Ulster Business - March 2020 by Ulster Business

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Contents 06 News

39 Tax & accounting

77 Motoring

The latest news and exclusives from across the world of Northern Ireland business

Revenue raising and the push to lower corporation tax just got a bit more complicated

Pat Burns finds the right Type of Jag for him and goes hybrid with a couple of Fiats

14 Cover story

46 Interview

86 Photocall

PwC partner Cara Haffey on returning to a rejuvenated NI and gearing up for growth

We sit down with Economy Minister Diane Dodds to discuss her new priorities

A selection of what’s been happening across NI in the last few weeks

21 Manufacturing Month

51 Retail

92 The Chairman

We profile the breadth of the sector here ahead of Manufacturing Month in March

Could 2020 be the rise of the independent? Pavel Barter takes a closer look

It’s back to business for the man in the tux, including a return to the Hill

27 Travel, tourism & hospitality

63 IT & technology

92 Technology

NI’s cyber credentials have been given another boost, with more good news on the horizon

Adrian Weckler sits down with Tim Cook, the man at the helm of tech leviathan Apple

What’s in the in-tray for our new minister?

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MARCH 2020

EDITOR’S COMMENTS

Leading the way at home and abroad

orthern Ireland will get another chance to showcase what it has to offer at the world’s largest commercial property event later this month.

to Northern Ireland and what the future has in store.

A major delegation from Belfast, and the surrounding councils as part of the Belfast Region City Deal, will travel to MIPIM in Cannes in a bid to attract new investment into the region, as well as making signiﬁcant announcements along the way.

I’ve also had a chance to speak to our new Economy Minister, Diane Dodds, about what’s in her in-tray, corporation tax and representing the business community here, after pushing the case for Brexit, despite the overwhelming majority of ﬁrms here supporting the case to remain part of the EU.

And Ulster Business will be in Cannes to cover all the news, as and when it happens, with signiﬁcant coverage in April’s edition.

This edition is also an opportunity to showcase the strength, resilience and forward-thinking family-run manufacturing ﬁrms which call Northern Ireland home.

But ﬁrstly, welcome to March’s edition of the magazine, in which we speak to Cara Haffey, partner at PwC, about returning

And while our devolved ministers get back to governing, Prime Minister Boris Johnson also unveiled his new cabinet.

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

That included the sacking of former Secretary of State for Northern Ireland, Julian Smith. His replacement Brandon Lewis has now taken up the role. But the Prime Minister has held on to some of those MPs that seemingly proved themselves out of their depth, judging by their ability (or lack of) to answer Press questions around Brexit. Liz Truss – a former Remain backer – apples, and pork products immediately spring to mind and send a shiver down the spine. And on that note, I hope you enjoy this edition of Ulster Business. Inside, there’s a plethora of in-depth features, interviews, proﬁles and analysis. ■ John Mulgrew

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

Printer W&G Baird Greystone Press, Caulside Drive, Antrim BT41 2RS www.wgbaird.com

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

@ulsterbusiness

Ulster Business Magazine

Independent News & Media Ltd © 2020. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of Independent News & Media Ltd.

MARCH 2020

NEWS

month IN numbers A

£6bn

The value of deals corporate law firm A&L Goodbody has advised on since 2014. It’s also been ranked as the leading legal advisor by value of total M&A.

The number of deals law firm Tughans advised on during 2019, with a total value of £164m. It’s been named NI’s busiest corporate law firm by Experian.

100

The number of jobs being created with the opening of the new £25m Andersonstown Leisure Centre in April this year.

£29m

The value of a deal which Wrightbus has won from north of England bus company Rotala to provide 163 new vehicles in 2020.

Corporation tax ‘still part of the toolkit’ By John Mulgrew

utting corporation tax remains on the table as ‘part of the toolkit’ according to the new Economy Minister Diane Dodds who says she will work with the Remain-backing business community on Brexit.

that occupy and obsess me in terms of the economy are the issues of access to our GB market, how we define and see legislation in terms of the unfettered access to the GB market, and how we access coming from GB to NI.”

Speaking to Ulster Business on her backing of Brexit – largely flying in the face of the wishes of businesses here – she said: “I think that argument has gone. For Northern Ireland, Brexit is a fact.”

The former MEP, who was co-opted to the Assembly following the December General Election, says it’s a “very big brief and department to manage”.

“I think there is a general agreement in the Assembly and Executive – I haven’t found any voices of demure – and for all of us it’s about what is in the best interests of Northern Ireland in the situation we find ourselves in… I want to work with businesses in NI and their representative bodies.” Asked about lowering corporation tax, bringing it at least in line with the 12.5% rate in the Republic, she said: “I’m a low taxation person.” “Corporation tax has always been part of the tookit, and should remain part of the toolkit. “… I don’t want to see it as cast aside. But for now the short and medium term issues

“In terms of skills, I want to see us review some of the programmes that are there – (I’m) excited to work with the Department of Education on a 14-19 year-old strategy. “Energy has also been taking up a lot of my time – not just in terms of RHI, but how we get low-carbon, competitive, clean and green energy to promote an economy that reflects those values.” The Minister says focus in the coming months is obviously around Brexit, and working alongside her counterparts and Executive colleagues to mitigate any short-term issues that arise. Read the full interview on page 46-47

NEWS

1825 moving in to Metro Building

The Metro Building

inancial planning giant 1825 is taking on the former News Letter newspaper offices in the heart of Belfast city centre, Ulster Business can reveal.

The company, which is part of the Standard Life Aberdeen Group, is taking on the ground floor site at The Metro Building – which is around 5,000 sq ft – for around 50 staff, with fit-out on the property under way. The building, located at Donegall Square South behind City Hall, was formerly the home of the News Letter’s Belfast offices. The company has since moved to Glandore’s flexible office development at Arthur House in the city. The Metro Building sold for well over its £21m asking price in September 2018. Elsewhere, Frank Boyd’s Killultagh Estates is currently developing a new nine-storey city centre office building, close by. Speaking last year after the development was given planning approval,

MARCH 2020

Laura McCarthy, senior asset manager at Killultagh Estates, said: “We are already in discussions with a number of potential occupiers and we are aiming for full construction to commence in early June.” There is also around 10,000 sq ft available on the ground and lower ground floors which would be suitable for restaurant and leisure space. The Mercantile will occupy the prominent site at 5 Donegall Square South in Belfast city centre, which was formerly the General Accident Building.

NEWS

Quotes THE month OF

“The proposed new system continues to pose real challenges for businesses in Northern Ireland. Key sectors, in particular our vital agri-food industry, will be concerned about how they can recruit people across all levels of skill they need, not only to grow but to fulfil existing commitments.” Angela McGowan, director of CBI NI speaking after the announcement of future immigration proposals post-Brexit.

“This is an exciting time for Northern Ireland and I follow fantastic colleagues, whose work I hope we can build on.” Brandon Lewis MP tweeting after being confirmed as the new Secretary of State for Northern Ireland, replacing Julian Smith.

“As a sector which is the bedrock of our regional economy, our impact is hugely significant and absolutely vital to households across Northern Ireland.” Stephen Kelly, chief executive of Manufacturing NI, speaking as the organisation launched Manufacturing Month, which takes place throughout March.

Granny Annies Derry pub ‘sale agreed’

Derry pub owned by the Granny Annies group – on the market for £1.5m – is about to be sold off, Ulster Business can reveal. It’s understood the bar in the Diamond is now under offer, after being put on sale earlier this year. It was formerly part of the JD Wetherspoon group. Granny Annies also operates venues in Limavady, Enniskillen and Belfast. A spokesman for parent company W&R Holdings previously said that “the directors have decided to list the building as ‘for sale/to let’ in order to test the market place”.

“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.”

“This comes on the back of various parties showing an interest in the building and also a recent article whereby the JD Wetherspoon chain has indicated a desire to return to the

Meanwhile, the Corner Bar in Limavady is up for sale, for offers around £600,000. Both properties are being sold by EO’C Estate Agents.

Visa rules ‘will decimate NI hospitality’

arsh new UK Government rules stopping lower-skilled workers from getting visas post-Brexit would “decimate the NI hospitality sector”, it’s been claimed. The radical plans being proposed would see those the Government classes as ‘unskilled’ and those earning less than £25,600 no longer able to work in Northern Ireland. An initial £30,000 salary level was suggested, and while reduced, calls for a devolved level here have fallen on deaf ears. Lower-skilled workers would not get visas under postBrexit immigration plans unveiled by the Government. “Employees with soft skills (classified as ‘unskilled’) are a vital element of the success of the Northern Ireland hospitality and tourism offer, however, they have been ignored,” Colin Neill, Hospitality Ulster chief executive, said. “What sort of message does that send out to the world? How many hospitality businesses

city in the future,” he said.

Colin Neill

will now not be able to fill vacancies right across the sector? “There has been failure to take into consideration the unique set of circumstances here; complete ignorance of the importance of our sector in particular; and demonstrates absolute contempt for our position.” And Tina McKenzie, FSB NI policy chair, said it is “disappointing that there appears to be no route to temporary employment for migrant workers, particularly given there is little time for businesses to adjust to the new migration policy”.

NEWS

Restaurant to become major co-working office

leading property developer is creating a major co-working office space at the site of former restaurant in south Belfast, Ulster Business can reveal.

Gary McCausland says he’s now planning to turn the former ground floor restaurant and cafe at The Gallery apartment development on the Dublin Road into a new co-working office space. The unit has remained empty since the original Gallery restaurant closed in 2018. Another business had expected to take on the site, but plans are now underway for the major revamp and change of use. He said the retail and restaurant business

MARCH 2020

in Belfast was “really difficult and tough”, leading to plans for a change in the large site’s use as a high-end office. Mr McCausland says the new development, if planning is approved, will become “something really special”. In May last year, plans for a new restaurant at the Gallery building were announced, but are now no longer going ahead. The Gallery apartment building is made up of

58 one and two-bedroom luxury apartments on the outskirts of Belfast city centre, with many looking out over the busy Dublin Road. The new plans for the flexible office scheme include the large downstairs, ground floor area, being transformed into a workspace area, with desks and at least two meeting rooms, along with other offices and photocopy room. And the upstairs mezzanine area shows additional desks and working areas.

