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.

The survey included members of Retail NI, Manufacturing NI and Hospitality Ulster and was conducted in September 2020, prior to the latest COVID-19 restrictions being imposed across the province. Over 50% of respondents indicated they are ‘concerned’ or ‘very concerned’ about their performance in the year ahead, with a further 29% saying they are ‘uncertain’.

When asked by how much their employee headcount will change by this time next year, one quarter (25%) of businesses predicted that it would be ‘up to 25% lower’, with 17% saying ‘up to 50% lower’ and 6% saying ‘more than 50%’ lower. Only 9% of respondents said their headcount would be higher, with 44% saying it would be ‘similar’.

Just 12% of respondents predicted that their turnover would be higher this time next year, meanwhile, almost one quarter (23%) estimated that it would remain ‘similar’. Of those suggesting that their turnover would reduce over the coming year, 26% said it would be ‘up to 25% lower’, whilst 25% said it would be ‘up to 50%’ lower and 12% claimed it would be ‘more than 50% lower’.

“It is clear that significant challenges will lie ahead for these businesses across what are among the sectors worst-hit by the coronavirus pandemic,” comments Davy Elliott from Duff & Phelps. “Whilst these results are concerning, it is encouraging to note that respondents are proactively taking steps to protect their businesses and boost recovery efforts in the coming year and beyond.”

While 40% of respondents said they will consider restructuring their business in the next 12 months, 27% said they intend on repurposing or diversifying their product line. Sixteen percent (16%) will endeavour to renegotiate their existing lease terms, while 15% will seek to refinance their business.

“We have been involved in a number of restructuring cases where we’ve completed an independent review of the value of a business and its assets. This has helped guide stakeholder assessment and decision making, particularly where multiple parties are involved, and brought the requisite level of independence and integrity to the process,” Elliott added.

The survey respondents also identified a range of support initiatives they will rely on to help their businesses recover from COVID-19 in the coming year. Over two-thirds (69%) of businesses will call upon government grants or loans, with 51% also relying on employee retention support. Two-fifths (41%) will seek to defer HMRC payments, while one quarter (26%) will seek new or additional bank lending and 37% will focus on marketing and promotional development activity.

When asked to share their thoughts, the Chief Executives of Trade NI. Glyn Roberts, Stephen Kelly and Colin Neill said: “What comes across very clear from the survey of our respective memberships is the vital importance of the rates holiday and the need to extend it further from April 2021. If our economy is to stand any chance of recovery, further rates relief will be needed throughout next year to support our members as we rebuild our shattered economy.”

There are steps that businesses across the retail, hospitality and manufacturing sectors can take in the coming months. Anne O’Dwyer, Managing Director and Co-Head of Duff & Phelps adds: “Whilst it is challenging to accurately forecast trade over the short to medium term given the current flux in the market, having a clear picture of expected cash flows is essential.”

Duff & Phelps is the world’s premier provider of governance, risk and transparency solutions. We work with clients across diverse sectors in the areas of valuation, corporate finance, disputes and investigations, cyber security, claims administration and regulatory compliance.

“Trading projections can be flexed as the environment changes but highlighting potential funding gaps or cash constraints will assist businesses as they look to negotiate with stakeholders or apply for additional funding supports,” she said.

The post NI Business Recovery Survey Shows Significant Concern first appeared on Neighbourhood Retailer.