Ulster Business - February 2020 by Ulster Business

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Contents 06 News A selection of top news and exclusives from across the world of Northern Ireland business

14 Cover Story Paul Stapleton of NIE Networks on fresh investment and moving to decarbonisation

20 In Focus John Mulgrew speaks to Belfast Harbour boss Joe O’Neill about bringing the city to MIPIM

23 Energy, Waste & Environment John Simpson on a new energy strategy for NI

92 37 Recruitment & Talent Search We look at the changing face of the interview

51 Risk Management & Security The world is watching...

63 Office Environment & Fitout

74 Business Breakfast John Mulgrew sits down with James Nicholson of JN Wines to talk politics and vino

77 Motoring Pat Burns assesses the performance of some of the latest top motors on the market

86 Photocall

We look at the rise of the flexible office space

It’s another packed edition featuring a host of business announcements from across NI

72 Business Rates

92 The Chairman

A revaluation of business rates here means winners and losers. John Mulgrew takes a look

He’s back after a quiet Christmas. Whether the tux fits is another thing entirely...

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FEBRUARY 2020

EDITOR’S COMMENTS

We’re in for another busy year ahead

re we in, or out? By the time you’re reading this, the UK is likely to be – from a technical perspective at least – outside the EU, and going it alone.

that Northern Ireland had a previous withdrawal deal on the table – largely backed by business – little over a year ago which could have set us apart as a unique trading environment, maintaining strong links with the Republic and the wider EU marketplace. But some of those in the political sphere seemingly put their own self interest and ideology above the future of the economy, and those who live in it.

In the four weeks or so since the last edition we’ve had a strong Tory majority pushing Brexit over the line and the restoration of devolution after three years without elected ofﬁcials on the Hill. As we enter a new year and decade, there’s a sense, or a hope, of a return to some form of normalised business environment. Brexit isn’t what business wanted, speaking generally, but it appears it’s what we’ve got. The minutiae of trading arrangements are still not worked out. Some sectors are more content than others, but we shouldn’t forget

But we can welcome the fact that we now have a working government at Stormont. Our MLAs are now back in their seats, committees up-and-running, and ministers staring at burgeoning in-trays. There seems to be some form of contentment and agreement among our parties on a range of important issues, including mental health. We are, however,

Publisher Ulster Business c/o Independent News & Media Ltd Belfast Telegraph House 33 Clarendon Road, Clarendon Dock, Belfast BT1 3BG

already seeing the odd divergence, including whether we should continue the move to devolve and reduce corporation tax here – Finance Minister Conor Murphy pushing it into the long grass, while Economy Minister Diane Dodds has suggested that it remains on the policy books as an option. It’s just one of the myriad of areas of the economy and business which need to be addressed in the coming weeks and months – including a close look at the draft rates revaluation, which has certainly got the dander up among some of our best-known hospitality businesses. On that note, enjoy this edition of the magazine, and thanks to all involved. ■ John Mulgrew

Editor John Mulgrew Magazine sales manager Mark Glover Sales executive Sarah-Ann Gamble Sales executive Judith Martin Production manager Irene Fitzsimmons

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Graphic design Susan McClean, INM Design Studio Contact: 028 9026 4262/028 9026 4260 Cover photo: Elaine Hill www.ulsterbusiness.com

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FEBRUARY 2020

NEWS

month IN numbers A

£1,000

The bump in salary which our MLAs are due to receive. While it was decided by a separate body, the timing of the rise couldn’t have been worse, as parties return to government after three years. A joint statement from the five main parties said they shared the public’s dismay.

£500m

The total value of the proposed Tribeca development for Belfast city centre. The outline masterplan for the long-awaited scheme was given planning approval at the end of January.

270

The number of jobs being lost at Sensata Technologies. The firm is cutting staff and closing down its Carrickfergus base by 2021.

The number of ministers taking their seats at the newly established Executive. The Stormont Assembly had been idle for three years.

City pubs ‘face £1.2m rates surge’ By John Mulgrew

he heart of Belfast’s pub and hotel scene could see rates bills soar by 50% and have a “crippling effect on the area” – amounting to an additional £1.2m a year – as part of a government revaluation, Ulster Business can reveal. A study of almost two dozen hospitality businesses in the popular Cathedral Quarter area – one of the main destinations for tourists visiting Belfast – could see a rates increase on average of almost 50% for pubs, while hotels in the area could see bills rise by more than a third. A survey of 17 bars shows the total expected rates bills could rise by £813,000 a year, while five hotels in the area could see them in total rise by £431,000.

It’s claimed the surge could have knock on effect on the area, including rising prices for the consumer. The revamp is part of the Department of Finance’s Reval2020 – which is a reassessment of the rates system which businesses pay. While still a draft schedule of values, each council will also have to apply its own regional rate, based on the new proposed figures. “The Cathedral Quarter isn’t just about eating and drinking,” Gareth Neill, BID manager,

Destination CQ told Ulster Business. “We have a vibrant ecosystem of arts and culture and fantastic built heritage that makes this area stand out, hospitality plays an integral part to the quality of life in this part of Belfast – for a city to be striving to attract new residents, increase our tourism offer these are crucial to the city’s success. “We are concerned about that the potential knock-on effects to the affected business owners and there’s a very real possibility it will have an impact on the price of a pint to the people who come to socialise in Cathedral Quarter. The knock-on effect of outdated methodology for calculation of rates on licensed premises (which will hopefully be subject to change) has a potentially crippling effect on jobs and character of this area.” A spokesman for Land & Property Services said: “In Northern Ireland, nearly 40% of pubs will have no change or a decrease in their Net Annual Value (NAV). “Any business rate payer who thinks their new valuation may be incorrect, can contact LPS to arrange an informal review and supply any relevant information before the new valuation list comes into force on 1 April 2020.”

NEWS

Osborne King appoints new managing director

ommercial property firm Osborne King has appointed a new boss, it can be revealed.

David McClure has now taken up the reins of the Belfast company as its managing director, taking over from Martin McDowell, who will remain as a director. Mr McClure has been with Osborne King since the beginning of his property career. He has worked side-by-side with Mr McDowell for the last 20 years throughout the business. “From a continuity perspective, there is an evolution and there will be change, but in terms of the core values of the business, they will continue, and that’s something I’m keen to stress. The fundamentals will remain how they

FEBRUARY 2020

were in terms of how we approach things,” he said. Osborne King now has a team of more than 40, and sees its independence, local expertise and knowledge, along with a hugely experienced workforce, as key strengths. Mr McClure says he’s optimistic about the overall state of the marketplace. “A plus has been the Assembly getting back up and running, that there is greater certainty in terms of the UK’s exit from the EU and I think we are already starting to see people walking up to that – people saying, I can see the path ahead a little more clearly and on that basis I’m prepared to go.

fantastic platform – because of the experience. We are now operating where the majority of our income comes from our property management and our advisory department.”

“When I look at our business, we have a

Read the full interview on page 68-69

David McClure

NEWS

Quotes THE month OF

Danske Bank chief visits Belfast

ne of Europe’s top bankers has paid a visit to Danske Bank in Belfast city centre.

“We need significant and sustained investment, not just this year but over a number of years. This is crucial in ensuring transformation in areas such as health and also our road and water infrastructures.” First Minister Arlene Foster speaking after the New Decade deal saw the restoration of the Assembly after three years of stasis.

“I am very hopeful that we will be able to deliver decent public services and that is the commitment of the whole Executive and we look to the Government here to fulfil their part in that commitment.” Finance Minister Conor Murphy speaking following a meeting with the Treasury to discuss funding for Northern Ireland.

“The most important thing we need to do right now in the next number of months, not even years, is to look at Brexit and how the outworkings of Brexit will impact on Northern Ireland economically, particularly the protocol.” Economy Minister Diane Dodds speaking about her priorities for the Northern Ireland economy since taking up the new role.

Danske Bank group chief executive, Chris Vogelzang, flew into Belfast to learn more about the bank’s operations in Northern Ireland. Still relatively new in the role, the Dutch boss of the Danish Bank took on the job in June 2019. While here he met with the Danske Bank UK senior management team and board, hosted an open Q&A session with a group of 65 employees from different parts of the business, taking in a tour of the Catalyst Belfast Fintech Hub.

Kevin Kingston, chief executive of Danske Bank in Northern Ireland, said: “I was delighted to welcome Mr Vogelzang to Belfast. It is very much to his credit, that only seven months into the job, he was here visiting us. He was very complimentary about the work of our teams and the results we have been achieving on many fronts.”

Unemployment drops to 2.3%

orthern Ireland’s unemployment rate has fallen once again, new official figures show.

Unemployment levels fell to 2.3% in the third quarter of 2019, according to the latest data from the Northern Ireland Statistics and Research Agency (NISRA). It fell by 0.6% between quarters and 1.2% over the course of the year. And the employment rate here has also increased to a record high. The proportion of people aged 16 to 64 in work increased over the quarter by 1.1% and increased over the year by 2.7% to 72.6%. Meanwhile, the number of confirmed redundancies (3,192) in the most recent 12 months was 28% higher than in the previous 12 months (2,498). NISRA, acting on behalf of the Department for the Economy, received confirmation that 143 redundancies took place in December 2019. “Estimates from the Labour Force Survey indicate that the employment rate increased

Kevin Kingston with Chris Vogelzang

over the quarter and the year to the highest on record (72.6%) while the unemployment rate decreased to a joint record low of 2.3% and inactivity decreased over the quarter and year to 25.7%,” a spokesman said. “The continued improvements in the NI labour market are consistent with the UK experience, where employment was the highest on record, unemployment was joint lowest on record and inactivity was the lowest on record. “It is worth noting, while the NI unemployment rate was the lowest of all the UK regions, NI had the second lowest employment rate and highest inactivity rate.”

NEWS

Granny Annies pub on sale for £1.5m

orthern Ireland pub group Granny Annies has put its Londonderry bar on sale for £1.5m, it can be revealed.

The bar, located in the Diamond in the city centre, was bought by the Granny Annies Group in 2016 from UK pub chain JD Wetherspoon. The firm also operates venues in Limavady, Enniskillen and Belfast.

A spokesman for parent company W&R Holdings said that “the directors have decided to list the building as ‘for sale/to let’ in order to test the market place”.

Granny Annies in Derry

“This comes on the back of various parties showing an interest in the building and also a recent article whereby the JD Wetherspoon’s chain have indicated a desire to return to the city in the future,” he said.

The company said putting the Derry venue on the market “by no means indicates a move away from hospitality by the company and in fact the two-year plan is to expand operations in selected geographical locations”.

“Furthermore with an uplift in the housing market locally in the North West and the directors having historically a foothold in this sector, they are keen to pursue other investment and development opportunities.”

“I would point out that the directors will continue to retain the Granny Annies brand regardless of sale or lease as it specifically forms part of the company’s long term plans,” he said.

FEBRUARY 2020

NEWS

UK ‘more attractive venue for company bosses’ Paul Terrington

he UK has bounced back as an increasingly important target for business bosses from elsewhere in Europe, according to a new survey.

More than half of respondents (53%) believe the rate of global GDP growth will decline, with trade conflicts among their top concerns.

our employers. This means the region is at an advantage when it comes to appealing to those companies looking for somewhere that can meet their ambitions for growth.”

Chief executives in Europe’s biggest economies regard the UK as one of the most important territories for their organisation’s future growth, according to PwC’s 23rd annual CEO Survey published at the World Economic Forum in Davos.

For Germany, France and Italy’s bosses, the UK is as attractive now as it was in 2015, with a notable uptick since last year.

Kevin Ellis, chairman and senior partner of PwC UK, said: “The findings provide timely perspective on the UK’s standing as a place to invest and do business. Viewed against the turbulent global backdrop, the UK is a beacon of relative stability.

And Paul Terrington, PwC’s NI regional chairman, says that with the return of the Northern Ireland Executive and commitments in the New Decade New Agreement deal to maximise trade opportunities and investment “Northern Ireland’s businesses are well-placed to take advantage of the optimism in this global survey,” he said. “Expectations are high that the Assembly will now deliver at pace on many outstanding issues which can support growth, attract investors and retain talent,” he said.

And in Germany, the percentage of company bosses who view the UK as one of their top three growth targets has more than doubled since last year (from 6% to 13%) to match the level in 2015. “The work being done on the Belfast Region City Deal, particularly around the area of upskilling, will support this particularly as our survey found that the availability of key skills is the most pressing concern for chief executives globally,” Mr Terrington said. “Not only are Northern Ireland’s workers more open to upskilling and retraining than their counterparts in GB, but so too are

“You can’t replicate natural advantages like our timezone and location between the US, Asia and the rest of Europe, but more than that the UK is a fair and trusted place to do business. “Developing infrastructure and skills will enhance the UK’s position, and ensure its increased popularity among chief executives translates to more inbound business and investment. Likewise, maintaining an open economy and our deep connections with trading nations will be crucial.”

NEWS

Air pollution in NI attributed to 310 heart and circulatory deaths a year

he British Heart Foundation (BHF) Northern Ireland has branded air pollution ‘a public health emergency’.

Each year around 310 heart and circulatory disease deaths in Northern Ireland are attributed to the most dangerous kind of air pollution, the BHF has warned. The warning stems from a new analysis of data by the British Heart Foundation (BHF) that also highlights that Belfast has the highest average daily level of air pollution out of all local authorities in NI. During its Act on Air Pollution: Save Lives

FEBRUARY 2020

event, Dr Mark Miller, senior research fellow at the Centre for Cardiovascular Science at the University of Edinburgh gave a keynote lecture on the impact of air pollution on people’s health. He was later joined by Grainia Long, resilience commissioner, Belfast City Council, Chris McCracken, managing director, Linen Quarter BID, and Professor John Sodeau, University College Cork, to discuss what can be done about it. Feargal McKinney, head of BHF in Northern Ireland, said: “There is an urgent need for the deadly impact air pollution has on our heart health to be made a priority.

Feargal McKinney speaking at the BHF event

“We’re calling on local councils to introduce more effective monitoring of air pollution so we can understand the true scale of the problem we face. “It is within their power to implement more consistent monitoring and we would urge them to do so plans can be put in place to better protect people’s heart health and potentially save lives.”

ANALYSIS

Tribeca: the city development two decades in the making Following new ownership, a series of major amendments and criticism from conservation groups, the £500m Tribeca masterplan for Belfast has been given the go ahead. John Mulgrew takes a look at the journey so far

now £500m plan to revamp the north side of Belfast city centre has come a long way since it was dubbed Royal Exchange.

Almost 15 years ago, a consortium of firms – alongside proposed government support – were behind the development, a scheme which heard big retail names such as John Lewis and Brown Thomas bandied about in association with it. Then the recession happened, and Royal Exchange became something of a distant memory, caught up in the storm of the collapse of the property market, at home and across the globe. But more than three years ago, UK developer Castlebrooke took on the site – which incorporates areas such as Donegall Street, North Street, Lower Garfield Street, High Street, Lombard Street and North Street – and began work on formulating a revised plan. An initial retail-led scheme, which also included a controversial ‘tall building’ – up to 93 metres and 27 storeys tall – on the corner of Rosemary Street and Bridge Street, was re-evaluated, following criticism from various groups, including the Ulster Architectural Heritage Society and the newly established Save CQ group.

What then followed was a redesign of the plans – fewer buildings being demolished, retention of others and the restoration of the old North Street Arcade – along with the new name, Tribeca. The name didn’t go down well, sounding like something which came from someone unfamiliar with the history of Belfast’s streets. It is, however, just a development name. It has to be called something, and it’s unlikely if the scheme completes that people will refer to the various separate entities within it as such. At the end of January, planners had put forward the outline application and others associated with it for approval. It was almost a full house at Belfast City Council’s planning committee, on an evening dedicated exclusively to determining such a major application. The main objections to the development include the impact of new, larger buildings – including shadowing – changes to public realm such as Writer’s Square, which sits across from St Anne’s Cathedral, along with not providing enough space for arts and culture. It was an almost three hour session, with Belfast City Council planners outlining the reasons for recommendation taking the guts of an hour alone. It was an almost packed

house, between developers, those working for them, supporters, those opposed to the scheme and reporters. It was also heated enough to lead to an outburst from member of the public during the meeting, who stood up while planners were briefing the committee, to lambaste the proposed development and the positive backing for it. Most of the reservations from council members were focused around Writer’s Square, the buildings planned for that areas, the impact on the cathedral and the knocking down of buildings within the conservation area that some regarded as unnecessary. In the end, the outline application was approved, along with linked applications specific to certain buildings and areas within it. That decision was largely welcomed by the business community – a move to reignite an area of the city which has been earmarked for significant development for two decades. The journey isn’t over, though, and the next phase will see separate additional full applications for elements within the scheme being submitted. Then, we’ll get a much clearer picture as to what Tribeca will look like.

COVER STORY

Paul Stapleton

COVER STORY

NIE Networks: keeping the lights on and a focus on the future of power Paul Stapleton, managing director of NIE Networks, sits down with Ulster Business to chat about the future of energy here, huge investment across Northern Ireland and the responsibility of keeping the lights on for almost two million people

n the last three decades, Paul Stapleton has already seen significant sweeping changes across the energy industry, and is now helping lead the charge towards a carbon neutral economy with an everincreasing focus on green power.

He is now at the helm of NIE Networks – an organisation responsible for the electricity network here, delivering reliable power to 885,000 businesses, homes and farms right across Northern Ireland. “Our role is to provide a safe and reliable network – keeping the lights on 24/7, 365 days a year,” Paul told Ulster Business. And part of that responsibility and ability to ensure strong and reliable electricity flow is an investment of around £100m each year, working towards a 2050 ‘net zero’ carbon emissions target and embracing the key changes and evolution in power here. “Many different players need to work together to ensure the electricity system of the future can achieve what it needs to achieve in terms of zero carbon and remaining economically efficient, and reliable, at the same time,” he says. “We are the custodians of the electricity network – everything between where power is generated and up to and including the meter in your home or business. “Our network is connected to 885,000 customers – that’s every home, every farm, every business, and every organisation in NI. It’s a regulated utility business, and commercially, everything is regulated by the Utility Regulator.”

FEBRUARY 2020

Paul’s been in the energy industry for his entire working life. The Limerick man joined ESB in 1991 where he held a number of senior management positions, before taking up his current role in May 2018.

future, as well as the day-to-day,” he says. “The longer term horizon is now looking out to 2050,” he says. “The UK Government has enshrined in legislation the target that the economy will be entirely carbon neutral.”

