On Thursday 13^th July, representatives from umbrella group Trade NI were hosted at a reception in Iveagh House, Dublin by Micheál Martin, Tánaiste and Minister for Foreign Affairs. A large delegation of NI business leaders also attended the reception.

The report – ‘A Region Transformed and Creating Prosperity for All. Northern Ireland – The Prosperity Dividend’ – was carried out by BDO NI on behalf of Trade NI.

Seeking to provide a blueprint for driving growth and prosperity in Northern Ireland over the next 10 years, it calls for a planned programme based on four priority areas:

*Deliver a clear economic strategy for NI

*Reduce the regulatory burden on business

*Increase the productivity of the NI workforce

*Increase the skills base of its workforce

PRIVATE SECTOR INVESTMENT

A key focus will be on increasing investment in the private sector to reduce the dependence on the public sector in Northern Ireland which stood at 27%, above the UK average of 18%. Northern Ireland currently has over 1,200 foreign-owned companies currently with a presence in Northern Ireland, with over 70% planning to make further investments.

Recommendations in the major economic paper include:

* Focus on people: initiatives to attract skilled workers; investment in universities and higher education to prevent ‘brain drain’ from the region; development of academies to help transfer personnel from the public to the private sector; and skills tax incentives for business.

* Trading: capitalise on Northern Ireland’s unique trading position vis a vis the UK and EU markets provided by the Windsor Framework.

* Funding: investment in infrastructure projects to bolster key economic locations as conduits for foreign direct investment; enhanced air connectivity and abolition of air passenger duty.

* Green economy: Develop green opportunities including push for 80% target for renewable energy by 2030.

* Planning: overhaul the planning process which is currently deemed to be a major impediment to economic growth and progress in the region.

* Innovation hubs: develop through existing initiatives such as the 10X Strategy.

* Urban regeneration: establish multifunction hubs incorporating business, libraries, community services, health and education, and sports.

* New business forum: Establish a new forum from Government, trade bodies, business, finance and environment.

* Marketing: promote Northern Ireland in its true light as a great place to live and work.

‘UNTAPPED POTENTIAL’

Commenting in a joint statement, the Chief Executives of Trade NI, Glyn Roberts (Retail NI), Colin Neill (Hospitality Ulster) and Stephen Kelly (Manufacturing NI), said: “This is a blueprint for economic growth and prosperity for Northern Ireland.

“Over the last 25 years, Northern Ireland has enjoyed the benefits of a peace dividend. Over the next 10 years, the focus should be a prosperity dividend. Our vision is for Northern Ireland to become the very best place in these islands to locate, start and scale up a business.

“Northern Ireland has vast untapped potential. We have demographics on our side with approximately 40% of our population under the age of 40. We have a skilled workforce, a steady pipeline of talent from our higher and further education institutions, dual market access to the UK and the EU, and emerging clusters in new industries like tech, cybersecurity, health and life sciences. But there is so much more we can achieve if we get the fundamental building blocks in place.

‘Our vision is for Northern Ireland to become the very best place in these islands to locate, start and scale up a business’

“We must make progress on ensuring political stability at Stormont, fixing our planning system to facilitate speedier construction of major capital infrastructure and economic projects, investing in our educational institutions to ensure our workforce of the future has the right skills and competencies, capitalising on our dual market access, benefiting from the all-island potential, and reforming our public sector to remove our dependence on it.

“Today is a historic day when we bring a significant Northern Ireland trade mission to Dublin to deliver a positive message about Northern Ireland’s bright prospects to potential investors and key decision-makers from the Government, the Oireachtas, business and the diplomatic community. We must ensure that the prosperity promised by the Good Friday Agreement becomes a reality in the coming years.”

‘IMPORTANT CONTRIBUTIONS’

Micheál Martin, Tánaiste, Minister for Foreign Affairs and Minister for Defence, said: “In the years since the Good Friday Agreement, Northern Ireland has been transformed into a leading place to live, to visit, and to do business.

“The business community has been central to bringing about this transformation, driving economic growth and creating jobs for communities across Northern Ireland.

“This report is an important contribution to our understanding of the economy in Northern Ireland, setting out an ambitious economic vision for the years ahead. It sets out what needs to be done if Northern Ireland is to maximise the economic dividend of the peace, as well the unique opportunity provided by dual access to both the UK market and the EU’s single market for goods.

“I welcome the spotlight it contains on the important and growing North South dimensions of trade and business on this island, and how the report challenges us about what we can do together to secure a better and more prosperous future for Northern Ireland.”

Brian Murphy, BDO NI Managing Partner, added: “Northern Ireland has been on a transformative journey over the last 25 years. We have witnessed the expansion of new sectors such as renewable energy, legal services, film and television and we believe even better days lie ahead.