NEWS

Frozen food firm ‘to open a dozen stores’

he company behind frozen food supermarket Iceland has launched the first of up to a dozen new Food Warehouse stores for Northern Ireland.

Food Warehouse is opening its doors in Longwood Retail Park in Newtownabbey in a £1m investment creating 30 jobs. It will occupy a 15,000 sq ft building, which Richard Walker, managing director of Iceland Foods Group, said is three times the size of a typical Iceland outlet. He said Food Warehouse offers a larger range than its sister brand. “The range is wider and then we have more premium products, bigger pack sizes, a premium fish range so it’s a real expanded offering on ambient, frozen and grocery foods.” Food Warehouse, which specialises in bulkbuys, sets up in out-of-town locations, unlike Iceland, Mr Walker said. Newtownabbey is the

group’s 121st store in six years of business. He said the average Food Warehouse spend is greater than in Iceland. “Traditionally Iceland is on the high street and has limited parking and represents a top-up shop for many but the Food Warehouse comes with a lot of free parking and the basket spend is double.” Mr Walker said the company was opening new stores at a rapid pace. “It’s all about value and that’s what we offer – the larger packs, efficiencies in store, it’s easier to operate and we can drive down prices plus the customers are responding really well so we are getting good growth.” He said the chain is a response to a changing retail sector. “It’s incredibly important to innovate and understand what their customers

want, which is how The Food Warehouse came to be. “As the future of the high street remains uncertain and more and more bricks-andmortar stores lie empty, there’s a responsibility to the government, but also retailer, to rethink how they operate in the increasingly competitive grocery retail sector. Mr Walker said a store in Londonderry would be the next opening for the chain here. “Since the first door opened back in 2014, The Food Warehouse has grown from strength to strength, exceeding our expectations. “Moving into Northern Ireland is a huge landmark for the business, as it continues to perform extremely well. Newtownabbey was our first deal in terms of negotiations with landlords. It’s a great retail park and ticks all the boxes. We would hope to open 11 or 12 more in Northern Ireland.”

Richard Walker

NEWS

More than 7,000 expected at IFEX

Caroline McCusker, Paul Cunningham and Soraya Gadelrab

ore than 7,000 visitors are set to descend on Belfast later this month for this year’s IFEX food and hospitality event.

The foodservice, hospitality, and retail event, returns to the TEC, Belfast, taking place on March 24 – 26. The event will bring together around 200 suppliers and manufacturers, chefs, baristas and drink specialists, and network with thousands of industry colleagues. Marking its 25th anniversary, the event is supported by Flogas and Stephens Catering Equipment. “IFEX 2020 promises to serve up three days packed full of ideas and innovation for your business,” IFEX event manager, Caroline McCusker, said.

Skills Hub, showcasing and celebrating skills from across the hospitality sector, including hotel reception, barista championships, bartending and butchery.

“From inspiring competitions to expert masterclasses, and an abundance of ideas, IFEX is simply the number one event for industry professionals in the foodservice, hospitality and retail sectors.”

Others include the Drinks@IFEX. It has partnered with Hospitality Ulster to launch a showcase of the newest drinks and freshest innovations, while the Great Taste Market is a renewed partnership with The Guild of Fine Food to bring an opportunity for visitors to see and taste Ireland’s award-winning products in one place.

Some of the features this year include the World Skills NI Hospitality

MARCH 2020

NEWS

Airbus A220 deal ‘could open opportunities for city’

erospace giant Airbus’s deal to buy out Bombardier’s stake in the A220 jet could present opportunities for Belfast, an industry expert has said.

the former Short Brothers marketing executive. “It’s now a time for Northern Ireland to turn the ‘oh dear what’s going to go wrong’ into (something positive).

The negotiations between the companies have now been completed. It was confirmed that Airbus acquired Bombardier’s remaining interest for $591m (£453m), raising its stake from 51% to 75%. The remaining 25% is held by the government of Quebec.

“Airbus has its hands full… (its sites) are almost all are full up. They see a cost effective, entrepreneurial-minded design and production centre.

The wings and past of the fuselage of the Airbus A220 are made at Bombardier’s Belfast plant. Bombardier invested more than £4.5bn in the A220’s development before ceding control of the programme to Airbus in 2018 as it struggled to sell the single-aisle plane. Martin Craigs, chairman of the Aerospace Forum Asia, said it is “basically a huge open door to expand further”. “(I think) it’s great news for Belfast,” added

US-based Spirit Aerosystems is a major supplier to Airbus and Boeing and has said it wanted to increase its work with French giant Airbus. The company’s work with Boeing has been reined back – leading to job cuts – amid the ongoing grounding of its new 737 passenger aircraft.

“They are buying in to the embedded multigenerational knowledge at Belfast. Airbus is making aircraft in China, in the US and components in 30 other countries – it is colour blind to flags.

“Spirit has a rather heavy dependence on the 737,” Mr Craigs said. “They are going to welcome with open arms any further growth connections with Airbus. Once fully in to the family, there are any amounts of additional work which can be handed over.”

“It’s Europe’s biggest industrial manufacturer. They have done a remarkably good job by binding people together with pragmatic and extremely driven individuals to make them the global success that they are.”

In 2017, Bombardier sold a majority stake in its C Series narrow-bodied jet programme to Airbus, with Bombardier itself still retaining an interest. The C Series was then renamed the A220.

Mr Craigs said the relationship between Spirit Aerosystems – which bought Bombardier’s NI operations last year – and Airbus, is an “ascending virtuous circle”.

East Belfast DUP MP Gavin Robinson said it was a “very good day for the A220 programme and more widely for the plant in Belfast”. π

COVER STORY

Cara Haffey: positivity and gearing up for growth Ulster Business speaks to Cara Haffey, PwC partner and Head of Deals in Northern Ireland, about returning to a more economically developed landscape, not standing by the sidelines and using her own experience to help companies reach the next stage

“I

t’s a great time to be working with local businesses, helping to guide them through the challenges they’re facing and identifying the best opportunities for their future,” Cara tells Ulster Business. “There is so much going on whether it be finance, or technological advances or new markets. It’s critical that businesses know with confidence they’re making the right choice for them as they move forward.” Cara is the Head of Deals in Northern Ireland, after returning spending much of her career working across PwC’s UK operations. The landscape has changed, the economy is more mature and has its sights on growing business not just here but across the globe. And it’s not just on a macro-level that things have changed: PwC NI has rapidly grown its business over the last few years to become the largest office outside London, with building well-progressed on its new headquarters in the city centre, Merchant Square. This is Belfast’s biggest private-sector office letting deal and, in early 2021, will be home to up to 3,000 staff.

With Stormont now up and running after three years without an Executive and Brexit only truly beginning, Cara is looking at how the firm can support its clients and deliver on their ambitions. “I’m really excited by it,” she says. “A number of things are coming together at a good time – businesses have had to become much more resilient and decisive in the absence of government, the organisations that support them are more confident, the way in which we’re developing areas like our tech sector is something to be incredibly proud of and we’ve got incredibly talented people that are keen to stay, not move away – so long as the opportunities are there.” Business is in Cara’s blood, having spent her younger days working in the family electronics store in Lisburn. It gave her an understanding of the hard work needed to make a business perform, and perform well. “My dad returned to Lisburn after he was made redundant and decided to open his own business. That resilient spirit is something I’ve inherited and it’s something I see with business

leaders right across Northern Ireland. Going out on your own – starting from scratch – isn’t easy; it takes guts and commitment.” Cara left Northern Ireland to study management at Lancaster University before starting her career working with British Airways in London. She then began training as a chartered accountant in Glasgow with the professional services firm that she’s made her home. “I moved into the Deals business, and in Scotland that was with the type of good, traditional family business that I’d grown up around. There was also a mixture of larger plcs which gave me a fresh perspective.” During the economic booms of the early 2000s, Cara developed her career working with more industrial private companies,

COVER STORY

building relationships and further understanding how they operate and think about business. “I really enjoyed the variety – working closely with people who ran their own family businesses and getting their insight, and then working with listed companies which rounded off my education. It was great to get that breadth and depth of the business spectrum.” Several years later, having worked across a number of different locations for the firm and becoming a partner, Cara decided to move home to Northern Ireland. “There’s a real sense of positivity here with people expecting change and asking: ‘What more can we do?’ With Stormont back, they’re operating in a more stable environment and that means plans can really take off.”

MARCH 2020

Of course, Brexit is a challenge and Cara has been working with some clients which are expanding their footprint and making acquisitions in Europe, hoping to future-proof and succeed in a new landscape after the UK’s exit from the EU. “It feels like the right time to carry out a strategic review in businesses. Looking at plans for the future and working out whether that requires restructuring, finance or acquisitions: it’s about looking at how to grow or reposition in a global market. “One thing I’ve really been impressed by is the link to the universities – how Queen’s and Ulster University have taken a lot of technology leaps and the quality of the talent that is coming out. There is a real vibrancy in this

sector which feeds directly into business. This is a real bonus for outside businesses looking to invest particularly around Belfast. One of our strengths is this sense of community and ambition we possess.” Cara says she’s working with companies which are growing strongly, and sustainably. Making the right decisions and taking good advice is critical. “As a firm, our skills, wide experience and creativity are real strength. I think putting ideas into a plan and then working with others to make them happen is something we love to do. It’s always great to help a business do what it’s always wanted to and really see the fruits of proper planning and consultation.” This air of positivity is backed up by PwC’s annual CEO Survey which shows Europe’s

COVER STORY

biggest company bosses regard the UK as one of the most important territories for their organisation’s growth – more so today than in recent years. Cara says there are a plethora of options available in the market when it comes to potential investment, from bank funding, private equity and venture capital. “It’s about getting the right partner and making sure it’s right for the business.” PwC clearly sees itself as being a positive partner. As the largest professional services firm in Northern Ireland, it brings worldclass opportunities to its people and clients but its commitment to its purpose – solving important problems and building trust in society – takes it beyond the corporate world and into the communities around it. Over the last 18 months, it has been leading a ground-

breaking suicide prevention programme with three charities in north and west Belfast, and it has recently launched its ‘New World, New Skills’ initiative which will see a global investment of $3bn (£2.3bn) to drive upskilling not only for its people but in other areas of society as well. “One of the big challenges businesses face is having a workforce with the right skills for the future. Automation and robotics will continue to have a huge impact on the economy – things have and will continue to change more than we can imagine. And yes, more automation means people are freed to use our uniquely human skill set which can’t be replicated by AI but supporting people to confidently hold their place in an increasingly digital society will take work. Disruption might only have been the easy part – it’s what comes next that we need to focus on now.”