He’s taken over NIE Networks as it’s hitting record performance targets, with those likely to improve further still this year.

For Northern Ireland, it’s already broken recent records in terms of the move towards green energy. “There is a huge amount to be done and it’s a very challenging target,” he says.

“The network is in as good as condition as it ever was, and we are giving a good service in terms of continuity of supply. “In 2019, we achieved a ‘customer minutes lost’ average of 83 minutes, which is the lowest in our history. But we will continue to look at improving further. Where faults do occur, 90% are fixed within three hours and 100% within less than 24 hours. “We operate in business cycles around regulatory price controls. We are now just over two years into a six year price control. “There has been some downsizing, costreduction and efficiencies, while we are gearing up to deliver a significant capital investment programme. We are investing more than £100m a year in upgrading, refurbishing and maintaining the network. “The focus in present terms is about delivering for today and looking to enhance our services to customers.” But it’s the future of NIE Networks, power generation, and a new Strategic Energy Framework, which will become the focus for Paul and his team in the coming years. “A lot of my focus is about planning for the

“It’s a huge change and transition. But I think all the scientific evidence regarding climate change suggests it has to be done, and maybe has to be done sooner. “The headline target was that we would hit 40% from renewable sources by 2020. We actually achieved that target and are now at 45%. That is very significant progress. It puts us ahead of GB and the Republic of Ireland.” NIE Networks has invested around £365m in the network to facilitate this generation. In the last few years the number of power generators connecting to the network has grown to 23,000, whereas two decades ago it was reliant on the three main power stations here. “The bigger challenge is how do we use that green energy to displace carbon? That brings in transport and heat, and that’s something where the electricity sector will play an important role. “As we all start adopting electric vehicles, as I think we all will in the next decade, we have to make sure people have the ability to charge them, at home and in public spaces. It’s our role to connect the chargers and to make sure we have a network which has the capability to meet the demands.” >

COVER STORY

But Paul says there’s significant positivity out there, with a younger generation in Northern Ireland and throughout the world embracing the small everyday changes that have to be made in order to tackle an international problem. “We are in the policy framing stage and 2020 is going to be key. There is a call for evidence now from the Department for the Economy to inform the development of a new Energy Strategy for Northern Ireland and I would encourage anyone who has any interest in energy or climate change to contribute into that. “Hopefully that will lead to the development of clear policy initiatives, targets and measures for Northern Ireland and that will set the context for the market to respond.

such as battery storage, heat pumps and electric vehicles, to be introduced and operate in a sustainable way. “We see our role as evolving. Historically, we were somewhat passive – we provided an infrastructure which shipped electricity from A to B. Now, we need to be much more proactive and we are part of an overall system.” That includes a role in balancing when green energy is available and when it is required and in high demand on the distribution system. “All of that needs a more connected and dynamic distribution system – rather than just being seen as a physical infrastructure,” Paul says.

“I think there is economic opportunity for Northern Ireland, but there will be some downsides. We need to minimise the downsides and maximise the opportunities.”

“We need private investment and developers who are willing to invest in new solutions, whether it’s wind, solar, electric vehicle charging or heat delivery. All of those need policy directions, but they also need a network to connect to, so we have a major role to enable all of that.”

NIE Networks is currently examining its role in the future energy market in Northern Ireland. That includes looking at how it can make the distribution network more open and accessible in order to allow burgeoning technologies,

Paul says most businesses and individuals now know that they “have to get on this journey” in order to play their part in tackling climate change, reducing their carbon emissions and improving energy efficiency.

With Brexit, there have been concerns over the future of the all-island energy market. But Paul is confident that it will be secured, despite the UK’s exit from the EU. “That continuing is really important for businesses in Northern Ireland. Currently, all sides in the Brexit debate seem comfortable that the Single Electricity Market (SEM) will continue, so we don’t see any specific threat around that.” As part of NIE Networks’ Northern Irelandwide investment in infrastructure – of around £100m a year – it has recently completed a £500,000 investment in the Cathedral Quarter area of Belfast – where our interview took place – which is home to many of its best known pubs and restaurants. “That gives us a more resilient and reliable supply, as well as capacity for the future,” Paul says. Some of the other latest investments include projects in Enniskillen in advance of a new public realm scheme, along with another in Newry. “Right across Northern Ireland we are continuing to invest,” Paul says. “There is a lot going on. There’s a lot to do today, challenges, to keep efficient supply for the economy, but equally we need to plan for the future.” π

RECRUITMENT

Companies must act quickly on new IR35 legislation reforms By John Moore, managing director, Hays NI

t the start of this year the government launched a review into the changes to IR35 legislation which will affect medium and large private sector organisations and have far-reaching impacts on the way they engage with nonpermanent workers.

The timeframe between the review and the reforms coming into effect in April is shorter than many would have liked but with the reforms now on the horizon, companies need to act, particularly those in sectors such as technology, construction and finance where use of contractors operating as personal services companies (PSCs) is common. At a basic level, the reforms to IR35 legislation shift the responsibility of determining the tax status of personal services company workers to the company that engages them where previously they could self-certify. The original rules required the freelance contractor to determine their tax status, but HMRC believed non-compliance was common. Now, if a person’s assignment falls outside of IR35 legislation, they are deemed to be self-employed, so gross payment will be made to the PSC. But if the assignment falls inside of IR35, the professional should be treated as an employee, applying PAYE and NIC deductions from their payment. In simple terms, the tax arrangements for contractors are changing so that they won’t get such a good deal if they can’t demonstrate their work is out of scope and employers will have to pay more for using and keeping what were previously non-payroll workers. This will have a big effect on how people choose to work and who they choose to work for, not to mention how organisations plan and budget. An organisation’s policy towards contractors will affect how attractive they are to freelancers. But on the other side we’ve already seen some risk averse companies adopt a blanket ban on freelancers just to be safe – meaning they are missing out on skilled professionals they need to deliver projects. In Northern Ireland, as elsewhere, it’s likely the IR35 reforms will hit technology hardest, but the effects could be wide ranging across roles in construction, project management and finance. We’ve heard anecdotal evidence of IT contractors leaving the big banks and starting to view early stage tech companies with less than 50 employees more favourably because they fall outside the scope of the legislation. When similar legislation was introduced in the public sector in 2017, hundreds of highly skilled contractors left roles to join organisations who were prepared, often leading to projects being scrapped.

Now the private sector is catching up, preparation is key and anyone who hasn’t done a review of what it means for their capacity should do so urgently. A Hays survey showed 68% of private sector firms expect cost increases when IR35 reforms come into effect, 56% expect to lose key talent and 46% think it will be harder to bring in non-permanent workers. A third of organisations surveyed were completely unaware of the reforms – a big concern given how tight the labour market is. So, first you need to determine whether assignments are inside or outside of IR35. You need to have full visibility of all workers your organisation engages who are paid via agencies and consultancies as well as knowledge of how they are paid. You will also need to have the expertise to determine the tax status of each assignment. When you know that you can then start communicating with freelance workers, renegotiating working arrangements, standardising onboarding procedures and deciding if any specialist skills need to be brought in house to get projects over the line. If you expect to use a high volume of temporary workers in 2020, outsourcing your temporary worker provision through a managed services programme could be an option, as an expert would carry out accurate assessments for every temporary worker placed with you. Whatever stage you are at, don’t ignore IR35. It’s coming and you need to understand it. π

IN FOCUS

Taking Belfast to the world Belfast Harbour boss Joe O’Neill will help lead a private and public sector delegation to MIPIM – the world’s biggest commercial property event – as chairman of the taskforce. He chats to John Mulgrew about the big announcements, fighting off the competition and attracting a global giant to Northern Ireland

or Joe O’Neill and the wider delegation heading to potentially warmer climates, the proposition of selling the city and wider region to major investors has gotten easier.

In the five years since Belfast returned to MIPIM – an event which sees tens of thousands descend on Cannes in France for four days of real estate and development – the private and public team, and taskforce, have developed a “strong platform” in which to sell the city and Northern Ireland, with hopes of attracting a big name insurance or tech firm on the list. “MIPIM is a great platform for the promotion of city-wide initiatives, and demonstrating to investors and to occupiers the growth potential in the city, and the opportunities for them and that the key stakeholders are all aligned behind an appropriate growth agenda,” Joe says. “You see different sizes and scales of stands out there – you see some really ambitious stands and proposed developments, so Belfast has to see it’s entry point into that. Belfast first and foremost will be competing against peer group cities within the UK… but then it is a worldwide show, so you will be competing against other cities.” Belfast is leading a major delegation this year, and will also be joined by representatives from other Northern Ireland councils, including

those that are part of the Belfast Region City Deal, such as Mid & East Antrim. That deal is also going to be a focus for announcements and development, during the event. This year’s delegation will be led by a host of top private sector developers in Northern Ireland, alongside Belfast City Council and organisations such as Belfast Harbour. That includes Bywater, Wirefox, Titanic Quarter, Tribeca, McAleer & Rushe and Graham Group, along with the two universities and others working within related fields from law, professional services and the supply chain. For Joe and the delegation, MIPIM represents an opportunity to announce some of Belfast and Northern Ireland’s wider major new infrastructure and commercial plans. Previous visits have included the announcement of major offices schemes, hotels and apartment developments. “We will have a series of announcements – some of those announcements will be new, and some will be progress, and demonstrating to investors or occupiers that progress has been made if it’s a multi-year scheme, to show we are delivering. “… we have new projects coming through the pipeline in various sectors. This year we are looking at launching schemes around digital

Joe O’Neill and Suzanne Wylie, chief executive of Belfast City Council

innovation. That aligns with one of the themes in the Belfast Region City Deal, for the city and councils in the deal. We have a particular focus on cyber-security as an investment and operating location – particular those from the US.” Joe says that would be in addition to the already well-established cyber-security

IN FOCUS

development at Catalyst in the Titanic Quarter, and that new names are coming in to the marketplace creating a “cluster” around the sector, and setting up Belfast and beyond as a new global hub. “We are looking at announcing some details around the Belfast-Dublin-London corridor,” Joe says.

FEBRUARY 2020

“As an economic corridor, or triangle. PostBrexit, there are clear synergies in developing a proposition where companies can avail of the three locations if they are looking at a global footprint, and see advantages to locations in three cities.” The issue of increasing connectivity between Belfast and Dublin also remains high on the

list – improving the speed and frequency, and making developers aware of the new Belfast Transport Hub, which will transform the city’s rail and bus connectivity when complete. For Belfast Harbour, it’s also bringing the expansion of its already successful film studios to MIPIM, amid further plans to grow and develop the hub to attract big names >

IN FOCUS

and become the largest of its kind outside London. “We will be revealing more of our expansion plans, which is being supported by NI Screen,” Joe said. Some of those delivering their own presentations to potential investors will include the Harbour, Belfast City Council, Catalyst and the universities. “We are out looking around, when we are there, at what different cities are doing – seeing whether something works well, and looking at our competitive advantage in that area.” As for the strengths and attraction for potential investors, Joe says: “Skills, talent and technology are very much at the fore. Agility as a small region and to be able to respond, and seeing that team Belfast is there and that we are aligned with a particular project. It doesn’t have to be taken back home and introduced to someone else.

chair of MIPIM, the role was to go around to ask those who were on board previously to ask about it, if it had changed. Everyone noticed and recognised considerable (positive) change over the last four years.

investment market is ‘we have product and we now have sustainable occupation coming through… now it feels like the right time for you as an investor, to come in, and to support further investment’.”

“We were pioneering and establishing ourselves four years ago, now they felt we were very much a concerted and effective operating team… the collective was a powerful message, and having panels or lunches involving all of the stakeholders at one time. It’s a really strong platform to take on the next chapter.”

Asked whether replicating the successes of our neighbours in Dublin in attracting tech giants such as Apple, Facebook and Google is also on the cards, Joe says: “Something like that, or a major investor. For them to do that – a technology or an investment company – they need to see that the public, private and third-tier sectors are all collaborating together to make an effective market, and I think we are good at doing that now.”

So, for Joe and the rest of the MIPIM delegation, what would be considered a major goal or success on the back of the visit to the commercial property show in March?

“There is the emergence of Belfast as an attractive city – investment opening up, and people are always looking at new markets.

“A particular focus this year is to attract key institutional investors – the big insurance companies for example. That’s a chicken and egg situation… you need to have product, to have product you have to show that you have occupiers and a steady revenue stream.

“Part of the initial roll-out when I took on the

“What we have been able to say to the

And the timing couldn’t be better for the delegation – now able to go in with a clear mandate and message with the restoration of the Executive and a return to day-to-day power-sharing politics. “The positive thing for us is with the government and secondly, some (clarity) around Brexit… it takes those two challenging issues off the table.” π

Energy, waste & environment

MARCH 2019

ENERGY, WASTE & ENVIRONMENT

Reluctantly and belatedly sharing the cost of climate change As Stormont announces fresh evidence gathering to shape a much-needed new ‘energy strategy’, John Simpson looks at Northern Ireland’s contribution to reaching a 2050 net zero emissions target and how far behind the curve we are

orthern Ireland has been slow to recognise that, as part of a shared international responsibility, major decisions to reduce the impact of climate change are overdue. As the economy has grown, living standards have risen slowly, and a series of consequences have become clearer, one of which is the impact of a potential serious environmental climate emergency which has emerged.

People who are reluctant to acknowledge the implications of climate change and the large range of damaging environmental issues now have a choice: read the evidence which has become undeniable and share the responsibility for corrective policies or, by a wilful denial, help to make a climate disaster happen more quickly. The UK Government is legislating for 100% carbon reduction of greenhouse gasses by 2050. Some aspects of this ambitious (but necessary) programme lie with the devolved governments. Scotland has a Climate Change Act committing to a net zero carbon economy by 2045. Wales has ‘Prosperity for all: a low Carbon

Wales’ planning to get to net zero emissions. Earlier in 2019, the Irish Government published its ‘Climate Action Plan’ as a large part of Ireland’s contribution to the threat of climate breakdown. Some policy makers in Northern Ireland, but possibly not all of them, have started to assemble the evidence and draw some conclusions on what needs to be done. Two official documents should now be required reading for all decision makers likely to be active in driving local responses to climate change issues. First, an Environmental Strategy for Northern Ireland written by the Department for Agriculture, Environment and Rural Affairs (DAERA) sets the broader debate with emphasis on the very wide range of topics that have emerged. Second, by the Department for the Economy, a presentation outlining issues related to a Northern Ireland energy strategy has made a call for evidence prior to the preparation of a consultative policy paper. Neither of these local publications has moved beyond an exploratory review. In the absence of local Ministers, both review documents have avoided firm proposals. This distinction illustrates a serious problem in the absence of

ministers. However, it also serves to confirm that Northern Ireland for whatever reason is now something of a laggard on these topics. Even at this early stage in gearing up to policy ideas for the local devolved institutions, the potential agenda is large and complex. While it is easy to agree that the agenda is complex, it is less easy to develop a sequential series of policies and changes that can convert into an action programme which will need to be delivered over a number of years. Even a basic appreciation of the inheritance from many careless, selfish and wilful actions of individuals and corporate entities suggests a very long agenda. The society that we live in has proved inadequate in maintaining good environmental standards. Living standards are being maintained at the cost of environmental deterioration. Economic development priorities have dominated the centre stage of Government actions partly constrained by taking account of some of the social consequences. Only less frequently have environmental considerations been conspicuous. At a regional, national and international level, the environmental >

ENERGY, WASTE & ENVIRONMENT

FEBRUARY 2020

ENERGY, WASTE & ENVIRONMENT

John Simpson

consequences for official policies must now become a major constraint. For example, greenhouse gas (GHG) emissions must reduce. Also, the quality of fresh air must improve. Additionally, waste disposal and treatment must be tackled as well as water quality in rivers and at sea. All of these are then compounded with questions about how we treat the built environment. The list of desirable environmental improvements (or disasters to be avoided) is very long. The DAERA publication posits 38 different relevant strategies. Within these strategies there are the further subdivisions that emerge in the debate about energy strategies. None of these can be ignored. To bring them into a series of programmes, some indication of the main priorities is needed. In this early preliminary analysis, as a start, Northern Ireland should make its contribution to avoiding the perils of climate change a first priority, although that is not to exclude steps to avoid, or reduce, some of the other undesirable outcomes by introducing parallel action plans. In Northern Ireland about 20 million tonnes of CO2e (carbon dioxide) were being expelled each year in 2017. The NI share of the UK

carbon budget target is that, by 2030, there needs to be a further annual reduction of about four million tonnes of CO2e. Most of this reduction may be expected to be found in actions to reduce emissions from sources of heat, power and transport. And while the official statistics have not compared that target with the possible target areas and sources, the scale is large enough to point to demanding policy changes across a wide spectrum of sources. Some of the fossil fuel burning electricity generators will need to be phased out and GHG emissions from vehicles must begin to fall sharply. These changes are so large that major policy decisions are urgently needed. The cost of the decisions will not be small and, inevitably, consumers can be expected to pay for them. The reshaping of energy policy is now a compelling priority. Currently, Northern Ireland takes credit because 40% of the annual electricity usage is met from renewable sources. The policy question is whether that could increase to 70% of an increased demand for electricity when large numbers of vehicles switch to power from electricity. In addition, there are questions about how an increase in electricity from renewable sources is to be financed.

Currently, Northern Ireland has a complex and financially generous mechanism to pay for recently installed renewable electricity. A major recasting of the scale and mechanisms is now due. Critically, the operational model for the all-island electricity market now needs to be recast to ensure that the electricity regulators, north and south, build into their capacity models suitable constraints to reduce the GHG emissions by electricity generators. Adapting to the changing energy market, another early series of decisions are needed on the future use and regulation of vehicles. The UK Government has already set dates to ban the sale of petrol and diesel fuelled vehicles. Ireland has set 2030 as the final year for the sale of petrol and diesel vehicles. Northern Ireland will be expected to follow suit but that means planning for the public infrastructure to accommodate battery powered vehicles. The planning regulations should apply new standards to new buildings at an early date. These changes are only a beginning. Living and working arrangements for the next decades of this century are about to change... and change utterly. Ď&#x20AC;

ENERGY, WASTE & ENVIRONMENT

£250m Gas to the West scheme construction phase completed

Trevor Lockhart, CBI NI, Danny O’Malley, SGN Natural Gas, and Paddy Larkin, Mutual Energy

he main construction phase of a pipeline bringing natural gas to major towns in the west of Northern Ireland has been completed following a £250m investment.

