. They have, however, also indicated that considerable time, effort and resources have been allocated to planning the auto-enrolment project, which for some took up to two years to complete. These larger employers are companies with well-established HR departments, finance teams, payroll specialists and in many cases dedicated project managers — all backed up with budgets to match!

Now let’s consider the Northern Ireland marketplace which is dominated by SMEs, accounting for 98% of businesses and 67% of the total workforce. These smaller businesses will still have to fully comply with auto-enrolment; they have to decide on a pension provider, put a scheme in place, assess their workforce, communicate with their employees and determine a mechanism to link with their payroll system and make the correct deductions.

Most of these businesses do not have the luxury of dedicated teams of HR, finance, payroll and project management staff to implement the autoenrolment project. So how will they meet their legal obligations? I believe that there are still many business owners and company directors across Northern Ireland who do not realise that the legal pensions reform, auto-enrolment, applies to them. It is easy to understand how smaller businesses such as shops, farms and restaurants

may assume that the reform does not impact them. However, it is these very firms which can illafford to pay fines which can be imposed if they fail to meet their legislative requirements.

No matter what size a business is; from those with one or two employees to others with tens of thousands of employees, auto-enrolment is here and it should not be ignored. Those employees who must be automatically enrolled into a qualifying workplace pension scheme are full-time and parttime, temporary and permanent, over 22 years old and earning enough to pay basic rate income tax.

The auto-enrolment process can seem daunting and complicated to even the best-resourced and organised

22 BUSINESS MONTH 2 September 2013

business. The key to achieving a successful completion of the project is to start early. With the right support and guidance it can be much simpler and more manageable.

From January to July 2014 all businesses with between 62 and 499 employees will be required to implement auto-enrolment.

These businesses should already have received a letter from the Pensions Regulator giving them their staging date.

It is no coincidence that these letters are arriving 12 months in advance, as that is the minimum amount of time which the Regulator is recommending for businesses to plan, in order to comply on time.

Based on my experience, I know that many firms are not seeking advice early enough, as

they may be unaware of how much work needs to be done. If they do not comply on time they risk a fine, so I would strongly urge companies whose staging dates are during 2014 to start the process today.

Decide on the pension provider you want to use and work with them to ensure you avoid paying a steeper price in the long run.

Workers Pension Trust is a notfor-profit organisation and the only Northern Ireland-based full auto-enrolment solution available to all businesses.

The pension scheme is suitable for all employees across all income brackets and is based on more than 30 years’ experience delivering multi-employer pension schemes.

THE NEW BREED

How my world changed What makes Northern Ireland’s new generation of entrepreneurs tick? This regular feature reveals their dreams, their frustrations and the passion that drives success Name: Kate Speers Company: Ivory & Pearl Bridal Boutique, Comber

years, I benefit greatly from his advice and guidance.

In any line of business, I would definitely recommend that everyone starting out on their own has a mentor — someone they can bounce ideas off. Someone who constantly makes them think about how they can improve their business so that they are continually striving to raise the bar and take things to the next level.

A

I got into business because...

FTER leaving school in 2006, I started doing a degree in social work. This only lasted a year, as during my summer job with a local firm called ShredBank, my employer offered me a full-time job as marketing manager if I changed my degree to business studies.

Although it was a completely new direction for my career, I knew that I loved business and I also recognised that it was a great opportunity, so I swiftly changed! It turned out to be one of the best decisions I have ever made, as during that time I won a couple of business awards and I gained great experience that has ultimately benefitted me in Ivory & Pearl.

Fast forward to August 2011, after getting married, I set up Sprinkles of Love, a business run purely through Facebook, hiring wedding decorations and making bespoke signs.

I started Sprinkles of Love more as a hobby alongside my full-time job, as my husband was working in Dublin and I was home alone. So more than anything, it was something to keep me busy in the evenings. I absolutely loved working with brides, thinking of new ideas and just looking at weddings in general.

Through Sprinkles of Love, I got to learn a whole lot more about weddings, by going to bridal fairs, meeting other suppliers and of course meeting brides-to-be! I realised that I could expand to a full bridal boutique and so Ivory & Pearl was born.

Best thing about my work is…

The freedom to do all the things I love! I have a real passion for weddings and I love spending my time meeting brides-to-be and helping them make their wedding day a memorable experience. It’s also a bonus that I

The biggest obstacle I’ve come up against in business is...

There are always obstacles in business, but I try my best to learn from them. My main challenge is to continue to have new and exciting wedding dresses that are only available in our boutique, so that brides can see something completely different!

I am continually researching new designers from around the world, so that I can stock unique wedding dresses in Northern Ireland.

In 10 years time I hope to be...

I hope that Ivory & Pearl will be the largest bridal boutique in Northern Ireland with an exceptional reputation for the ultimate bridal experience.

We aim to continue to be the sole provider of exclusive global brands in Northern Ireland offering an unrivalled service and choice.

I also want to expand our bridal service by providing a greater range of bridal accessories and wedding gifts online.

My desire is that the Ivory & Pearl brand will become one of Northern Ireland’s leading local brands in five years time.

Bridal boutique owner Kate Speers is driven by a desire to be the best start work at 10am, especially if you’re not an early riser like me.

The person who inspires me when it comes to business is...

My previous employer, now friend and mentor, Philip Bain,

24 BUSINESS MONTH 2 September 2013

owner of ShredBank. It was Philip who suggested that I change my career to business studies.

As he has grown ShredBank very successfully and innovatively over the past number of

I couldn’t go to work without...

I couldn't go to work without my phone. I know about 90% of the population probably say the same thing, but brides contact me via emails, texts, Facebook messages, phone calls and I always like to get back to them straight away.

AND I’LL TELL YOU ANOTHER THING

‘Be ruled by vision not fear’ Reflecting on the past 50 years, Eric Carson marvels at the advances in technology but has no doubt these will be overshadowed by the ‘endless possibilities’ the future holds Name: Eric Carson, director of Rainbow Communications My first job was...

I

’VE been involved in telecoms all my working life.

At the age of 16, my first job was an apprentice telecoms engineer for what was then a local wellknown telecoms company.

I’ve worked in the industry ever since, which is now approaching 50 years.

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

I wouldn’t say any one individual as many different personalities and business leaders with a range of ideas and philosophies have been extremely influential.

I tend to think I picked the best of what I could from various people and that has served me well in business over the past five decades.

My business mantra is...

“It can take years to win a customer but only seconds to lose one.”

This is relevant to any business in Northern Ireland and demonstrates just how important it is that every single customer is shown the same gratitude and respect, no matter how big or small that company may be.

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

It goes without saying that the development in technology has been unprecedented over the past five decades.

From telephones with rotary dials through to today where we have voice recognition and wireless, wearable technology, noone could have imagined the extraordinary developments we have witnessed since I started out. I’m continually amazed by the advancements and am delighted to work in such a fast-paced, exciting industry.

‘I believe that people will become walking communication devices. Gone will be the days when we were tied to a desk’

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

When you look at how far the world of technology has changed in the past 10 years alone, then it is fair to say that in another 10, the possibilities are endless.

I believe that people will become walking communication devices. Gone will be the days when we were tied to a desk as we already have all our communications requirements, such as calls, internet, photography, at our fingertips.

We’re beginning to see new advancements such as smartwatches and Google Glasses, but I predict this will be huge within the mass market over the next few years, just as

26 BUSINESS MONTH 2 September 2013

smartphones became a worldwide phenomenon a few years ago.

There is also the possibility of biometrics bursting on to the scene whereby the device you carry or even your credit card is identified as yours and cannot be used by anyone else.

This will essentially eliminate mobile phone and card theft — now just think of that!

My one regret in business is...

My only regret would be not setting up my own business earlier in life.

I wish I had made that decision much earlier in my career, rather than in the past 20 years.

That said, I did benefit greatly from the involvement with and training provided by the

multinationals along the way.

My one piece of business advice is...

If you have an idea that you think will work, don’t be afraid to run with it.

I’m not talking about taking huge risks in business, but successful entrepreneurs have all had to believe in their vision.

A business inspiration of mine, co-founder of Apple, Steve Jobs, once said: “Have the courage to follow your heart and intuition” and I think this is very true in any business.

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

Believe it or not, it’s porridge.

Slow energy release, I’m told!

SME WATCH

T Rugby fan’s

big designs

It took a while for Oran Kane to settle on a career path but he is now fast making up for any lost time, says Amanda Ferguson

Newly qualified graphic designer Oran Kane has really impressed with Ulster Rugby

28 BUSINESS MONTH 2 September 2013

HE future is looking bright for Co Down graphic designer Oran Kane. The budding entrepreneur from Bangor has an enviable portfolio of work and this year secured contracts with a number of clients including Clandeboye Estate and Ulster Rugby.

What makes this all the more impressive is that Oran hadn’t even graduated from university at the time.

After completing an HND in graphic design at Belfast Metropolitan College he entered the final year of the BA honours graphic design course at Plymouth College of Art in 2012.

After completing his studies this summer he was then selected for the prestigious New Designers Exhibition in London, an annual showcase for the best emerging design talent.

Like many young people Oran (25) took the scenic route through education before realising graphic design was his calling.

“I've always liked design and thought about studying architecture,” he said.

“I left Strangford College at 16 and studied electronic engineering at Bangor tech.

“I had a number of part-time jobs and then I worked for IM Windows & Conservatories.

“At one stage I designed the headed paper for them and realised I liked doing that sort of work.

“After A-Levels at Belfast Met I went straight into their HND in graphic design at Millfield and really enjoyed it. I would go back and do it again if I could.”

As an Ulster Rugby fan Oran was thrilled to then gain a work placement at Ravenhill in summer 2012.

“I replied to an ad on their website for a marketing placement and got it,” he said. “Everyone up at Ravenhill is very good and I got to see the press conferences and meet some players.