Cara’s Deals colleagues are also partnering with Footprints in Colinmill. “Footprints commitment to the holistic solution for women getting into work and having childcare available to enable that alongside education is something I am passionate about – by solving the whole problem, not just part you create sustainability,” she says. Cara is not one to shy from a challenge or watch from the side-lines. It’s something which she carries through her working life and into her spare time which includes her passion for motocross. “My husband is a motocross fanatic, I found myself watching them and one day thought, ‘this is a bit boring, why don’t I get involved?’ So here I am. I don’t compete but it’s a lot of fun and has inspired my children to do it too.” π

RECRUITMENT

Fresh approach is needed when hiring from Gen-Z talent pool By John Moore, managing director, Hays NI

t has been noticeable in the past few years that modern workplaces around the world are being shaken up by a brandnew crop of talent – the digitally native Generation Z.

Savvy and connected, these fresh new professionals – typically born from the mid-to-late 1990s – are highly attuned to cultural shifts and, even more so than their millennial predecessors, have never known a world without technology. Formulating strategies for attracting and engaging these graduates and apprentices will be key for employers in the coming years, and for some organisations it will mean a complete overhaul of their recruitment process. The findings of the Hays What Workers Want Report, which examines what candidates expect from the applicant journey, show that almost half (44%) of Gen Z candidates have left at least one job in the first year because it didn’t match expectations formed during the application process. I’ve written several articles looking at what is important to candidates and it’s clear that people at all levels, in all professions, are now looking at more than just salary when considering jobs. But with so many companies in Northern Ireland competing for the skills held by this younger segment of the talent pool – particularly in the tech, finance and professional services sectors – an innovative approach will be critical to attracting and retaining the people you want. We can’t analyse the characteristics of an entire generation completely accurately, but there are some universal tips worth considering. Articulate your employer brand More than any other generation, Generation Z is constantly consuming content, and candidates seek connectivity with brands. We’re frequently hearing how important it is to be genuine and authentic in your communications, and articulating your values, what you stand for and how you talk to customers is crucial for engaging applicants. Our What Workers Want research shows that three quarters of Gen Z professionals will ONLY consider applying to organisations that have defined brand values, so keeping these consistent across all brand touchpoints will be of vital importance if you are to keep candidates interested. Make applying quick and easy Our research shows that, cumulatively, over three quarters (76%) of Gen Z candidates would consider abandoning an online application if it took longer than 15 minutes. Creating a seamless initial application experience is vital – so ensure yours is fully optimised for mobile devices and if possible, enable candidates to apply for a job through LinkedIn or a similar platform that enables a one-click application.

Emphasise skills development As the aforementioned ‘digital native’ generation, Gen Z have seen a truly staggering amount of technological development in their lifetimes, and they are aware of the importance of keeping pace with the latest changes. One of their chief concerns, perhaps even more than salary or benefits, is remaining current in a rapidly evolving world, and therefore emphasising the professional development on offer in a role will be of great importance. Personalise the experience Personalisation in marketing is now not the exception, but the rule. Gen Z candidates want a customised application experience, and the most in-demand talent should be made to feel valued by their employers, with their individual differences appreciated. Sending a one-size-fits all email response simply will not cut it, and although personalising communication will take extra time and effort, it’s the cost of securing the best candidates. I have seen several employers in Northern Ireland really benefit from getting this right. Keep talking to your candidates Clear, regular communication helps prevent candidate drop-off. Our research findings show that 64% of Gen Z candidates want confirmation of moving to the interview stage within one week of applying, a deadline that 36% of employers are not meeting. Maintaining high levels of engagement with candidates throughout their application journey can be challenging for employers, particularly those with resource constraints, but checking in with candidates at every step and ensuring communication is maintained could be the difference between keeping a winning applicant interested or losing them altogether. π

BUSINESS RATES

Reval2020: How businesses in Northern Ireland are rating their new valuations By Maeve Fisher, senior associate, Mills Selig

f you haven’t heard about the new levels of commercial rates for nondomestic premises in Northern Ireland over the past few weeks, where have you been? The new system introduced by the Department of Finance aimed to bring rateable values back into line with current property values (given that the last valuations were in 2015). However, with uncertain times ahead for businesses occupying the 74,000 non-domestic properties in Northern Ireland, many owners have been outraged by the sharp increase in their rates charges. This appears perhaps most evident in the hospitality sector with rates more than doubling in most cases and some establishments increasing up to 500%. A massive 90% of hotels have seen their net annual values (NAVs – a figure given for an annual rental value at a point in time) increase which has had a knock-on effect on the sums due to Land & Property Services (LPS). As a leading commercial law firm with expertise in the hospitality sector, many of our clients are concerned about this major blow to their industry. We are hearing from our clients that this is in addition to the uncertainties

of Brexit and other challenges such as increasing minimum wage provisions and labour shortages. The process is said to be ‘revenue neutral’ with lower bills offsetting those facing higher amounts. However, the new Finance Minister, Conor Murphy, has come under increasing pressure to alleviate the concerns of the business community. While there is clearly relief and optimism in the local market regarding the return of the Stormont government, many of our clients remain sceptical as to the practical benefits they will receive. Can anything be done to challenge what you believe to be a disproportionate rates increase? Absolutely. While challenges cannot be formally lodged until April 2020, 1 preparation is key. Be proactive now before your bill is issued to prevent an immediate obligation to pay. Engagement with LPS is essential and professional advice regarding your position is highly advisable before contacting LPS as NAVs can go up as well as down. Our expertise in the property and hospitality sectors means we are tuned into the relevant issues. We work as part of your team to achieve the best possible resolution. The advice is clear – don’t just sit and wait for your rates bill. Taking action now may be of massive financial benefit to your business. At Mills Selig, we hope that the reconstituted Assembly will assist in easing the pressures of our clients, especially those within the hospitality industry. It is imperative that those at Stormont recognise that the hospitality sector is a key element of our local economy. π

Manufacturing Month Sponsored by

MANUFACTURING MONTH

Showcasing the diversity of NI manufacturing N orthern Ireland’s burgeoning manufacturing sector will be showcased as part of a major initiative to highlight the strength and excellence of the industry here.

Manufacturing Month NI, led by Manufacturing NI, is running for the whole of March. It will include a series of events, business breakfasts, seminars, workplace tours, and the flagship annual Anchor High leadership summit will be held across Northern Ireland to highlight local manufacturing success stories, address major challenges as we enter the new decade, and

inspire the next generation of manufacturers and engineers.

place this March,” Stephen Kelly, chief executive, Manufacturing NI, said.

Sponsored by KPMG, Siemens, Willis Towers Watson, Barclays, Pinsent Masons and Invest NI, Manufacturing Month NI will bring together industry leaders, politicians and policy experts, young people and schools, and other business leaders to celebrate manufacturers and engineers, and explore and discuss the challenges which face the industry in Northern Ireland.

Diane Dodds MLA, Minister for the Economy, said it “will highlight the immense talent of the local sector.” “By supporting innovative initiatives like Manufacturing Month NI, we are showcasing the best and brightest in one of our most important industries.”

“We are very pleased to be launching the inaugural Manufacturing Month NI, taking

In this special feature, Ulster Business profiles some of the family-owned and run manufacturers – from right across the sectors – which are leading the way.

CIARAN O’HAGAN Specialist Joinery Group

f you’re searching for the heart of Northern Ireland’s manufacturing sector, then Mid Ulster is where you’ll find it.

And Specialist Joinery Group is a high-end bespoke joinery manufacturing company, based in Maghera, which has had to evolve and seek new markets in order to expand – and expand it certainly has. It now employs around 250 people, and is target to turnover £27m this year. Established in 1988 by John B O’Hagan, his son Ciaran is now managing director. Alongside his two brothers Sean and Dermot, the group has aspirations to grow turnover to £50m. This planned expansion will see Specialist Joinery competing in major markets such as London, and continued diversification in glass and metal which will see a further investment of £7m in a new glass, metalwork and finishing facility to expand its capabilities. Formerly a business born out of the Irish pub fit out market, before developing wider into the hospitality sector, education and healthcare. Now, it’s breaking into the

high-end London market of office fit-out and residential. “Since 2011 we have established our name in high end office and residential fit out,” Ciaran says. “Our overall ambition is to have our customers come here to visit and have all the solutions on one site. We imagine then having small feeder factories around a large joinery factory.” And taking care of its workforce is another key component in its business model, which includes plans for a new on-site creche for its staff. “We believe that people are our biggest asset and that we have to enhance what we have to offer to the workforce in order to attract the skills we require.” Ciaran says while it’s always exploring new markets, the company remains “firmly rooted here in Northern Ireland”. “We are developing our markets in London, and are also looking at education and health care. We are also looking at the marine market in next 12 to 18 months, and exploring the office fit-out market in New York.”

MANUFACTURING MONTH

JACKIE REID Deli Lites

ackie Reid and husband Brian have grown what was a small Newry sandwich shop into a major food business exporting across the UK and Ireland, and in to burgeoning markets such as the Middle East and Europe.

Deli Lites has gone from 30 sandwiches a day to 30,000 – selling its wide range of fresh and on-the-go food to some of the UK’s biggest coffee chains, supermarkets and other retailers – including Costa, Sainbury’s and Tesco Ireland. “When we worked in the shop we saw a big demand for sandwiches and saw the changes in people’s eating habit and lifestyle,” Jackie says. “In 1998 we decided to open Deli Lites wholesale – selling pre-packaged sandwiches.” The firm expanded to a new site but outgrew that quickly, and 10 years ago developed a 25,000 sq ft production facility in Warrenpoint to produce an expanding range of fresh products.