“There is a real belief within the business community that NI can become an economic powerhouse, where business, innovation, and creativity flourish. Also, given our unique position as a bridge between the EU and GB, it is critical that we look to the opportunities this affords us to grow our economy in a spirit of co-operation across the island.

“The significant Irish Government support for initiatives such as the Shared Island Fund is also so important in helping us achieve our potential in Northern Ireland. Working together with all our partners will be a key part in helping us transform the economy for the benefit of everyone.”

The post Major prospectus for economic growth in Northern Ireland launched in Dublin first appeared on Neighbourhood Retailer.

Aodhán Connolly says it’s been a privilege to helm the Northern Ireland Retail Consortium over the last 10 years – but admits it’s been far from peaceful.

Now heading to the continent to take up the role of director at the Brussels Office of the Stormont Executive, he runs through the rollercoaster of landmark moments since he took up the reins at NIRC back in 2012.

From Large Retailer Levy to online shopping, and from the childrenswear guidelines to the arrival of the pandemic, there is no shortage of landmark moments in his 10-year journey.

“It’s been a complete Groundhog Day every time we talk about business rates,” he admits.

“Ten years ago when I started at NIRC we were talking about how the business rate system was inequitable towards retailers, and it still is. We’ve an antiquated system of rates that is no use to man nor beast and actually stifles investment.

“As well as that, we had things like the horsemeat scandal in 2012 and those were long weeks, working to reassure the public. But these last few years have been taken up by Brexit and the Protocol and Covid, and at the end of it the war in Ukraine.

“But as anyone who knows me will tell you, I’m a bit of a workaholic anyway. It’s been one of the most wonderful experiences of my life, being able to effect real tangible change, not just for the retail industry but for households and consumers across Northern Ireland – that’s been a real privilege.”

Skill set

Surprisingly, he had no experience of retail when he started in the role.

“I had lots of experience in hospitality, working in restaurants and bars, going to Unite, and there’s a similar skill set when it comes to everything from using POS to dealing with customers,” he says.

“One of the things I did with the Retail Consortium was spending a lot of time in the shops and talking to people other than just managers to try and see what the experience of the employees was. The industry is only as strong as the people working in it and that was very important.

“I was advising the Retail Consortium for a couple of years when I was working for Chambre Public Affairs and then in August 8th 2012, I joined the Retail Consortium.

“It was strange because there had been a British Retail Consortium and a Scottish Retail Consortium for many years but there hadn’t been one in Northern Ireland.

“At that stage there was a lot of legislation that was coming through as the Assembly was flexing its legislative muscle and that meant we were seeing things that could affect retaiL. The biggest of those was the Large Retailer Levy, and really that was one of the reasons the Retail Consortium was set up, to deal with that levy.”

Strong sector

As something of an unexpected legacy of the Troubles, Northern Ireland has always had a strong independent retail offer, Aodhán says.

“You’ve got to remember that other than Boots and M&S, the major grocers really didn’t come in until after the Good Friday Agreement and we were a growth market. In fact, we’re still not at saturation point in Northern Ireland – there are still places where you have to travel quite a while to get a good grocery offer,” he says.

“We were seeing changes in consumer behaviour – we were really starting to see Northern Ireland catching up with things like online where we were behind.

“I started advising the British Retail Consortium in 2010/2011 and we were still well behind the rest of the UK then.

“But what we saw that Christmas 2012, especially January 2013, was this huge spike in online and mobile click, and that was quite simply because one, there was a roll out of broadbands and internet services, but more importantly it seems that every man, woman and their goat got a smartphone and suddenly it was more accessible for people to shop around.

“That’s been good and bad, depending on how you look at things. What we’ve seen is economic Darwinism in the fact that those retailers, whether independent or multiples, who weathered the storms, that recovery after the 2008 crash and the problems we’ve had after these last five  years or so – it’s the people that can adapt but adapt without losing their USP have been those who have been the most successful.”

Pandemic challenge

The pandemic has probably been one of the biggest challenges Northern Ireland’s retail sector has ever faced, and Aodhán pays tribute to the way in which staff stepped up.

“They say you can tell the mettle of a man or a woman by how they act over a crisis, and I think the fact that all of the retailers stepped up during Covid has been… As far as getting deliveries for vulnerable people, even some of the small franchisee retailers were providing delivery services and looking in on the neighbours, that sort of  stepping up and really delivering for the community and working together,” he says.

“I was on many, many calls with the Northern Ireland Executive with different ministers, not only as far as keeping our customers safe but keeping shelves full and explaining to people that there was no need to panic buy.

“But the real heroes were the staff who went in day and daily , the essential workers, should that be from the warehouses right through to front of house staff. I tip my hat to them.