“When the placement came to an end I was keen to remain part of Ulster Rugby so I carried on working on various promotions for them from Plymouth, where I’m about to finish my degree.

“Then in January I sent my proposal for media associated with the 2013-14 season and I was successful.”

Phillip Pollack, business development executive at Ulster Rugby, told Business Month the young freelance designer has the admirable ability of being able to take a brief and deliver an outcome which often surpass expectations.

“Oran has been a pleasure to have working in the office and on the end of the phone whilst in England studying,” Phillip said.

“Turn-around times for artwork and ideas are minimal which is important for our organisation.

“During the time Oran has spent with us he has had interaction with our sales, marketing, PR and communications divisions and on each occasion has a sound understanding of our needs and requirements.

“I’m very grateful to him for the time and effort he has put into his work with Ulster Rugby, he has certainly contributed to

taking our department to another level and I hope we continue to have a strong and productive partnership.”

In July, Oran, a member of the Chartered Society of Designers,

had his work showcased at the New Designers Exhibition in London sparking the interest of some more major companies.

For now he’s enjoying the direction that his career is taking

and hopes to build on this. “I really enjoy what I do,” Oran said. “It's an exciting time.”

For more information on Oran visit www.orankane.com

2 September 2013 BUSINESS MONTH 29

ASK THE EXPERTS I’M feeling particularly anxious about a forthcoming job interview as I haven’t had any interview practice for around 15 years. How can I ensure I’m fully prepared?

THE most important thing to remember is that the actual format of job interviews has not changed dramatically over the past two decades and some of the very same types of questions you might have encountered 15 years ago will still, to a degree, be relevant today. What has changed though is that there now is a much greater emphasis on criteria-based interviews, whereby candidates have to demonstrable, using relevant examples, that they have the experience, knowledge, competence and attitude being sought.

Therefore, it is vital to look carefully at the essential and desirable criteria and, provided you meet these, then you need to prepare in advance an answer for such questions as: “Talk me through a time in which you led a team to success.” My advice is, once you have decided on the example then ask yourself the 5Ws and 1H formula (Who, What, Where, When, Why and How). Who was involved in the team?

Why we were tasked with this particular project?

How did we measure success etc? If you have a response to each of these that is confident and assured without sounding rehearsed, you will be well prepared.

I would also advise that, if you can, find out what form the interview will take. Is it a single-person interviewer or a group? This will ensure you are not thrown when faced with a five-person panel when you, perhaps, only anticipated one.

And finally, relax. The worst thing you can do is to let your nerves get the better of you.

RG

Michael Black Employment director, Cleaver Fulton Rankin

Roger Gilpin Partner at Gilpin Executive Search

Laura Hourican Head of HR UK and Ireland Firstsource Solutions

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

Is it safe for an employer to be using social media sites as a means of vetting a job application?

A

GROWING number of employers are abandoning the use of traditional recruitment methods in favour of recruitment through social media sites.

Online recruitment is fast, easily accessible and saves money.

Microsoft saved $88,000 last year by recruiting through LinkedIn but some businesses are going further and are now using social media sites to source and screen potential candidates. This can give rise to many legal issues for employers.

There is no specific legislation which prohibits the accessing of a potential candidate’s online profile by an employer but there is a risk of triggering an unlawful discrimination claim or a claim concerning the infringement of privacy and data protection laws.

Potential employees will often post personal information online that would not normally appear in a CV or application form. A candidate’s age, race, disability, religion, sexual orientation and political beliefs may be online.

Even if a candidate is rejected for reasons unrelated to information seen online, it will be harder for an employer to defend a discrimination claim where a candidate can raise an inference of potential discrimination.

While viewing candidates’ online profiles sounds tempting, employers should weigh up the

I’m having trouble retaining staff and I’m experiencing high turnover. How do I stop people leaving my company?

Why: Firstly understand the reasons why people are leaving.

Reasons could include salary and benefits, job satisfaction, personal issues, work-life balance or their manager. An exit interview provides valuable feedback and insights which can influence future measures that can be put in place to help combat staff leaving.

When: at what point are you losing employees? If you are seeing a high trend of early attrition (ie within the first three months), review your recruitment process to ascertain if the profile is right for your organisation? What are the key skills you require for an employee to carry out the role and have you effectively tested these during the recruitment process?

What makes people stay: It is often said people leave managers not organisations, however, you should also understand why people stay with your organisation. Engagement is critical in any organisation regardless of size and understanding what motivates and drives employees. At Firstsource we find employee engagement is critical through forums, breakfast with the boss, employee satisfaction surveys, wellbeing weeks, training opportunities and even flexible work schemes. Staff engagement can provide valuable feedback to increase tenure and employee satisfaction.

LH potential risks in doing so. A lot of online information is unreliable. Some US states have outlawed employers from accessing employees’ social media passwords. The best way to minimise risk is not to use social media sites as a vetting tool but if you decide to access a candidate’s social media profile as part of the screening process you should: ■ Have a clear policy on use of social media background checks in the recruitment process;

■ Filter potentially discriminatory details before sending the information to those involved in the recruitment process; ■ Make candidates aware that you may access online information, obtain their consent and let them know which sources will be accessed; ■ Disregard information from potentially unreliable sources (eg posts by third parties); ■ Keep records of the information accessed.

MB

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 3 June 2013

INSIDE REPORT

SELL OUT OR SECURE FUTURE? Would hundreds of jobs have been lost at the old FG Wilson?

Paul Gosling talks to two leading economists about the pros and cons of global giants buying up Northern Ireland companies

T

AKE a look down the Belfast Telegraph’s list of Northern Ireland’s biggest companies and some significant facts quickly become obvious – not least that most of the largest businesses here are not actually Northern Irish. Start with our very biggest — Moy Park. This was bought by Brazilian food giant Marfrig in 2008 and is now part of a top 10 global food production business in both the poultry and red meat sectors.

Or consider our third largest business, Bombardier Aerospace. Until 1989 this operated under the name Short Brothers and was owned by the UK Government, but is now part of a Canadian-based global company. Also in our top 10 businesses is Caterpillar, which was FG Wilson (Engineering) until 1999 when it was acquired by the United States-based multinational.

The largest genuinely Northern Ireland enterprises are Translink — a public-sector company that comes in at number six — and the Dunbia food group, which is rated the eighth largest Northern Ireland business.

But continue down the list of our largest companies and the story is consistent. For the most part they are British or Irish companies that have operations here, or else they are businesses that were established here and which have since been acquired by overseas-based global corporations.

Even some of the best known Northern Irish names have ceased to be Northern Irish.

Gallaher’s Tobacco was the world’s fifth largest company in its sector until it was bought by Japan Tobacco in 2007 — the largest ever outward acquisition in Japanese history.

Belfast International Airport was privatised in 1994 and bought by TBI, a British airport management company.

TBI was itself acquired 10 years later by Abertis, a Spanish multinational. Two months ago, Abertis sold Northern Ireland’s largest airport to a US multinational airport group, ADC & HAS. It is a similar story in the energy sector. Phoenix Gas had been owned by the UK private equity firm Terra Firma, but was sold just last month to the Hastings institutional fund, based in Australia.

The formerly nationalised Northern Ireland Electricity was privatised in 1993 and subsequently bought by a Middle East institutional investment fund. More recently, the distribution arm was bought by the Irish national electricity distribution business, the state-owned ESB. While consumers and politicians may be worried that so much of our vital energy operations are foreign-owned, it is probably the situation at the former FG Wilson plant at Larne that stimulates the most concern. Some 760 jobs were lost last year when the parent

32 BUSINESS MONTH 2 September 2013

Caterpillar decided to cut back.

Would similar decisions have been taken if the company were still locally owned? But the alternative question is, would the business still be internationally competitive in a world of globalised markets had it not become part of a multinational?

Foreign ownership comes with positives and negatives, suggests Ulster Bank chief economist Richard Ramsey.

“I believe it’s almost a double-edged sword,” he says.

“You welcome companies such as Moy Park becoming part of a bigger group. But to an extent your destiny becomes part of the larger group. With FG Wilson, would it still be as successful on its own? Would that [job loss decision] have happened to FG Wilson if it were not part of Caterpillar?”

It is wrong to make assumptions that life would be better under local ownership, concludes Ramsey. “You can get sentimental.”

Foreign ownership of locally established businesses gives them opportunities to become more successful, to grow income and to increase employment by providing them with access to global markets, stronger marketing operations and perhaps lower cost supply networks. In that sense, foreign ownership may be the only route to continued expansion for a business based in what is a very small domestic market in Northern Ireland.

Professor Neil Gibson, director

of the University of Ulster’s NI Centre for Economic Policy, takes a similar view to Mr Ramsey.

“On balance, it is probably a positive, in the sense that it provides access to the networks that are required to supply and succeed in global markets,” he says.

?

Clockwise from top left: Moy Park was bought by Brazilian food giant Marfrig in 2008; Belfast International Airport is now owned by US multinational group ADC & HAS; Translink remains a truly Northern Ireland company; and FG Wilson is part of the US-headquartered group Caterpillar

This would otherwise be very difficult for businesses based in an economy of such small size and reach as Northern Ireland.

“There is a sense of loss,” concedes Mr Gibson, but he suggests that a greater loss would be suffered from forgoing opportunities to expand through

joining established international connections. Consequently, he maintains, foreign acquisition “is almost a sign of success” rather than a sign of failure.

But, Mr Ramsey argues, there is one big qualification. Foreign acquisitions are good “providing you were confident that you

have firms growing in size” that are ready to move up the league tables to take their place.

This is where Northern Ireland is weakest. We have the very big companies, many of which have been bought by foreign capital. We have lots of small and micro-businesses. But

we have very few of the larger SMEs that are positioned to become large multinational businesses in the future. “We need to build a larger SME sector — we don’t have that strength in depth,” confirms Mr Ramsey.