GAVIN KILLEEN Nuprint

“We knew there was a huge demand. The fresh market was growing significantly year-onyear, and is still growing. We have moved into European markets, having outgrown the Irish market.

The firm has around 300 staff spread across the business – including sales, accounts and production – but also operates its own logistics, with around 15 staff and 30 vehicles.

“We are seeing a huge potential in the growth in the business in those markets, and there’s still a lot of innovation left in Ireland – new ranges, including vegan, gluten-free and high protein.”

As for Brexit, Jackie says the business has been planning ahead for any major changes, but is confident that it will be business as usual, with dual production sites both in Northern Ireland and in the Republic.

“N

orthern Ireland has a hard working ethos – it’s about getting things done and just getting on,” Gavin Killeen says.

The managing director of Nuprint is someone who understands what it takes to see the downside of one declining market, and then evolve a business to expand and grow by exploring emerging industries. Back in 1984, the Derry firm was focused on the printed fabric sector, working for major firms formerly based in the city such as Fruit of the Loom. “Businesses go through challenges and difficulties but keep fighting through to the other side. There’s real resilience in Northern Ireland,” he says. He’s been with the firm since 1997, and bought the business back, alongside founder Alan McClure, from former owners in 2004. Gavin saw the changing marketplace, and moved Nuprint towards food and drink industry printing. It now works with some of

MARCH 2020

the largest food firms in Northern Ireland, such as Moy Park. It now employs more than 40 people and has invested millions in a host of top-end printing equipment, allowing the company to grow and expand further still. That includes producing the labelling for all of the Bushmill’s single malt range, and UFC fighter Conor McGregor’s own whiskey. It’s also putting a major focus on extensive coaching, training and upskilling within its workforce. That includes mentoring and management programmes, working alongside North West Regional College to help staff reach the next level of their careers. It’s also one of just a handful of firms which are part of The North West Centre for Advanced Manufacturing (NW CAM), which works on the research and development of innovative solutions. The company does around half of its business in Northern Ireland, with around 35% in the Republic and 15% elsewhere in the UK.

MANUFACTURING MONTH

A time to celebrate success stories across Northern Ireland While companies of all shapes and sizes have endured a tough year, Stephen Kelly, chief executive of Manufacturing NI, speaks about the highlights of an industry at the core of our local economy

Stephen Kelly and Mary Meehan of Manufacturing NI

who work for great local companies, producing great products used locally and globally. It’s about amplifying the talent of our local workforce and the truly cutting-edge goods and services produced in Northern Ireland by world-renowned manufacturers.

Brexit uncertainty, an absent Stormont and major shocks to some of our most well-known manufacturers seemed to dominate and define the past twelve months. Between the new Executive still finding its feet and Brexit being nowhere near ‘done’ (despite what the Prime Minster might say), a lack of certainty undeniably still exists for NI businesses.

Northern Irish manufacturing is multi-faceted, evolving, and developing at serious pace. We have a long and rich heritage of manufacturing excellence in this part of the world, one which we are rightly proud of, and one which is spoken of in glowing terms the world over.

But it would be wrong to characterise our manufacturing sector as all doom and gloom. We directly provide over 89,000 jobs and indirectly sustain a further 130,000 across Northern Ireland, we export an estimated £8.3bn in goods and products, and we are Northern Ireland’s second largest sector in terms of economic output.

But it’s time for manufacturing here to be more confident and assured in our current successes. From food processing and medical and pharmaceutical industries to aeronautical technologies and new, emerging tech like AI and machine learning, we have every right to be proud of our ingenuity and innovation.

As a sector which is the bedrock of our regional economy, our impact is hugely significant and absolutely vital to households across Northern Ireland.

There is no doubt that there are serious challenges facing our sector. But they can most effectively be tackled by a collaborative, joined-up approach where manufacturers come together to exchange solutions, share best practice, and stand together for the benefit of the entire industry.

here’s no hiding that 2019 was a difficult year for our manufacturing sector, and Northern Ireland business more broadly.

Manufacturing Month is a new and unique initiative by Manufacturing NI to showcase the excellence and strength of our regional manufacturing and engineering sector. During the month of March, there will be a series of innovative events, business breakfasts, seminars, tours, and a flagship leadership summit held across Northern Ireland which will address the key challenges for the future of manufacturing in Northern Ireland and map out a vision of the sector as we enter the new decade. Delivered in partnership with KPMG, Siemens, Willis Towers Watson, Invest NI, Pinsent Masons and Barclays, Manufacturing Month will bring together leading manufacturers, policy experts, schools and young people, and other business leaders to highlight the strength of our local manufacturing industry while also mapping out our future course and creating new opportunities for the next generation of manufacturers and engineers. Put simply, Manufacturing Month is a celebration of the great people

Issues around skills and training, high energy prices, business rates, and the need for an industrial strategy for Northern Ireland are not unique to manufacturing and engineering. They are, however, challenges which can be addressed if they are faced head on by manufacturing leaders who show ambition and imagination to upskill their workforces, attract further investment, and continue to innovate and grow. So, let 2020 be the year we reclaim the headlines of negativity and uncertainty and loudly proclaim to everyone the excellence and strength of Northern Ireland’s manufacturing sector. π If your business is expanding, introducing new and pioneering processes, launching a new product, or training new apprentices, please visit www.manufacturingmonthni.com

ECONOMY

Neil Gibson

NI economic growth ‘to slow to 0.8% in 2020’ N orthern Ireland’s economy is predicted to grow by a modest 0.8% this year while fewer companies say they have serious concerns around the risk of Brexit on business, according to a new report.

Professor Neil Gibson, chief economist, EY Ireland, said the economies of Northern Ireland and the Republic had been dominated by political developments. Contrasting growth levels had also led to contrasting election results.

The latest EY Economic Eye said a planned increase in government spending and high levels of job growth would prevent the economy here from shrinking. It said the 0.8% marked just a slight downgrade in its forecast.

And he said the New Decade, New Approach deal which restored powersharing reflected a change in voter priorities. “In the UK, the Conservatives secured their biggest majority in a generation with growth barely topping 1% and in the Republic the incumbent government could not secure a majority with headline growth rates of well over 5%.

Growth in 2021 and 2022 was projected to pick up to 1.3% and 1.5% respectively. However, the expansion was dependent on the securing of a free trade agreement with the EU. It’s predicted IT will be the main driver of growth in the jobs market, adding 30,000 jobs across the island over the next five years. Northern Ireland’s projected growth is behind expansion of 3.4% forecast for the Republic in 2020, and 1.2% in the UK.

“This speaks to a long-standing disconnect between headline growth and the citizen experience and we are likely to see a focus on public services, quality of life and what can be characterised as more internal, or personal, outcomes gather than a singular drive for growth and globalisation. “This has already been seen in the New

Deal, New Approach document. It is the nexus of economic, social and environmental considerations that is creating a new paradigm and shaping the political landscape.” EY said that a notable pick-up in business sentiment in early 2020 reflected a feeling that the worst of Brexit is over after the UK left the EU on January 31. But Michael Hall, managing partner at EY NI, said that while firms were hopeful there would be a free trade agreement, they should also be prepared for anything. “Dealing with Brexit is identified as the second biggest risk for business in our recent client survey, but notably it has fallen in prominence from 56% to 45%, reflecting the mood amongst firms that Brexit is now official,” he said. “Firms are optimistic in their outlook for a free trade agreement but they must still prepare for a host of potential outcomes. Adaptable plans and flexibility should remain a top priority in preparing for a post-Brexit island.” π

Travel, tourism & hospitality

Sponsored by

MARCH 2019

TRAVEL, TOURISM & HOSPITALITY

Yes Minister: what’s in the tourism in-tray for 2020? It’s a new year and we’ve a new minister responsible for Northern Ireland’s tourism industry. Stephanie Bell finds out what the industry thinks needs tackled first, and what’s needed to reach an ambitious annual £2bn visitor spending target in 10 years

t’s fair to say that there’s a lengthy wish list from the tourism and hospitality industry which will keep the new Economy Minister busy as she settles into office.

Diane Dodds is being urged to develop a tourism strategy for Northern Ireland as a priority and leading figures in the industry are also pressing the need for a “joined up

The Peace Bridge in Londonderry

approach” between departments. One of the biggest and most urgent concerns is the new rates revaluation which, at a time when the focus is on the continued growth of tourism, could prove crippling to some businesses. The Executive is being urged to step in to avert a potential crisis which could include job

cuts by businesses to save money and fears of possible closures among those potentially more vulnerable. Tourism in Northern Ireland has been on the crest of a wave in recent years but to continue to thrive, the industry cautions that leadership from the new Executive is crucial. As an industry it is a significant driver for Northern Ireland, growing by 35% in the last five years.

TITLE TRAVEL, TOURISM & HOSPITALITY

The Mourne Wall

There is an ambitious and shared vision to double the economic impact by 2030 to an industry that will generate £2bn in annual revenues, supporting 90,000 jobs. Currently it contributes over £1bn in direct spend to the Northern Ireland economy, 70% of which is generated by visitors from outside of Northern Ireland, and supports over 65,000 jobs.

on effect for a broad range of sectors including local food producers, retail, artisan craft, heritage, cultural and arts sectors as well as transport and construction.

Growth in the tourism economy has a knock-

This provides employment and business on a local regional basis, bringing much needed investment and facilities into rural and coastal communities.

While Belfast is the main gateway for tourists, almost 60% of tourist spend and 70% of jobs are outside the city.

However with some hotels, bars and restaurants facing sizeable rates bill increases, Colin Neill, chief executive of Hospitality Ulster, has warned that tourists could find local hostelries shut when they arrive. “We now have the highest rates in the UK and its unsustainable and will put people out of business,” he says. “Our highest cost is staff and I can see premises being closed during the week to cut back on staff levels. Is that the face that the Government wants tourists to see when they arrive?” Colin also called on the Department for Communities to address Northern Ireland’s outdated licensing laws, as a matter of urgency.