Around 500 jobs were created during the construction of the Gas to the West project, which has the potential to heat up to 40,000 homes and businesses in counties Fermanagh, Tyrone and Londonderry. The final piece of the new network was commissioned in December with natural gas now available to Artigarvan, Coalisland, Cookstown, Derrylin, Dungannon, Enniskillen, Magherafelt, Omagh and Strabane. Economy Minister Diane Dodds, said: “I would like to congratulate Mutual Energy and SGN Natural Gas, and their contractors, on their success in delivering this significant energy project. “The project has been supported with grant funding up to £31.6m administered by the

Department for the Economy. “I look forward to the continued rollout of new gas distribution networks in each of the eight towns in the west, eventually providing some 40,000 business and domestic consumers with additional fuel choice and increasing the potential for businesses, the public sector and households to use a cleaner, more efficient fuel.” Manufacturing companies which have already converted production lines to natural gas across the newly extended network area include Lakeland Dairies, Encirc, Dale Farm, Moy Park and Linergy. SGN Natural Gas director Danny O’Malley said there was “exceptional demand” for natural gas and he looked forward to the future growth of the network. “The project originated from a need to offer an alternative energy choice to consumers in the west who have been heavily reliant on solid fuel and oil,” he added.

“As natural gas is the cleanest fossil fuel available, it can help to reduce greenhouse gas emissions as well as offer a more efficient fuel option to businesses, the public sector and domestic consumers. “By enabling businesses to drive efficiency savings, we can potentially help them to be more competitive in both local and global markets. “Converting to natural gas will allow businesses to reduce their carbon emissions, significantly reducing their footprint on the environment.” Paddy Larkin, chief executive of Mutual Energy, which owns and operates the new pipeline, said: “The new gas network also can play an integral role in the future decarbonisation agenda and minimising the environmental impact.” Mutual Energy and SGN were awarded licences by the Utility Regulator to build and operate the pipeline following a competitive process. π

ENERGY, WASTE & ENVIRONMENT

Carbon neutrality: NI business must now make changes Joseph Doherty, managing director of Newry-based Re-Gen Waste and a founding member of Recycle NI, an industry group launched in 2018 to give the recycling and waste management sector a collective voice, advises NI businesses on how to become carbon neutral

here is not one country in the world that is not experiencing first-hand, the effects of climate change. As CO2 levels increase in our atmosphere, extreme weather patterns have become the norm.

Just look at the devastating wildfires ravaging Australian, the catastrophic floods in Indonesia and even more locally in Yorkshire, Nottingham and Lincolnshire – business as usual is not an option for them. In fact, one of our most esteemed naturalists and environmental champions, Sir David Attenborough, has warned that “the moment of crisis has come” and “life-or-death decisions” must be made now to tackle climate change. Every business big and small causes carbon emissions, which further adds to the greenhouse effect. Reducing your carbon footprint can play a key part in your sustainability and corporate and social responsibility (CSR) strategy, while enabling your to do your bit for global climate change. Manufacturing and construction companies will need to assess the carbon emissions created in their production processes, while service-based businesses should investigate their daily operations to understand how they are impacting the environment. The onus is on board members to take the lead to commit to prioritising sustainability for the entire company. This means addressing

FEBRUARY 2020

wasteful behaviour and implementing technology upgrades where at all possible. By implementing an energy audit of their premises and processes, business owners will save energy, reduce costs and make some big wins:  Become more energy efficient  Fossil fuels could be replaced with renewable energy  Reduce printing and reduce your usage of paper  Cloud computing means that employees can work remotely  Looking closer at business travel  Switch to low emission or electric vehicles  Invest in good waste management facilities  Make sure food waste bins are available in kitchens and staff restaurants  Remove plastic cutlery and straws form canteens  Ensure the office space is insulated Many businesses have made serious commitments to address their own actions and support climate friendly policies and without voluntary business action, reducing carbon emissions would be much more difficult. Recyclates and waste derived fuels have developed as exports in recent years and have been very important in helping local councils meet their recovery and recycling targets. However, within the domestic market there are massive opportunities to develop certain areas within the recycling and reprocessing industry,

in order to reclaim these recyclates and provide further jobs and value to the economy. The export of waste is a valuable transaction to the UK economy, boosting the balance of payments and supplying manufacturing economies overseas. There is scope however for developing a range of domestic recycling and reprocessing facilities, so that the supply chain can be re-shored. ReGen Waste has a number of strategic initiatives currently in planning to complete the step from processing raw material to manufacturing products for the domestic market. We also recently invested £5m in producing a high specification replacement fuel for traditional fossil fuels, for use in cement kilns and power stations. Household waste that cannot be recycled and historically ended up in landfills is prepared and transformed into solid recovered fuel (SRF), which is exported to waste to energy (WtE) plants in Europe, where it is incinerated to generate electricity for home heating. There is no reason why heavy industry in Northern Ireland could not benefit by replacing fossil fuels with refuse derived fuel (RDF) and reducing its carbon footprint immediately. Putting household waste to work at home, will involve a united forward thinking drive from industry itself but by doing so, we can reduce our carbon emissions significantly and make our economy more competitive, through sustainable production and resource efficiency. π

Tackling climate change

ENERGY, WASTE & ENVIRONMENT

The beginning of a new decade heralds an important time for public transport; modal shift is essential to address climate change, congestion and air quality, now regarded as the biggest environmental health risk in the UK, writes Chris Conway, Translink group chief executive

s transport is one of the largest sources of emissions, accounting for 23% of all greenhouse gas emissions in Northern Ireland, Translink intends to play our full part in order to work towards a cleaner, healthier society focusing on climate change. Decarbonisation of public transport is a key Translink objective through investment in low/zero emission technologies, helping to accelerate Northern Ireland’s progress to zero-carbon transport. Alongside modal shift, ie: attracting even more people to choose public transport over the private vehicle in line with draft Programme for Government priorities, we’re planning to invest in new low and zero emission technologies across our fleet. All of our new fleet now uses low emission Euro VI engines, and we aim to fully complete the conversion of the Belfast and Foyle Metro and Goldline fleets to Euro VI by 2022. Translink’s goal is to migrate to a zero carbon fleet, with Metro/Glider services in Belfast and Foyle Metro in Derry-Londonderry being the priority objective by 2030, with remaining bus

With world-leading innovative environmental technologies being deployed in this context in Northern Ireland for the first time, public transport is in the process of being transformed, with strategic hydrogen infrastructure helping to deliver the ambitions of the draft Programme for Government and driving the wider climate change agenda to reduce UK greenhouse gas emissions to zero by 2050.

Chris Conway

and rail fleets achieving zero carbon by 2040. A particularly innovative development is our agreement to purchase three new hydrogenpowered double-deck buses. This major arrangement also sees us working with Energia to source a renewable hydrogen supply manufactured on a wind farm in Country Antrim. This project will be centred on our Milewater Service Centre in Belfast, which will host the first hydrogen fuel station in Ireland. The buses will be piloted in Belfast as part of our Metro fleet. Representing a joint investment by Translink, Energia, OLEV and the Department for Infrastructure worth some £4m, this combined venture marks a significant co-operative step by Northern Ireland’s public and private sectors towards investing in zero emission fuels and fleet technology. It is essential if we are to combat climate change and improve our air quality.

While much of the focus is on bus, we’re also working to develop local railway travel – NI Railways services carried 15.8 million passengers in 2018/19, the highest in 50 years, and we’re ambitious to grow this higher still. To successfully accomplish this, additional fleet capacity is required, and 21 new carriages, providing an extra 2,000 seats a day, will enter service during 2022/23. We also continue to work alongside railway manufacturers to develop eco-friendly propulsion systems for trains, including hybrid propulsion systems and bi-mode trains. Our Enterprise Strategic Development Plan, developed jointly with Irish Rail, also allows for potential future electrification of the cross-border rail network. Translink will continue to further develop zero-emission/zero-carbon plans for bus and rail services, continuing with hydrogen and full electric bus trials and undertaking a full cost/benefit analysis of electrification of the rail network. Climate change and air quality affects the entire community, and Translink is committed throughout this decade to moving towards a zero carbon future as we progress our journey to make public transport everyone’s ‘first choice for travel.’ π

NEWS

Lagan Group lands £190m Uganda deal

elfast’s Lagan Group has landed a huge contract to build a £190m business park in Uganda, it has emerged.

The firm, headed by Kevin Lagan, will work on the $246m scheme, which is being supported by a loan from the UK Government. The Government of Uganda has secured a £185m loan from the UK Government to support the delivery of the project, which will be implemented by Kevin Lagan’s group of companies.

Kevin Lagan said: “Following the successful sale of our building materials business to Breedon plc in 2018, we have targeted a range of exciting new projects which support economic growth and infrastructural development nationally and internationally. “We have a strong track record working in Africa and the upgrade of Kampala Industrial Business Park strengthens our footprint in the region and supports the regeneration of a very important area of Uganda.” International Development Minister Andrew Stephenson said the

announcement at the UK-Africa Investment Summit shows the “UK Government’s commitment to help ambitious companies in Northern Ireland like Lagan unlock export potential and boost their trading partnerships with African nations. “Development of this park is at the heart of the Government of Uganda’s plans to attract investment, create 200,000 jobs, and support businesses which will benefit the country.”

TECHNOLOGY

Paddy Nixon, vice-chancellor of Ulster University, Mark Hopkins, general manager, Dell Technologies and deputy vice-chancellor, Professor Cathy Gormley-Heenan

Ulster University in £85m Dell partnership

lster University is pairing up with tech giant Dell as part of an £85m deal to develop emerging technology that will advance research in digital health and drive innovation in screen and media.

“This will enable scientists, start-ups and technology experts to develop life-changing treatments in the areas of cardiology and respiratory, accelerated by the launch of a new high productivity clinical living-lab based within the hospital setting,” it says.

The partnership, which will involve the new Centre for Digital Healthcare Technology – part of the Belfast Region City Deal – is said to be an “important building block”, which will bring together “Northern Ireland’s leading research institutes and a global leader in technology, today’s partnership will act as a catalyst for innovation in the region”.

A second initiative to be rolled out will see a dedicated test bed for augmented reality (AR) and virtual reality (VR) put in place at the new Screen and Media Innovation Labs, which will provide access to latest innovations in technology and “ensure Northern Ireland’s successful creative industry remains a global leader by transforming screen production and content creation”.

“A range of other world leading partners are also supporting these highly important centres which will strongly contribute to higher productivity within our local and national economies.” Building on the ambition set out in the new Belfast Region City Deal, the new partnership will see Dell Technologies support the deployment of artiﬁcial intelligence (AI), the internet of things (IoT) and edge computing at the new Centre for Digital Healthcare Technology.

Professor Paddy Nixon, vice-chancellor of Ulster University – who is stepping down from his post here – said: “The Belfast Region City Deal provides an unparalleled opportunity to achieve economic growth and prosperity for the region. “Our partnership with Dell Technologies will act as a catalyst to develop technology and advance research with impact locally, nationally and internationally. Ulster University’s world class researchers and facilities supported by

Dell Technologies will deliver life changing health outcomes for patients and will transform the creative industries in Northern Ireland.” Dell will also sponsor two PhD researchers at Ulster University – one will focus on data analytics in healthcare while the second will support the digital transformation of Northern Ireland’s creative industries. “We’re excited to partner with Ulster University to help realise the ambition set out in the Belfast Region City Deal to transform Northern Ireland’s innovation and digital capabilities,” Mark Hopkins, general manager, Dell Technologies Ireland and Northern Ireland, said. “The partnership will prove to be game changing for the capital. Through the use of AI, edge computing and other emerging technologies, we can help transform healthcare outcomes for patients, provide our creative industries with the digital tools to succeed and above all build a vibrant start-up ecosystem that delivers growth and jobs. We look forward to working with Ulster University in the coming months to making this vision a reality.” π

Recruitment & talent search

RECRUITMENT & TALENT SEARCH

The interview: a two-way street? The balance of power in a traditional job interview used to sit firmly with those sitting across the desk. But now there’s a move towards treating the process as a formal two-way chat. John Mulgrew speaks to the experts about how recruiters can use an interview to get the best people for the job

quick scan of a couple of big recruitment websites cities the normal plethora of job interview techniques.

Techniques may be a touch hyperbolic. If anyone thinks looking sharp, being on time, answering questions and showing enthusiasm are enough to get you the post, you’re unlikely be any more prepared than the candidate sitting to your left or right in the waiting area. For some, it’s a chance to shine in person – filling in potential shortfalls or CV gaps with charm, confidence and articulate brevity when faced with tough questions. And for others, it’s an opportunity for an

individual’s weaknesses to be exposed – uncomfortable, a lack of confidence in public speaking, lack of experience or general nervousness clouding a brain otherwise packed full of knowledge. But for employers, especially those in increasingly competitive industries where top candidates can shop around for roles, it’s also becoming a two-way street.

applicant has of the company.

“More and more employers are treating the interview process as a ‘two-way interview’,” Stuart John, managing director of Abacus Careers says.

“Depending on the role you are hiring for, there may be multiple career options available to them, particularly if their skill is in demand, therefore be prepared to answer as many questions as you ask and ‘promote’ your company and brand as an employer of choice to the interviewee.”

“The interview process and the panel involved is often the first impression the

According to John Moore, managing director of Hays NI, it’s “been that way for enlightened

RECRUITMENT & TALENT SEARCH

employers for years”. “It has been that way across the north in most professional services and technology, as there is a skills shortage,” he says. “People will view interviews as meetings. A good interview is one where both parties are prepared and making enquiries of each other.” Some sectors, including accountancy, are actively targeting potential young candidates at an early university level, rather than being able to cherry pick once students have graduated

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and are fully qualified. There remains a lot of competition among other professional services for a mutually positive relationship, whereby candidates are also looking more than a salary, but other areas such, as flexible working and high-end workplaces. According to Stuart, from an employer’s perspective, candidates that are at ease “perform better”. Historically, sometimes the interview process could instead feel like an interrogation – something which is unlikely to

benefit either the individual, or the company, in securing talent. “Companies should make sure that the panel runs through the introductions to everyone involved and also covers what the process entails,” he says. “Interviews shouldn’t be a platform to catch people out. If you want to see how people perform under pressure consider a timed technical assessment or simply ask for various examples of how they have done this in previous roles.” >

RECRUITMENT & TALENT SEARCH

“Try and avoid multi-layered, long winded questions. If you want to find out a more than one piece of information, ask two or three separate questions. Making sure what you ask is succinct and to the point will allow the respondent to provide detailed information that is more importantly relevant. “And avoid ‘stock’ questions – one size does not fit all when it comes to recruiting for your business. Make sure that what you are asking can draw out and assess the relevant information for the specific role and also measures how aligned they are to your company values and vision. Staff retention will play a crucial part in an organisation meeting their business plans during 2020 and therefore it is important that any new hires are a good fit.” And looking at the other side of the table, John Moore says one of the key areas which candidates overlook is making sure they’re clued up on their own CV. “People will often update it from their current role, but then forget what they have achieved in the middle part (of their careers). Research and make sure it is aligned with what is on a networking site such as LinkedIn,” he says. “Secondly, don’t just do preparation in your head. Do preparation in a room where you are speaking.” He says often candidates, postinterview, have the regret of knowing what they meant to say but aren’t able to articulate it. “Get a family member or work colleague, and record it on a device. It used to be 15 to 20 years ago you would have mock interviews and could play them back. Now, people can record it on their device. Often, when they play back answers, they reach for delete button and don’t like what they hear. “Also, frame answers from the perspective of an organisation. Avoid saying things like ‘I feel it’s time for a change’ – avoid vague self-defined comment and try and look at it

John Moore

from the perspective of the company. If there are five people for the role with the same qualifications and tenure, how do you stand out as an individual?

skills shortages and bring in the best people to work for them by utilising technologies and data to boost their brand and become more attractive employers.

“There are three main ways in which to interview. Once you are past work history, it’s about how you handle a scenario. There is also competency-based, where companies are looking beyond skills and knowledge. It’s also about how you fit into a team, and how you deal with the non-standard.”

Universum works with 1,700 businesses in 40 markets across the world and employs around 400 staff – with clients including industry giants such as Facebook, IBM and Microsoft.

As far as attracting talent, while advertising and head-hunting remain stalwarts of recruitment, technology is increasingly becoming a feature of the process. Claes Peyron of global employer brand giant Universum, believes Northern Ireland’s top indigenous companies can tackle long-running

“We help employers around the world to become more attractive as employers, to target the right people,” Claes previously told Ulster Business. “We come from data point of view. Our core is surveys and research among graduates and professional people, and then help companies understand the preferences of those groups, how to attract and recruit, and how they are perceived.” π

INTERVIEW

Stena chief sees new Irish Sea fleet as long-term win Stena Line boss Niclas Martensson talks to Shawn Pogatchnik about the launch its new ferries for its Belfast to Liverpool route and increasing efficiencies

iclas Martensson prefers to take his work with him wherever he goes – because that means he can travel by ship. By his own estimate, the chief executive of Stena Line takes trips by ferry at least 50 times a year. As often as not, he chooses to travel on a competitor line, to compare practices and learn new efficiency tricks.

“Absolutely. That’s a must,” he says of his journeys on other firms’ vessels. “If you ask my kids and my wife, they know that whenever we’re travelling, my main hobby in life is to watch the ship in action, to see how each ship serves its customers. Observing how the staff are serving passengers is one of the most important things for me, because I want to ensure we’re serving our own passengers in absolutely the most caring way we can.” His passion for the details of ferry travel is about to be put on display on Stena’s flagship Dublin-Holyhead route. The first of Stena’s brand-new E-Flexer ferries, the Estrid, made its maiden commercial voyageon Monday yesterday, following a fourweek journey from its Chinese shipyard. The Estrid is the first of three identical E-Flexer ferries coming to Stena’s Irish Sea services, with the next two slated to replace vessels on the Belfast-Liverpool route in the coming year. Stena Line’s sister ship-leasing firm, Stena RoRo, has commissioned six more from the Weihai shipyard in China; some will be leased to competitors Brittany Ferries and Denmark’s DFDS Seaways.