>> Turn to page 34

2 SeptemberJ 2013 BUSINESS MONTH 33

INSIDE REPORT >> From page 33 One route for this to emerge is from big, overseas-owned, companies buying locally, promoting niche skills among the nearby companies, so creating specialist clusters.

To an extent, says Mr Ramsey, that is happening with Bombardier, which does use some local niche suppliers. It is also widespread across Northern Ireland’s food industry and to a limited extent in our digital sector. But we have precious few other vibrant, mutually supporting, industrial or trade clusters.

“Bombardier has a big supply chain, where foreign ownership is driving up standards, creating demand, with strict quality requirements,” argues Mr Ramsey. But while there are some opportunities in aerospace and other manufacturing sectors, there is little scope elsewhere in most of Northern Ireland’s larger commercial fields of operation. High-value, high-skilled, long-term and substantial supply chains do not exist, for example, in energy distribution or call centre sectors.

“It’s not big companies becoming foreign-owned that worries me,” says Mr Gibson, “but it’s the

34 BUSINESS MONTH 2 September 2013

fact that we don’t have a pipeline [of growing companies] coming through.” For that to happen, he suggests, we probably need two factors — both of which we are missing today. One is the right type of commercial or industrial cluster that can grow and develop niche skills that have value in the market. “Clustering is not just something that can happen,” he stresses, but rather it needs the right conditions.

The second missing factor for developing a substantial and fast-growth SME sector is a supply of entrepreneurs. “We should never underestimate the fundamental importance of brilliant business people,” stresses Mr Gibson. But he warns that in some cases it is the opportunities that exist within the large foreign-owned companies that have sucked in the people that in past times might have set up the fast-growth companies.

There is, though, a ray of hope for the future. Some of the entrepreneurs who have sold to foreign capital are now sitting on large pockets of wealth. If they can be persuaded to become serial entrepreneurs there is hope that Northern Ireland can more substantially benefit from the influx of acquisitive foreign capital.

TICKERS

The month’s local indicators at a glance Ulster Bank economist Richard Ramsey gives a rundown on the latest key pointers ACCORDING to the latest PMI, Northern Ireland experienced something of an economic heatwave in July.

Last month marked the sixth anniversary of the official start of the credit crunch. During the 71 months that have elapsed since then, the Northern Ireland PMI has been a reliable, albeit gloomy, barometer of economic conditions for local firms.

However, the July 2013 survey was littered with positives.

Business activity, new orders, exports and employment all increased in July with almost one-third of firms surveyed reported a rise in activity. Local firms saw business activity increase at its fastest rate in 70 months with all sectors of the economy experiencing robust rates of growth.

The better weather conditions were cited as one factor while improved client confidence across the UK was another. The surge in new business orders in July suggests business activity should remain buoyant in the near term. At a sector level, it is particularly encouraging to see the construction

sector report a significant pickup in activity and new orders alongside some employment gains.

The retail sector also reported a strong July in what has otherwise been a challenging year. August should also have been a good month for retailers and the wider hospitality indus-

try with the World Police and Fire Games one of the key events in Northern Ireland.

While the latest survey makes for very pleasant reading it is important not to get carried away.

As with economies elsewhere, Northern Ireland requires a sustained period of growth over

the months and years ahead.

Last month’s guidance by the Bank of England that interest rates could remain at their record lows for the next three years underscores the fact that the UK recovery, or indeed a Northern Ireland one, is by no means guaranteed in the near term.

NEW car sales are a key barometer of consumer confidence as a new car represents the most expensive discretionary spending item after a new house.

According to the latest figures from the Society of Motor Manufacturers and Traders, July 2013 represents the sixth consecutive month that Northern Ireland posted a year-on-

year increase in new car sales.

Furthermore, the July sales figures represented the best outturn for the month of July in four years. During the first seven months of the year there have been 33,810 new car sales.

This represents an annual increase of 7.5% and only the second annual increase during the past six years.

IT is encouraging to note that Northern Ireland's unemployment claimant count fell by another 500 individuals in July.

This represents the sixth consecutive month of falling unemployment with a cumulative decline of 2,500 over this period.

Meanwhile, the headline unemployment rate fell by 0.7 percentage points to 7.5% between Q1

and Q2 2013. However, the Labour Force Survey is a volatile poll. Beneath this rather impressive headline the improvement in the unemployment rate is less dramatic.

For the most part, the latest quarterly decline in the unemployment rate was due to a rise in economic inactivity rather than growth in employment.

36 BUSINESS MONTH 2 September 2013

STOCKWATCH

UPSHARES-DOWNSHARES Banks, DIY, food and cruises were among the big winners during the summer months WITH the FTSE 100 gaining a good 400 points over the two summer months since we had to tot up our portfolio values, some of our top picks have blossomed.

Tony Axon has once again left the editor dumbfounded with a £36,000 two-month gain on the outstanding stock of the past year, Lloyds.

The advertising man was also

Joanne Stuart

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

May 20 value 77,137 138,821 179,896 28,495 424,350 June 19 value 100,000

Change -2,054 14,321 5,620 1,806 19,693 1,859

Wildcard: HSBC (Last month: HSBC) The IT and arts guru was difficult to get hold of this month so will be sticking with last month’s wildcard, HSBC. The stock made just shy of £2,000 over the summer and given the more healthy outlook for the global economy and the strong performance of other listed banks over the past few weeks the future bodes well for further gains for HSBC. And with any luck, the banking giant will make up for pesky Evraz. . .

in possession of the second biggest winner of the summer, Prudential, which totted up a £16,000 gain, a performance which confirmed that sticking with financials was a good plan.

During the two-month period Joanne Stuart notched up a £14,000 gain for DIY retailer Kingfisher and even managed to see some light for the black

sheep of her portfolio, Evraz.

Security man Barry Byrne lucked out with ABF although falling beers sales meant SAB Miller proved to be an £8,000 drag.

The editor, meanwhile, suffered at the hands of BP before picking up good profit, for once, from Pearson and Carnival.

All prices are based on the LSE close on August 19.

THE RULES Each trader is given £400,000 to spend, £100,000 each on four sets of shares, which they must hold in their portfolios until the end of 2013. They will also be given £100,000 to spend on a wild-card 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 AB Foods BSkyB Tate & Lyle Total Wildcard Interserve

May 20 value 121,288 154,717 120,785 117,047 513,837 June 19 value 100,000

Change -7,700 10,254 5,378 357 8,289 9,902

Wildcard: easyJet (Last month: Interserve) EasyJet are flying high after the company announced details of an order for new aircraft.

Their chief executive has a very positive outlook towards the end of the year and the company hopes that looking to the business travel market will boost sales, as well as implementing fuel efficiencies to make a positive impact on margins.

In what continues to be a competitive market, easyJet will maximise on opportunities to retain and grow market share.

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

May 20 value 163,812 172,662 206,327 151,706 694,508 June 19 value 100,000

Change 16,298 7,014 36,424 9,130 68,866 13,490

Wildcard: Burberry (Last month: Burberry) It’s no change this month for me. I think the new Bank of England governor is delivering some stability across the markets which is good news.

However, there is still an air of uncertainty and a few nerves as well so it’s not a good time to switch or go share shopping.

My Next shares are slowing down a bit. Prudential and Lloyds are still doing brilliantly, however, it does make you wonder why we gave them all that public money.

Editor of Business Month May 20 value Standard Chartered 92,518 BP 88,032 Carnival 122,312 Pearson 107,667 Total 410,529 Wildcard June 19 value Rio Tinto 100,000

Change 3,589 -3,105 9,743 10,767 20,993 9,088

Wildcard: London Stock Exchange (Last month: Rio Tinto) On the basis that volatility is the backbone of an exchange, I’m picking the LSE for this month’s pin-thetail-on-the-donkey exercise.

I’m hoping the prospect of the UK economy heading back to rude health and worries the US Federal Reserve will start to taper its quantative easing programme will have investors buying, selling or juggling shares like there's no tomorrow.

That in turn should help up the revenue to the LSE which in turn should boost the share price.

2 September 2013 BUSINESS MONTH 37

FOCUS ON: ENGINEERING

ENGINEERED

Collaboration between industry and the academic world is playing a key part in Northern

N

ORTHERN Ireland has a long tradition of success in the engineering world and, while it was badly hit by the downturn in the global economy, an innovative approach by more traditional firms and the emergence of new high-tech companies has once again made us a force to be reckoned with.

Innovation is key to the future of engineering companies and Northern Ireland has produced many world firsts, the latest being the advanced composite wings for Bombardier's new CSeries commercial aircraft.

The UK government has identified the aerospace engineering industry as a key driver of economic growth, and has published a joint industry/government aerospace industrial strategy to support it.

Michael Ryan, vice-president and general manager, Bombardier Aerospace, Belfast, who has been closely involved in drawing up the strategy, said: “This industrial strategy will enable the industry to foster innovative technologies, through the new Aerospace Technology Institute, as well as develop a robust supply chain, and ensure we have the right training and skills in place to keep the UK at the forefront of the global aerospace engineering industry.

“This strategy is also an opportunity for the Northern Ireland aerospace engineering supply chain to actively contribute to, and benefit from, the growth of this hugely important sector.”

Another sector leader, Harland and Wolff, works almost exclusively in the offshore oil, gas and renewable energy sectors.

David McVeigh, its sales and marketing manager, said that while market variances in the local economy tend not to affect the company, national and international policy has an impact on oil, gas and renewable energy project capital expenditure.

Throughout the recession, the demand for energy has continued unabated and the lack of guaranteed energy sources in this uncertain and changeable world has highlighted the importance of the security of supply.

Mr McVeigh said: “Most of our manufacturing projects are years in development

38 BUSINESS MONTH 2 September 2013

Engineers at work in NIACE, an industry-led, university-hosted technology hub for collaborative research and development

FOR SUCCESS

Ireland re-establishing its prowess as an engineering force, writes Rebecca Kincade

prior to contract award. This does give us a far-sightedness on our work horizon.

