23 minute read
Business Leaders Forum
EyeonBusiness Leaders Forum
2020
With the NI Assembly & Executive back in place, Business Eye asked a selection of business leaders and commentators what should its priorities be and does its return improve the prospects for Northern Ireland business and the economy for 2020 and beyond?
Gavin Woods
Business Development Director at Nitec
2020 Technology Forecast: A Growing Industry In a Turbulent Time
When we listen to the news it’s obvious that various sectors in Northern Ireland are having issues and there seems to be a push from Westminster to reduce the size of the public sector here. Despite this, IT in general is a burgeoning area and there a few easy-to-understand reasons for this.
Aside from the seemingly ever-increasing inward investment which has been bolstering the sector, computing, websites and apps are pervasive now. Five years ago, you could ask a person to reboot their server during the day; now it would be easier to ask the CEO to give up their firstborn child than reboot their server. All this is an indication of how important IT has become to every aspect of life.
Security analysts have explained to us that globally there is a shortage of 300,000 security specialists. As the servers, apps and websites we use become more critical, they become a bigger target for hackers. Hence the arms race on IT security and the need for many more trained security professionals. This issue is global and won’t be solved any time soon.
While I can’t tell you anything with certainty about your specific business I would say on balance you will end 2020 spending more on IT than you did in 2019. One example of many: there is a general move toward better recovery solutions to reduce the downtime. There is a dawning realisation, even among SME’s that outages or data loss can do real reputational damage. So, enterprise solutions are being used more by SME’s. The Enterprises, for their part, are moving from these solutions to more complex systems to try to ensure that downtime never happens, ever. The security situation is similar, and I think many companies will find that the solutions they have used in the past are not quite up to the security challenges of 2020. An example might be management of data stored on mobile devices. If you are not doing this already, you will be or should be soon.
In summary, to the extent that IT drives the economy I am optimistic that 2020 will be a good year. However, a rising tide floats all boats and vice versa so on the general economy, who knows? With the potential of war with Iran, global trade wars, Brexit etc, it would be a brave individual to try to call it.
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Darren McDowell
Senior Partner, Harbinson Mulholland
At long last our Assembly is back in place. The list of priorities for our local politicians is daunting: health, education, agriculture, infrastructure, the list goes on and on and whilst complex enough at the best of times these matters will no doubt be intensified by Brexit. Speaking with my finance hat on, in the midst of such complexity we need clear sighted leadership that positions NI on the world stage as a place to do business and creates an environment to foster and grow our indigenous enterprises. At HM we have long recognised the importance to the NI economy of homegrown businesses, including family businesses. That’s why we set out to listen to and to raise the profile of such a vital sector, celebrating their importance and lending them a collective voice. These companies make up our client base and their sector flies under the radar but contributes powerfully to the local economy and to the communities in which they are located. These businesses have been working hard in spite of the Assembly’s absence and hopefully the Executive’s reinstatement will create opportunities for 2020. Though it is disappointing to note that the Finance Minister has already announced that the corporation tax rate cut for NI will not be pursued. I think radical ideas and actions are required so we don’t end up with more of the same in the years to come. I don’t believe that the welfare of future generations will be protected by taking a short term approach to long term issues.
Michael Neill
Head of Office, A&L Goodbody Belfast
As we head into 2014 we are beginning to see encouraging signs of growth in our economy. 2013 saw falling unemployment, more jobs, improving business confidence and rising house prices.
But much remains to be done, particularly in key areas such as increasing export levels, pushing up investment in research and development and creating quality jobs. In 2014 Invest NI will continue to help businesses to export through our programme of trade visits, tailored support and in-market advice. I’m hopeful that, with signs of US growth accelerating and opportunities in the emerging economies, we’ll see a positive effect on export figures. On the jobs front, we are well underway to achieving the 2011–2015 Programme for Government (PfG) target of 25,000 new jobs. Our Jobs Fund scheme has been particularly successful and has already exceeded its PfG targets for both job promotion and job creation, with over 4,100 jobs created since it launched in November 2011.
Inward investment will also remain a priority as we continue to build on our growing reputation. To quote Prime Minister David Cameron ‘Northern Ireland is second only to London as the top UK destination for inward investment’.