Niclas Martensson

While China provides the steel and manufacturing muscle, the ship’s design is purely Scandinavian, as part of a partnership between Gothenburg, Sweden-based Stena and Finnish firm Deltamarin.

“The tragic part of Brexit is that we have been working for the last 30 to 40 years to achieve the free flow of goods and people in Europe,” he says. “Now we do not know what will happen.”

Today, Stena operates 38 ships on 20 routes. Six connect the island of Ireland to Britain and France. The imminent Dublin-Holyhead launch of the Estrid – barely three weeks before the UK is due to leave the EU – suggests a Brexit element to the timing.

But he says Stena, with its ownership of ports and port logistics firms, “is not just a shipping company”.

But Mr Martensson says shipping is a much longer game, with ships ordered to meet the needs of the market for decades to come. The design of the E-Flexer class and Stena RoRo’s decision to commission ships in bulk from China pre-date the 2016 UK referendum – and those ships are designed to run to the 2050s.

“We see ourselves as an integrated part of the European supply chain,” he says. “It would take a lot to damage that logistics flow and therefore I believe that what we do still will work after Brexit.” Studies of Stena’s route network and port ownerships strongly suggest the UK land bridge – the route used for more than 70% of all goods trade between Ireland, the UK and continental Europe – will remain the firm’s path for imports and exports.

INTERVIEW

Stena Line’s newest ferry Stena Estrid

Its cargo vessels ferry goods between those Dutch bases and two eastern English ports: Harwich in Essex and Killingholme Haven on the River Humber. To reach the island of Ireland, that continental and UK cargo can use one of three Stena Line-owned ports: Holyhead, Fishguard and Cairnryan in Scotland. “Nobody knows if Brexit will cause problems on the land bridge. It all depends on what kind of agreement can be done between the EU and UK. One of the last things still to be agreed is the border controls. So we must wait and see,” Mr Martensson says. “And I’m not a guy who wants to speculate on assumptions. I prefer to wait for facts.” Stena currently has little presence on French routes, operating a lone Rosslare-Cherbourg service as a legacy of its 2014 acquisition of Celtic Link.

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Mr Martensson says he doesn’t expect Stena to expand direct services between Ireland and continental Europe, bypassing the UK, as some analysts have suggested as a postBrexit option for some goods trade currently run via the UK land bridge. Instead, he says the solution to Brexit delays, as with so many business challenges, is to keep increasing efficiency – and this is why the Estrid and its sister ships are so important. The E-Flexer class is 50% larger than Stena’s current cruise ferries but – thanks in part to cutting-edge hull design and digital fuel management systems – could prove to be around 30% more efficient than the approximately 20-year-old ships being replaced. The Estrid has space for 170 container lorries, 120 cars and around 1,000 passengers. While its twin propellers will

be powered by diesel, the engine has been designed to be convertible to liquefied natural gas power or, potentially, to methanol. He sees Scandinavia as providing world leadership on adoption of green technology, and wants Stena to play that role for the shipping industry. Last year, Stena launched a three-stage pilot seeking to develop the world’s first battery-powered ferry, the Stena Jutlandica, on Gothenburg’s link to the Danish town of Frederikshavn, a journey of 50 nautical miles (93km). The project already has the ship operating fossil-fuel-free while navigating within the ports, but it has yet to complete a trip to a lighthouse between the two ports on battery power alone. “It is a must for us to develop this as a sustainable solution.” π

ANALYSIS

How do we fund ourselves in NI? With the Northern Ireland Executive back up-andrunning, Paul MacFlynn of the Nevin Economic Research Institute looks at what we’re getting and options for future revenue raising 44

he return of a Northern Ireland Executive was greeted as a big step forward and a chance to tackle some serious policy issues that have festered over the last three years. However, the expectations regarding the financial package that would greet the incoming Executive have proved to be overly optimistic. The details of the financial package are still somewhat opaque, but we know that up to £1bn is to be provided for specific

projects and policies, not least the recent industrial dispute in the public sector. There is purportedly another £1bn Barnettbased investment guarantee from the UK government, though quite what that means exactly is still rather unclear. The press release also included a paragraph on Northern Ireland seeking to raise its own revenues. This would be an issue for the Executive but it was quite clear that the UK government

ANALYSIS

for some years and, as the recent experience south of the border shows, our antipathy toward charging for water is not unique.

in Great Britain. Councils there provide services related to transport, housing, education and most importantly social care.

Anyone who wishes to advance a discussion about revenue raising in Northern Ireland would do themselves a favour by dropping any mention of water charges. This is not just because of their political toxicity but also because water charges are a terrible way of raising revenue.

It is true that half of our rates bill, the Regional Rate, goes to the Executive so maybe there is an argument that it should increase. However, the experience of local councils in England should point us to the danger of this strategy.

Water charges are deeply regressive form of taxation and any attempts to make them more progressive or to add an environmental dimension to them introduces massive complications. The core principles of good taxation are equity, efficiency and, most importantly, simplicity. For many other people, their objection to water charges is based on the notion that water provision is already funded through the domestic rates system already. If we need more money for water and other services, should Northern Ireland then seek to add to its revenue through the rates system?

Prime Minister Boris Johnson speaking in the Great Hall at Stormont following the restoration of the Executive

believe this should be on the agenda. Every time Northern Ireland’s finances have hit the buffers, the issue of revenue generation rears its head, and every time it does, it is firmly smacked down. On the face of it, the prospect of Northern Ireland raising additional revenue requires more thoughtful discussion. Such discussion is usually hampered by someone bringing up the issue of water charges. Water charges have been a political no-go area in Northern Ireland

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The short answer is yes. The rates system is well overdue for overhaul and the last NI Executive began this task. However, even if that reform is brought to completion, the system of rates at present, both domestic and commercial, only raises about £600m each for local councils and the NI Executive. There are limits to how much more can be raised from a property value-based tax. Many people point out that council tax, the equivalent of the rating system in Great Britain, is substantially higher than the average rates bill in Northern Ireland. This is true, the average council tax bill in England in 2019 was £1,746. The average domestic rates bill in Northern Ireland in 2019 was almost half that. However, there is a good reason for this. Local government in Northern Ireland provides significantly less services than their equivalents

Over the last 10 years, the UK government has removed central funding and left local councils in England almost entirely dependent of council tax revenues to provide an increasing range of public services. This has led to some drastic cuts in provision across many services. There is a limit to how much money can be raised through domestic rates or council tax that are based on property values. There have been arguments in Great Britain that a local income tax is a more progressive way of raising the revenue required for local services. A local income tax sounds like a good idea, but in practice it is bedevilled with difficulty. The most obvious problem is that any variation in local income taxes among council areas could lead to large numbers of people shifting incomes about in order to seek a lower rate. There is already evidence of this kind of problem with devolved governments too. Scotland exercised its right to vary income tax rates in 2017 and since then it has encountered difficulty in predicting revenues. The evidence from other countries suggests that local and regional governments can play a part in generating revenue but there is a limit and that national governments are best placed to level progressive income taxation. For Northern Ireland, we should seek to have a fair and progressive rates system for both local government and the Executive. However, imagining that this is a silver bullet for the Northern Ireland public finances would be a grave error. π

INTERVIEW

Gary Wilmot: from computing to construction Gary Wilmot speaks to Emma Deighan about his new role at the helm of Kilwaughter Minerals and the move from tech to the construction sector

ary Wilmot, the new chief executive at Kilwaughter Minerals, says the commitment shown by the family behind the business lured him from the technology world he’d worked in before.

The father-of-two, who lives in Ballymoney, says he was “naturally attracted to the challenge”. “It’s the modesty and the determination by the family to keep investing that meant a lot to me. “I thought, here’s a business that wants to

do all the right things, and that was a key component for the move from tech to nontech,” he says. The Larne business, which is owned by the McDowell family and was set up in 1939 by Charles McDowell and Gerald McGladery, provides products to the construction and agriculture sectors in the UK and Ireland. In recent years it has made its way into popular culture, with its lime products cast for a role in TV show Game of Thrones. Kilwaughter’s lime was covered in white parafﬁn wax to resemble

old snow in a selection of castle courtyard scenes. Gary was raised in Ballymoney in Co Antrim with his three siblings. He is the middle child and the only one in the family to have pursued third level education. “I came from a working class background. My mum worked as a home care assistant and my dad was a lorry driver. It could be my rose-coloured glasses, but everyone worked hard then.”

INTERVIEW

Kilwaughter, I’ve learned through people there every step of the way.” Gary’s first job in technology was at Dupont. That was followed by a 10-year role at Nortel Networks, the North Amercian telecoms giant which had an operation in Mallusk. He became a product development manager at Nortel. When Nortel was bought over by Flex, Gary took on the post of director of product development, as part of a research and development team. “Our role was to sell services and find contracts. We went from research and development to a team who had to understand how to market themselves and how to sell those services into telecoms. “One day you might be working on complex R&D and the next you had to be responsible for your own commercial success.” It was a role-hopping position that equipped Gary to take the reins at Andor, a specialist scientific camera firm based in west Belfast. That was his last role before Kilwaughter. Andor had become one of very few Northern Ireland companies to be listed on the Stock Exchange before the business was sold to Oxford Instruments. He departed the firm as director of engineering and describes his years there as “tremendous”. Gary Wilmot

A curiosity and natural desire to learn made Gary one of the first in the family to go to university. “I was always very interested in how things worked and I was interested in engineering and science. It was a natural interest and I didn’t have to work hard at that. I wanted to learn more and the notion to go to university became an aspiration, not for a better career, but so I could understand some stuff.” And, he says, a few guiding lights along the way helped turn that aspiration into a reality. He also credits his colleagues over the years for their input in moulding his skills, adding: “I’d have achieved nothing if it wasn’t for the people around me, the people in the organisations I’ve worked in, Andor and

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It’s a similar story at Kilwaughter, where Gary is now chief executive, taking over from Simon McDowell. Mr McDowell is now in a nonexecutive director role on the board. Kilwaughter’s parent company, Kilwaughter Holdings, also reported growth of 20% and a turnover of £40.4m following the major acquisition of English business Alumasc Facades in November 2018. Construction materials is a new arena for Gary, who relishes the opportunity to learn even more. But ultimately, it doesn’t matter what the product is when you have responsibility for how a company is run. “When you become responsible for profitability at any company and the performance of

that company, that’s something you can take anywhere with you. The interesting thing is that even in the role I’m in now, a big part of that is problem solving. You’re still solving problems and optimising a way forward for the business. “There is a lot of that diagnostics, a lot of exploration and knowledge to know what’s the best decision and that calls on that experience. “It’s very much a different sector but I have found, and what I expected, is that business is business and the fundamentals are the same. “I’ve been warmly welcomed and the team and the products and company as a whole is performing well. There is lots of opportunity in this space.” Gary expects activity at Kilwaughter to be lively in the immediate future, adding that a government commitment to create 300,000 homes per year by 2025 is a “good indicator for business”. “In addition, the UK government has pledged to reduce carbon emissions in the UK and a related priority will be insulating difficult to heat homes. Kilwaughter is well positioned to continue its focus on quality and innovation and delivering growth through serving these opportunities.” And with Stormont up-and-running and Brexit well and truly a reality, he is hoping that consumer confidence will benefit from stability and boost the markets that Kilwaughter serves. “There are many things out there impacting on confidence, including global trade wars and Brexit, but there is a growing confidence now we have a new Government and a sense of stability. “There is a risk that Brexit could hurt all of us, but if it impacts confidence in the housing market, or investment in new buildings, they all connect back. I would hope that how we do business and with whom is not cumbersome and disadvantageous after Brexit. “Only time will tell, but I am an optimist and I certainly see a bright future for Kilwaughter and a bright way forward.” π

ALLIANZ ARTS & BUSINESS NI AWARDS 2020

Creative arts and business collaborations celebrate results

Seán McGrath, chief executive, Allianz joins Tracy Meharg, Permanent Secretary, Department for Communities, Karen Reynolds, JTI, Dr Wendy Austin MBE, Ciaran Scullion, Arts Council of Northern Ireland, Mary Nagele, chief executive and Martin Bradley MBE, chairman, Arts & Business NI at the annual Allianz Arts & Business NI Awards

ore than 250 guests packed into the Lyric Theatre in Belfast for the Allianz Arts & Business NI Awards 2020.

The annual awards supported by Allianz for the 14th year bring together the worlds of business and the Arts here to celebrate excellence in creative partnerships between the NI private sector and the cultural sector. Ten awards were presented across categories highlighting how creative collaborations are delivering benefits for both business and the Arts sectors. The awards pieces were designed and created by Co Antrim artists Martin Cameron and Laura Breen, while broadcaster and journalist Dr Wendy Austin, MBE hosted the event. Presenting the Allianz Arts & Business NI Awards 2020, which took place in January, Seán McGrath, chief executive, Allianz, highlighted the importance of the arts sector to society and applauded the commitment of

businesses to the sector. “Once again, this year’s Allianz Arts & Business NI Awards have highlighted how successful collaboration between arts organisations and businesses benefit not only those involved in the partnership but reach deep in society in Northern Ireland,” Sean said. “I sincerely congratulate all those nominated for awards, and the winners.” “The relationships forged through the Allianz Arts & Business NI Awards deliver cultural and social benefit to communities across Northern Ireland which enrich the societies we live in.” ALLIANZ ARTS & BUSINESS NI ARTS ORGANISATION OF THE YEAR AWARD BOOKTRUST NI BookTrust NI was awarded this prize for its dedication to getting children engaged with books to help develop a love of reading. BookTrust NI partnered with Belfast Harbour, SONI and Belfast International Airport allowing them to reach the most disadvantaged areas of

Northern Ireland through their book gifting and author projects. ALLIANZ ARTS & BUSINESS NI BUSINESS OF THE YEAR AWARD A&L GOODBODY A&L Goodbody received this award for its partnerships with the Lyric Theatre and contemporary photography gallery Belfast Exposed. A&L Goodbody values the real impact that these partnerships have in terms of creative staff and client engagement whilst supporting the wider arts community in Northern Ireland. ALLIANZ ARTS & BUSINESS NI CREATIVE COMMUNITY ENGAGEMENT AWARD BIG TELLY THEATRE COMPANY AND ENNISKILLEN BID Big Telly Theatre Company and Enniskillen BID won this award for the way the two partners brought a range of arts events and performances to the town over a six-week period with its pop-up ‘Creative Shops’ project bringing creativity to the high street and energising otherwise vacant spaces.

ALLIANZ ARTS & BUSINESS NI AWARDS 2020 presenting them with a breath-taking light show. ALLIANZ ARTS & BUSINESS NI INSPIRATIONAL TRUSTEE AWARD JIM MCKEEVER, TRUSTEE QSS Jim joined the QSS board via Arts & Business NI’s Board Bank board matching programme. With Jim’s negotiating skills and expertise QSS secured new premises and financial stability through a difficult transition period following funding cuts.

Seán McGrath, chief executive, Allianz and Martin Bradley, MBE, chairman, Arts & Business NI present the Allianz Arts & Business NI Business of the Year Award to Michael Neill, A&L Goodbody, alongside Mary Nagele, chief executive, Arts & Business NI

ALLIANZ ARTS & BUSINESS NI CULTURAL BRANDING AWARD BELFAST PHOTO FESTIVAL AND ALEXANDER BOYD DISPLAYS Since 2016, Belfast Photo Festival and Alexander Boyd Displays have focused their partnership on the ability of contemporary photography to showcase Alexander Boyd Displays’ products at their best whilst also allowing Belfast Photo Festival to meet its high standards of exhibition production. By sharing resources and expertise, both parties have developed a culture of learning, experimentation and innovation around creative print production. ALLIANZ ARTS & BUSINESS NI CREATIVE WORKPLACE AWARD CITI AND TINDERBOX THEATRE COMPANY Citi partnered with Tinderbox on a theatrebased mental health awareness programme

for staff. To mark World Mental Health Day in October 2018, Tinderbox performed its play ‘The Man Who Fell to Pieces’ live to Citi employees at Citi headquarters in Belfast’s Titanic Quarter. Afterwards Tinderbox cast and Citi’s mental well-being nurse hosted a frank Q&A session, followed by nine workshops exploring perception, inclusion and diversity. ALLIANZ ARTS & BUSINESS NI NEW SPONSOR AWARD CATHEDRAL QUARTER TRUST AND POWER NI Cathedral Quarter Trust & Power NI formed a new partnership to celebrate the tenth birthday of Culture Night Belfast in September 2018. With multiple events taking place across the city, the project ‘Lighting up a Generation’ sought to encourage audiences to look at the city differently as well as

ALLIANZ ARTS & BUSINESS NI ARTS INNOVATOR AWARD SUSAN PICKEN, CATHEDRAL QUARTER TRUST Susan Picken of the Cathedral Quarter Trust won this award for her outstanding contribution to the Trust through her innovative way of working with business. ALLIANZ ARTS & BUSINESS NI BUSINESS INDIVIDUAL OF THE YEAR AWARD BARRY DESMOND, ALEXANDER BOYD DISPLAYS Barry Desmond of Alexander Boyd Displays took the award for his work with Belfast Photo Festival leading within the business to adopt an innovative approach to working with the photo festival. ALLIANZ COMMUNITY ART AWARD HOLY EVANGELISTS’ PRIMARY SCHOOL This award of £2,000 supports a local community project nominated by Allianz staff. By investing in community based initiatives personal to their staff, the company develops a sense of identity, cohesion and engagement with the communities Allianz works within. The winner, Holy Evangelists’ Primary School in Twinbrook, Belfast, will use the cash award to purchase sound and lighting equipment to support the children’s onstage development and creative skills. π Thanks to Allianz, the Lyric Theatre, Diageo, JTI, Bounce Culture, British Council, Belfast City Council, McCracken Photography, W&G Baird, Whitenoise, Third Source and to Arts & Business NI’s principal funder the Arts Council of NI.

Seán McGrath, chief executive, Allianz and Martin Bradley, MBE, chairman, Arts & Business NI present the Allianz Arts & Business NI Arts Organisation of the Year Award, which comes with a £3,000 prize, to Liz Canning, BookTrust NI alongside Mary Nagele, chief executive, Arts & Business NI

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Find Arts & Business NI at: www.artsandbusinessni.org.uk; or email Maeve McKervey, head of business, Arts & Business NI, at m.mckervey@artsandbusinessni.org.uk or 028 9073 5151 www.belfasttelegraph.co.uk/allianzarts-business

RETAIL

Independents hit hard by rates review Glyn Roberts, chief executive of Retail NI, isn’t happy about draft plans to review business rates in Northern Ireland, which could see independent retailers see their bills rising substantially

t is safe to say that our new Finance Minister Conor Murphy has a very big in-tray of policy challenges. Top of that list is ﬁxing business rates and addressing the huge concerns with the 2020 rates revaluation.

