27 March 2015

If we don’t build it they won’t come !


 
The ‘it’ we are referring to is Northern Ireland’s skills base. Now with the very real prospect of an attractive rate of corporation tax in Northern Ireland, following the news that Royal Assent has been granted for corporation tax varying powers, it is important to remember it is not a silver bullet for the local economy. Equally important is the need for a steady flow of skills and talent to meet the needs of a modern knowledge based economy.
To date, much of the focus has been on corporation tax powers and while there is still more work to do on the eventual implementation of the powers, at face value it represents a great addition to our economic armoury. Those involved in GROW NI who have championed the cause deserve great credit.  On its own however, it is not enough and you have to question the efficacy of current government planning and whether there is joined up thinking - especially when you see where some of the budget cuts are now falling.

Jim Stewart, Chairman of Sentinus,  the leading educational charity which delivers Science Technology Engineering and Maths (STEM) engagement programmes to over 60,000 pupils across Northern Ireland, has said that recently announced “Budget cuts to STEM education will have a detrimental effect on our ability to attract young people into the sector and in turn severely hamper the growth of the local knowledge economy.”  He has a very valid point. Calling the cuts "short- sighted” he argues strongly that they run entirely contrary to core government strategies designed to build a knowledge economy and attract additional foreign direct investment  - central to which is an attractive rate of corporation tax. Following the logic,  if corporation tax does indeed make Northern Ireland a more attractive place to invest, we actually run the risk of creating unrealistic expectations with inward investors which down the line we can’t fulfil. They will only come if we have the right talent with the right skills – and we know increasingly that in a knowledge based global economy that means STEM based skills.

Sentinus and others in the STEM education space have had major cuts to their relatively modest budgets which have resulted in some popular school programmes having to be shelved. This is despite clear evidence that the work they do delivers significant return on investment and are a vital part of engaging with the next generation of engineers and broader knowledge economy talent.

They and others operate at the critical early seeding stage, their work designed to encourage more of our young people (and their parents) to see the value and critical importance of STEM subjects for modern economies.  Even with current funding they struggle to meet demand – and that is with the schools which are already engaged and which have already bought into the strategy. There are many other schools which aren’t fully engaged and which still need to wake up to the necessity of a STEM educated workforce. This would suggest we need more STEM advocacy and promotion in our schools – not less.  
According to Sentinus, the latest cuts are already affecting our young people and their educational experience in the important STEM subjects. They are convinced that unless these cuts are reconsidered, in the long run they will severely hamper our aspirations to grow a knowledge economy and our ability to service the demands of future inward investment.  It’s hard to disagree.

If that wasn’t bad enough, other cuts proposed in third level and higher education are likely to also impact negatively on our skills offering and again seemingly contradict other elements of our economic strategy.
We understand that the Ulster University Economic Policy Centre is currently working on a skills barometer which might bring some much needed focus to the potential gaps in our strategic thinking. The need for investment in skills and the benefits derived from an educated workforce have been recognised for a long time. However, it is clear that the appropriate information is not available to assist young people to take well informed decisions about their future careers or for  industry to highlight their changing needs. Hopefully it will also prove useful to our local decision makers when they are considering future economic strategy and prioritising budgets.

An analysis of economic activity per head in each of the 12 UK regions and the levels of qualifications in those regions shows a very clear correlation between these two factors. While London is the clear ‘winner’ unfortunately Northern Ireland is one of poorest performing regions. This makes a very strong case for further investment to deliver a strong skills base in Northern Ireland. If we build it, and offer an attractive rate of corporation tax, investors and jobs will come.

 

 

13 March 2015

Is an Export Food Marketing Body for Northern Ireland finally on the Menu ?