Northern Ireland is strong in ICT, life sciences, agri-food, advanced materials and engineering, business and financial services, and these sectors will remain a focus for us. In 2014 we’ll also continue to lobby hard for Northern Ireland to have the opportunity to set its own corporation tax levels, as we await the government’s decision. Last year was a notable year for Northern Ireland with G8 and the International Investment Conference. I’m confident that in 2014 we will build on what we achieved last year and see tangible evidence of economic recovery.
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Richard Kennedy
Group CEO, Devenish
After three years of a local political vacuum, it is positive that we begin this year, and this decade, with the NI Executive back in business. It has been a frustrating period for industry and society in Northern Ireland, with no Ministers in place to take decisions necessary to improve our economy, against a backdrop of uncertainty regarding Brexit. Things are clearer now on Brexit than they were, which should provide a degree of stability. As the UK Government and the EU move to the next phase of negotiating our future arrangements, ensuring frictionless trade remains paramount. While Brexit will still loom large, there are other pressing issues facing Northern Ireland business that our newly appointed Ministers will have to address. Climate change for instance will be a priority focus for a number of Departments, and for our part at Devenish, we want to demonstrate how the agri-food sector can be part of the solution to the environmental challenges we face.
One silver lining to emerge from the past three years without Stormont has been the demonstration of the tenacity and talent within the Northern Ireland business community, with representatives from all sectors coming together to speak with one voice. That collective determination to succeed in the face of adversity, working together for a brighter future for all, is something our local political leaders can learn a great deal from.
Richard Kennedy, Group CEO, Devenish
Dr Joanne Stuart OBE
CEO Northern Ireland Tourism Alliance
It has been a positive start to 2020 with our local institutions back up and running. Now it is time for the Executive to grasp the nettle and bring leadership and collaborative working to set the course for Northern Ireland as we navigate a future in a UK outside of the EU. Our region faces real budgetary constraints and it vital that the economy and business, which generate the taxes to support our public services, is a key priority.
Tourism is one of the most resilient and successful parts of the local economy surpassing returns on investment made in other industrial sectors and outpacing the average in job creation. Leisure and business visitors spend in excess of £1bn, which supports over 65,000 jobs. With 60% of spend and 70% of jobs outside of Belfast, Tourism benefits rural, coastal and urban communities across the region. We are in an environment where access to skills is increasingly competitive, the negativity and confusion regarding Brexit is impacting on our attraction as a holiday and business destination and we have seen a decline in air connectivity to GB and Europe.
Addressing the challenges and creating the environment for Tourism to meet its shared ambition of doubling economic impact and creating 25,000 new jobs will require a joined up strategy, led by Minister for Economy. Increased funding for promotion, a plan to increase air connectivity, infrastructure investment and addressing the skills gap are key priorities.
The Tourism economy has been gaining momentum and now is the time, to Embrace our Giant Spirit, to make courageous decisions and maximise the transformational opportunity that Tourism presents in Northern Ireland.
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Andrew Ryan
Partner at UK law firm TLT
Aclear priority for the Executive should be to promote clean energy as part of the wider challenge to limit and mitigate the impacts of climate change. The grid operator, SONI, has already issued its ‘Strategy 2020-25’ to pave the way for further decarbonisation, and this must dovetail with new government strategy to increase uptake of renewable generation at both the large and small scale.
“The Strategic Energy Framework published in 2010 was in many ways a success as its target of reaching 40% renewable generation by 2020 has been met. However this was achieved predominantly through the subsidies provided under the NI Renewables Obligation which closed to new generation in 2017. In the absence of further subsidies and with ongoing constraints on grid connection, the installation of new renewable generation has all but flatlined. Subsidy free generation is becoming economically viable but as yet only in limited circumstances.
“However, with clear policy direction the potential for clean energy in Northern Ireland is huge – we only have to look across to Scotland to see what can be achieved. We look forward to the release of the next Strategic Energy Framework which is expected to propose renewable generation of up to 70% by 2030. A decision must be made on the NorthSouth Interconnector as a priority in order to reduce constraints on the electricity network and unlock the uptake of energy storage.