We no longer have a rates crisis – it is now an emergency and Conor Murphy must take immediate action to save jobs and businesses. If ever there was an example of how dysfunctional, antiquated and broken our system of business rates is, then the Revaluation 2020 ticks all the boxes. Reval 2020 has actively targeted many independent retailers, with increases of between 20% to 40% and actually reduced the rates liability of large out of town multinational supermarkets. This simply beggars belief. Retail NI members are the mainstays of every village, town and city centre. They actively invest not just their businesses, but in local high streets and the Northern Ireland economy as a whole. They are already paying the highest business rates in the UK and to receive notiﬁcation that many now face increased rate bills of up to 40% is a disgrace. Take for example Tesco Knocknagoney, a

huge out-of-town superstore, which already has an unfair competitive advantage with its location over town centre traders, free car parking and a public transport link. It has a received a reduction of 15% while many local independent family-owned stores received a 40% increase. You have to wonder on what sort of objective basis such a calculation could have been made. Does Land and Property Services (LPS) actually have any idea of the impact this revaluation will have on independent retailers and the thousands of jobs they support? Our colleagues in the hospitality sector have also fared very badly in this revaluation. Independent retailers and hospitality businesses deserve better than this. Government should be doing all they can to assist our entrepreneurs but instead they are hammered at every opportunity. In England, independent retailers up to an NAV of £51,000 get a 50% discount in their rate bills. Here, we get a measly 20% discount of an NAV of £15,000. It is a scandal that Northern Ireland has the highest business rates in the UK, which is restricting the growth of our retail, hospitality and SME sectors. This ham-ﬁsted revaluation has made a bad situation even worse.

Northern Ireland also has the highest shop vacancy rate in the UK. We have heard from some of our already struggling members that the revaluation could be the ﬁnal nail in the cofﬁn for their businesses, which will add to the number of empty premises, which are a blight on our high streets. Conor Murphy needs to follow through on his ministerial predecessor’s proposals for a targeted approach to small business rate relief, Rethinking Rates, which was put forward in 2017. These proposals gave independent retailers and hospitality businesses a 40% relief in rates and could be implemented quickly and in be place by April if the political will is there. In addition, we also need to ensure that any new system of business rates includes incentives for business growth. In the recent Rates Policy Review, Retail NI outlined proposals for a green rate relief scheme to incentivise businesses to invest in green technology, enhancing the current Empty Premises Rate Relief scheme, a capital allowance scheme and making it easier to access the rates hardship scheme. It is important to point out those businesses unhappy with their revaluation can appeal and we strongly urge them to do so. π

Risk management & security MARCH 2019

RISK MANAGEMENT & SECURITY

The world is watching While once the purview of banks and ﬁnanciers, protecting staff, product, property, and data, is now front and centre in most business plans. Ulster Business looks at the ways companies are protecting themselves, the ﬁrms at the forefront and the emerging technologies being utilised

here are now thought to be more than six million CCTV cameras across the UK – equivalent to one for every 10 people. It’s just one of the ways in which both private business and the public sector have moved to increase both surveillance and security.

Point of entry systems for some of the largest banks have expanded and developed significantly in recent years. That includes the use of live static cameras to photograph guests entering the building, including adding the image to security passes. One company which has been helping firms secure and monitor staff and visitors to their buildings is Lisburn-based NTD. In business for more than 30 years, it also develops timemanagement systems. And on the basis of a growing area such as biometrics, the firm began working with international firm ZKTeco in a bid to grow that area of the business further. The company specialises in the manufacture and development of multibiometric and RFID (radio-frequency identification) technology. Using NTD’s own software, along with ZKTeco’s

FEBRUARY 2020

hardware, the technology allows firms to utilise fingerprint and facial recognition for a range of uses, from time management and attendance, to security and restricting area access for selected staff. It counts companies from the small and independent, to larger firms with a global business footprint among its customers. And from an IT perspective, a company which doesn’t put enough of its resources in ensuring a strong, stable, reliable and up-to-date platform could find itself in serious difficulties. One of the latest gaps for some firms is Microsoft’s ending of support for its Windows 7 operating system. The move means that ransomware and viruses that are created to target specific vulnerabilities in Windows 7 will have a better chance of success due to the lack of new security patches from the tech company. Also, keep in mind some businesses are still using systems that pre-date Windows 7 – software which was released back in 2009. But could the use of technology such as facial recognition transcend the world of airports >

RISK MANAGEMENT & SECURITY

and other high-security enviroments, to reach our workplaces, or even our schools.

Irish Council for Civil Liberties raised issues of privacy and GDPR.

The adoption of biometrics into smartphone devices has resulted in an explosion of the technology, with millions of people using fingerprint, iris, voice and facial recognition daily.

Of course, security extends further into the digital world, as Northern Ireland’s place on the cyber-security stage continues to grow and develop.

But questions over the use of facial recognition in public spaces could continue this year. A case which reached the courts saw one man appealing against an initial ruling which said police in South Wales did not breach his human rights using automated facial recognition. The 36-year-old said his face was scanned during a lunch break in Cardiff, and then again at a peaceful protest at an arms fair in the city. Elsewhere, it was reported that a school in Kilkenny has now parked potential plans to use facial recognition software to monitor student attendance. The Sunday Business Post reported that CBS Kilkenny put the scheme on hold after the

The latest to call Belfast its home is London-based Angoka. It has now set up a development centre in Catalyst at Titanic Quarter. Angoka specialises in managing cyber-security for machine-to-machine communication, which has uses including self-driving vehicles and ‘internet of things’ devices. Angoka has already worked with the Centre for Secure Information Technologies (CSIT) based at Catalyst. The company has been offered £45,000 of support from economic development agency Invest NI towards the creation of nine new jobs, four of which are in place. It’s now seeking to fill engineering and business analyst posts. And elsewhere, Londonderry’s MetaCompliance

is going through a third phase of growth – with 70 new staff due to bring the headcount to just under 200. It’s already one of the leading companies in its field, supplying cloud software and services for cyber-security and compliance. Speaking to Ulster Business recently, boss Robert O’Brien said he is now under way with what is his fifth technology start-up – and he has big aspirations for a business he’s been growing and developing in his home city of Derry since 2005. Mr O’Brian says he wants MetaCompliance “to be one of the largest cyber security firms in the world”. “We can grow to £50m… 300 people. That would put us as one of the largest in the UK, if not Europe.” MetaCompliance is firmly in growth mode. “The second phase and now over, and the third phase of growth take us towards just below the 200 employee mark,” he says. “It’s driven by demand for the product.” The company, based at the city’s Old City Factory counts big names such as the Home Office, tyre maker Bridgestone, Hewlett Packard and Western Digital among its clients. π

NEWS

Flybe bailout secures the future of regional airline

egional airline Flybe has secured a major rescue deal after the Government flew in to keep the company in the air. Flybe operates more UK domestic flights than any other airline and reportedly entered talks over potential emergency financing after suffering rising losses.

Ulster Unionist leader Steve Aiken MLA said: “Flybe is absolutely vital to the George Best Belfast City Airport, and its routes are crucial for Northern Ireland‘s connectivity to cities and regions on the UK mainland.

It flies to 14 UK destinations from Belfast City Airport, more than any other airline and makes up 90% of all flights from the airport.

“If Flybe had ceased trading it would have been a huge blow to thousands of local travellers and brought the loss of hundreds of local jobs, so the news that a deal has been reached between the airline, investors and the Government will be greeted with relief right across the United Kingdom.

The Government is now planning to defer some of Flybe’s air passenger duty (APD) payments, thought to top £100m. Business Secretary Andrea Leadsom said she was “delighted” with the agreement.

“I welcome the Government’s recognition of the importance of UK connectivity and particularly the Government’s plans to review the amount of APD evied on internal UK flights.

Mark Anderson, chief executive of Flybe, said: “Flybe is made up of an incredible team of people, serving millions of loyal customers who rely on the vital regional connectivity that we provide. This is a positive outcome for the UK and will allow us to focus on delivering for our customers and planning for the future.”

“The Ulster Unionist Party has been lobbying for the abolition of APD for many years and if the Government were to end it throughout the UK, it would be a major boost to local airports and travellers.“

Among the routes operated by Flybe from

Belfast are London, Manchester and Glasgow. Chancellor Sajid Javid had held talks with the business and transport secretaries to discuss if the loss-making regional carrier can defer paying this year’s estimated APD bill of £106m for three years or whether the tax should be cut for all domestic flights, according to multiple reports. Airlines claim APD restricts connectivity and passenger growth. Campaigners in Northern Ireland have been calling for the tax to be abolished, after the Irish government did away with the levy. Jennifer McKeever, chief executive of bus transport company Airporter, said it was time that the government acted to abolish APD in Northern Ireland. “Connectivity for NI is absolutely crucial, whether it’s to encourage inward investment, to encourage indigenous business to expand and sell to other markets, or to encourage more visitors to the region, flights into and out of Northern Ireland are key to investment, business growth and tourism.”

Boris Johnson speaking at Stormont following the restoration of the Executive last month

BREXIT

Brexit is getting done so let’s now use it For too long, we were guilty of hoping that Brexit could be avoided. Now it is happening, the transition will start and the full rigour of leaving the EU will soon become a living experience, writes John Simpson

he amended UK-EU withdrawal agreement, negotiated by Boris Johnson, is now in place.

The academic discussions about new borders in the Irish Sea as well as the consequences of special NI trading arrangements affecting Northern Ireland-Great Britain and affecting GB-Northern IrelandRepublic of Ireland will become the reality.

They will only be unwelcome if implementation creates new obstacles, extra costs and legal hazards. The real test is the converse: can the withdrawal agreement, and its operational administration and governance, be implemented to avoid obstacles, costs and legal traps? While there may be some unavoidable snags, can implementation be managed to create a net positive outcome? The Northern Ireland protocol of the withdrawal agreement tries to facilitate a workable trading, contracts and payments regime to reassure people and businesses from Northern Ireland. The spirit of the protocol is to maintain unfettered open market arrangements between NI and GB as well as steps to maintain northsouth business across the whole island of Ireland and further to access the EU 27 market. For the administration of customs duties Northern Ireland will remain in regulatory alignment with the Republic and therefore, linked to the EU internal market trading arrangements. Northern Ireland goods (and most services) crossing the north-south border in the Republic will trade with no import duties (or charges). Separately, Northern Ireland goods would trade into GB without customs formality. Goods coming from GB into NI en route to the Republic need to be monitored and pay EU duty when in transit through Northern Ireland. That requirement means that arrangements must be made to document the process. When working efficiently, that can facilitate GB goods exported to the EU.

The administrative arrangements to minimise any trading costs (and avoid liability to customs duty) are the critical element in maintaining the competitiveness of Northern Ireland businesses. Northern Ireland can gain the best of both worlds — continued frictionless trade with GB and continued frictionless access to the EU — provided that any necessary cross-border or cross-Irish Sea administration is minimised. That outcome is not yet assured, as the Northern Ireland business interest groups have emphasised. Regulatory alignment issues will need to be tackled if, or when, they emerge. What is now awaited is a working arrangement, through the new EUUK consultative committee (where a NI voice may be allowed) to simplify and minimise the necessary paperwork and any associated costs, including de minimis provisions. The withdrawal agreement is now in place. The challenge is to use it constructively. It has implications for many industrial and agricultural policies. The agreement, instead of being an unwelcome arrangement, must be developed as a means to deliver a best of both worlds answer. Northern Ireland can offer a business base which combines the advantages of continuing commercial networks within the UK setting and, additionally, a business base with duty-free access to the EU. Provided the consultative and regulatory machinery created by the withdrawal agreement is developed, quietly and constructively, taking account of local interests, then the opportunity is there for Northern Ireland to have its own unique selling advantage across the UK and the EU. Showing the politicians that there is an acceptable answer to this comes as a credit to the informal group of Northern Ireland business organisations which has firmly grasped this conclusion. Policy makers and politicians must now adjust their thinking to the new challenging opportunities. π

Ofﬁce environment & ﬁt-out

OFFICE ENVIRONMENT & FIT-OUT

It’s what’s on the inside that counts Emma Deighan looks at how the office setup is evolving to help businesses attract and keep talent and why the new influx of shared spaces is set to grow

he commercial property market in NI is the best-performing out of all property divisions here and despite a backdrop of Brexit-induced apprehension and no Executive for the past three years, until recently, investment is rife and developments are hearty.

stereotypical corporate setting that has been the norm for the past four decades.

Research from Lambert Smith Hampton has said office transactions in 2019 totalled £74.1m here, the highest volume in the office sector on record.

And with talent deficits in many sectors here, a company’s brand, from its ethical stance to its home furnishings have to be on point to attract and keep skills.

These new office setups are changing too, shunning the beige, ‘that’ll do’ interior of the

Among those embracing the new scenery in office fit outs in recent years has been River

Features like double-height lobbies, open-plan office suites, external terraces and break-out areas as well as high speed lifts, show that companies mean business when it comes to accommodating their employees.

House, which, Rachael Pittaway, developer at Castleforge Partners says “represents a new wave of office and commercial space in the city centre”. She says the new grade A office space was the ideal space for “any progressive organisation” with assets including a landscaped roof terrace, lounges, bookable meeting rooms, informal break out areas to cafes and social event spaces. And similar schemes coming onto the market would suggest that the future appetite for the latter is insatiable no matter what the political climate.

OFFICE ENVIRONMENT & FIT-OUT Rachael McAdam, manager of Clockwise at River House and Rachael Pittaway of Castleforge Partners

It will create a design-led workspace located in Belfast’s Eagle Star House which will open its doors in summer 2020, with more than 500 desks available over eight floors. Glandore’s offices at Arthur House, Belfast

Plans for a £30m redevelopment of buildings on Linenhall Street, Clarence Street and Bedford Street, revealed by Surrey-based development company Domus UK Ltd, owned by NCH Capital Inc, were submitted recently in a bid to “increase the provision of new grade A office space for the Linen Quarter and raise its contribution to the district’s future job creation and economic prosperity”. Elsewhere in Belfast, Urban HQ, has appointed award-winning agency Kingston Lafferty Design to complete the interior architecture and design of its new flexible workspace.

FEBRUARY 2020

“Unlike more traditional office spaces, flexible workspace is by its very nature suited to a wide variety of different businesses across a range of sectors, as companies can adapt their membership package and working style to their business needs,” the firm said. “Therefore, we expect to welcome a mix of member companies from a range of different sectors to Urban HQ when it opens in Belfast’s Eagle Star House this summer.” Belfast’s technology sector is expanding rapidly, with nearly one in four jobs advertised in Northern Ireland in 2019 for digital tech workers, so we may expect an increase in demand for workspace from the tech sector Ciaran Fox, director of the Royal Society of

Ulster Architects (RSUA), said it will be the latter developers who will reap the benefits for their schemes. “There is a widespread realisation that the office environment is a major factor for businesses in terms of recruitment and retention of staff. As a result we’re seeing a much greater focus on those elements that affect health and happiness.” He said layouts are not just about aesthetics but promoting positive wellbeing in a faster paced work environment. “Offices are being designed to support physical wellbeing by providing attractive showering and changing rooms for active commuters. Some are even providing communal exercise facilities. Places to unwind, both social and quiet spaces, are being given equally high priority.” He also said that sustainability in the form of regenerating old builds was a common trend with many developers “on a search for >

OFFICE ENVIRONMENT & FIT-OUT

character” and that, more recently, boasting eco-friendly features was an important asset. “Over the last year green credentials in office buildings have become more common. A couple of new BREEAM ‘excellent’ (good energy performance, decent carbon performance in material selection etc) have come onto the market while places like City Quays 2 offers side door access directly to shower area for the cycling/running commuters so they don’t have to traipse through reception.” One of the newest explosions onto the office scene in recent years has been the shared office space. They are positioning themselves to entrepreneurs who want all the benefits of a high tech office space without the commitment of a long lease or ownership fees. Glandore, a company founded in 2001 in Dublin, is one of the pioneers in this field. Nial Borthistle, business development manager at the firm said market uncertainty is driving the desire for flexible office space.

“Traditional space has become less attractive to scaling companies and international enterprises due to the nature of FDI and project work. While there is an increase in ‘crane visibility’ and new projects on the horizon (Tribeca, Sirocco Works to name a few) there is a lack of immediate grade A traditional space in the market and this is also driving companies to flexible options.

“Wellbeing has already become a natural addition to any forward-thinking office design. Inspiring to create a happy and healthy workplace improves not only employee wellness, but also efficiency and productivity levels. The work environment is a space that employees spend a significant amount of time in, and it is therefore important to recognise its impact on their wellbeing,” he said.

“Flexibility is a major trend driving growth to serviced providers, but with that, serviced providers bring design led space that lends well to employee wellbeing and positive environments that encourage collaboration and technology. The space that people use is changing to reflect this, open boardrooms and call booths are becoming increasingly popular.”

Sam Livingstone, director of Rumour Mill Creative Communications is one business that has swapped its own rented premises in the heart of BT9 for a shared space in Cubic Co Work, Lisburn, which is a new space from hospitality group Beannchor.

He agrees with Ciaran Fox that aesthetics and comfort attract and retain talent with the popularity of innovative office furniture solutions, breakout areas and cafe style coffee stations reflecting aspects of home interiors, which he expects to become a more common look.

“When our current office lease required renewal, we had to decide whether to stay or move. As a team we viewed a number of office spaces, both private and shared,” she says. “It became clear very quickly that the shared office space format ticked all the boxes and offered a working environment that better suited our agency’s culture and strategic vision for growth.” π

COMMERCIAL PROPERTY

Martin McDowell and David McClure speak to John Mulgrew

The evolution of a property stalwart Following two decades in charge at Osborne King, Martin McDowell is stepping down to make way for the next generation at the helm. Ulster Business speaks to him and the new managing director David McClure about building on a lifelong career at the commercial property firm and its new evolution 68

or Osborne King’s newly appointed managing director David McClure, it’s an independent organisation which he has spent his entire working life in. He’s now at the helm of the Belfast-based commercial property consultancy, taking over the reins from Martin McDowell – who has spent almost 40 years with Osborne King.