MARCH 2020

“Easter is the first holiday weekend of the year and we have restrictions on opening from Thursday to Sunday and yet you can go into a supermarket and buy alcohol. To change this outdated law is a win for the Government and a win for the economy and it doesn’t cost anything – we are not asking for money.” His concerns are echoed by Visit Derry chief executive, Odhran Dunne, who urged the new executive to address a backlog of competing priorities. “The Department for the Economy which is seen as the bedrock to creating ‘a globally competitive economy that works for everyone’ has an opportunity to stimulate continued growth in the tourism sector by dealing with some long-standing barriers to growth including the VAT rate, APD, licensing laws, support for city deals, skills agenda and more recently the negative impact of the rates revaluation process on the hospitality sector. “While there is cross political support for growing the tourism economy, only by delivering key actions linked to the publication of the long overdue draft tourism strategy will we see exponential change.” Dr Joanne Stuart OBE, chief executive of the Northern Ireland Tourism Alliance, says that after a difficult three years with no >

TRAVEL, TOURISM & HOSPITALITY

“Tourism Ireland promotes our region on the world stage and over the last three years our funding has decreased (it should be funded one third by NI, it is now around 14%).” For tourism to continue to meet its targets Joanne is pushing for government departments to work together. “Tourism is impacted by a number of departments and it is important that a joined-up strategy, led by the Minister, is in place to create the environment and policies required for growth,” she says. The Northern Ireland Hotels Federation (NIHF) is also urging a more joined-up approach and says the Government needs to address a skills shortage in the industry. Its chief executive, Janice Gault, says: “As an industry hotels have invested some £600m over the last five years with hotel stock at record levels.

Dr Joanne Stuart

government in Stormont, tourism needs to be top of the new Executive’s agenda. The organisation is seeking a meeting with the Economy Minister to discuss a long list of issues, including a tourism strategy. “It has been a positive start to 2020 with our local institutions back up-and-running,” she told Ulster Business. “Now it is time for the Executive to grasp the nettle and bring leadership and collaborative working to set the course for Northern Ireland as we navigate a future in a UK outside of the EU.

Confusion over Brexit is something which could impact on visitors here and Joanne is also urging government to address a decline in air connectivity to GB and Europe. Tourism NI and Tourism Ireland launched a new destination brand last November – Northern Ireland – Embrace A Giant Spirit – with the aim of increasing visitor numbers and ensuring economic impact across all regions.

“Our region faces real budgetary constraints and it is vital that the economy and business, which generate the taxes to support our public services, are a key priority. There hasn’t been a tourism strategy in place for over a decade.

But Joanne says more funding needs to come from government to get this new message out internationally: “The life blood of tourism is the ability to attract visitors from outside of NI. Promotion of NI as a destination is vital and this is even more important given the negativity and confusion caused by Brexit.

“Work, led by the department and Tourism NI has been ongoing for the last three years to develop a draft strategy. This needs to be taken forward in collaboration with industry as soon as possible. “

“Tourism NI has launched a new brand – Embrace a Giant Spirit – and this requires additional funding for promotion and engaging with industry to develop quality and authentic experiences.

“The biggest challenge is recent times has been staffing and skills. Attracting new people and improving the industry’s image has been a real concern. The NIHF has been working with a new collaborative network supported by Invest NI with stakeholders from across the sector to try and address the issue. “The network called HATS – Hospitality and Tourism Skills – has started on a programme of work and is working with more than 20 local companies on a dedicated programme to attract, retain and engage the sector. “The hotel sector hopes that government will approach the sector in a more cohesive manner with departments recognising the benefits we can bring whilst appreciating the pressure on profitability. “Recent developments around rates and business costs have been very concerning. A new tourism strategy with an agreed and appropriate budget to support the new (tourism) brand are imperative, particularly as a doubling of the contribution from £1bn to £2bn by 2030 has been mooted as a new industry target.“ π

TRAVEL, TOURISM & HOSPITALITY

Diageo champions tourism and hospitality sector

igures from 2019 show that tourism contributes £2.7m each day to the Northern Ireland economy, making tourism a key driver of economic growth.

As a major exporter and employer, Diageo is synonymous with the tourism and hospitality industry in Northern Ireland with world class brands, including Guinness, Harp, Baileys and Smithwick’s being enjoyed by visitors and locals alike. Paddy McKenna, commercial manager for Diageo, said: “Northern Ireland has been transformed over the last decade with its superb scenery, sporting credentials and variety of pubs and restaurants all giving visitors a reason to spend more time here. “As committed champions of the industry it is important to celebrate all those that continue to shine the spotlight on Northern Ireland as a special place to visit and we are delighted to once again be title sponsor of this year’s Northern Ireland Tourism Awards. There are a wealth of individuals, businesses and initiatives working to continue to keep Northern Ireland on the tourism map and in doing so they have demonstrated how vital the sector is, and will continue to be, to the success of the local economy. “In order to strengthen this success, we will continue to work to support the hospitality and tourism sector throughout 2020, further investing in our brands, our customers and through strategic partnerships. This year will see an even greater focus on recruiting new consumers and visitors to our brands and into new occasions. The Guinness brand’s title sponsorship of the Six Nations is an incredible opportunity to really enhance the player and fan experience. Working with our customers we want to ensure that the pub is seen as an extension of the stadium by making the consumer experience bigger and bolder.

John McGrillen, chief executive of Tourism NI and Paddy McKenna, commercial manager Diageo NI

“Locally, the Guinness brand continues to sponsor the International Guinness Blues on the Bay festival in Warrenpoint which attracts globally acclaimed musicians and tourists to our shores and into our hotels, bars and restaurants. Hop House 13 is a sponsor of the acclaimed Belfast City Blues Festival which takes place in June and offers 60 free live gigs across the city.” Diageo also continues to work closely with Visit Belfast by committing financial support to their work in marketing Belfast as a world class destination to both domestic and overseas visitors. “Food and drink are an increasingly important part of the tourism offering here and we work closely with Visit Belfast to help enhance the overall experience for visitors, whether it’s

offering food and drink pairings in local bars or ‘Taste of Belfast’ pub guides in the Welcome Centre.” With the return of the Assembly and Executive at Stormont, Paddy believes there is a real opportunity to address the issues affecting the tourism and hospitality sectors here in 2020. “The potential is there to review and modernize the current licensing laws which would be good for our customers and would help us to engage on a more equal footing with other places in Europe. I truly believe that Northern Ireland is not only a vibrant place to visit, but is a great place to live, work, study and invest in. With the right level of investment and governance we can all play our part and work together to continue to make Northern Ireland the best destination to visit.” π

KPMG launches new arm to deal with climate change

rofessional services firm KPMG has launched a new division aimed at helping its clients deal with the growing focus around climate change.

The company’s Irish division believes that climate change and sustainability is now moved from being a ‘corporate social responsibility’ (CSR) issue to being one of the most important boardroom challenges facing businesses. The new KPMG Sustainable Futures arm will help clients navigate the climate change agenda, implement wider sustainability

objectives and address environmental, social and governance regulations. Russell Smyth, partner and head of KPMG Sustainable Futures, said: “Irish companies are increasingly recognising that we’ve reached a tipping point on the climate change and sustainability agenda and that they have to develop strategies to address what is likely to be one of the great challenges of our times. The next decade will see the climate change agenda fundamentally alter many aspects of society, while pressure from regulators and stakeholders will change the commercial landscape for virtually all

Russell Smyth

businesses across the island of Ireland. “Investors, business owners and employees need to become fully informed and understand the potential impact of climate risk on their businesses. There will be winners and losers during this transition, and those that take action now will be best positioned to create positive opportunities from the climate transition.”

Meetings and events beside the lakes Searching for a venue for your next meeting or event? Meet by the lakes at the four-star Killyhevlin Lakeside & Lodges; an inspiring location on the banks of Lough Erne in the heart of The Fermanagh Lakelands makes us the perfect venue choice. As one of Northern Ireland’s top meeting and event venues, we are proud to be a family owned hotel for over 40 years, renowned for our professional and friendly service complimented by our collection of beautifully appointed meeting and event spaces.

Conveniently located just 1km from Enniskillen town centre with direct links to the main Belfast to Dublin Road it is the ideal location for your meeting or event. Organisers can choose from our collection of inspiring meeting and event spaces which can accommodate up to 500 delegates, many of them boasting panoramic views over scenic Lough Erne. Choose from our residential and day delegate packages with the option of private dining from specially created menus and drinks list.

Residential delegates can enjoy complimentary use of the hotel’s health club, complete with swimming pool, jacuzzi, sauna, steam room and outdoor hot tub overlooking Lough Erne and indulge in a pampering session at Kalm Spa with a choice of Elemis, Image Skincare and beauty treatments. For more information please contact Killyhevlin Lakeside Hotel Events team on 028 6632 3481 or email events@killyhevlin.com or www.killyhevlin.com

DEVELOPMENT

Showcasing Mid and East Antrim to the world’s largest investors

Mid and East Antrim Borough Council delegation is travelling to MIPIM aiming to secure investment, grow the economy, create jobs and showcase development opportunities to up to 30,000 international entrepreneurs. Over the four-day conference, the group will present a range of real estate investment and development sites from across the borough to property investors, developers and occupiers, including locations ideal for investment in innovation, regeneration and tourism. Council’s participation at MIPIM forms part of our economic fightback plan to boost the area’s GVA (gross value added) and secure significant inward investment, as we seek to drive economic growth. The timing of the event coincides with a number of potentially game-changing economic growth opportunities in Mid and East Antrim, including the borough’s bid

for one of four Heathrow Expansion Logistics Hubs within the UK – a venture which has the potential to deliver an economic boost locally of £5bn and create 5,000 jobs within the Borough and wider Northern Ireland plc.

MIPIM provides council with the ideal platform to maximise the opportunities from these substantial projects, and pitch Mid and East Antrim and the Belfast Region as an ideal place to invest, work and visit.