Thankfully an increase in successful oil and gas exploration has resulted in an increased number of opportunities.

“Our successful projects such as the SeaRose FPSO in 2012 and the award of the pile cluster modules for the Edvard Grieg and Martin Linge oil platform jackets by Kvaerner Verdal AS have helped us to reinforce our position as a solid, dependable option in the market.”

Mr McVeigh believes that to build and sustain our economy we have to continue to be a manufacturer, taking base materials and making them more valuable.

Our successful projects have helped reinforce our position as a solid, dependable option He continued: “Being a country that cultivates good ideas, drives R&D programmes yet has products produced in the Far East is not sustainable. The products need to be made here.”

Northern Ireland Advanced Composites and Engineering (NIACE) centre is an industry-led, university-hosted technology hub for the collaborative research and development of advanced engineering and materials technologies.

Its goal is to help Northern Ireland’s manufacturing sector grow its capabilities, to be more competitive nationally and globally.

Participating companies and academic staff from Queen’s University Belfast and the University of Ulster work together to develop world-class technology solutions.

Dr Scott King, manager, NIACE, said: “This centre acts as a bridge between industry and academia and is a focal point for the

>> Turn to page 40

2 September 2013 BUSINESS MONTH 39

FOCUS ON: ENGINEERING >> From page 39 creation and dissemination of knowledge.

We provide participating companies with access to resources which can potentially reduce the gap between concept to commercialisation. We can also identify new funding opportunities for industrial research, distributing this information to both industry and academia and providing support through the application process.”

Dr King recognises that the current economic climate has introduced a range of challenges to the engineering sector, not just within NI but across the globe, with increasing costs of materials and transport, for example, being a large drain on many company resources.

He continued: “The sector needs to see increased funding applications for the support of R&D projects. There is literally billions of pounds out there through local and national support agencies and also through the European Union to tap into to support local businesses.

“Northern Ireland has not fully capitalised on this resource to date. If we are to maximise our economic, commercial and social advantage then this has to change.”

Calling for increased interaction between industry sectors, and also between industry and academia, Dr King believes that new alliances will win new business and develop new technologies. With lag times between projects setting the sights of the

40 BUSINESS MONTH 2 September 2013

The Northern Ireland Advanced Composites and Engineering (NIACE) centre acts as a bridge between industry and academia, providing a focal point for the creation and dissemination of knowledge engineering sector so far into the future, they are already focused on what is to come. DETI, Invest NI and Matrix have been credited with identifying growth opportunities and efforts are being made

within companies to invest in R&D, form strong collaborations, upskill staff and nurture new talent.

This sector is united in working hard to achieve and maintain worldwide success.

FOCUS ON: ADVERTISING

STARTING TO AD UP AGAIN Digital media has changed the advertising landscape forever but as Rebecca Kincade discovered many agencies are feeling increasingly optimistic

A

DVERTISING, marketing and branding have all been hit by the downturn but a recent Bellwether report by the Institute of Practitioners in Advertising suggests budgets are beginning to increase.

There is no doubt that the sector landscape has changed over the past few years, with this report showing that marketing spend online is up 17.4%. But is this increase being felt in Northern Ireland and how are our agencies coping with the rapidly expanding role of digital channels?

Colin Anderson, the chairman of ASG, has seen more marketing activity this year but he has noticed that the budgets are coming from government tenders as opposed to real private sector recovery.

He said: “There are many companies who recognised the strength of marketing through the downturn and many who didn’t.

“Northern Ireland is a difficult market as it has fewer large industry brands. Many companies experienced a decrease in their marketing spend and we also saw budgets across the water being cut.”

The advice from ASG is

simple. If you have a product or service to sell, there is a need for people to know about it and the first rule of marketing is ‘make it easy to buy’.

In order to do that Mr Anderson says you must communicate. Responding to the increase in online marketing, ASG has an experienced team of people trained in digital channels.

They also have a partnership with one of the largest digital agencies in the world, Minutesteak, which is part of the Dentsu organisation.

Mr Anderson continued: “We believe marketing is on the increase, however, the mix is key due to the fragmentation of media such as TV,

The mix is key due to the fragmentation of media such as TV, Twitter, Facebook, press and radio

42 BUSINESS MONTH 2 September 2013

Facebook, Twitter, social networks, outdoor, press and radio. It is about optimising the mix for the individual client.

There is much confusion out there regarding how to target audiences with the right messages through the right channel.”

Joanne Curran, marketing director at AV Browne Group, has noticed the priorities and values of consumers shifting over the past number of years. She said the most savvy brands have recognised this change and used the opportunity to spend more time tuning into their customers.

“It is encouraging that the latest Bellwether report is positive in terms of marketing budgets and particularly that digital spend is at the forefront of this increase, but it will take time for confidence to fully return.

“The post-recession world is different. Consumers have become less trusting and expect more from their investment in terms of value, usability and sustainability. This more considered consumer approach will endure and budget-holders will also rightly expect complete transparency and tracking of the effectiveness of their marketing.”

>> Turn to page 44

Being the best’s not enough if we don’t all shout about it Colin Anderson, executive chair at ASG, gets to the crux of the marketing challenge in Northern Ireland

M

ANY Northern Ireland companies are too reticent to promote their own brand or their own success, so we face a challenge — and that challenge is to believe in ourselves and our companies.

We do not share the cultural background of the Americans, who have total belief that their product or service is the best and make no apology for shouting about it. Consequently we do not compete properly.

There are, moreover, very few indigenous Northern Ireland brands that actually promote themselves on a global basis. For example, there are many agrifood businesses, good companies with good brands, that are dictated to by multinational retailers and hence are in a comfort zone.

As a result, there is a responsibility on both the private and public sectors to really get behind the promotion of entrepreneurship. That means easy-to-access support to take our product profiles into the national, European and global marketplace, depending upon the target audience.

Northern Ireland is in a very different position than it was 100 years ago, when it was of strategic and economic importance throughout the rest of the UK. Today, we need a best-in-class economy and best-in-class companies — but just as importantly, we must be seen to be just that.

We need to think bigger, focus on communications that make our products easy to buy. But most of all, there needs to be a realisation of the need to communicate our products and services.

After the darkest days of the Troubles it is time for Northern Ireland people to become leaders and for our companies to become leaders. That’s the marketing challenge that must be embraced.

2 September 2013 BUSINESS MONTH 43

FOCUS ON: ADVERTISING >> From page 42 The potential to engage with a consumer is everywhere, all of the time, and the speed with which communications have moved from broadcast to this always-on conversation approach has been overwhelming for some brands.

Ms Curran added: “There is more reliance on agencies... we are employed to know who that consumer is, where they are and how best to engage — whether that is with a tweet, a press ad or an experiential sampling roadshow.”

David Mackey, deputy managing director at RLA, is more sceptical of the news of recovery. He said: “There might be some nascent signs of recovery but if you are depending on domestic (NI) demand, either public or private sector, don’t hold your breath. We have clients in GB and Ireland and it’s those based in GB where we see some signs of recovery in budgets. Eventually the market will recover but it will not be the same as pre-crash days.”

He agrees there is an increasing need for an agency to prove

Clients of advertising agencies are becoming increasingly digital savvy

its worth and be accountable on projects. “The rapidly expanding roles of digital channels are changing the marketing landscape for ever. We have had to incorporate digital channel strategy into all client activity.

Clients are [becoming] increasingly digital-savvy but continue to need advice on best practice

44 BUSINESS MONTH 2 September 2013

and new developments,” he said.

News of an increase in marketing budgets is, understandably, being greeted with tentative optimism.

This is a sector that has felt the full wrath of the recession.

Not only have its players had to recover from shrinking marketing budgets, they have

also had to move quickly with the changes brought about by the digital era.

While the consensus is that marketing will never be the same again, it appears that digital strategies are being welcomed and embraced by advertising agencies within Northern Ireland.

OFFLINE SECTION

MOTORING

PEOPLE POWER Vauxhall’s amazing Ampera

DAY IN THE LIFE

LORRAINE MCGORAN Lyric Theatre’s marketing manager

MAN ABOUT TOWN

THE CHAIRMAN

Inside track on Northern Ireland business

HIKING HEAVEN IN JAPAN WALKING THE KUMANO KODO

BUSINESS MONTH 2 September 2013 45

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OUT TO LUNCH

Alistair’s got a real crush on market success Alistair Forsyth, the MD of Anaconda who visited 53 countries last year on business and bakes bread to relax, tells Joris Minne how the company is staying ahead of the curve

A

LISTAIR Forsyth is the largerthan-life managing director of one of the most macho businesses in Europe, Anaconda.

The company name itself is bursting with menace, ferocity and reptilian threat. So what is it exactly that Anaconda does, again?

“We make and export mobile crushing and materials handling equipment,” says the biggest man in the restaurant.

We are in the Deli on the Green restaurant in Dungannon, only a few minutes away from Anaconda’s operation near Ardboe.

“Northern Ireland is a global leader in mobile crushing, screening and materials handling,” says Alistair. “Anaconda has helped the north gain this reputation in the last eight years ever since we started out as Quality Fabrications Ltd.” The Tyrone-based firm, set up in 2005 by Martin Quinn, specialises in the design and manufacture of this equipment and also makes wheeled, tracked and static conveying machinery for the mining, quarry and waste recycling industries.

“Five years ago we started making a range of mobile conveyors and launched these directly into the USA market to great effect,” says Alistair.

Alistair is a huge man, a quarterback with hands like oars and a neck of oak. His restless enthusiasm and intensity of concentration

46 BUSINESS MONTH 2 September 2013

are so impressive I wonder if the restaurant furniture can withstand the never-still energy of the man.

He has a zealous love for what Anaconda stands for and talks only of making it bigger and better and serving the customers by listening to them and making equipment which they want. He is particularly proud of the innovative input into Anaconda which has resulted it in making equipment which, transformer-like, pops out of the box, unfolds itself and within minutes, is ready for operation.