COMMERCIAL PROPERTY experienced workforce, as its strength in setting it apart from others in the industry. “We remain a local business. All decisions about this business, and the people in this business, are made here,” Martin says. “We are NI-based, NI centric and our expertise is here, but we can access other markets.” And It’s about loyalty, according to David. “For clients I believe the key thing is the accountability. They know the buck stops with us and they can lift the phone and get a response from the person that matters. “Looking at where the market is going, we have kept our core team. Beyond the senior management team we have lots of staff who have been here for many years, and they are really experienced, most having 10-15 years.” Martin says one of the things he’s most proud of is that Osborne King didn’t make a single member of staff redundant during the choppy waters of the recession. “We kept people ahead of making profit because we always felt the core team coming out the far end we would be better placed to deal with the next phase,” he says.

“I turned 60 last November and I’ve been the managing director at Osborne King for 20 years. It is simply time to move things forward. David is the new evolution of the Osborne King leadership profile,” Martin says. “We made the decision two years ago that we would get to this point, and Dave and I have been working together to get a seamless transfer.” David has worked side-by-side with Martin for the last 20 years throughout various arms of the business. “From a continuity perspective, there is an evolution and there will be change, but in terms of the core values of the business, they will continue, and that’s something I’m keen to stress. The fundamentals will remain how they were in terms of how we approach things.” Osborne King now has a team of more than 40, and sees its independence, local expertise and knowledge, along with a hugely

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“We do have the strongest advisory team in Northern Ireland,” David says. “That is because we have retained staff and experience – dealing through some very tough and challenging times. We are not into the short term idea. We want to stick with clients through the life of the asset.” One of the significant developments in the firm’s recent history was the reintroduction of its property auctions – now one of the most successful areas of the business. And it’s evolved the traditional ‘ballroom’ auction to one based solely online. Warmly referred to as an ‘Ozzie lifer’, David has been with Osborne King throughout his entire career, after graduating in 1998. He began working with agency before moving in to the company’s advisory arm, rising to the role of a director. “At that time I worked as Martin’s assistant. We had most of the major shopping centre instructions, acting for CastleCourt in Belfast, Bloomfield in Bangor and Fairhill in Ballymena.

We also had a lot of good retail clients. “That gave me the grounding. I enjoyed it and as time wore on I developed more autonomy, building up relationships with clients. From that base, it all went well for around 10 years, before the wheels came off in the economy in general.” And that saw David and the team working with clients under increasing financial pressures from their funders as they assessed how best to deal with the economic ramifications and impact of the global recession and collapse of the property market. The last four years has seen a return to a more normalised market, with existing and new clients seeking opportunities throughout Northern Ireland. David says he’s optimistic about the overall state of the marketplace. “A plus has been the Assembly getting back up and running, that there is greater certainty in terms of the UK’s exit from the EU and I think we are already starting to see people waking up to that – people saying, I can see the path ahead a little more clearly and on that basis I’m prepared to go.” “When I look at our business, we have a fantastic platform – because of the experience. We are now operating where the majority of our income comes from our property management and our advisory department.” Martin says a boost in overall market activity would be welcome in the coming months and years. “In the last few years the deal activity has tailed off,” he says. “You need that constant evolution. We are still a very cost-effective place to be. Pound-for-pound, we are a much more cost-effective place for a business to set up in.” “Certainty is what developers want. There’s a phrase ‘capital is a coward’ and it will not go where there is uncertainty.” And the next step for Osborne King under David’s management will include utilising and embracing a raft of emerging technologies to help the company and its clients push through into a the new decade. π www.osborneking.com

NEWS

Sensata Technologies in Carrickfergus

Almost 300 jobs to go at Sensata

he loss of 270 jobs Sensata Technologies has been branded as another blow for Northern Ireland’s manufacturing sector.

The company, which makes tyre pressure monitoring systems, blamed a drop in demand for its products for the decision to shut down its Carrickfergus site by early next year. The company, previously Schrader Electronics, blamed a drop in demand for its products for the decision. It has had a significant manufacturing and research and development presence in Northern Ireland since its 2014 acquisition of Schrader, which was founded in 1988. Sensata says the business will engage in a collective consultation period with employees, during which proposed alternatives to compulsory redundancy will be considered. The company has 1,178 employees in Northern Ireland and has another site in Antrim. It’s understood a small number of operational

support roles based in Antrim are also included within the total of 270 jobs. Yann Etienvre, senior vice-president, global operations at Sensata Technologies, said: “As a company we are facing a perfect storm of European market conditions which have led to a significant drop in demand for the product lines currently manufactured in Carrickfergus. “There has been a well-documented fall in the global automotive industry and this has been further heightened by consolidation in our market, with existing customers being absorbed into large entities whose manufacturing processes use alternative products to our own. “We had anticipated that a proposed tightening of European TPMS legislation would drive increased demand for direct sensing systems and, as a result, increased demand for TPMS products. Unfortunately, this has not happened as indirect sensing

solutions continue to be permitted by the European authorities. In response we have had to review our organisational model. “The proposed closure of our Carrickfergus site has been a very difficult decision for the company to make, and a number of actions were implemented to try to avoid reaching this point. “Our focus now is on providing support to the affected employees and their families through the consultation period. To that end we have engaged external consultants LHH Penna to provide career transition advice and assistance for all affected employees. “Sensata Technologies remains committed to our Northern Ireland operation. We continue to manufacture products at our Antrim site and we are on target with our plans to develop an R&D centre of excellence there. This investment in new products and a new technology centre will result in the creation of additional jobs in the next two years.” π

Flogas unveils new carbon business scheme

gas supply business has launched a new carbon offsetting solution for its commercial customers, it has been revealed.

Flogas’s scheme allows firms offset 100% of their own carbon emissions by providing critical support for projects directly benefiting the environment. The company has offset its own carbon emissions and that of Flogas brand ambassador Neven Maguire’s restaurant and home. Collectively, they have now compensated for over 3,500 tonnes of carbon emissions in 2019, achieved by investing in climate protection projects. John Rooney, managing director, Flogas Ireland said: “We’re urging our business customers to take a proactive approach towards tackling climate change and differentiate themselves from the competition. “Participating customers will be able to display marketing materials

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John Rooney, managing director, Flogas Ireland with brand ambassador Neven Maguire

and certificates demonstrating their carbon offsets and it’s an excellent opportunity for savvy business owners keen to get ahead of the curve.” At MacNean House and Restaurant in Blacklion, Cavan, Neven Maguire uses Flogas LPG for cooking, heating and hot water and Flogas electricity for its power needs. “I am delighted to be a part of this wonderful initiative from Flogas. By investing in gold standard carbon offsetting projects, we can all help bring positive change around the globe with sustainable, economic, social and health benefits to different communities,” he said.

BUSINESS RATES

Rates review: the winners and serious losers Duke of York owner Willie Jack pictured at his whiskey shop

A new long-awaited review of business rates in Northern Ireland didn’t go quite to plan for many of our busiest hospitality companies and independent retailers, while other larger retailers may reap the rewards. John Mulgrew looks at disparity across the industry

t was one of the main talking points among many of our retail and hospitality groups over the last few years and ﬁnally, at the end of a threeyear Stormont stasis, a re-valuation of business rates for Northern Ireland was revealed.

For some of our largest retailers and supermarket giants, the so-called Reval2020 was good news – and we’ve certainly heard less from that sector than others. On the whole, large food stores will see their bills dropping by between 5% and 15%, while some other shops and centres will see drops of up to 10%. However, as journalists, commentators, pub owners and others in the industry soon

discovered, this line from the Department of Finance that “… significant increases in some pubs in busy urban areas” was not an understatement. Take The Sunflower bar on Union Street in Belfast. It’s NAV (net annual value) has shot up from £7,500 to £50,000 – a 568% lift. Others include The Dirty Onion (£145,000 to £320,000) and Bittles Bar (£18,000 to £30,000). Willie Jack’s Cathedral Quarter pub empire includes the Duke of York, Harp Bar, Dark Horse and his top-end Irish whiskey store The Friend at Hand, and are some of those facing significant uplifts. The Harp will see a rise of 167%, from

£135,000 to £360,000, under the new proposed scheme, while the Duke would see it up 116% to £269,500. In each of these cases the actual rates bill will be calculated based on the NAV, which is an assessment of the yearly rental value that a business could reasonably be let for – multiplied by the ‘rate in the pound’ to produce the yearly bill. Business rates are charged on most nondomestic premises including shops, ofﬁces, warehouses, factories, hotels and pubs as well as utilities such as gas, water, electricity and wind farms. According to the Department of Finance, the results “show a modest growth in the total

BUSINESS RATES

Colin Neill The Europa Hotel in Belfast

Pedro Donald outside The Sunflower bar

value in Northern Ireland of 6.8% compared to the current valuation list which is based on 2013 values”. The pub sector isn’t happy, and it doesn’t take long for a conversation in several cases to descend into woes over the potential rates rises. Some are concerned over the level of investment being put in to their businesses and the surrounding area, while others worried such rises will hinder the appetite of hospitality businesses and others to open in areas which are increasingly reliant on burgeoning tourism spend. Elsewhere, some of Belfast’s leading top-end hotels are also facing a sizeable increase in bills. The five-star Fitzwilliam’s NAV has more than doubled to £520,000, while The Merchant will see its bills potentially up by almost 40% to £765,000, and Europa a 55% bump to £800,000. Speaking at the time the Reval2020 launch, Sue Gray, permanent secretary at the Department of Finance said: “The

FEBRUARY 2020

revaluation means that from April, ratepayers will contribute to the funding of essential public services such as health, education and infrastructure as well as a wide range of council services relative to their 2018 rental value, instead of 2013 values as at present.” In response to the draft revaluation, Colin Neill, chief executive of Hospitality Ulster, said the “antiquated rating system needs radical change and is a major burden for our members. “It is not only curtailing growth and dampening any ambition, it is actually impacting the very sustainability of many businesses in the sector. “It beggars belief that by 2020 this outdated system still hasn’t been addressed despite the repeated calls to change the process which is completely out of kilter with reality.” Glyn Roberts is chief executive of Retail NI, which represents a variety of smaller retail businesses and independents across Northern Ireland. He says his members are facing increases of up to 40%.

“We no longer have a rates crisis — it is now an emergency and Conor Murphy (the new Finance Minister) must take immediate action to save jobs and businesses,” he said. “If ever there was an example of how dysfunctional, antiquated and broken our system of business rates is, then the Revaluation 2020 ticks all the boxes. “Reval2020 has actively targeted many independent retailers, with increases of between 20%-40% and actually reduced the rates liability of large out of town multinational supermarkets. This simply beggars belief. “Take for example Tesco Knocknagoney, a huge out-of-town superstore, which already has an unfair competitive advantage with its location over town centre traders, free car parking and a public transport link. “It has a received a reduction of 15% while many local independent family-owned stores received a 40% increase.” π

INTERVIEW

BREAKFAST GUEST: JAMES NICHOLSON, JN WINE

VENUE: DEANES DELI AND VIN CAFE, BEDFORD STREET, BELFAST 74

INTERVIEW

popular city centre morning cafe with ‘vin’ in its name is certainly an apt backdrop for breakfast with one of the leaders in the wine industry here for more than 40 years.

THE BILL Smoked salmon and scrambled eggs Scrambled eggs on toast Americano Tea Double espresso Macchiato Total

£7.50 £4.00 £2.25 £2.10 £2.20 £2.10

£22.16 (plus 10% tip)

James Nicholson, managing director of Crossgar’s JN Wine, and I, opt for Deanes Deli and Vin Cafe in the heart of Belfast city centre for a chat on a surprisingly warm winter morning. Aside from his wine business, James is also chairman of Down Royal Racecourse and vice-chairman of charity Youth Action. But as one of the leading names in Ireland’s wine scene for a generation, he’s grown his Co Down business to include a base in the Republic, has just taken on a new London business and has his eyes on other potential acquisitions in the future. James says the company works directly “from vineyard to door”. “We’ve had our business in Northern Ireland for 42 years, so it’s quite a mature company. And we have around 30 people working there. “Around 15 years ago we opened a business in the Republic of Ireland. We built a warehouse at the airport and we have a team servicing the market directly. “And about three months ago we bought Highbury Vintners in London and we are in the middle of redeveloping that business. We are hoping to keep it going as successfully as it has been. “We are looking at potentially other businesses to purchase in London. It will tend to be family businesses. When you get to the mature level that our business is, the runway is a bit shorter (for organic growth) so you tend to speed up a bit.” The Crossgar base is much more than an ofﬁce and warehouse – it’s a grand and glass-clad working museum and showcase for some of the best wine available, as well as offering tasting sessions for the public.

FEBRUARY 2020

It’s been JN Wine’s home for the last 12 years. On this particular morning, it’s an egg-based affair. Smoked salmon and scrambled for me, a more conservative scrambled on toast for James, along with a selection of caffeine. This is popular spot, it seems, for both the business and political community, judging by those paying it a visit on this occasion. JN Wine handles around 1,500 wholesale accounts across Ireland, and boasts a retail team of around a dozen. Around 50% is mail order and around 20% is now online retail. “That business has been growing. Our Highbury Vintners business is almost all retail – some corporate business and some on trade.” We’re chatting not long after the restoration of Stormont, following a three year stasis of lack of devolved government here. James, like many in business, has been keen to see a return, but thinks more can and should be done to improve decision-making on the Hill. “If government maybe looked more on business… a proper strategic plan. There are a lot of very capable businesspeople in Northern Ireland who should be seconded on to some of the decision-making,” he says. “The voting age is too high, and (we need to) involve more young people in the decisionmaking. I see it in Youth Action – the disconnect between young people and politics is a gigantic chasm which needs ﬁlled. And we need to get away from green and orange (politics).” He also wants to see more money injected into our health service, something he believes most people in Northern Ireland would be happy to contribute to in marginally higher taxes if it were going straight to help the front line NHS. But he believes the civil service remains too heavy in terms of top and middle management. “Everything we do in our business is geared to the front line. We are not heavy in administration.” π

ROGER VANCE, AD-VANCE ENGINEERING How is business? We manufacture high precision tools for the top injection moulding companies in GB and Ireland. We’ve been established for 15 years and we’re in growth mode having recently expanded our team and invested almost £1m in new premises in Lisburn. Most of our business stems from capital projects which require investment in new processes and product development. Brexit-related uncertainly has had an impact, but the market is resilient, and as an innovative, progressive company, we’re ploughing forward. Engineering has become a by-word for low-skilled, low-productivity jobs. This misconception, together with a shortage of top talent, has impacted on our sector. Ad-Vance Engineering is pioneering the recruitment of skilled graduate and apprentices from our universities and training colleges. Such resource is vital to our growth plans, enabling us to deliver the more complex, innovative tooling needs demanded by our expanding customer base. How did you get started in the industry? I started as an apprentice in the tool room of the Ford Motor Company where I got a real grounding in tool moulding, project and supplier management. From Ford I moved to Wilsanco Plastics – a pivotal stage in my career as I managed the tool room where we manufactured high-end production tools for the food industry. I established Ad-Vance Engineering in 2004, initially to make, repair and refurbish tools for NI-based manufacturing businesses. We grew by focusing on the top tier injection moulders in the GB and Republic of Ireland markets, adding value to the manufacturing process through our design expertise. This really established our reputation and has proved pivotal to our customers who need tool manufacturers to partner from design stage, providing innovative solutions to support and enhance their new product development. My son Roger has joined me in the business as technical director. Having worked at

GE Aviation his experience of aerospace engineering is invaluable. Typically, who are your clients or customers? We are specialists in the design, manufacture and refurbishment of injection moulding tools for the plastics manufacturing sector. Initially supplying the construction sector, our investment in R&D has led to an ever-evolving customer-base which spans high-end industries including aerospace, automotive, pharma and medical devices. With NDAs in place for most of our contracts we can’t name our customers but it’s fair to say our tools are used to manufacture many of the items which we use every day. Do you enjoy what you do, and what in particular? Our focus on R&D, combined with our partnership approach sets us apart from our competitors and means we work on a much more pro-active basis with our customers. We’re involved from the outset – identifying the problem, pre-empting potential issues and being part of the process from concept

to finished tool. I enjoy the collaboration and being part of an end-to-end solution, but our customers are the real benefactors. What is the most difficult part of your job? Working to tight budgets and timeframes is always a challenge, but that’s why being part of the process from the earliest stage is vital. By effectively managing the development time we can create efficiencies at the manufacturing stage and ensure completion deadlines are met. What are the challenges facing your sector, and the economy in general? Competition from overseas, particularly the Chinese market, can be problematic. Often such companies are full of promises, offering customers reduced costs and overly optimistic delivery dates. However, the industry is learning a lesson and is more aware of the great benefits to be gained from working with local partners (ie within the British Isles) who provide hands-on support and are in it for the long term. I’m glad to say Ad-Vance Engineering is well positioned to capitalise on the re-shoring movement. π

Motoring By Pat Burns

Sponsored by

MOTORING

Kia takes the hybrid route

ia is now expanding its line-up even further with the launch of plug-in hybrid versions of the recently introduced all-new Kia XCeed and the stylish and practical Ceed Sportswagon. Each is powered by a 1.6-litre GDi engine combined with an electric motor and 8.9kWh battery pack to produce 139bhp and 265Nm of torque.

allows the new plug-in hybrid models to harvest kinetic energy and recharge their battery packs while coasting or braking, further enhancing the overall efficiency of the powertrain.

The new XCeed and Ceed Sportswagon plug-in hybrid offer an alternative to conventional petrol and diesel models. The new powertrain combines a lithiumpolymer battery pack, an electric motor, and an efficient 1.6-litre GDi (gasoline direct injection) engine. The powertrain’s total power and torque output are 139bhp and 265Nm.

Each car has a new closed ‘tiger-nose’ grille at the front of the car to aid aerodynamic efficiency and feature distinct ‘eco plugin’ exterior badges. The charging port is integrated into the left front wing of each car.

The powertrain is paired with a six-speed dual-clutch auto transmission, ensuring a more enjoyable drive than other hybrid vehicles equipped with electronic continuously variable transmissions. Standard regenerative braking technology

Both new models feature their own distinctive design features to differentiate them from other petrol and diesel models in the Kia XCeed and Ceed Sportswagon line-ups.