Mid and East Antrim’s participation in the Belfast Region City Deal has resulted in the Council securing £80m, to be injected into a number of major schemes across the Borough, as part of the overall drive to deliver a decade of inclusive economic growth, create up to 20,000 new and better jobs, and increase GVA by £470m a year.

Anne Donaghy, chief executive of Mid and East Antrim Borough Council, said: “I am delighted that Mid and East Antrim Borough Council will be showcasing our investment opportunities and key sites at the world’s largest property conference.

The council’s City Deal projects include the transformation of the former St Patrick’s Barracks site in Ballymena with a new innovation hub at its centre. The other City Deal projects are The Gobbins, a major tourism attraction within the area which draws thousands of overseas visitors each year – and the regeneration of Carrickfergus, which is one of Northern Ireland’s oldest and most historically significant towns, with a rich heritage offering.

“MIPIM highlights the importance of private and public sector collaboration in attracting investment and building sustainable economic growth in Northern Ireland. “These partnerships are crucial within our economic fightback plan in Mid and East Antrim and are central to our promotion of the area and the investment opportunities available. “Our Manufacturing Task Force has demonstrated locally how important those relationships are if we are to grow our economy and provide the conditions necessary for our businesses to develop and prosper. “We are using MIPIM to sell all the attributes of the Mid and East Antrim area and Northern Ireland plc. “Our tourism potential is incredible, with our borough as the starting point on the worldfamous Causeway Coastal Route, providing the backdrop to the most successful television series of all time, Game of Thrones.

Councillor Gregg McKeen and Anne Donaghy, chief executive of Mid and East Antrim Borough Council

“Logistically, we are ideally positioned, with impressive infrastructure and links to two airports on our doorstep as well as the ports

DEVELOPMENT

The Port of Larne

of Larne and Belfast. We are home to some of Northern Ireland’s largest manufacturing firms, which are operating globally. “These include Caterpillar (NI) Ltd, Europe’s largest diesel generating set manufacturer; Ryobi, employing almost 9,000 staff worldwide, with a strong export focus and global customer base; and IPC Mouldings, whose components are visible in many of today’s flights across the world. “We have all the ingredients of an attractive investment proposition and we are completely focused on creating a vibrant business culture, proactively working to build our strengths in manufacturing and agri-food, whilst supporting and promoting the growth of the tourism, digital, financial and business services sectors. “Last year we built a number of positive relationships at MIPIM and these led to a number of key investors meetings which are progressing positively. This year we will be bringing an even more dynamic portfolio of investment sites, with the aim of selling Mid and East Antrim as a destination of choice for major developers.” The locations highlighted at MIPIM include significant industrial sites: Woodside Road Industrial Estate and Silverwood Business Park (formerly a Michelin Factory) and a range of key industrial opportunities at Kilroot Business Park and across the South

MARCH 2020

West Carrickfergus area. Tourism presents an exciting opportunity for development in the area, with investment opportunities including the former Drumnagreagh Hotel site and the Game of Thrones film location at Magheramorne Quarry. The Port of Larne presents a logistics and manufacturing opportunity for the whole of Northern Ireland. Perfectly placed on the eastern seaboard it is the shortest and fastest connection to the UK mainland. Finally we have exciting plans to transform the former St Patrick’s Barracks site in Ballymena into a new science park. An Integrated Industrial Inspiration and Innovation Campus, or ‘i4C’, will boast a range of high quality accommodation and incubator space with the addition of manufacturing and lab based accommodation and a super maker space with flexible convening space. The mixed use innovation and regeneration opportunity will also include housing, leisure, tourism and business development opportunities. Ms Donaghy said: “The Mid and East Antrim economy has experienced a number of economic shocks in the last few years with the closures of JTI Gallaher and Michelin, as well as, most recently, Wrightbus, the world-renowned coachbuilder entering into administration.

“These contributed to the loss of around 3,000 well-paid jobs in the local economy, representing a 13% loss in manufacturing GVA in Mid and East Antrim. “As chief executive, I’m proud of how our council is driving the area’s economic fightback plan. Our politicians, businesses and partners are resilient and have grasped every opportunity to turn this around, create jobs, grow our economy and place our borough on the map as an area of manufacturing excellence.” Councillor Gregg McKeen, chairman of the council’s Borough Growth Committee, said Mid and East Antrim welcomed the opportunity to join with its five other partner councils to highlight the opportunities and benefits that the City Deal will bring for Mid and East Antrim and the wider Belfast region. He said: “Local government and its role in driving economic growth and securing investment has never been more important. With some of the most enviable assets in terms of companies, people and physical resources, we can offer a number of largescale investment opportunities. “I look forward to welcoming developers and investors from around the world to engage in discussions around investing in the Borough and sharing in our ambitious growth plans.” π

BANKING

Vicky Davies with chief executive Kevin Kingston and fellow deputy chief executive, Stephen Matchett

Danske Bank posts £90.8m pre-tax proﬁts

anske Bank has posted pre-tax proﬁts of £90.8m amid a strong mortgage book and further reduced loan impairments.

The bank said its mortgage business was a “key driver” for its performance in 2019. It said its mortgage lending was at its highest ever level and that it held 22% of all new mortgages in Northern Ireland, up from 6% four years ago. Vicky Davies, deputy chief executive, said that in the past 12 months “we have helped over 2,000 local first-time buyers realise their home owning ambitions”. “Mortgages were the key driver of the bank’s overall lending in 2019,” she said. “Danske Bank’s total mortgage lending is at its highest ever level, and it is noteworthy that in the past 12 months we have helped over 2,000 local first time buyers realise their home owning ambitions. “The high quality service provided through our contact centre was recognised when we were named NI’s Contact Centre of the Year for the second year in a row. “We also marked the first anniversary of the

Catalyst Belfast Fintech Hub, a co-working space for early-stage tech entrepreneurs on the ground floor of our head office, run in partnership with the not-for-profit entrepreneurial eco-system, Catalyst.”

Lending was 3% higher year-on-year, and retail customer activity was satisfactory. Customer deposits grew by 7% year-on-year and costs were down by 1% compared to the same period last year.

Richard Caldwell, managing director, personal banking and small business, said that the bank had “completely transformed” its mortgage offering and was conﬁdent it would continue to grow.

Shaun McAnee, managing director, corporate and business banking, said he was “not surprised” demand for business lending was down given the “political and commercial uncertainty”.

“If you’re going to grow your mortgage book you need to think about ﬁrst-time buyers but also home movers,” he said. “We’re also supporting a lot of self-builds in rural communities which is an important element. Probably the thing we moved most on in Q3 and Q4 last year is the switcher market.

“Interestingly it’s not just that demand has gone back a bit. The construct of the demand has changed as well,” he said.

“These are people who are not moving house but moving mortgage for a better deal or better service.” But the bank, which has 40 branches, said new lending to business during the year had been affected by Brexit, with some customers delaying investment decisions. Total income during the year was steady at £233.2m, with the bank saying levels had held despite continued economic and political uncertainty.

Ms Davies said that “as the UK navigates its way through the Brexit process, our role in Northern Ireland, as the biggest bank here, will be a crucial one. There will be continuing challenges to economic growth in 2020, and Northern Ireland in particular will need to adapt to new Brexit realities quickly”. “A rejuvenated and focused Northern Ireland Executive and Assembly is of paramount importance. I would like to congratulate the political parties for working together to return the institutions, we wish them well and they will have our full support.” π

Tax & accounting

TAX & ACCOUNTING

Balancing the books: A taxing issue and revenue raising Revenue raising and the push to lower corporation tax and cut air passenger duty here just got a bit more complicated. John Mulgrew looks at the case for and against, and speaks to the experts about what’s needed to ensure NI has the necessary resources to prosper here are a lot of “uncomfortable choices” ahead for newly-appointed decision makers on the Hill, according to one economist and academic.

Minister Diane Dodds appeared somewhat divided on the prospect of returning to the issue of devolving corporation tax to the Assembly.

In the days following the establishment of the Executive, early indications were that the Finance Minister Conor Murphy and Economy

But things have also gotten more complicated from a national perspective. The plan to reduce the rate to 12.5% – lower than the current

19% across the UK – was due to incentivise foreign direct investment (FDI) and bring us in line with the Republic. But it would also mean a cut in our block grant to reflect the tax shortfall. Now, it’s been reported the UK Government is being urged to increase the rate by 2%,

The newly formed Northern Ireland Assembly

TAX & ACCOUNTING

Gareth Hetherington

throwing more complexity over the rate’s reduction here. And, a written answer from the First Minister and deputy First Minister, said “(the) immediate focus is to ensure that we can fund basic public services which are clearly under significant pressure. Consequently, the devolution of corporation tax is not something that I am actively pursuing at this time”. “Plotting our way through these challenges raises a number of uncomfortable choices,” Gareth Hetherington, director of the Ulster University Economic Policy Centre, told Ulster Business. “Either taxes and charges need to be increased or we as a society tolerate the continued degradation of public services. Alternatively, we finally bite the bullet and accept the need for fundamental reform across the public sector.