Andrew Ryan, partner at UK law firm TLT
Adrian Doran
CBI Northern Ireland Chair
2020 marks the start of a promising new decade for Northern Ireland. With powersharing restored, it’s time to reaffirm Northern Ireland’s reputation as a great place to do business. “In these earliest of days for the Stormont Executive & Assembly, the CBI is clear. Lasting, positive change will only be possible if government and business renews its partnership. Focused on delivering ambitious solutions to the challenges that we face.
“There are three clear priorities. First is the development of a new NI Economic Strategy. While its sights must be firmly fixed on improving our fiscal balance, the new Strategy must also deliver on improving people’s living standards, creating well paid jobs and attracting international investment. Politicians must consider the creeping costs of running a business in Northern Ireland. And there must be an honest debate about how we appropriately fund our public services.
“Second is pressing on with infrastructure investment and developing our energy strategy – ensuring that Northern Ireland becomes net-zero by 2050. And third is access to skills. Ensuring we’re able to access the talent we need at all skill levels, as well as having the training in place to up-skill and re-skill employees as technology rapidly transforms the workplace. But ultimately, we must not forget that all three of these priorities have to be underpinned by a collective and united regional voice feeding into the Future UK/EU Trade Agreement negotiations. “Northern Ireland now stands at a crossroads. Let’s make 2020 the decade of progress and create the conditions for NI companies to prosper.
Adrian Doran, CBI Northern Ireland Chair
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Gareth Latimer
Ulster Chair, ACCA
The restoration of Stormont has undoubtedly provided much needed and soughtafter impetus for ACCA members and the wider business community regarding civic cohesion and the potential to build economic prosperity. The newly formed Executive and a clearer Brexit picture will provide a level of certainty, something which has been missing for three years. In the last quarter of 2019, an Ulster Bank survey indicated business activity fell to its lowest level since 2012, however, Stormont now has the opportunity to instil a new sense of confidence. To do this, new ideas are needed on how Northern Ireland will strengthen the bond between our education system and business community to create successful business clusters of employment to retain our young talent and provide the skillset necessary for inward investment. A central element to all of this is setting out clear parameters as to how Northern Ireland will adapt its offering to reflect the changing nature of the world of work. In accountancy, ACCA have already identified key sectors of the workplace that will change in the coming years and established ways in which we can move to mitigate any negative impacts they could cause. To support this, the Assembly must work in tandem with business to develop a new strategy for careers and education so that they are aligned, with new funding and support necessary to increase the level of workplace training and apprenticeships on offer to reflect the changing environment.
Decision-makers must concentrate on curbing the brain drain in Northern Ireland with the last census indicating 10% of those aged 15-24 born in NI are now leaving for Britain. The
Gareth Latimer, Ulster Chair, ACCA
future success of the economy will rely on making Northern Ireland an attractive proposition for our young, highly skilled, graduate labour to stay. Stormont can now provide the leadership required to drive
the economy forward, through supporting business and the future workforce. This will only be achieved through creating a supportive environment for our SMEs and all other enterprises to thrive.
Brian Murphy
Managing Partner, BDO Northern Ireland
The Northern Ireland Assembly and Executive have a critical role to play in the development of the economy here in Northern Ireland. During their absence over the last three years, a considerable number of critical issues have accumulated and now require immediate attention. They include; the health service, education, infrastructure, and reform within the public sector. In respect of these internal issues, focus must be given to applying the available funds to get maximum impact and to alleviate the stress that each of these areas is experiencing. At this stage we are beyond “papering over the cracks” and so consideration must also be given to the medium to long term solutions that need to be implemented. From an external perspective the First and Deputy First Ministers must return to their role as representatives of Northern Ireland on the global stage. After the uncertainty and instability of the last three to four years, it is essential that our politicians are out there showing potential investors that Northern Ireland is a great place to live, work and invest in. The Executive must now show leadership and decisiveness in order to restore the confidence of the business community and the wider population of Northern Ireland.
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Joe O’Neill
Chair, Belfast at MIPIM Taskforce
Among the many priorities the restored NI Assembly and Executive should strive to deliver over the next two years is a renewed focus and collaborative approach to attracting inward investment into Northern Ireland.