“Unlike a lot of more conventional equipment which has to be assembled at the delivery site, Anaconda gear is designed to be fold-down and start-button-ready,” he says.

The American twang hidden beneath an elegant Ulster brogue is evidence of Alistair’s nomadism ever since he travelled around with his parents. But he has spent many years here with his co-director Martin Quinn and considers Tyrone home.

“I travel a lot because 40% of Anaconda business is in north America, 25% in Asia Pacific but the fact remains that Ireland is the home of construction. Just look at the impact of Irish builders across history and across the world.”

So how come if we’re so good at construction that you’re one of the few still making the equipment for the sector? “We were not as profligate as other engineering firms

with a clear interest in the construction sector,” he explains. “We always try to stay ahead of the curve, diversify and resolve the issues our customers want resolved, not our own issues. This means we are now growing to the point where I am establishing licencing agreements for Anaconda manufactured equipment in India to service markets such as Singapore and Japan.”

Alistair is as focused as a hawk in attack mode. Yet the wistful charm and shyness are not far behind the manly features. Grit and determination, however, does not prevent him from pursuing his other passion: baking.

While on the one hand he visited 53 countries last year and has a suit for Russia and jeans for Colorado, he still finds time to bake.

A former pastry chef in Viscounts restaurant in Dungannon turned international man of mystery, his big love is bread. “Some people golf to relax, I row and bake bread.”

Deli on the Green Set lunch for two Caesar salad Cashel blue salad Chicjen tempura Chicken caesar Total

£11.95 each

£23.90

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SHOP FRONT

Streetview No.35: Windsor Photo Prints Ron McBride

T

HERE is something about the attraction of a selection of new pencils, let alone reams of pristine

paper.

In an age of cheap biros and scribbled notes, many have all but forgotten the joy of precision associated with the instruments on display in Windsor Photo Prints.

Not so the architects and students of various disciplines, many of whom have had a career-long link with the shop.

The business was started in the 1960s by the late Dan Mooney and his wife Madeline.

Today it remains a family affair with his wife and son Daniel managing the business with both his brother and sister among the seven employees.

The present site in leafy BT9 has been occupied for over 30 years and is ideal for links with the student population and the QUB School of Planning, Architecture and Civil Engineering.

The premises, formerly student

accommodation, are comprised of a fine three-storey building on a corner site. The ground floor has the shop and photocopiers while the first floor holds the vast digital plan printing machines and scanners. On entry, the shop has a busy, wellorganised appearance. To the left the shelves are stacked with student and fine art supplies, having a large range of papers, paints and brushes, of easels and folders; of mounting materials, drawing boards, plotting

paper and technical pens. At the counter to the right discussions can be had on binding dissertations, on laminating, producing posters or whatever.

Daniel proudly notes that the firm has always been forwardlooking and was the first in the province to introduce the Oce TDS Digital Plan Printer as well as the Oce Colorwave 600.

The company is known for its quality of service and for understanding the concept of a deadline. Many students, and indeed

professionals, have been accommodated by WPP staff working after hours.

Large-scale plans for building projects can be produced from either hard copy or a digital source. As with many family businesses the recession has had an effect, in this case leading to a reduced demand for such work. The firm has to compete with online shopping and to this end offers students a discount.

Windsor Photo Prints runs a comprehensive website, a necessity in today’s economic climate.

Company van deliveries are used throughout Greater Belfast and surrounding towns such as Holywood. University terms dictate a degree of seasonality in terms of trade, reflected in three extra part-time staff being employed.

This progressive business continues to thrive and, as a new term starts, so too will a new cycle of business.

Windsor Photo Prints 130 Eglantine Avenue Belfast BT9 6EU 028 9002 8206

2 September 2013 BUSINESS MONTH 47

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DAY IN THE LIFE

Meet the Lyric’s marketing boss whose priorities span the Atlantic Lorraine McGoran Marketing manager, Lyric Theatre

7.30am

10.30am

Lyric staff regarding Brendan.

My working day starts the night before as I have to get the lunch boxes and uniforms ready for my son and daughter. I wake the children up around 7.30am for breakfast and then try to get everyone out the door by 8.30am.

I have two school-runs — taking my three-year-old daughter to nursery and my son, who’s in P2, to school, but this means I miss the worst of the rush hour driving to work from Bangor to Belfast.

Meet with marketing team to discuss the week ahead, focusing on specific marketing and communications tasks.

1.30pm

9.30am Arrive in work. Quick check of sales figures for our forthcoming production Pride & Prejudice — the Musical. Check my burgeoning inbox of emails from the weekend and any voicemails, prepare my to-do list for the day and prioritise any urgent requests.

10am Staff ‘huddle’, which is the Monday morning gathering in our beautiful cafe bar, to share information about events in the theatre, customer activity and do some planning.

11am

Lunch which is very often had at my desk, followed by a walk to nearby Stranmillis village for some fresh air.

The Lyric is Northern Ireland’s only producing theatre and we have four productions throughout the autumn into the Christmas season.

This week we have two shows opening on the same night on both sides of the Atlantic, Pride & Prejudice — the Musical in Belfast and our touring production of Brendan at the Chelsea in New York. I speak to box office manager Emily White regarding RSVPs to the opening night of Pride & Prejudice and then discuss hospitality plans with customer services manager Ciara McCann, including provision for our main stage sponsor, Danske Bank. It looks to be a busy opening night with lots of theatre producers invited from England to the UK premiere in Belfast.

2pm

12.30pm

3.30pm

Phone conference with the New York communications team and

Coffee break and catch-up with our new marketing intern.

48 BUSINESS MONTH 2 September 2013

Discuss with marketing officer Greg Fox content of the weekly e-zine which goes to over 30,000 subscribers. This provides information on news, events, special offers and our Creative Learning programme.

3pm Brief Lyric chief executive Ciaran McAuley about the marketing plan for Pride & Prejudice, updating him on that activity that’s happened and any revision to plans.

Also discuss strategy for forthcoming Christmas productions — Cinderella for the kids and Forget Turkey! for the adults.

This includes pre-show hospitality and Christmas party packages.

The Lyric is providing a year’s marketing experience to a graduate from the University of Ulster’s Business School.

4pm Work at my desk on marketing timeline for future productions and prioritise tasks taking into account my discussion with chief executive. Also factor in Lyric tour of Brendan at the Chelsea to Dublin and Derry.

4.30pm Take phone-call from visiting show producer who wants advice on promoting their show in Northern Ireland.

5pm Check over to-do list from this morning and tick off tasks completed. Begin list for next day.

5.30pm Return home to hungry brood — whom my husband has collected from school and nursery — and start preparing dinner.

It’s only usually when the kids have gone to bed that I’ve finally time to relax before I start making the lunches again…

offline

Surge in charge points for electric vehicles HOSPITALS, stations and streets across the UK will soon see a wave of new charge points for electric cars.

In February the government announced an injection of £37m to offset the cost of installing infrastructure for recharging electric vehicles. Now it has revealed the winning bids for the first round of this funding.

Money will be made available to dozens of local authorities, NHS trusts and train operators to provide charging points on their property as well as town and city streets.

Bids are now being invited for the second round of funding, with a closing date of October 30 this year.

Insurance discount deal for caravan owners THE stolen vehicle recovery firm Tracker has joined forces with caravan and motorhome insurance specialists, Caravan Guard.

The exclusive deal will give buyers of any 2013 Swift Group caravan, access to 25% discount

on the price of their caravan insurance premiums with Caravan Guard due to standard fit battery-powered Tracker retrieve units.

Owners of other caravan makes who choose to retrofit the retrieve units will benefit from a 15% discount.

test data with readers’ opinions to create a picture of the overall reliability and satisfaction of each marque.

In the 2013 result, Porsche achieved a brand score of 87% and a customer score of 94% — both rankings significantly ahead of its closest rivals.

Crumlin’s John Barr to sell first Chinese cars

Used car buyers warned to guard against cloning

THE manufacturers of the new Great Wall Steed, below, — the first Chinese vehicle to go on sale in the UK — has appointed Crumlin-based John Barr Cars as an official dealer.

The dealership will provide owners with dedicated parts and service facilities for the rugged 2.0 litre 4X4 turbodiesel.

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

Criminals are using these documents to accompany stolen vehicles that have had their identity changed to match that of a legitimate vehicle. The practice, known as cloning, is costing car buyers tens of thousands of pounds, says HPI. Although the theft of 130,000 blank registration forms from

Porsche rated the ‘best’ for second year in a row FOR the second year in a row, Which? has rated Porsche the ‘Best Car Brand’ in the UK. The magazine combined its

MOTORING NEWS

the DVLA happened back in 2006, they remain in circulation.

Volkswagen makes up for lack of free insurance VOLKSWAGEN has stopped short of offering its current free insurance incentive to Northern Ireland buyers but have compensated in other ways.

In lieu, they are offering generous deposit contributions and finance allowances on up!, Polo and Beetle models. While the younger driver may lose out on the insurance incentive, those with a good insurance record will probably fare better financially with the discounted offers.

Salute to best in motor industry innovation THE Award for Automotive Innovation, sponsored by GKN Driveline and supported by The Times, is back for a fourth year.

Organised by the Society of Motor Manufacturers and Traders, it seeks out ideas and products with the potential to have a lasting impact on the industry, while acknowledging the investment the industry makes in R&D and innovation.

2 September 2013 BUSINESS MONTH 49

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MOTORING

POWER TO THE

PEOPLE

G

ENERAL Motors hails the Ampera as introducing a new chapter in the history of the motor car — and they could be right — a plug-in electric that not only takes its owner to their destination, but will see that they get back to base again.