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“Although reform is the only long term solution, a lack of political will is often cited as the reason for delaying that much needed reform. However, that deflects attention from where responsibility really lies, in truth it is the electorate that lacks the will to embrace change. When we change, political decisions will change.” Richard Gillan is chairman of Chartered Accountants Ulster Society and partner in charge at Grant Thornton in Belfast. He said that “within days of the new Executive forming, it was clear that the various initiatives and funding requirements were adding up to a cost that is well beyond our means, and one which will not be funded by the Exchequer”. “Consequently, ideas were being floated in the media about various revenue raising options such as water charges and increases in tuition fees. Many of these revenue raising ideas

were immediately dismissed, as was the longplanned reduction in corporation tax. “There is no doubt that the Executive needs to undertake a significant programme of investment to deliver a Northern Ireland economy that is fit for purpose. “Seeking to raise revenues is certainly an option and may well be required but I would urge caution here – the recent rates revaluation, for example, has left many businesses with increased costs that they will find difficult to bear. It is a similar situation for individuals – the average household in NI does not have the luxury of a significant level of discretionary income every month.” He reiterates the suggestion that “public services could be run more efficiently and effectively”. “Perhaps now is the time for a forensic examination of all the various > programmes funded through public

TAX & ACCOUNTING

Richard Gillan

expenditure to determine whether scarce financial resources are being deployed to achieve priority policy objectives. Where they aren’t, we have to stop doing them,” he said. “This approach was taken in the Republic of Ireland during the recession, where an independent commission supported the government in identifying annual savings. When our businesses and individuals are confident that our money is being used wisely, the conversation around raising new revenues might get a fairer wind. “Whatever they decide, our members will be wishing the political parties well and hoping that the newly restored institutions can deliver for Northern Ireland.” According to Gareth Hetherington, following

the absence of a devolved administration for three years “… it is now clear that the priorities of the newly formed Executive have shifted significantly”. “Waiting lists in the health service, nurses striking over pay and safe staffing levels, and calls for funding from every other area of government have completely changed the tax and spend dynamics for our politicians. “Previously, the rationale for devolving taxes was with the aim of reducing them to bolster economic growth, even if that meant a reduction to the block grant. We wanted lower corporation tax, lower air passenger duty and lower VAT for the hospitality and tourism sectors. Fast forward to 2020 and the discussion has turned 180 degrees towards devolving taxes with a view to increasing them.

“With the primary focus now on raising revenue, in particular to meet the priorities set out in the New Decade, New Approach deal, the first source of funding appears to be Westminster. Initial indications would suggest that some additional money is being made available, but will be significantly less than the cost of all the commitments made.” He says that “meeting this revenue deficit in the short term would require ministers to focus on locally devolved taxes (for example rates), and charges (such as for the use of domestic water and increasing tuition fees)”. “Of course, this creates another problem. These measures would be very unpopular with the electorate when the politicians already have one eye on the next Assembly elections which are only two years away.” π

TAX & ACCOUNTING

Strategic planning for 2020 and beyond As the business community continues to face challenges that are impacting its ability to invest and grow, it is vital that companies ensure appropriate structures are in place to maximise any opportunities that come in 2020, writes the BDO Tax team

ith a new NI Executive now in place (after three years of impasse) and a Brexit transition period, aimed at securing associated trade deals and negotiations which will shape the long term relationship between the UK and EU, there is cause for optimism for the future.

Taking these challenges into account, BDO NI has worked to position its tax, audit and advisory teams to meet the demand of new and emerging client issues. Led by partner Maybeth Shaw, BDO NI’s high-calibre and diverse tax team includes four experts who bring with them a collective and strong knowledge base aimed at guiding businesses and entrepreneurs through the many complexities that come with tax and compliance. “HM Revenue & Customs will lead on the development and implementation of vital tax and customs arrangements that will define the future relationship between the UK and EU,” Maybeth Shaw says. “The detail in these arrangements will dictate how local businesses will operate and it is vital that companies are prepared for this. Identifying areas of a business that may need reviewed, restructured or adjusted ahead

of this is vital in ensuring their long term sustainability and that’s where expert advice and guidance is crucial.” The BDO NI Tax team, which includes principals Paul McCourt and Fiona Hall and directors Geraldine Browne and Claire McGuigan, provides insight and innovation to clients that can help maintain compliance, drive value and prepare for whatever 2020 and a post Brexit economy look like. “It’s important to note that Brexit is only one of the many challenges businesses are facing, with ongoing issues around recruitment, skills gap, talent retention and business operating costs which all have associated tax implications,” Maybeth says. And Paul McCourt adds: “Given the uncertain market conditions, it is as important as ever that businesses seek to maximise tax efficiency through claiming available tax relief for capital expenditure, including understanding the impact of any relevant Budget announcements. “Uncertainty may well provide opportunity and businesses can look at incentivising key employees to drive growth via tax efficient share option schemes or similar. While recent announcements regarding cutting NI corporation tax might not be regarded as indicating a change in the short term,

businesses should still where possible ensure that their structure allows trading profit to qualify for the 12.5% rate if and when it comes into effect.” A consistent issue for many businesses, particularly within manufacturing and hospitality is the ongoing skills gap and the challenge businesses face in recruiting labour suitable for their roles. This issue has consistently been raised in the BDO NI and NI Chamber of Commerce Quarterly Economic Surveys. Furthermore, and despite all the preparations for Brexit, the Government has still had time to push through a number of changes that will directly affect local employers from April 6, 2020. Geraldine, director with BDO NI, highlights the need for companies to plan to ensure they are prepared for this new legislation. “Off payroll labour, employment allowance charges, national minimum wage rates and compliance and employment rights/statements are all areas that have undergone change going into 2020/21. There are also ongoing implications in relation to income tax and capitals gains tax which need to be protected and changes to payroll processes that employers need to obtain advice on.

TAX & ACCOUNTING

Pictured in the Fitzwilliam Hotel penthouse in Belfast is the BDO NI Tax team including Claire McGuigan, Geraldine Browne, Paul McCourt, Maybeth Shaw and Fiona Hall

“These issues cannot be underestimated, with the impact being seen across a broad range of sectors including property, leisure, manufacturing, hospitality and food services. Working closely with our clients we provide the best advice on how to move forward with each element regardless of the size of their workforce. BDO NI also provides ongoing support to SMEs and multi-national companies in accessing R&D relief aimed at encouraging businesses to invest in innovative research and development. Claire, corporate tax director with BDO NI, says: “It is a common misconception that only companies operating in certain sectors are eligible for this relief. We have worked with companies in all sectors which vary in size and structure to successfully claim the relief, including medical, manufacturing, construction, engineering software, renewable energy and architecture. Although a total of £75m was paid out to businesses in NI in R&D tax relief in 2017/18, there are many small businesses who are losing out on this opportunity. We see

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examples of innovative businesses keen to broaden their market offer but without advice and guidance on how they can fully maximise this they cannot continue to grow.” Like businesses, individuals also need to be aware of the potential reforms in tax legislation. BDO NI principal Fiona, who advises clients on personal tax matters including inheritance tax (IHT) and succession planning, urges individuals to seek advice early to mitigate against any potential issues. “Over the last two years there have been several reviews undertaken of the IHT regime. Reports have been published by both the Office of Tax Simplification (OTS) and the All-Party Parliamentary Group (APPG) for Inheritance & Intergenerational Fairness. These reports recommend numerous changes, some radical, to a tax system that is often criticised as outdated, complex and ripe for reform. Assuming there is to be reform of IHT, we may see the Government opening a consultation on IHT policy changes this year, with a view to implementing legislative changes from April 2021. However,

individuals should be alert to any relevant tax reforms announced in the Chancellor’s first Budget for the new Government. There is clearly potential for significant change to the IHT rules. Therefore, it is important that individuals keep up to date with developments and seek expert advice on how potential changes could affect their family’s future succession plans”. Effective management of tax affairs, both corporate and personal, is an increasingly challenging but essential part of any business strategy. BDO NI has engaged extensively with clients to understand their particular business model and the issues that are most important to them as they pursue their business and personal financial objectives. From this BDO has built a strong team equipped to deal with these complexities, tailoring solutions aimed at helping businesses and individuals save time and money, and reduce risk exposure in the future. π For more information contact the BDO Northern Ireland Tax team on 028 9043 9009 or visit www.bdoni.com

INTERVIEW

The Brexit argument ‘has passed its sell-by date’ Ulster Business editor John Mulgrew sits down with Economy Minister Diane Dodds to discuss representing business after backing Brexit, dealing with a ‘big brief’, corporation tax remaining on the agenda and wading through the in-tray

“T

he argument has kind of passed its sell-by date”, newly appointed Economy Minister Diane Dodds tells me somewhat dismissively when asked if she can confidently represent the business community after her staunch position on Brexit flew in the face of the wishes of the bulk of NI’s private sector.

from writing off lowering the business duty, despite suggestions from Finance Minister Conor Murphy that it was off the table. “I’m a low taxation person,” Ms Dodds says.

“I think that argument has gone. For Northern Ireland, Brexit is a fact,” the Minister tells me during a sit down at her Netherleigh House office, close to Stormont, outside Belfast.

She’s just taken over arguably the widest ranging portfolio in the Executive, a role held by her DUP predecessor Simon Hamilton, before the collapse of the Assembly in 2016, and will be responsible for everything from the economy, energy, skills and further education right through to tourism, overseeing multiple arms-length bodies and the roll-out of the Government’s Project Stratum broadband programme.

“I don’t want anyone to over-egg the pudding in a ‘he says, she says’ kind of way, but it (corporation tax) should always remain as part of the toolkit.”

The former MEP, who was co-opted to the Assembly following the December General Election, says it’s a “very big brief and department to manage”. “My most immediate priority in terms of the economy is to try and

work to resolve some of the short to mediumterm impacts of the NI protocol and how that might work out for the economy,” she says. “In terms of skills, I want to see us review some of the programmes that are there – (I’m) excited to work with the Department of Education on a 14-19 year-old strategy. “Energy has also been taking up a lot of my time – not just in terms of RHI, but how we get low-carbon, competitive, clean and green energy to promote an economy that reflects those values.” The Minister says focus in the coming months is obviously around Brexit, and working alongside her counterparts and Executive colleagues to mitigate any short-term issues that arise. “I think there are huge opportunities. There are opportunities to be had. There are risks to be minimised, and for Northern Ireland as part of the UK we will be part of the fifth largest economy in the world, an economy which is

INTERVIEW

Diane Dodds speaking at her office in Belfast. Pic Kevin Scott

outward-looking, global, and will invest in its infrastructure. I’m looking forward to working on those priorities. “If those deliver, if we can deliver some of those things, we will then deliver better jobs, more prosperity and better prospects for families.” The word risk still comes up around what may arise in the coming months and year or two, as the UK exits the EU and arrangements around cross-border and GB trade become clearer. And while exploring new markets will be on the agenda for many businesses here, Ms Dodds strongly reinforces her view that there should be a focus on the “solid rock” of the overall UK economy, as a whole. “Around 70% of everything we make and grow is sold within the UK. It is by far our biggest and most important market. We will be able to grow other markets but that market remains the rock of the economy here.”