The new plug-in hybrid models feature a range of new functions to enhance usability for owners looking to extract the most out of the new powertrain. Both vehicles are equipped with a charging indicator, a visual aid to tell owners that their car is charging or when the battery is fully-charged. Its location on top of the dashboard means drivers can instantly ascertain the car’s state of charge at a glance from outside the car.

The ‘driver only’ heating, ventilation and air-conditioning system – activated with a new button on the dashboard – instantly de-activates airflow to all cabin vents except those nearest the driver. This is designed to reduce the draw on battery energy from the ventilation system, while still keeping the driver at their preferred temperature. Unlike conventional ventilation systems, Kia’s ‘driver only’ system doesn’t simply restrict airflow to certain vents, re-routing it elsewhere; instead, it switches off the fans themselves, reducing energy use at source. The Kia XCeed plug-in hybrid is a rarity in the compact family car class, offering the virtues of a stylish, well-equipped crossover vehicle, combined with the efficiency and low emissions of a plug-in hybrid vehicle. In its EV mode, the Kia XCeed plug-in hybrid is capable of travelling up to 36 miles and takes 2 hours and 15 minutes to recharge the battery pack to 100% using a 3.3kW AC charger. The Ceed Sportswagon PHEV is priced at £29,995. π

MOTORING

New crossover is no Juke

lmost a decade after it set the bar for compact crossovers, the next-generation Nissan Juke has arrived to top the segment once again. Fun to drive as ever, the all-new Juke delivers new levels of performance and technology, with a standout yet roomier coupe crossover body. The Juke sets a new standard in the B-crossover segment with larger dimensions and an athletic stance, striking 19-inch alloy wheels and coupe style ‘floating roof’ design. Equipped with full LED technology as standard, the latest Juke retains its iconic circular headlamps alongside with new Y-shaped signature which complements Nissan’s V-Motion grille. Transformed on the inside as well, the Juke is roomier for both passengers and their belongings, with rear-seat knee room increased by 5.8cm, rear head room by 1.1cm and a boot capacity of 422 litres – providing 20% more storage room. A redesigned interior offers style and comfort boosted by improved driver positions, increased rear roominess and

more user-friendly controls and storage. New soft-touch materials on the dashboard, door trim and footwells offer a premium feel.

Featuring Nissan Intelligent Mobility technology, the new model is the most connected Nissan ever.

Offering a new level of personalisation, the all-new N-Design grade package ensures that customers can make their Juke their own. Multiple colour combinations for body, roof and interior upholstery are available – bringing out the urban, premium and sporty character of the Juke. Exterior personalisation is also offered, with customisable bumpers, side sills and 19-inch alloy wheels.

Nissan’s advance ProPILOT technology, which offers electronically assisted steering, acceleration and braking, is available on the Juke for the first time. Designed for highway use in single-lane traffic, the ProPILOT system accelerates and slows downs for the driver to maintain the right distance and speed and also keeps the car centred within the lane.

The Juke is powered by an efficient 1.0-litre three-cylinder DIG-T turbocharged petrol engine with 117 PS, giving drivers improved performance, fuel economy and refinement. Available with an engaging six-speed manual or sporty seven-speed dual-clutch (DCT) paddle-shift transmission, and a driving mode selector (Eco, Standard, Sport), drivers can match their driving style to any driving scenario for maximum fun on the road. The Juke is now loaded with Nissan’s infotainment and driver assistance technology.

In addition, the Juke offers a full package of safety technologies, including intelligent emergency braking with pedestrian and cyclist recognition, traffic sign recognition, intelligent lane intervention, rear cross traffic alert, and blind spot Intervention as a Nissan premiere that is unique to the segment. Blind spot intervention warns the driver when a car gets into its blind spot and brings the Juke back in the lane. The all-new Juke will continue to be produced at Nissan’s award-winning manufacturing plant in Sunderland. π

MOTORING

One ‘L’ of a pick-up

ne of the original and best 4x4 pick-ups, the Mitsubishi L200, has been given a makeover for 2020.

The new Series 6 model sets new segment standards for style, refinement, safety, efficiency and all-round capability. With more than 4.7 million units built since its debut in 1978, the sixth generation L200 builds on Mitsubishi Motors’ 40-year history of building tough and dependable pickups. Priced from £21,515 for the entry level Mitsubishi L200 4Life Club Cab, the Series 6 has been engineered to be the most capable pickup Mitsubishi Motors has ever produced, introducing car-like levels of driving refinement and safety systems to the segment, offering the perfect solution to motorists looking for the practicality and versatility of a pick-up without compromising on comfort, driving pleasure or running costs. The Mitsubishi L200 Series 6 also makes significant advances in terms of its pickup capability. It remains a tough, dependable

FEBRUARY 2020

and capable workhorse, now with an increased payload of 1,080kg and gross train weight of 6,155kg, plus a significantly upgraded 4WD system further to enhance the L200’s outstanding off-road ability. Under the bonnet, a new Euro 6d compliant 2,268cc turbo diesel engine and a new sixspeed automatic transmission help deliver lower emissions and improved fuel efficiency resulting in significant fuel savings in the real world. The four wheel drive system has been upgraded and incorporates both a new ‘off road mode’ and a ‘hill descent mode’ driving through a new six-speed automatic transmission. The braking system has also been upgraded while the suspension has been revised to improve ride, comfort and handling both on and off-road. There is an impressive array of technological safety features onboard the 2020 L200 including Blind Spot Warning system with lane change assist function, rear cross traffic alert

system, forward collision mitigation system, ultrasonic ‘misacceleration’ mitigation system and lane departure warning (LDW). Inside there is new seating with improved bolstering, a chunkier, heated steering wheel, new instrumentation, including a full-colour LCD display and improved storage. The new L200 is powered by a 2.3-litre four-cylinder turbocharged diesel engine that produces 148bhp and 295ft lb of torque. It offers a top speed of 108mph, a maximum payload of 1,080kg and a towing capacity of up to 3,500kg. There is a wide selection of models to choose from, ranging from workhorses to commuting lifestylers. The L200’s off road capability is exemplary but the new upgrades make it more civilised on roads and motorways. Families will also appreciate touches like two Isofix child-seat mounting points in the back, along with child-proof rear door locks and seatbelt warning indicators. π

MOTORING

The MG success story

G’s success story continues to run and run. MG Motor UK secured its best-ever month of sales in December 2019 and, in turn, achieved a record-breaking full year of sales.

In December, MG sold 1,702 cars, representing an impressive 162% increase versus the same month in 2018. Furthermore, MG’s sales performance ensured it moved beyond a UK wide 1% market share in a single month, with a 1.14% share for December 2019. Overall, total sales for 2019 saw 45% uplift in registrations compared with the same 12-month period the year before. With more customers choosing MG for its value-formoney offering, the brand posted its 26th consecutive month of volume and share growth in the process. MG’s record-breaking sales performance in 2019 was driven by the practical and stylish ZS SUV alongside the MG3 hatchback which Ulster Business recently got the chance to drive.

Demonstrating its faith in the build quality and reliability of its products, MG has extended its seven year/80,000-miles warranty to the New MG3. The new warranty really adds to New MG3’s value-for-money offering, making it one of the most attractive packages on the market. Fully-transferrable to future owners, the comprehensive warranty gives great reassurance to MG buyers. There are three different versions offered in the New MG3 line-up; the entry grade ‘Explore’, mid-grade ‘Excite’ and the ‘Exclusive’ at the top of the range. The whole New MG3 range comes packed with a host of technology. All versions come with Bluetooth as standard, while ‘Excite’ and ‘Exclusive’ versions boast an eight-inch colour touchscreen with Apple CarPlay, DAB radio and steering wheel audio controls. The Exclusive version also adds a reversing camera with dynamic guidelines, completing an exceptional value-for-money package. Starting from just £9,495 for the entry level ‘Explore’, the stylish New MG3 offers a

considerable benefit over its rivals in both purchase and running costs, with the Excite and Exclusive versions costing £11,395 and £12,795 respectively. New MG3 is also available on a five-year, 0% APR finance package with no deposit required from the customer. The design of the car has also undergone an extensive update, inside and out. One of the key design features of the New MG3 is the dynamic new face of MG, featuring the eye-catching ‘star-rider’ grille which perfectly frames the brand’s famous octagonal logo. On the inside, the cabin is both practical and quite stylish and one of the roomiest in the supermini segment. Boot space is very good too and the MG3 drives well on the road. All MG3s are powered by a 1.5 litre petrol engine which returns an NEDC combined fuel figure of 47.1mpg. The engine might lack ultimate grunt, but as a whole the MG3 is a great handling, well put together small car that undercuts its rivals by thousands of pounds. π

The column with an ear for experience... How did your career in local government begin? Returning to Northern Ireland after a consultancy career involving multi sector efficiency and transformation in England, Scotland and Wales, I joined Lisburn Borough Council in 1997 dealing with city status, the economy and environmental improvement. I took up a new directorship in 2000 in Ards Borough as the council was doing exciting precursor work on strategic planning and public sector integration. Then in the heady period of council and wider government reform I joined NILGA in 2011. What has been the biggest challenge during your years in local government? NI is a conservative place, institutionally speaking. We don’t take enough accountable, innovative steps to devolve power to local people, perhaps due to years of instability. Recently the absence of Stormont for three years meant that transformation is on hold. There are the skills sets and enthusiasm to do it, but we are shackled. However, like fifth columnists, NILGA changes from within and through innovative work we’ve achieved much to be proud of. We are small, dynamic, financially poor, yet rich in creative energy. Our new policy and learning groups are driving great local constituency work on the economy, the environment, investment in local communities and strengthening democracy. It’s clear that greater powers & resources for councils will really help NI’s communities reach full potential. Councils here can drive the regional economy, working openly with a range of businesses and social partners, identifying investment and policies which are needed in collaboration to create better infrastructure to sustain us in a volatile world.

FEBRUARY 2020

Name: Derek McCallan Position: Chief executive, Northern Ireland Local Government Association (NILGA) We have leaders who must be empowered; we need to give up as much institutionally led investment as possible in favour of devolved decision taking based on real evidence on the ground. Councils have tapped into this due to community planning – a rich vein of knowledge which should drive most government policy and spending. How would you describe your leadership/ management style? Collegiate. I dislike hierarchy – it’s a barrier to talent rising. Pooling our NILGA team skills and potential produced terrific work on matters like modern slavery, entrepreneurship, the environment strategy, elected member development – I’m proud of this enabling leadership. What would you change if you could go back and do it all again? Nothing. My role in NILGA and before that was one of being given the freedom to transform, so hindsight and retrospective thinking bore me. Have you done it all on your own? An energised team is vital to success. In my career, I’ve been blessed to work with those who have given their wisdom freely. Today, the small team we have grown at NILGA is brilliant as are the strategic partners we have locally &

globally – underpinned by working closely with each of the 11 councils. Trust is vital. We have a very high credibility rating – thereby turning trust into ideas and actions, collaboratively. What’s the future for local government in Northern Ireland? Our local councils have shown, in the absence of Stormont, that they can apply devolution and governance successfully. But with expectations rising, increased demands place massive resource challenges on them. ‘The Future of Local Government’ is the theme of our annual conference this year. On February 20, at Belfast’s Crowne Plaza Hotel, with Solace NI, we’re bringing together senior investors, public and private sector leaders, politicians, and social partners to explore, discuss and identify the investment, actions and policies our councils must seek to shape the future of our communities, environment and economy. With greater powers, resources and funding we can ensure local government is a significant driver for a more sustainable NI. What piece of advice would you give to a 20-year-old you? Travel. Broaden your horizons. Form opinions based on facts not prejudice. Don’t jump into a course or a job without thinking about the entrepreneur inside of you. Be competitive but generous too. π

APPOINTMENTS

Declan Kearney is now a Junior Minister in the Northern Ireland Executive. The Sinn Fein MLA for South Antrim has served as the party’s chairman. Nichola Mallon has now been appointed as Infrastructure Minister for the Northern Ireland Executive. The SDLP MLA for North Belfast is the party’s deputy leader and is formerly a Lord Mayor of Belfast. Gordon Lyons has been appointed as a Junior Minister in the newly formed Northern Ireland Executive. Mr Lyons is a DUP MLA for East Antrim and formerly worked for the party’s East Antrim MP Sammy Wilson.

Deirdre Hargey is now Minister for Communities in the Northern Ireland Executive. Ms Hargey is a Sinn Fein MLA and was co-opted to the South Belfast seat to replace Máirtín Ó Muilleoir. Edwin Poots has been appointed as Agriculture, Environment and Rural Affairs Minister. Mr Poots is a DUP MLA for Lagan Valley and has previously held the role of Health Minister. Peter Weir is now Stormont’s Education Minister. The DUP MLA for Strangford has previously held the ministerial role as part of a previous Executive.

Diane Dodds is now Economy Minister at the Northern Ireland Executive. Ms Dodds has served as an MEP and is taking over as an MLA for the Upper Bann region once the UK leaves the EU. Naomi Long has been appointed as Justice Minister in the new Northern Ireland Executive. The Alliance MLA for East Belfast was previously an MP for her constituency and is the leader of her party. Robin Swann is now Health Minister at the Northern Ireland Executive. Mr Swann is a former leader of the Ulster Unionist party and is an MLA for North Antrim.

APPOINTMENTS

Conor Murphy is now Finance Minister at the Northern Ireland Executive. The Sinn Fein MLA for Newry and Armagh has previously served as Minister for Regional Development. Stephen Boyd has joined Osborne King and works within the professional services/advisory department. He is a chartered member of the Royal Institution of Chartered Surveyors and a RICS registered valuer. The Department of Finance has appointed David Algie to the Northern Ireland Building Regulations Advisory Committee. He is an experienced building services engineer with more than 15 years in the construction industry.

The Department of Finance has appointed Ross Reid to the Northern Ireland Building Regulations Advisory Committee. Mr Reid is an architect with almost 20 years’ experience in the construction industry. Matthew McCallum joins the Ballymoney-based Seacoya Group as marketing manager. With almost 10 years of experience in marketing and communications, he will drive the Christies Direct division into a worldleading, digital-first, household name around the world. Barry Boreland joins Christies Direct as sales manager, from Bavarian BMW. His experience will see him build sales and customer satisfaction rates, working closely with marketing to enhance the reputation of Christies Direct around the world.

Rainbow Communications, has appointed Peter McConville as finance director at its Belfast-based headquarters. He joined Rainbow Communications as finance manager in 2015 from the Graham Group. Dr Leonard O’Hagan CBE DL has been appointed as a new pro-chancellor, and member of Senate, for Queen’s University Belfast. Dr O’Hagan is chairman of NI Water and a board member of INM. Damien Russell has been appointed as business development specialist at Rainbow Communications. He joins the company from the Newcastle-based registered voluntary and community organisation Mind Your Mate and Yourself.

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PHOTOCALL

1. Danske Bank employees and customers have raised £208,000 for charity partner Action Mental Health in three years. The partnership means more than 5,000 NI children and 800 parents and teachers will have benefited from the charity’s Healthy Me programme. 2. Michael Quinn with Centra sales director Nigel Maxwell at the new Centra at Donegall Square East, Belfast. Three new Centra stores have represented an investment of £2m by the retailer. 3. Mairead Mackle, founder of Tarasis Enterprises has been announced as the NatWest EveryWoman Woman of the Year award at the ceremony held recently in the Grosvenor Hotel, London. 4. Pictured launching the Digital Growth Programme are Mary Young from Invest NI, councillor Charlie Casey, chairman of Newry Mourne and Down District Council, Niamh Taylor from Alchemy Digital Training Ltd and Bill Keery, Mayor of Ards and North Down Borough Council.

5. Limavady-based entrepreneur Louise Tierney has launched Victoria Ivy Bridal Emporium with the help of the Go For It Programme, in association with Causeway Coast and Glens Borough Council.

PHOTOCALL 6. BelfastforLife has launched its inaugural BelfastforLife Expo, which begins in March. The initiative, hosted by the Abacus Talent Group, is supported by Belfast City Council, NI Connections, Visit Belfast, and a number of top Belfastbased companies. 7. Funeral business James Brown & Sons has expanded to south Belfast and Dunmurry by integrating with Funeral Partners, the third largest funeral business in the UK. Pictured is James Brown. 8. Business start-up and growth programme Yes You Can has returned for its second year with a ÂŁ20,000 pitching competition.

9. Sinead Carville, FinTrUâ&#x20AC;&#x2122;s head of human resources has been promoted to managing director, chief human resources officer. She is pictured alongside FinTrU founder Darragh McCarthy.

10. The Chartered Institute of Marketing in Ireland has announced the launch of its 2020 awards, with a new format. Pictured is CIM volunteer partnerships manager Philip Preston alongside CIM Ireland chairwoman Eileen Curry and board member Peter Craven.

FEBRUARY 2020

PHOTOCALL

11. Pharma firm Galen, which is part of Almac Group, has completed a deal to take on healthcare company POA Pharma. 12. Northern Ireland’s largest nursery chain, Clear Day Nurseries, has opened the doors of its eighth nursery in Lisburn, creating more than 40 jobs. Pictured are deputy manager at Clearly Kids Lisburn, Alessandra Matthews and operations director at Clear Day Nurseries, Audrey McCracken. 13. Caroline O’Neill, owner of DIGG Childrenswear in Dungannon is pictured with her four-week old daughter, Tess, after she demonstrated the goodwill of social media by raising £23,000 for Cash for Kids.

14. Northern Ireland’s leading children’s cancer charity, Cancer Fund for Children, has received a £5,000 Christmas charity gift from Danske Bank. Pictured is Danske Bank chief executive Kevin Kingston with Phil Alexander, chief executive of Cancer Fund for Children. 15. Helen Crilly (centre) receives the George Dawson Award from Viv Dawson, wife of the late George Dawson and Chris Conway, group chief executive, Translink and chairman of Business in the Community.