We have already seen the success that such collaboration can deliver through Belfast’s attendance at MIPIM – the world’s largest real estate investment conference, attended by a 28,000-strong audience of international investors, developers and occupiers. Over the past five years, a diverse group of private sector organisations have joined with Belfast City Council and, since last year, the five partner Belfast Region City Deal Councils and their respective elected members, to highlight the region’s investor attractiveness at MIPIM.
In March this year, a delegation will once again deliver a busy programme of events at the conference, aimed at showcasing the Belfast region as an outstanding location in which to live, work, learn, visit and invest. This is truly collaboration at its best and the long-term benefits are far reaching – not least in terms of the job creation and economic growth that the resultant investment can bring. If the same collaborative approach is replicated between our political leaders at Stormont and the local business community, I think we can be hopeful about the prospects for Northern Ireland business and the wider economy in 2020 and beyond.
Joe O’Neill, Chair, Belfast at MIPIM Taskforce
Anne Donaghy
If during the term of the Executive we have clear evidence of people living more fulfilled, healthier and longer lives, with greater education opportunities and improved job prospects, that, to me, will be true success.
I am excited about the new Programme for Government and the opportunities for Northern Ireland to set out the delivery mechanism for its future. The partnership approach of local government and central government provides a strong delivery model for the Executive and the ministers, with us all delivering together on a joined-up agenda through the new Programme for Government.
We that serve in public service have a deep-down commitment to see our communities flourish and I believe the Executive will be ambitious enough to set aside individual party-political views when needed to get the right solutions for our economic growth. Who would have thought that, by working together, Northern Ireland would have two sites in the final stages of the bid for a Heathrow Logistics Hub, out of an initial 121 applications from across the UK? A strong vision, bravery and unbending commitment and belief from our politicians, business leaders and the public sector sees us in the final stages of the competition. Securing a Heathrow Hub for Northern Ireland would be worth around £5billion of investment to the local economy and create approximately 5,000 jobs. That is why I believe the Executive, with all of our support, will deliver a better economy for 2020, underpinned by a clear ambition and courage to take the difficult decisions.
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Paddy Larkin
Chief Executive Officer, Mutual Energy
We are delighted to see the Assembly up and running and welcome the ‘New Decade, New Approach’ agreement which aims to tackle some of the issues that have been keeping business leaders up at night. For us, the most pertinent matter is tackling climate change. We are tasked with an ambitious target of reducing carbon emissions to net-zero by 2050. However, as a region we have some unique characteristics. Nearly 30% of our greenhouse gas emissions are from agriculture compared to 10% in the rest of the UK, energy policy is devolved here and we need to factor in energy connectivity with the RoI. We also have lower forest coverage and higher degrading peatland adding to emissions. Currently, not counting agriculture (or the overseas emissions due to our imported goods), NI emits about 15 million tonnes of CO2 per year which is about 25% more per head of population compared to the UK. CO2 equivalent emissions in the UK dropped by 42% since 1990, but only 18% in NI. So there are major challenges and a long way to go for us, even just to catch up.
Having recently delivered the ‘Gas to the West’ pipeline, we recognise the vital role natural gas can play in reaching these critical targets. A switch to natural gas itself brings major cost-effective environmental benefits due to it being the lowest carbon content fossil fuel and the ability to improve heating efficiencies. In the future the network can also be used to transport the growing quantities of renewable gases to allow for further progress on decarbonisation. Delivering the Gas to the West project required vision, leadership and partnership to make it happen and we hope to get the same focus and collaboration from the Executive and the Assembly when it comes to tackling decarbonisation.
FinTrU has announced that Sinead Carville, the company’s head of Human Resources has been promoted to Managing Director – Chief Human Resources Officer (“CHRO”). Sinead Carville Joins ExCo At Fintru
Sinead has also become a member of the FinTrU ExCo (“Executive Committee”) and will continue to be responsible for leading all aspects of the human resources function and crafting the people strategy to support the ever-evolving business needs.
FinTrU Founder & CEO, Darragh McCarthy, said “This promotion recognises the contribution Sinead has made to FinTrU, her dedication, teamwork and personal development. She has a wealth of experience and has contributed greatly to the FinTrU journey during her three and a half years with us.” A Chartered Member of CIPD, Sinead has over 15 years’ experience in operational and senior HR leadership roles within retail, technology and financial services organisations.