The range anxiety associated with plug-in electric vehicles concerns both their range and

access to a charge point to which they need to be connected for around eight hours in order to recharge the battery pack. But the Ampera is different, for while it is always electrically driven, it carries its own generator on-board to extend its range, given by Vauxhall to be in excess of 310 miles.

The technology is innovative in that includes a generator that can supply the electric motor

50 BUSINESS MONTH 2 September2013

The electrifying boast Vauxhall is making of its plug-in Ampera is justified, says Jim McCauley

when the battery charge is exhausted. It does not, however, charge the battery pack which has to be replenished through mains charging — around four hours from a normal household supply which is half the time required by standalone plug-ins.

Underlying technology apart, the Ampera’s styling suggests the future has arrived for Vauxhall in a car that makes a clear statement of intent, stopping

short of flamboyant overkill.

The interior is even better, enveloping the four occupants in pure luxury in the rangetopping model tested, while the power interchanges go unnoticed when driving unless called up on the large central information screen.

Switch the car on and it sits in silence until the muted tyre noise confirms movement and for those who want to explore

VAUXHALL AMPERA

Engine: The power package, dubbed the Voltec Electric Propulsion System, comprises a 16kWh lithium-ion battery pack, a traction power electronics unit, the 111kW/150PS main electric traction motor (master engine), a 54kW/72PS electric motor, which also serves as the generator in range-extender mode, and a 1.4-litre 63kW/86PS petrol engine (slave engine). While the traction motor provides 370Nm of instant torque, the primary role of the motor/generator is to supply electricity when the range-extending petrol engine is activated. The purpose of the 1.4-litre engine is solely to power the generator whenever the Ampera’s battery pack approaches its minimum state of charge, ie the front wheels are always electrically driven.

Drive: Via CVT automatic transmission to front wheels.

Performance: 0-62mph (100km/h) in 8.7 seconds; max, 100 mph (160km/h).

Fuel on combined cycle: Given as potentially 235.4mpg.

CO2: VED Band A for zero annual car tax.

Price: From £34,995 less £5,000 government grant.

Insurance: ABI 20/50.

Warranty: Lifetime/100,000 miles.

Benefit-in-Kind: 5%.

Euro NCAP: Five star.

the near instantaneous delivery of 370Nm of electric motor torque at lower road speeds, then the digital speedometer steps past the 60mph mark in just nine seconds.

On the move, the pre-charged battery pack covers just under 40 miles in EV mode depending on driving style and road conditions before the range-extending technologies cut in to continue supplying the electric

motor from the generator powered by the 1.4 litre petrol engine. Running costs in EV mode only are as low as £1 per 100km.

Behaviour-wise, the Ampera drives no differently from any other automatic with a wellbalanced ride and precise steering response. Brakes are part-regenerative via the electrics and are firm.

Seating is four-only because

of the ‘T’ arrangement of the battery pack which runs centrally down the car and across under the rear seat.

Cabin detailing adds to the quality of the car with driver information presented digitally on a large screen in the instrument binnacle and a central touch-screen on which controls for the infotainment, climate control and vehicle efficiency data can be called up.

Overall, the Ampera justifies GM’s claim that it launches a new chapter in the history of the motor car, advancing the concept of the plug-in electric vehicle to a new level where the electric motive power is supported by an internal combustion engine in the opposite application to a hybrid where the internal combustion engine is supported by an electric motor.

2 September 2013 BUSINESS MONTH 51

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TECHNOLOGY Nikon Coolpix S6600 camera, £199.99 @ www.nikon.co.uk

IT just got easier to take ‘selfies’ on a camera thanks to Nikon. The vari-angle screen is specifically designed to help compose images and shoot from high or low angles eliminating the guesswork required for taking a snap at arm’s length. What’s more, ‘gesture control’ allows you to shoot stills or video and even control the zoom with a swipe of your hand when the screen is in self-portrait mode. The 16-megapixel, backlit CMOS sensor combines with the 12x optical zoom to deliver vivid photos and movies, even in the brightest daylight or in low light night time scenes.

Apple iPhone 5S, contract prices vary, @ www.carphonewarhouse.com

THIS might look like the month that Apple will finally be revealing the latest edition to the iPhone family. If it sticks to form then it will be showcasing the 5S, which will be an updated device of the 5 rather than a brand new design. The iOS 7 is completely redesigned, it has a simpler look, and the use of translucency and motion makes even simple tasks more engaging. iOS 7 has hundreds of new features, including control centre, notification centre, improved multitasking, AirDrop, enhanced photos, Safari, Siri and introduces iTunes Radio, a free Internet radio service based on the music you listen to on iTunes.

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Manhattan Freesat HD box, £49 @ www.pcworld.com

Freesat is a subscription-free satellite TV service, and this is the most compact Freesat HD set top box to date. The new Freesat HD box is perfect if you want to have Freesat in any room of the house. It has more than 150 free TV and radio channels, with six in HD. The receiver also supports ondemand TV through BBC iPlayer and ITV Player – connecting the HD box to the internet allowing watching catch-up TV whenever you want it. Additional features include an eight-day on-screen programme guide.

Samsung ATIV Book 9 Lite, approximately £500 @ www.johnlewis.com

This laptop by Samsung is finally available to buy in the UK. It is packed full of intelligent features making it perfect for business travellers, students and those wishing to communicate on the move.

The ATIV Book 9 Lite boasts a sleek and stylish design but also delivers a great performance.

Featuring Samsung’s SideSync technology, the new devices allow you to share content between your PC and Samsung smartphone.

The ATIV Book 9 Lite is less than an inch thick and features a premium finish. It has a Quad Core processor and a 128GB SSD. Featuring a Windows 8 optimised touch screen, you can view documents, photos and videos in the highest quality.

With 12 hours of battery life you can browse the web and access content for even longer.

GMcG

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FASHION

Shades of grey

Grainne McGarvey

— charcoal, slate or silver — any one of its 50 shades can REY has a bad be the new neutral colour du reputation as jour. something we It looks great either traditionhead-to-toe or comally bined with dusky wear when we’re pink or emerald feeling down in green tones — some the dumps. This of the other mustautumn/winter, have colours this however, it is enseason. joying an image Whatever way transformation you decide to wear and is being toutit, grey is the versaed as the big tile shade to percolour news of fect tricky, the season.

Tweed 4 pocket grey trans-seasonal Bursting on to jacket £199@ M&S dressing. the colour palette

G

Fairisle jumper £30 @ Next

Embellished jumper £35 @ Dorothy Perkins

Large workbag £199 @ Radley

Double breasted coat £275 @ Reiss

Waterfall coat £99 @ Phase Eight

Prince of Wales check trousers £60 @ River Island Mini houndstooth dress £225 @ Jaeger

2 September 2013 BUSINESS MONTH 53

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TRAVEL

NIRVANA FOR Pilgrims have walked Japan’s Kumano Kodo for over 1,000 years. Now, Aaron Millar joins a new trip in search of enlightenment

R

YOEI Takagi is a 62year-old Buddhist monk. Every January he climbs the snowy slopes near his home in the Kii Mountains of Japan to meditate under the 48 sacred waterfalls that flow into the Nachi Otaki: one of the country’s tallest waterfalls, revered in folk legend as a living god.

He is able to reamin submerged in the near freezing flow for 45 minutes at a time. “This training has granted me supernatural powers,” he says, leaning in to whisper in my ear. “I can see people's heart inside.”

But subjecting oneself to hypothermic conditions, he explains, is only a small part of the process. The real business is in the mountains. Takagi is a follower of Shugendo, an ancient Japanese religion that fuses Buddhist ideals with indigenous forms of nature worship. For centuries, devotees like him, known as Yamabushi, have been trekking the Kumano area's slopes believing that ascetic training in sacred spots can grant magical abilities.

Over five days I aimed to walk the Nakahechi section of the Kumano Kodo, a 54-mile pilgrimage path that bisects the Kii Mountains in the Kumano region of the Kii Peninsula, 120 miles south of Kyoto.

For over a thousand years, emperors and peasants alike have been walking these trails in search of enlightenment and healing en route to the Three Grand Shrines: Hongu Taisha, Hayatama Taisha and Nachi Taisha.

For the first time, this self-guided trip allows non-Japanese speakers to make the journey. Detailed route

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notes are provided and advance bookings in traditional mountain guesthouses are also arranged.

I hoped that by doing so I would experience this ancient ritual firsthand and discover a slice of rural Japanese life, seldom seen by outsiders. “Walk the route, breathe the air and make room in your heart to feel it,” Takagi told me. If there is such a thing as hiking Nirvana, then the Kumano Kodo is surely the place to start looking.

For me, the trail began at Takijiri-oji, the gateway shrine to the sacred lands of Kumano which was once the site of great ritual offerings of poetry, dance and even sumo. From here, I climbed three steep miles to the mountain village of Takahara. That evening, owner Jian welcomed me to the Kiri-no-sato guesthouse with a banquet of the traditional Japanese country cooking known as kaiseki — dozens of individually prepared, uniquely flavoured dishes — that would prove typical of the trip.

I left for Chikatsuyu — six miles east — at dawn the next day. This small valley town, bisected by the Hiki River, has been used as a stopover since the time of the first pilgrimages.

Despite its antiquity the Kumano Kodo (which had Unesco World Heritage status) has always been forward-thinking, welcoming all, irrespective of gender or wealth. So it has long been popular. Records refer to a “procession of ants”: hundreds of white-clad pilgrims scrambling up the steep slopes. But as I hiked to Hongu Taisha the next day — climbing 15 miles of mercilessly steep passes — I wondered if there was more to the metaphor then just numbers. I felt tiny, and exhausted.