PHOTOCALL 16. Law firm Millar McCall Wylie has announced a sponsorship deal with hockey tournament the Kirk Cup. Pictured are Eugene Magee, Christopher McCandless, Millar McCall Wylie, Sheila Duffy, NI Children’s Hospice nurse, Marc Scott, Ulster Hockey, Jan Cunningham, Millar McCall Wylie and Jonny Bell. 17. Denise Stewart, store manager of Starbucks and Chris Flynn, centre director of The Junction raise their red cups to toast the opening of Northern Ireland’s largest Starbucks drive-thru at The Junction in Antrim, creating 25 new jobs. 18. Radius Housing is investing more than £21m in upgrades and improvements to its properties. Pictured are Radius Housing director of assets, Aisling McStravick, and Ryan Clarke, senior asset officer.

19. Ordnance Survey Northern Ireland (OSNI) has installed a new mobile mapping system which will revolutionise the collection of mapping data. Pictured are Jonathan Irwin and Mervyn Boyle, OSNI with Sue Gray, Department of Finance Permanent Secretary. 20. Armagh’s Impact Fabrications is embarking on a fresh global export drive after cracking the US market with a string of orders for its fast-growing range of Land Rover replacement parts. Pictured are Paul Coyle, director of Impact Fabrications and yard manager Des Coyle.

FEBRUARY 2020

PHOTOCALL

21. Alastair McCrossan and Richard Clarke of JW McNinch & Son Solicitors with Steph Ellis, corporate fundraiser at Northern Ireland Chest Heart and Stroke, showing support for the charity’s ‘Will You?’ initiative. 22. MAW Engineering has invested £2.8m in a new commercial vehicle venture, including a purpose-built manufacturing facility, creating 46 jobs in Toome, Co Antrim. Pictured is Invest NI’s Bill Montgomery and Mark Cuskeran of MAW Engineering. 23. Emma Marmion, managing director of Prestige HR, is the new president of Newry Chamber of Commerce and Trade. She takes over from BT’s Paul Convery and will be the chamber’s president until the end of 2021.

24. The Chartered Institute of Public Relations (CIPR) in Northern Ireland has elected Arlene McPhillips as the organisation’s new committee chair for Northern Ireland for 2020. She’s pictured with outgoing chair Rachel Burgoyne. 25. Lisburn-based Ad-Vance Engineering has been appointed as global supplier to one of the world’s leading automotive component manufacturers, which is headquartered in Canada.

PHOTOCALL 26. Eleven businesses have secured £2m of funding from Halo Business Angel Network during its first year of operation in Northern Ireland. Pictured are Claudine Owens and Jim Curran with John Phelan and Neil Simms. 27. Specsavers Lisburn has invested more than £200,000 in its newly refurbished store, which reopened in November. It’s celebrating its 15th anniversary of being in business. Pictured are Natalie Latham and Jill Campbell, Specsavers directors. 28. Co Down’s Graham Group has begun work on an almost £8m revamp of Blanchardstown Centre, outside Dublin. Pictured is Graham contracts director, Neill Gillespie.

29. New recruitment software business SeeMeHired.com is an online platform and app that streamlines the end-to-end recruitment process for both the employer and the candidate. Pictured are Johnny Matthews, Gareth Neill, Alastair Bell and Gary Irvine.

30. CBI Northern Ireland has appointed Adrian Doran (right) as its new chairman. He succeeds Fane Valley’s Trevor Lockhart (left). The pair are pictured with CBI director general Carolyn Fairbairn and Angela McGowan, CBI NI Director.

FEBRUARY 2020

THE CHAIRMAN

The Chairman Well-rested from a festive break he’s back out on the social circuit and ensuring the hottest tickets in town keep appearing in the post

f you thought I’d hung up the old tux and dickie bow, you’d be very much mistaken. Christmas proved an opportunity to reflect and take in the warming embrace of something strong and relaxing in the comfort of my own home. But while the social season may have come to something of an unofficial full stop at the end of 2019, we’re getting back to the swing of things in this new year, and new decade. Enjoying the warm confines of a leather-seated coach – forgoing the Chairman’s penchant for an executive saloon – it was the turn of a Co Antrim spa and hotel stalwart to try and make an impression in 2020. Galgorm Resport & Spa has a raft of food and drink

options, but it’s now invested significantly in its new lounge and bar, McKendry’s. Formerly Gillies Bar & Grill, McKendry’s is now a whiskey lover’s haven, boasting an encyclopedic whiskey collection of over 300 blends from 21 countries, and harks back harking back to the former McKendry’s bar of a bygone era, which served the local community from its premises in Broughshane Street, Ballymena before closing its doors. Among those turning out was journalist Mark McConville and Ciara McAllister, along with Chris Suitor from Suitor Brothers Tailoring and Nichola Suitor of Suitor Yoga, at the official launch night. Others making the journey included Catherine Moore, Kathryn O’Brien, and Emily Hancock, as well as Nicola Boyle and Annette Kelly, from Little Penny Thoughts. Speaking about the new venue, Colin Johnston, Galgorm Collection’s managing director, said the launch of McKendry’s represents the latest investment by Galgorm into its resort offering and reflects our ambition to continually innovate and push boundaries to affirm our position as a worldleading spa and golf resort. “We look forward to welcoming guests, locals and visitors alike to experience the warm hospitality of McKendry’s.”

And moving on to one of the biggest nights in the awards calendar, it was the turn of the Belfast Telegraph Sports Awards. World Superbike champion Jonathan Rea was once again the big winner, walking away with Sports Star of the Year Award for the third time in a row. And although he couldn’t make the night himself, the award was accepted by his wife Tatia, alongside Chris Nelmes, The Boulevard, Banbridge and Sarah Little, publishing director, INM NI. Jonathan was honoured at the glittering ceremony at Belfast’s Crowne Plaza Hotel, as 18 prizes were handed out to 11 different sports, highlighting a superb year of success for our sporting icons. Inducted into the Hall of Fame was Ulster and Ireland rugby legend Rory Best. The 37-yearold, who was joined onstage by his son Ben, amassed a sizeable and hard-earned list of honours from his time playing and captaining both Ulster and Ireland as well as representing the British and Irish Lions. Also turning out in style for the big night in the sporting calendar was former Ulster and Ireland rugby star Stephen Ferris, along with Gail Redmond. Belfast’s own boxing legend Carl Frampton joined his wife Christine Frampton at the event. The man himself walked away with the top gong in 2016. And representing team Belfast Telegraph was Sarah Heath, Jackie Reid and Karen McGarvey, along with other familiar faces such as Ruth Gorman, Pamela Ballantine, Claire McCollum and Paula Gracey. π

THE CHAIRMAN

Nicola Boyle and Annette Kelly, from Little Penny Thoughts at the official launch night of McKendry’s

Catherine Moore, Kathryn O’Brien, and Emily Hancock at the official launch night of McKendry’s

Ciara McAllister and Mark McConville at the official launch night of McKendry’s

Rory Best with his son Ben at the Belfast Telegraph Sports Awards

Ruth Gorman, Pamela Ballantine, Claire McCollum and Paula Gracey at the Belfast Telegraph Sport Awards

Nichola Suitor and Chris Suitor at the official launch night of McKendry’s

Carl and Christine Frampton pictured at the 2019 Belfast Telegraph Sport Awards

Sarah Heath, Jackie Reid and Karen McGarvey pictured at the Belfast Telegraph Sport Awards

Sarah Little, publishing director, INM NI and Chris Nelmes (right), retail director, The Boulevard, Banbridge, make a presentation to Tatia Rea on behalf of husband Jonathan Rea

FEBRUARY 2020

Stephen Ferris and Gail Redmond pictured at the 2019 Belfast Telegraph Sport Awards

TRAVEL

Family foray to picturesque Portugal Ed McCann and his family visit the Martinhal resort in Sagres, Portugal and finds out the coast offers up the usual plethora of sun and sand alongside an Irish connection

ortugal seems to be all the rage these days for many holidaymakers. While Spain is still by some distance the top destination for Irish sunseekers, its smaller neighbour seems to be gaining ground quickly.

The tourist boom is fuelling the Portuguese economy’s phoenix-like rise from the ashes of the recession and nowhere is better placed to take advantage of this than Martinhal in Sagres. This bespoke destination for families with young children is a self-contained resort in the far west of the Algarve – at a distance from the better known tourist resorts to the west such as Albufeira. Looking at the map before I left I thought it may be a bit too isolated – but that’s the beauty of the place. It’s in splendid isolation. The deal with Martinhal is that when you go, you never have to leave. It is like being on a cruise ship – except you’re not on the sea but looking out at it. There is a wide array of services on site, including high-quality restaurants, a small supermarket, a spa, tennis courts and swimming pools. It is cashless – so everything you buy is charged to your account. The resort aims to make your holiday as hasslefree as possible and that’s worth a premium to a lot of families seeking to have a relaxing trip abroad. You can even get an air-conditioned transfer (a high-end taxi) from Faro Airport to Martinhal which picks you up at arrivals. What I liked in particular about Martinhal is that it feels decidedly like a ‘special’ experience. From the moment you arrive you

get a warm welcome at reception from the multilingual staff, a complimentary soft drink as you wait and a golf buggy transferring your luggage to your accommodation. The staff fuss over your children and it feels like an occasion – and that’s before you have even got to your house. They do all the little things right. Martinhal is unique in my experience in that it is all about the children while at the same time catering for parents who want a bit of luxury or relaxation. Getting the balance between those two competing demands is quite a feat. For the children there are play areas, swimming and paddling pools, tennis courts and various outdoor activities. For the adults, there are the restaurants, bars and a spa. In full relaxation mode, I tried a massage which made a nice break from the sun. We were staying in a self-catering, twobedroom ‘Ocean’ house. The houses are beautifully designed. Our three-yearold succinctly described it as an ‘upside down’ house and it says a lot that the accommodation in itself was one of the highlights of the trip both for us and the little ones. The ‘upside down’ part comes from the fact that the open-plan kitchen/living area is on the first floor, while the bedrooms are on the ground floor. In fact, sitting on the balcony in the evening was one of the highlights of the holiday. A nice touch was a ‘welcome pack’ with various essentials. The supermarket may be small but has most of what you would need to get by if

you are self-catering. We ate out on two evenings during our stay at the Os Gambozinos restaurant which serves Italian food. The food and atmosphere were excellent. The restaurant overlooks a large outdoor play area where the children can play before, between and after courses. It also has a play area inside, as do Martinhal’s other two restaurants. Neither my wife nor I can swim but even we liked the pools. There are five throughout the resort, including one indoors meaning that they are never too overcrowded. It’s not every day you can say you’re away with the fairies but we genuinely were – there’s an Irish fairy trail, which came in handy as my six-year-old lost a tooth on holiday. Another Irish connection is that beauty products by Irish company VOYA are stocked on site. Martinhal is situated in a cove overlooking the Atlantic Ocean. We were told that it can be quite windy sometimes as you might expect but it was almost serenely calm during our visit. An added bonus was that there were no insects – the McCann family is often plagued by nasties when in hotter climates. Sometimes family holidays can mean you are on top of one another for the whole time away which suits some – but others like to have a little headspace now and again. The kids’ clubs are excellent and allow you to take a break from the wee ones – and let them get a break from you.

TRAVEL

Of course, you can leave the resort if you really want to. We walked along the beach to Sagres which is about a half-hour walk. The town has an end of the world feel and you could definitely film a spaghetti western there. But for someone who is normally into sightseeing and wandering, I can genuinely say I was happy to stay in the Martinhal resort for the five days. We took a stroll down to the beach before leaving and as the water lapped against the golden sand, we wondered why we hadnâ&#x20AC;&#x2122;t stayed longer. Ď&#x20AC;

FEBRUARY 2020

TECHNOLOGY

Own a Windows 7 PC? Get ready for big changes ahead Microsoft is switching off security support for Windows 7 and with one in five Irish Windows computers still stuck on the obsolete system, Adrian Weckler reports on what risks there could be for users

ne in five Irish PCs face significant security worries as Microsoft withdraws security support from computers running Windows 7.

The security shut-off means that if a Wannacry-style virus is released in the coming weeks or months, Windows 7 desktops and laptops will have reduced defences, leading to a potentially large loss of data. That is because Microsoft will release security patches for Windows 10 computers, but not for Windows 7 machines. Although the company has been warning about the January 14 date for over a year, 19.3% of Irish Windows PCs still use Windows 7, according to Statcounter. The figures also show that almost 1.5% of PCs still use Windows XP, while 0.4% use Windows Vista, both of which are already unprotected. About 1% of computers use Windows 8, which will face a similar security deadline in January 2023. Two years ago, Ireland faced a ransomware epidemic partially due to out-of-date Windows software on PCs. The malware, including Wannacry, shut down HSE services and caused a number of small businesses to pay criminals hundreds or thousands of euro in cash to unlock their PCs. Hundreds of thousands of Irish PCs face potentially similar vulnerabilities, except for those who pay a new premium for security ‘extended support’. Microsoft Ireland is still declining to say how much the premium

support will cost, adding that it is likely to depend on a case-by-case basis between businesses and their suppliers. Reports last year suggested that Microsoft was briefing enterprise customers on the likely cost. For Windows 7 Pro, the cost was reportedly almost €50 for each device for the first 12 months, double that for the next 12 months, and then double again (almost €200) for the remaining 12 months. So an organisation with 1,000 PCs using Windows 7 Pro could face an upfront security fee of €50,000 in 2020, rising to almost €200,000 in 2022, if they do not sort out upgrades in time. “If an organisation waits and purchases extended security updates for the first time in year two or year three, they will have to pay for preceding years as well, since all security updates are cumulative, starting January 2020,” Microsoft’s official guidance document says. “After support has ended in January 2020, organisations will no longer receive regular bug fixes and patches, and the help desk will not be able to provide support.” However, experts warn that companies which have not yet started to switch away from Windows 7 will be stuck paying Microsoft premium protection fees for the foreseeable future. “In our experience, migrations from previous versions of Windows involving Irish organisations with more than 200 users took 12 months to complete on average,” said a report on the issue from the Irish consultancy Auxilion last year.

“Of course, there are instances where the process can be completed in a much shorter time, but in almost every case, the migration time was much longer than initially anticipated by the client.” The overall cost to Irish business, Auxilion’s report said, could be as much as €200m, based on the number of corporate devices in the market. And there could be a squeeze on resources to help the process. “Companies in that situation have no guarantee that a quick solution will be available in 2020, as demand for migration support services is likely to remain strong for quite some time,” the report said. Comparisons are being drawn with the chaotic end-of-support problems that occurred when Windows XP was cut off from security support five years ago. Millions of company PCs worldwide were still using the operating system, and a wave of viruses and malware caused havoc among private enterprises and state organisations. Public sector organisations, including hospitals and schools, were hit by malware and had to pay emergency fees for remedial action. The HSE had 1,500 systems using Windows XP when the Wannacry malware epidemic struck. A similar problem was faced by companies running devices such as ticketing machines, CCTVs, ATMs and public signage. For big organisations, the cost to update all of this was calculated in the millions rather than the thousands. The problem became so bad that Microsoft agreed to waive its

TECHNOLOGY

end-of-support rule and provide patches for machines with XP. “Microsoft’s extended support means that some IT departments have taken their foot off the gas on the issue, which is disappointing,” Conor Flynn, managing director of ISAS, says. “It’s allowed people to be sloppy and lazy. The danger is going to be that some will afford it and get their patches but there will be a sense of complacency among other

FEBRUARY 2020

people who hear that there’s support and think that they’re protected, when in fact they’re not. “The communication hasn’t been clear that you will only get these if you get into a contract with Microsoft.” He said that some companies put off their upgrades because they were late replacing Windows XP. One of the features of Windows 10 is that it no longer requires wholesale replacement for Microsoft’s next upgrade. The firm is trying

to encourage companies that have held off upgrading into adopting the current system. Microsoft said that the cost of Windows 10 is €260 for a small business or €145 for a home version. “The best way to experience Windows 10 is on a new PC,” the company said. “While it is possible to install Windows 10 on your older device, it is not recommended.” As for what small companies can do now, Microsoft said they should go to a third-party vendor. π

Uncovering the 9-5 NAME: Simon Hamilton

POSITION: Chief executive, Belfast Chamber

6am I wake quite early, eat a quick breakfast, catch up on what’s in the news and then head out the door to work. I commute most days on the Glider. It’s a great service. I love reading but I don’t get much time for it, so I use the half hour to myself to enjoy a good book.

9am I tend to start the day catching up with colleagues or with Belfast Chamber board members like our president, Rajesh Rana. The time and energy that board members give to help the enhance the economy of the city is impressive.

8am By this time I’m in the office. I find that this is the most useful and usually most productive hour of my day. I spend some time mapping out what I need to do that day and usually send a whole host of emails.

10am Before I started as chief executive of Belfast Chamber, I sought some advice from a friend who works in a similar job. He told me that it was all about ‘meetings, meetings and more meetings’. At 10am I will be out of the office doing exactly that. A significant part of Belfast Chamber’s work is about making sure that our decision makers hear from the city’s business community about the kind of support we need to create more jobs and grow Belfast’s economy. I spend a lot of time at meetings in City Hall. Belfast City Council is an important partner for Belfast Chamber and together we are committed to helping Belfast reach its full potential. With the Executive thankfully back up and running again, I’m sure I will be spending some more time back at my old stomping ground at Stormont.

11am At the minute, I am putting a lot of work into planning for Belfast Chamber’s BelFastForward Conference which is on February 27. The aim of the event is to bring together Belfast’s business community and other city stakeholders to help shape a shared vision for Belfast so that we can maximise the positive impact of the unprecedented period of growth the city is undergoing. I am typically spending an hour or two a day talking to some of our excellent speakers and sponsors or making sure that the logistics for the day are being put in place. 1pm I normally try to take some time to stop and eat lunch although more often than not this would be at my desk. This is the first time in 20 years that I’ve worked in Belfast, so I regularly try to get out for half an hour and walk around the city centre. It’s always great to see all the change Belfast has undergone. 2pm Belfast Chamber is first and foremost a member organisation so I devote a big chunk of the diary every week to meeting with businesses in the city to ensure that I’m up to date about what issues are affecting them and how Belfast Chamber might be able to assist. 5pm I like to spend an hour at the end of the day back at my desk, working through any emails that need action and maybe doing some preparations for the following day. If I don’t have to go to an evening event, I usually leave the office around 6pm and start the journey home. 7pm It’s good to get home after a busy day and I enjoy sitting down for dinner with my family. After getting the kids to bed, my wife and I like to relax in the evening by watching TV. Our viewing habits are wide and varied, ranging from Love Island to a Nordic noir crime drama.