 
The argument for a single focus export food and drink marketing body for Northern Ireland has never been stronger. The recent endorsement by the DETI Minister for its creation is hopefully an important step in the right direction. As always however the proof of the pudding will be in the eating.
We just have to look over the fence at our near neighbours in the Republic of Ireland and Scotland if we are in any doubt about its importance. Under the banner of Scotland Food & Drink, their single minded focus has paid dividends. In 2012 the industry’s turnover hit £13.9 billion – representing the largest increase in turnover of all growth sectors in Scotland, even out-performing oil and gas. And they keep growing; initial growth targets were smashed a full six years early and, not surprisingly, they have now set their ambitions even higher.  
Our other Celtic cousins have also reaped the benefits of a focused and well-resourced marketing strategy, led by Bord Bia. Their latest figures show a 4% increase in exports for 2014 to reach a record high of almost €10.5 billion - the fifth consecutive year of export growth representing an expansion of 45% or €3.2 billion since 2009. And remember this was against the backdrop of some of the most challenging economic times for a generation.
Northern Ireland clearly enjoys many of the same ingredients which have led to that success. Just like Scotland and the Republic of Ireland we are blessed with some of the world’s most amazing natural resources. Our land, our water, our seas – all provide the foundation for the raw materials that underpin our strong tradition of quality food production.  Supply chain integrity is a key credential, as is a newfound hunger to exploit our potential. We also have a wealth of quality food and drink producers at all levels. Consider the amazing success of our artisan food companies at the recent Great Taste Awards in London, where 99 NI companies took 264 awards, far beyond any other region of the UK - a clear demonstration that we are able to compete with the best.
But we are missing one vital ingredient that both our neighbours enjoy: a focused and well-resourced export food marketing strategy, delivered by a single body which can take these inherent strengths, package them and present the ‘Northern Ireland Food and Drink’ stall to global markets.
The opportunity is now truly global. The world’s population is expected to increase from 7 billion today to 9 billion by 2050. It is estimated that 12% of the world’s population - 842 million people - don’t eat enough to be healthy. And by 2030, the world is expected to need 40% more water and 30% more energy. There is also pressure on our resources like never before. Globally, food is, and will remain, a critical issue.
The Northern Ireland Food & Drink Association (NIFDA) has long argued that an export food and drink marketing body should follow the Scottish and Irish model and be a new NDPB funded by both government and industry to fulfil a range of tasks. These would include encouraging closer working and collaboration between the industry and government, and within the industry itself, as well as developing a more strategic approach to identifying and exploiting key markets and opportunities. To do that we need a body which can help develop critical mass in key markets and provide a range of services to accelerate external sales growth with specific market expertise, knowledge and access support.  That all makes perfect sense and should be the final destination, even if we have to bite off a bit at a time.

Our unique geographic and political position represents a distinct advantage, but only if we play our cards right. GB is a large market and a net importer of food. Our very close proximity and same food standards, legislation and currency is a major plus. The presence of major UK retailers in NI and our ability to label our products as British gives us a distinct advantage compared to other EU competitors including the Republic of Ireland.

Meanwhile, the developing economies – BRIC, Africa, Middle East – have a much higher rate of growth with a growing population and increasing wealth, and they are also net importers of food. Here we need to establish our supply credentials  of quality and product integrity, and ensure we have the necessary market knowledge as well as meet the necessary import qualifications/quotas.

In the EU & USA markets, while there is likely to be relatively low growth there are still huge opportunities for Northern Ireland producers due to these consumers’ affluence, cultural awareness and affinity with the island of Ireland, and the reputation we enjoy for quality food production. Just as the Republic of Ireland has done, we need to develop a distinct USP and build on that reputation.  

Many will now watch with interest to see how Ireland takes advantage of its position as the first European country to be granted full access for its beef in the US market after the ban on European beef imports was lifted in January this year. The ban had been in place for almost 16 years, since the BSE crisis in the 1990s and should now provide a multi-million euro boost for the Irish beef industry. No doubt we will see a significant marketing push on the benefits and USPs of premium grass-fed Irish beef into the lucrative US beef market. It may start niche, but a slice of the US beef market is still big business.

While the export potential for NI is very clear, we now also better understand the importance of a vibrant food and drink sector to the local tourism offering. Just as Scotland and the Republic of Ireland have discovered, it is increasingly a key consideration for visitors.  A recent survey for Scotland revealed that 49% of visitors cited ‘trying local food’ as one of the top activities, whilst 66% thought that the quality of food is important when choosing Scotland as a destination.

There is no doubt that the Agri-Food Strategy Board has brought a renewed focus to the importance of our food and drink industry and has spelt out the scale of the opportunity both home and abroad. We now need a step change in activity if we are to achieve the targets set out in the ‘Going for Growth’ report, specifically if we are to raise exports by 75% and create the 15,000 new jobs projected.

EU-backed programmes such as Access 6 are a credible start: bringing together NIFDA, IEA and Scotland Food & Drink, it aims to increase export sales by £19million across 90 regional food and drink manufacturers over a three year period.  But sales need support and we must now prioritise the promotion of Northern Ireland food and drink in export markets to realise our full potential. The risk of doing nothing will leave us at a distinct disadvantage compared to our closest neighbours and competitors.  Let’s hope that the powers that be have firmly put the creation of a ‘Northern Ireland Food and Drink’ export marketing body on the menu and are prepared to pick up the tab.

6 March 2015

Blown Away to Stornoway....

Jane Watson, Events Director explains how and why she ended up in Stornoway for 3 days in March….