The sacred Nachi Otaki cascade, at 436ft one of Japan’s tallest waterfalls; and Buddhist monk Ryoei Takagi, inset left

HIKERS

Travel essentials: Getting there Aaron Millar flew with ANA: All Nippon Airways (020-8762 8977; ana.co.uk), which flies from Heathrow to Tokyo Narita and onwards to 45 cities in Japan from ÂŁ837 return. He also travelled as a guest of Oku Japan (020-7099 6147; okujapan.com), which offers guided and selfguided walking itineraries along the Kumano Kodo. A nine-day self-guided trip to Kyoto, Osaka and the Kumano Kodo, including a city sightseeing tour with a private guide, five days of walking, all accommodation, all breakfasts and five evening meals, train tickets, walking maps and information pack, costs from ÂŁ1,290pp. Flights not included.

More information Japan National Tourism Organisation: 020-7398 5678; seejapan.co.uk

From Hongu Taisha, I pressed on to Yunomine, the only Unesco World Heritage hot spring that you can actually bathe in.

My final two days of trekking to Nachi Taisha would take me through some of the Kumano Kodo pilgrimage's most beautiful scenery.

Then, as I caught my first glimpse of the Pacific, something amazing happened. There, in immaculate white robes, was a Shugendo Yamabushi. He blew his Hora conch-shell trumpet to the wilds, signifying the teachings of Buddha and the summoning of nature's deities. It lasted only a few moments, but listening to him play was the highlight of my trip.

At the end of my journey I walked through the Grand Shrine of Nachi Taisha to the Nachi Otaki cascade nearby. Shugendo is a unique form of Buddhism that stresses the attainment of enlightenment through active immersion in the natural world. Staring up at the 436ft falls, it occurred to me that there is a profound common sense in that idea.

Connection with nature is part of what makes us human. If enlightenment is to be found inside us, perhaps it makes sense to start looking outside first. I walked down to the base of the freezing waterfall and, for just an instant, thought about jumping in.

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TRAVEL

The Big Six: Greek rural retreats Apokryfo, Lofou THE name Apokryfo — Greek for ‘hidden away’ — sums up the feeling at this boutique guesthouse in the peaceful village of Lofou. The hotel is made up of a cluster of stone houses transformed into seven luxury suites and a pair of stylish houses sleeping four-to-eight people. Grouped around a turquoise pool, each apartment is fitted with classically Cypriot interiors.

Elsewhere, luxury spa treatments and a rooftop bar collude to make this a very relaxing stay.

Apokryfo, Lofou (00 357 25813777; www.apokryfo. com). Doubles from €150, including breakfast.

Casale Panayiotis, Kalapanayiotis THIS luxurious retreat is set amid the stunning scenery of the Marathasa Valley. The Unesco-listed Monastery of St John Lampadistis and the Byzantine churches of Kalopanayiotis are all within reach. As well as 26 suites, the hotel offers a traditional breakfast in the Kafenino cafe, authentic Cypriot dishes at the Byzantino Restaurant and beauty treatments at the Lavrentino spa.

Casale Panayiotis, Kalopanayiotis (00 357 2295 2444; casalepanayiotis.com).

Doubles from €90, including breakfast.

Library Hotel, Kalavassos A STAY in this decadent 19th-century mansion will rejuvenate both mind and body. Offering 11 suites named after renowned thinkers and writers, from Oscar Wilde to Arthur Rimbaud, the hotel also has a lounge stocked with history, philosophy and cultural books, where guests can take afternoon tea beside an open fire.

Library Hotel, Kalavassos (00 357 2481 7071; libraryhotel cyprus.com). Doubles from €70, including breakfast.

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Ayii Anargyri, Miliou This boutique hotel opened in 2009 with a series of garden suites, bungalows or classic rooms. It offers spa treatments, including spring-pools and mud baths. As well as two restaurants and a pool, the retreat is also perfectly placed for trips to the Troodos Mountains and the Akamas peninsula, a natural wilderness that’s home to sandy coves, unspoilt scenery and flocks of rare birdlife.

Ayii Anargyri, Miliou (00 357 2681 4000; aasparesort.com).

Doubles from €150, including breakfast.

Little Lodge, Maroni Once a dilapidated old stone house, Little Lodge (below) has now been lovingly renovated by its British owners into a beautiful B&B. The whitewashed cottage overlooks olive groves and enjoys stunning views of the sea to the south. Guests can swim under the stars at night in an enchanting candlelit garden or venture out to the towns of Nicosia, Limassol and Larnaca for dinner. With only two rooms available, you are guaranteed an intimate, relaxing stay with homely personal touches.

Little Lodge, Maroni (00 357 2433 3053; littlelodgeguest house.com). Doubles from €115, including breakfast.

Ambelikos, Potamitissa A cluster of 19th-century traditional stone houses was renovated in 2008 to form the heart of this hotel. The houses are set 820 metres above sea-level in the refreshing mountain setting of the Eastern Troodos range, among pine-clad rocky peaks and unspoilt rural scenery. Guests can take part in food and wine-tasting nights in the hotel’s courtyard taverna or relax in the health club’s outdoor jacuzzi which has fantastic panoramic views.

Ambelikos, Potamitissa (00 357 2552 2211; ambelikos.com). Doubles from €90, including breakfast.

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Appointments

OUT AND ABOUT

with The

CHAIRMAN Our man about town played guinea pig, was bowled over by the hospitality at a sporting event and got in the mood for travelling

Rory Jeffers has been appointed deputy creative director at ASG. With more than 15 years’ experience, he has lead major creative projects in nearly every category, from technology and financial services to the arts.

Stephen McCartney has joined ASG as a creative. With more than two years’ experience, his expertise lies in brand development, advertising, art direction, editorial, exhibition and graphic design for a wide range of clients.

Paul Stanley has been appointed to the role of chief financial officer at Ulster Bank. Mr Stanley has more than 30 years’ experience in financial services, and joins Ulster Bank from Allied Irish Bank (AIB), where he worked in finance and treasury roles. He was mostly recently acting chief finance officer at AIB.

W

E all know how much The Chairman enjoys the finer things in life, but one has to admit that my penchant for burning the candle at both ends does not always have the best effect on one’s visage!

Thank goodness then for the invite from Gordon’s Chemists to the launch of a new product from Vichy, at the Merchant Hotel.

The downside to attending the event was that there was a ‘pink’ theme. However, Mrs Chairman was so keen to attend, I was forced to dust down my fuschia pinstripes, but the effort was worth it, as the event organisers decided to lay on burgers, fish and chips, cake, ice cream and even pink candyfloss to prove the damage done by such unhealthy foodstuffs.

One has to struggle through, in the interests of science.

Mrs Chairman tells me that Idealia Life Serum aims to combat all those skin problems caused by excesses such as fatigue, stress, pollution, cigarette smoke and an unbalanced diet — and it seems I was considered the ideal candidate to road test such a potion.

Also enjoying the event were Claire Craig from IN! magazine, freelance journalist-abouttown Amanda Ferguson, Kerry McKittrick of the Belfast Telegraph and Kim McNaughton, who made the trip to Belfast from the Coleraine HQ of Local Women magazine, who all listened raptly to the informative presentation. It was also lovely to catch up with the irrepressible PR guru Nicola Bothwell, who ensured that everything went without a hitch.

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Carson McDowell has raised £16,500 for Macmillan Cancer Support. The contribution was raised over the course of 12 months by employees at the Belfast firm, through a serious of fundraising initiatives and events including cake sales, a night at the races, a cinema evening and ‘Come Dine with Me’ nights. With the cheque, back row from left, are Victoria O’Hara, Carson McDowell; Chris Philips, Carson McDowell; Joanne Young, Macmillan Cancer Support; and Leona Rankin, Carson McDowell; and, front row, Michael Johnston, managing partner, Carson McDowell, and Rosemary Carson, partner, Carson McDowell.

One French lady candidate who tried the ointment said she noticed visible improvements in eight days. Mrs Chairman? I couldn’t possibly comment... erm... I mean, she always looks beautiful to me!

---

Launching ‘MoneySense at Home’, Ulster Bank’s financial support resource for families, is broadcaster and mum Claire McCollum; Jill Smyth, head of MoneySense, and 11-year-olds Lauren Morrow and Hanna Emmerson. MoneySense research shows that a third of families don’t talk with their children about money. The initiative aims to help parents to do so.

WHEN it comes to summer sport, there's nothing better than a game of cricket.

Obviously watching the 11-a-side spectacle is a more relaxing affair but sometimes there's call for The Chairman to don the whites and exercise the old pie-chucker arm.

So it was on a typically cloudy summer Northern Ireland evening a few weeks ago when a Donaghadee XI hosted a

Appointments

Helen Caters has been appointed general manager of Culloden Estate & Spa. She is currently general manager at Malmaison Liverpool and will take over the reins at the Culloden from Stephen Meldrum.

Top from left: The Belfast Telegraph charity cricket team show off their physiques; Patrick Beatty from the Belfast Telegraph practises batting with a very red apple at the Belfast Telegraph charity cricket match; John Devine, Mark Reilly and Tommy Nolan practise their Morris dancing at the match, which raised £1,000 for charity

Andrew Spratt has been appointed as an associate in the litigation and dispute resolution division of A&L Goodbody. Mr Spratt qualified with the firm and now specialises in employment, advising on contentious and non-contentious matters. He has also advised on issues arising from social media use.

Belfast Telegraph XI in the 3rd annual charity T20 cricket game — this year in aid of the Children’s Heartbeat Trust.

Winning the toss, and choosing to bat, the Dee team managed to score the hugely respectable total of 189 all out just short of the 20 overs.

Richie Carson, Peter McIvor, Phil McNamara, Gavin Fraser and Roger Stubbings all scoring sizable runs in get-

ting to the daunting total score.

Colin Maxwell, Andrew Armstrong, Hugh Watters and Mark Reilly all bowled well and picked up the wickets for the Bel Tel XI. The Bel Tel team fell agonisingly short in their run chase... losing by ONLY 80 runs off their 20 overs.