Sinead holds an MSc in Human Resource Management, awarded by Ulster University. She is also a qualified trainer with vast experience in traditional and digital training design and delivery.
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Electric Ireland Tops Supplier Survey
The results of a new survey from independent consumer body, Which? have ranked energy suppliers in Northern Ireland based on criteria including bill accuracy, customer service and importantly, value for money.
The Which? Annual Energy Company Customer Satisfaction Survey aims to provide unbiased and independent advice to consumers across a number of consumer markets and today’s results put Electric Ireland, who have been operating in the energy market in Northern Ireland since 2001 at the top of the list based on Value for Money and the availability of Digital Tools. Electric Ireland, who were also voted joint first in the 2019 survey, is part of the ESB Group which has supplied energy to households across the island of Ireland for 90 years and has been operating in the energy market in Northern Ireland since 2001. Clare McAllister, NI Residential Manager for Electric Ireland, commented: “We are delighted
with the result of Which?’s annual Northern Ireland energy survey. The fact this result comes from conversations with real customers reinforces the customer-first approach we have taken in the market since joining. “The number of people switching to Electric Ireland in recent years has been considerable and the survey results showcase that people are happy with the offering we provide once they have moved. With a dedicated switch team, switching has never been easier and we have a clear goal to stay at the top of the table for many years to come.”
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A&L Goodbody Tops Deal Value Rankings
Alastair Keith, Head of Corporate at ALG in Belfast
In a report published by global information services company Experian, ALG’s Belfast office is listed as having advised on the most significant deals by value in Northern Ireland, having acted on over 45 transactions across 2019 with a combined deal value of £1.1billion. Commenting on the report, Alastair Keith, Head of Corporate at ALG in Belfast said:
“We were struck by the variety of transactions on which we advised in 2019 which included a large number of intra-group reorganisations and energy focussed transactions. We also saw an increase in small and midmarket transactions, such as East #1’s investment in Glentoran Football Club.
Corporate law firm A&L Goodbody (ALG) has, for the sixth consecutive year, been ranked as the leading legal advisor by value of total M&A deals transacted in Northern Ireland in 2019. The firm’s Belfast office has advised on deals totalling over £6 billion from 2014-2019.
“Encouragingly, we also saw continued provision of significant growth capital into the market, including significant investments in BrainWaveBank and Neurovalens.” Mr Keith explained that 2019 was “an outstanding year” for ALG’s 23-strong Corporate practice in Belfast, which saw the promotion of two new partners and four new solicitors. “Following another record year, we are thrilled to be named once again as the leading legal advisor by value of deals transacted.
“This accolade is testament to the expertise and commercial focus of our industry-leading team of corporate lawyers – led by partners Peter Stafford, Mark Thompson, David Rowan, Mark Stockdale and myself, and supported by our wider team of over 120 people in our Belfast office.”
Commenting on the market outlook for 2020, he continued: “Whilst it is difficult to accurately predict corporate activity for the year ahead, the restoration of the NI Assembly in recent weeks has been a welcome development.
“Having come into 2020 with a strong pipeline of local and international deal activity, we remain cautiously optimistic about the M&D landscape for Northern Ireland over the next 12 months.”
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CMI Recognised as Top 50 Best Managed IT Company
CMI’s Darron Millar and Graham Stead with the award.
Belfast-based IT group CMI has been recognised as a Top 50 Best Managed IT company in the UK at the award ceremony in Pall Mall, London.
CMI, alongside many other IT companies in the UK were evaluated in 12 key areas of business to measure best practices. The benchmarking and scoring system is completed by a sophisticated AI Algorithm that has learnt from the data of thousands of previous assessments. Some of those key areas include:
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Darron Millar, Technical Solutions Director, comments “We’re really proud of this one because it recognises companies in the UK for their outstanding achievement in running their business on best practices, following a rigorous 200-question assessment in all areas of business our business. It’s a great testament to the amazing team constantly striving to be better each day!” Darron Millar and Graham Stead attended the prestigious awards ceremony at the IOD in Central London to collect the award. CMI are a leader in IT Infrastructure Planning, Implementation & Support throughout the UK and Ireland with a team of over 100 employees across offices in Belfast, Thames Valley and London.