Following the hugely successful British Ports Association (BPA) conference in October 2014 on behalf of Warrenpoint Harbour Authority, Morrows were approached in January this year by the Stornoway Port Authority (SPA) who are hosting the 2015 BPA Conference to assist them with event logistics, planning and delivery.  Ports are the lifeblood of the towns and communities in which they are located – importing and exporting supplies & freight, employing local people in operations and transferring ferry and Cruise passengers visiting the area.  This is true right across the UK (and Ireland) – from the southern shores of Dover who host 2016 to the Outer Hebrides where Jane found herself.

“Contemplating my trip to Stornoway focussed mainly on BBC News’ weathergirl Carol for the few days before, who often highlights the Islands in the daily forecast – and as suspected snow and rain was in the picture. (Nothing we’re not used to, no sweat I’ll pack my wellies just in case).  The journey from Belfast was pretty good, after a short de-icer delay in Belfast within 4 hours of leaving the office, including a short stop in Inverness departure lounge (where I mistakenly picked up a bag of Haggis & Cracked Black Pepper crisps and burnt the bake of myself!) courtesy of Flybe and Loganair, I was there. 


 

Flying over the snow-capped ‘Harris Hills’ (separating Harris and Lewis – 2 ‘Isles’ with 2 kings, but no water in between) it was like a winter wonderland but stepping out of the plane reminded me of the last scene in the Bond film – Skyfall – miles and miles of low lying, rustic brown moorland and I even saw two Stags on the roadside (apparently they only come out in the rain, but my host Magda hadn’t seen them very often – really?). 

Magda Choluj is Marketing Manager with SPA, originally from Poland but has lived almost everywhere (she has a motorhome with her Tasmanian partner Bo), but settled in Stornoway for over a year.  Magda had a jam-packed recce planned for us in the space of 48 hours….

The Conference venue is An Lanntair an arts centre and creative gallery space which is fully funded through their commercial activities and grant applications – they have excellent facilities for the BPA conference, and overlooks the Harbour. 

The Cala Hotel group operate three properties on the island - The Royal, The Cabarfeidh and the Caladh Inn and we have already booked out most of the bedrooms on the island for BPA. The Royal Hotel overlooking the marina was my abode for 2 nights – a traditional style hotel which is well equipped with a big telly, plug beside the bed, and wifi on every floor – the breakfast was good too with personal and attentive hotel staff wherever you went. 

During the BPA conference, day trips are planned for guests joining the BPA members – this is really the best way to explore the island which can be done from 1 end to the other in about 4 hours. We’ve planned a trip to a Harris Tweed factory, Whisky & Gin distillery (set up by Village residents), Standing Stones, Black Houses, Beaches, Ancient Churches, Craft Workshops and breath-taking viewpoints. There really is a lot to offer the discerning tourist, cyclist or hiker in Harris & Lewis and you’ll be made to feel very welcome. It’s customary to wave to passing drivers letting you through the single track roads and bridges – Just like you do if you’re from ‘the country’. 

Perhaps the most special part of my visit was squeezed in at the end – after meeting with the Local Council or “Comhairle” – we managed to sneek a peek at the newly restored Lews Castle and Museum Centre which is due to open in July.  Sitting high above the Harbour, the Castle had many former lives including a hospital, school and home to Lord & Lady Mathieson before lying derelict for many years. Approximately 18 months ago Heritage Lottery, Highlands & Islands Enterprise and Council funding was agreed and our very own Graham Construction were shipped in (no pun intended!) to restore and rejuvenate the Castle to its former glory.  BPA Delegates will have the opportunity to enjoy traditional Gaelic entertainment at the finale dinner in beautiful surroundings. 

On the way home, my case was over the 20kg limit, but the check-in clerk didn’t seem to mind (it was the wellies and the extra hotel toiletries that ‘fell into my case’!) The hangar style airport and 40 seater propeller jet planes from Stornoway reminded me of the ‘way it used to be’ in Belfast City – who else remembers dropping your bags at the foot of the steps?  I was even offered a free cuppa and a biscuit from Flybe – a free lunch does exist after all. 

SPA are also celebrating their 150 year anniversary in 2015 and hosting the BPA Conference is quite a big deal, so much so that delegates will receive a bespoke gift made from their Anniversary Harris Tweed.   SPA and Stornoway itself are very proud to be hosting the BPA conference and along with other anniversary events this year, it’s set to be the ‘talk of the town’ for years to come.  Our job is to make sure it’s as easy as possible for over 100 BPA members and exhibitors to come to Stornoway, they have a great time and ensure the budget is break-even. 

So with the draft programme in place and everyone on the island lined up, the rest is over to us! Best get cracking…..”