Patrick Beatty, Marty Elliman, Patrick Beatty and John Devine were the mainstay of the Bel Tel innings

scoring some runs. While for the Dee team Scott Carson, Brian McLawrence, Steven Savage and the Brothers Shaw (Trevor and Brian) took the spoils with the wickets.

Throughout the game, “PartyDJNI” was able to provide a musical, and often entertaining, backdrop to the proceedings on the field.

And the gourmet aficionados

>> Turn to page 60

Ivan Waide has been appointed partner in intellectual property and technology at A&L Goodbody. He has worked with both Northern Ireland and international clients, including Grant Thornton UK, Iconi Software and Heineken. He worked for eight years for international firms.

2 September 2013 BUSINESS MONTH 59

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THE CHAIRMAN

Appointments

Daniel Hughes has been appointed as business acquisition manager at Danske Bank. Working between Danske Bank’s Newry and Portadown finance centres, he will be responsible for developing new-to-bank relationships and acquiring new business customers.

Ciaran McLaughlin has joined Danske Bank as corporate banking development manager. An economics graduate, he joins from Ulster Bank where he worked for four years. He will manage a portfolio of Danske Bank’s corporate customers with a focus on new-to-bank relationships.

Joy Taggart has been appointed as global inside sales manager with defibrillator firm HeartSine Technologies. With over seven years’ experience in healthcare technology, she will be responsible for the internal sales relationship management of all customers.

Dungiven producers of rapeseed oil and gluten-free cooking sauce, Dunola Fine Foods, have won a contract with the Henderson Group which will see their range stocked in Spar, Eurospar, Vivo and Vivoxtra stores. From left are Fionnuala McLaughlin, Dunola; TV chef and brand ambassador Jenny Bristow; Eddie Burns, trading manager, Henderson Group; and Martin McLaughlin, Dunola. >> From page 58 at Grace Neill’s kindly hosted the post-match festivities as both teams reflected on a highly enjoyable game. Of course, Children’s Heartbeat was the real winner, accepting a donation of more than £1,000 from both teams. Many thanks to all involved for donating and helping put together a wonderful night. The Chairman is already in training for next year's extravaganza.

--A FINE lunch, fine company and talk centred on the finest watches in the world. Such a billing makes an event hard to resist and lunch at Deanes on Belfast's Howard Street restaurant last month failed to disappoint.

There to reinforce to The Chairman the pedigree and heritage of Patek Philippe was Mark Hearne from the Geneva-based watchmaker, the man who looks after the UK side of the business. Mark is no stranger to these shores, having spent many years visiting Northern Ireland on a horological basis.

It was a delight to meet up once again with Viviane Borges, who manages PR and communications for the firm in London along with Suzanne Lunn from Lunn’s jewellers, which represents Patek Philippe in Northern Ireland.

Also there was everyone's

60 BUSINESS MONTH 2 September 2013

South Belfast landmark bar The Albany, formerly known as TATU or Lily’s, is being redeveloped creating 50 jobs. Starting work is the project team of Graham O’Donnell, O’Donnell O’Neill Design Associates; Eve Wallace, marketing manager The Albany; and Steven Young, McCue’s Fit Out. favourite piper, Gary McDonald, Scotsman in disguise Symon Ross and another man with his eye on the social scene, Chris Sherry.

A fine lunch was followed with a showing of some of the iconic company's best pieces at a new display in Lunn’s, Queen's Arcade, watches which are truly awe-inspiring.

--TRAVEL is the key to a happy life, or so Mrs Chairman maintains when booking the annual jaunt abroad. And if truth be told there's nothing The Chairman likes more than exploring new lands in the heat of the midday sun with nothing but the promise of gin and tonic to keep him going.

There was certainly plenty of gin at this year's Janus Awards where the best of Northern Ireland's travel industry are cel-

ebrated in the comfort of the Culloden Hotel. Picking up a well-deserved award for Outstanding Contribution to the Industry was Brian Ambrose, a man who knows a thing or two about running an airport, while a rousing speech was given by Stephen Meldrum who heads up the Institute of Hospitality here. The Chairman enjoyed a great chat with the esteemed group of David Gardiner, Michael Henderson, Catherine Williamson and David McIlvory. And it was great to bump into old friend Paul Clark who, along with Michael Morrissey, presented an award to James Richardson.

And it was more than a delight to see the stalwarts from the Hilton, Bronagh Kernahan, Siobhan Keilt, Paula Collins and Alison Adams, who were with Catherine Williamson.

Appointments

Jim McCusker addressed delegates from the private, public and voluntary sectors at a Labour Relations Agency conference held at the Stormont Hotel. From left are LRA chairman Jim McCusker; Labour Relations Commission CEO Kieran Mulvey; FMCS deputy director Scot Beckenbaugh; and LRA CEO Bill Patterson.

Ben Clayton, cluster general manager for Premier Inn Northern Ireland, joined Music Theatre 4 Youth cast members as they put in some practice at Premier Inn, Titanic Quarter, ahead of the charity’s showcase ensemble performances of ‘Fame!’ in August. Premier Inn hosted the production’s international artistic team. They were among a number of businesses to support the initiative, including George Best Belfast City Airport, Aer Lingus, Phoenix Natural Gas, Goldblatt McGuigan, Acapelle Construction, Arup Consulting and T13. Pictured, from left, are Kiri Sampson, Emmet Stewart, Ben Clayton, Fay Stewart and Adam Thompson.

Stuart Dobson, managing director of Elmgrove Foods Limited, attends a reception at Buckingham Palace where he was honoured with The Queen’s Award for Enterprise.

Pictured at the launch of ‘Arthur Guinness Projects’, a cultural initiative that will champion Ireland’s talent and creativity, are The Script, Dylan McGrath, Jim McGuinness and Chris O’Dowd who, along with 12 other industry experts, will choose and provide mentoring to the selected projects. Applications can be submitted via www.ArthurGuinnessProjects.com. Photo: Marc O’Sullivan

Karla McAviney has been appointed brand manager at Linwoods Health Foods in Armagh. In her new role she will be responsible for the continued development of the Linwoods product range by planning and executing marketing plans, promotions, category management and brand-awareness initiatives.

Emma Gribben has been appointed digital marketing executive at Linwoods Health Foods in Armagh. Emma will be responsible for devising and executing the digital marketing strategy for Linwoods Milled Seeds product range across UK, USA and European markets.

Philip Steele is the new managing director of Bangorbased Denman International.

He has been with Denman for 23 years including a year spent working at the US subsidiary in Boston and two years in Japan, working with Torico Industries, Denman’s Japanese distributor.

2 September 2013 BUSINESS MONTH 61

THE LAST WORD

with John

Sherrocks

It’s plain that the abundance of choice we’re confronted with every minute of our lives needs repackaging – in the interest of this generation’s Albert Einstein if nothing else

I

T ignited fury within the anti-smoking brigade but news that the UK government had snubbed out plans to introduce plain packaging for cigarettes left me in two minds.

My Victor Meldrew alter ego was tempted to light up a cigar in celebration of nanny-state legislation being thwarted — for a change. Usually we put up little resistance to politicians telling us how to live our lives. For example, how much we should drink. No, I’m not talking about alcohol but rather how much water we should consume when the weather is unusually hot.

Even as a non-smoker I find it sad that nicotine addicts meekly rolled over when the ban on smoking in public places was introduced. As a society we bang on about human rights but aren’t fazed by law which prohibits a smoker from opening a pub, staffed and patronised by smokers, all of whom are willing to legally absolve the state, cigarette companies and the insurance industry of any responsibility should their adult habit of choice kill them. What next? A ban on smoking in our own cars?

But before I have the Daily Mail trying to flog me a subscription, I should add that as a father of young children the government's cop-out was a disappointment.

In fact it was a double blow. Besides my vested interest in the safeguarding of my children’s lungs, there was another aspect of the plain-packing proposal that appealled. As a consumer, who is at times overwhelmed by the abundance of choice in just about every sphere of life, I was rather hoping that plain packaging for cigarettes would spark a trend.

I yearn for the days when the only choice a coffee drinker faced was: black or white?

Today those of us who cannot function without regular shots of caffeine first need to decide on whether it will be Starbucks, Coffee Republic, Costa or Cafe Nero. Bizarrely this abundance of competition doesn’t seem to have cut the price of a cup of coffee.

Once through the doors of a Starbucks, say, the customer has to choose between American, latte, mocha, cappuccino (with

a sprinkle of chocolate or not) macchiato, espresso, iced flavoured latte, iced skinny flavoured latte...

According to some experts too much choice can be demotivating. I’ll vouch for that. (It might even explain my lack of desire to get out of bed some mornings.) And it seems I’m in illustrious company. Facebook’s Mark Zuckerberg once told an interviewer that he wears the same style of outfit every day, mimicking his idols Steve Jobs and Albert Einstein who supposedly didn’t want to waste any thought on to what items of clothing they’d opt for on a particular day.

Just imagine if the famous physicist had been faced with the array of products that confronts supermarket shoppers today.

Would the world have been deprived of the theory of relativity?

A chore at the best of times, I’m inclined to flee within minutes of entering a supermarket. Competition is great but do we really need the same brand of tinned sweetcorn, for example, to come in ‘original’, ‘naturally sweet’, ‘no added salt’, ‘in water’, ‘creamed style’ and ‘organic’?

When I was a kid my father would bemoan built-in obsolescence. For him it was all a plot by manufacturers to ensure that we had to buy a new fridge, washing machine or whatever every few years. “Like father, like son,” my 15-year-old daughter would no doubt say.

Some economists maintain that an overload of options paralyses people or pushes them into decisions that are not in their own best interest. Perhaps opting for the more expensive product that isn’t really any better than the original — toothpaste for ‘super super white teeth’ as opposed to just clean teeth, perhaps?

In fact, maybe it wasn’t the tobacco lobby which persuaded David Cameron to ditch plain packaging but rather the supermarket and coffee shop chains.

I yearn for the days when the only choice a coffee drinker faced was: black or white?

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