“Over Covid and then with the Protocol coming in, retailers and logistics worked really hard together.”

Careless talk

One thing he cautions against that has come to the fore over the past couple of years is the danger of careless talk.

“There were people saying that grocery supply chains were within five days of collapse over Covid, then they said the same over the Protocol and then they said the same over the Ukraine stuff and the P&O stuff,” he says.

“And to be honest, one of the biggest lessons that I would say to anyone is stick with the facts, do not scaremonger and realise that your words have consequences.

“That’s something that I’ve learned through bitter experience over the 10 years. People who have a public platform have a responsibility and that’s hugely important.”

Aodhán says he is still amused to see himself labelled as a Brexit expert.

“The BBC had a headline about me taking a new job and they called me a Brexit expert, which is wonderful and I’m very flattered,” he says.

“But Brexit and the Protocol is not one monolithic homogeneous thing. Customs is a many tentacled thing, as is SPS. I think that’s one of the things, should it be on the Protocol, should it be on Covid, should it be on supply chains in general, there are a lot of people who oversimplify things, whereas my understanding as far as what I know is I know some of it, but there’s a helluva lot more for me to learn.”

Frictionless trade

While Brexit is a contentious subject, what all political parties are agreed upon is the need for frictionless trade between Great Britain and Northern Ireland, he says.

“I think one of the things the Protocol did that I’ll be eternally grateful for was it gave me the chance to convene the Northern Ireland Business Brexit Working Group, and it was one of the privileges of my life to be able to work with those members, people like Kirsty McManus from the IOD, Stephen Kelly from Manufacturing NI, Stuart Anderson from the NI Chamber and Roger Pollen from the FSB,” he says.

“If you’d told me five years ago that I’d be standing shoulder to shoulder with the UFU and the NI Food and Drink Association when we’re usually taking potshots at each other, I wouldn’t have believed you.

“But we built up some trust, we built up some common goals and a vision of where we wanted to get to and most of all we built up some friendships.

“Personally, if there’s one good thing that came out of all those debates it s the friendships and the business groups working together in a way that never had happened before, and the fact that that is going to continue on with Stuart Anderson as the convener after I’ve left is a great comfort to me.

“I set it up in 2019 because the narrative in Westminster and in the EU was that Northern Ireland was sorted under the Protocol. The group came together to try and get amendments and it was the first time in about 14 years that all five of the major political parties agreed on amendments.

Working together

“Now it didn’t pass, but that’s not the reason for the amendments – the reason of the amendments was to get a debate, and the fact that that group has met with vice presidents and presidents, foreign ministers and has been quoted by different people… We even heard that some of the leaders at the G7 were mentioning some of the work that we’d done on the Protocol, like Biden and Merkel, so you can’t get much more of an example of the strength of people working together than that.”

As for the future health of Northern Ireland’s high street, Aodhán points out that the most successful high streets across the world have been people-based – “It’s about destination retailing, it’s about getting people to spend their time as well as their money.

“For some places it’s a high street that is vibrant at night with offices and a good hospitality and retail mixture.

“For other areas it’s because they have things like people living over the shops which creates a very strong community basis, but as well as that you’ve got ready-made footfall.

“But to do that there needs to be capital investment and there needs to be facilities, and those facilities need to include things like doctors’ surgeries and schools and other things that are needed to make it a community, rather than just a place that you go, as my mum would say, for your messages.”

The post Hats off to the retailers who stepped up: former NIRC director Aodhán Connolly on a decade in retail first appeared on Neighbourhood Retailer.

Encirc, which makes glass bottles for the food and drink industry at its plants in Fermanagh and the north-west of England says profitability is being hit hard and it may be forced to look at passing price increases on.

Managing director Adrian Curry told the BBC that the firm typically spends £40m a year on energy, but the sharp rise in gas prices means that could hit £100m this year.

“There seems to be no cap to it and it’s continuing to rise on an almost weekly basis,” Mr Curry said.

“Generally we will have contracts for 12 months at a time, so we’re having to look at what contracts are offering… how we can pass these price increases on and how we can protect our business in that regard.

“Our businesses are not at risk, per se, but our profitability is being hit hard.”

Encirc’s Derrylin plant is one of Northern Ireland’s biggest industrial gas users.

High energy costs have been forcing manufacturers across the UK to warn of higher prices for their goods as they pass on increases to consumers.

Some firms say they may be forced to shut down their factories if the rising cost of gas and electricity makes it uneconomic for them to produce their goods.

Manufacturing NI (MNI) says companies are also seeing sharply rising electricity costs.

MNI said that October sees old contracts expire and new ones come into effect and that some firms have seen “prices doubled and more”.

The post Encirc faces energy cost rise of up to 150% first appeared on Neighbourhood Retailer.