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Asked whether she can confidently represent the business community, which largely backed Remain, she believes things have moved along, and she’s keen to work with colleagues, businesses and their various representative groups. “I want to work, not just with the Assembly, committee and the Executive, I want to work with businesses in NI and their representative bodies to make sure that what we are doing is co-ordinated and in the best interests of Northern Ireland,” she says. “I think the argument has kind of passed its sell-by date and now we are in a different scenario and now have to work to maximise the opportunities and minimise the risks. “We are all grown-up people. We are all professional people, and we will all work together to make sure that Northern Ireland is represented in the best way (it can be) – and that is hugely important for us. “Brexit and your choice is your democratic

right. We are in a different place. We have, as part of the UK, left the EU. We now need to do what is right for Northern Ireland. In doing that I will work with all industry.” And the overall feeling among the new Executive and Assembly? The Minister believes “there is a very good mood in the body politic”. “We want to play a full part (in negotiations)… that is critically important for us as well. The UK Government has now set up the UK Trade Forum… ministers from Wales and Scotland, and we have already held our first meeting. It is really important that we work with the other devolved administrations. “… for now the short and medium term issues that occupy and obsess me in terms of the economy are the issues of access to our GB market, how we define and see legislation in terms of the unfettered access to the GB market, and how we access goods coming from GB to NI.” π

INTERVIEW

Gavin Annon: helping grow the family business G Emma Deighan chats to Gavin Annon, head of sales and marketing at Mount Charles, about growing the family business further into the Republic and a sideline in DJing

avin Annon didn’t want to rise through the ranks at Northern Ireland’s biggest catering and outsourcing firm because it was a career in waiting.

Instead, he says he decided to do his own thing before joining the family business. That route included a degree at Queen’s University, a lengthy stint in Tesco where he moved from the checkouts to management and a Chartered Institute for Marketing for professionals post-grad, with a very successful DJing career on the side. “There was always that end goal that I would be here, but I wanted to prove that I could

survive and make my own money because it’s very easy to walk into a family company and work your way up. It’s too easy,” he says. Today Gavin, father to 18-month-old Conrad, and his wife Lauren are juggling three family businesses with parenthood. Lauren operates her own company, Mr and Mrs Balloons. And as well as a key role at Mount Charles, Gavin is a successful DJ with a string of residencies at some of Belfast’s best-known nightspots. Gavin, his brother Christopher and sister Louise were raised in Lisburn by Trevor and Kate Annon. Trevor founded Mount Charles in 1988 – a business which has grown in size and reach, considerably, over the last three

INTERVIEW and that was really daunting to do during your early teens but I was proud to be part of it. I remember we had mini stations set up at Drumcree and we were really pushing our food offering then.” The RUC was one of many high-profile clients for the business in its early days.

and that’s why we win business and why all the staff go through a pretty passionate induction process because we want that to run throughout the company,” adds Gavin, who was a key player in bringing the firm to the Republic four years ago, snapping up major contracts.

Mount Charles came about after Trevor Annon’s success working for multinational, English-based catering houses. Having been part of their success, Trevor wanted to set up a homegrown company.

“Opening an entity in Dublin was always part of the plans for the company,” he says. The driving force behind the move was to Brexitproof business growth too.

He dipped his toe in the water with the opening of his own cafe in Carryduff called the Copper Kettle. “He worked for companies like Compass and was being flown back and forth from London, signing contracts, and he saw an opportunity for himself to give it a go and run it locally himself. “The cafe gave him the confidence to know he could run something himself and so the company began with no name in an office belonging to a friend in the Botanic area of Belfast.

decades, and the business has always played a massive role in Gavin’s childhood. From an early age he was expected to knuckle down and help out with catering contracts, which included wiping down tables at one of Ireland’s largest foodcourts to being on-site at contentious events for one of the company’s clients, the RUC. “Our first involvement was going around the contract catering sites on a Saturday. We would have helped clear tables, dad would have a cup tea with clients and make sure we were doing everything that we promised we would,” Gavin says. “… we had the account for the RUC and it was a really sensitive one. We worked for them during the Drumcree dispute and we had to serve the officers. We worked 20-hour days. “None of our vans were allowed to be branded, there were no badges, no names

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“It was when he was standing on the street Mount Charles, beside Scalini’s Restaurant on Botanic Avenue, when he came up with the name and he knew he had to get business quickly or he wouldn’t survive and that’s how it all began.

“Whatever way Brexit was going to go, we knew we needed a standalone entity down there. We did put that office in place for Brexit protection and set up new arrangements with suppliers and today we have a good army down there and things are going well.” In the Republic, clients include the National Aquatic Centre in Blanchardstown – a visitors’ attraction with 1.2 million visitors annually. Griffith College in Dublin is another and Maynooth University is one of its most recent contracts, worth £11m to the business. RTE has been one of its biggest documented contracts in the Republic. The company secured a seven-year deal with the broadcaster in December. “Companies in Dublin and in the Ireland marketplace have been through the multinational marketplace and there’s no new innovation and creativity there.

“He thought Mount Charles sounded prestigious and because it was not associated to any service type it worked. He got a couple of contracts in his first year, one of which was Friends’ School, which we still have today. Another was the Social Security office in Shaftesbury Square and the third was Moy Park, which today is still one of our biggest clients.”

“Now those companies are moving their minds towards family-owned companies because we put a lot more creativity into it. The feedback from winning RTE was exactly that.”

The contracts continued to flow, including a package to supply a full range of services to Parliament Buildings in Belfast. Mount Charles’ turnover in year one was £183,000. Today it can boast a £40m turnover, which is on a trajectory to reach £100m by 2025.

“It’s the land of opportunity,” he says. “There’s still a sizeable opportunity for us here too but this market isn’t growing as fast. If you look at the skyline in Dublin there are 137 cranes and that shows how much growth is going on there. We also find it’s about quality rather than cost there.”

Gavin is something of a co-pilot when it comes to meeting the latter target. His role as marketing director will reinforce the firm’s family traditions. “That’s one of the biggest things for me, to maintain our family values,

Gavin says the Republic marketplace presents the most growth potential for the company, which has more than 400 clients throughout the UK and Ireland.

Mount Charles’ service portfolio extends beyond catering contracts. In recent years it has diversified into vending, cleaning and other services. π

TAX & ACCOUNTING

Keeping an eye on the ball At time of writing, Sajid Javid has just resigned as Chancellor of the Exchequer, making him the first Chancellor in history never to have delivered a Budget speech. The new Chancellor, Rishi Sunak, will deliver his first Budget less than four weeks from his appointment. So what might we expect, asks Mark Hood of HNH

n recent weeks, there has been increasing talk about what the Government might do to limit Entrepreneur’s Relief, as well as speculation about the introduction of a ‘mansion tax’ and restriction of pensions tax relief for higher-rate earners. Focussing on ER, the availability of an effective 10% tax rate on capital gains arising on the disposal of certain business assets/ shares has been the subject of much discussion. In particular, there seems to be a growing consensus that the relief (which applies to qualifying gains up to a lifetime limit of £10m) has not achieved the purpose for which it was introduced, and the 2019 Conservative Party General Election specifically noted that “we will review and reform Entrepreneur’s Relief”. There are various possible outcomes of such a review, including, a reduction to the £10m lifetime limit, an increase to the 10% effective tax rate, reform into a different type of business tax relief, and abolition of Enterpreneurs’ Relief altogether. But we will have to wait until Budget Day for further details. Amid all this speculation, it’s easy to forget that there are other changes to the tax regime already announced to come into effect on April 6, 2020. One of the key measures is the reform of off-payroll working (IR35) rules for the private sector.

Mark Hood

The new rules will not apply to ‘small’ companies, which are expected to be defined by reference to the Companies Act 2006. Given this exemption, it is expected that the vast majority of engagers will remain outside the IR35 rules.

Following the change in IR35 rules applying to the public sector from April 2017, similar reforms will move to the private sector with effect from April 6, 2020, applying to services provided on or after that date. As a result of this, where a worker provides services to an end client through an intermediary (in many cases, a personal service company (PSC)), responsibility for making a determination of a worker’s employment status will move from the intermediary to the end client.

Even so, it had been hoped that the Government would delay implementation of the new rules for at least one year, to allow for further consultation. In January 2020, the Government did announce a review of the IR35 changes, but only ‘to ensure the smooth and successful implementation of the reforms’, still to come into force from April 6, 2020. The change in rules is expected to generate revenue in excess of £1bn for the Exchequer in 2020/21, therefore it is highly unlikely that there will be any further delay.

If the off-payroll working rules apply, responsibility for applying PAYE/ NICs as appropriate rests with the fee payer (or end client, if this is the same person), not the intermediary. If the end client does not provide a worker with an employment status determination, responsibility for applying PAYE/NICs on any payments will rest with the end client.

The Budget is always a big event in the political calendar but, given recent events, it’s fair to say that this year will probably be more ‘eventful’ than usual. However, it’s critical that business owners and advisers alike do not take their eye off the ball, and be ready for the changes we already know are coming. π

Retail

RETAIL

Could 2020 see the rise of the independent? Despite a decline in footfall, and some big name closures, savvy independents are poised to help save and rejuvenate the high street, Pavel Barter discovers

f you listen to those on the frontline of retail, 2020 is likely to see a period of reconstruction for high streets in Northern Ireland. In any reconstruction process there will be winners and losers, but the retail sector is transforming: beyond all recognition in many respects.

Data from Springboard, a retail intelligence company, illustrates the troubles facing retail. Footfall for January, 2020, declined 3.8% from January 2019. Shop vacancies around the

David McClure

province were 14.4%: the highest of any UK region. Diane Wehrle, insights director at Springboard, pointed out that the last two January results followed a 3.9% rise in January 2018. “NI retail swings from negative to positive,” she said. “That has characterised NI retail since we started collecting data there.” Yet the high street is facing an unprecedented crisis. According to the Centre for Retail

Research, nearly 4,000 shop jobs were lost in Northern Ireland last year. The last decade has seen an avalanche of large retailers closing, including Toys R Us, Tie Rack, and Poundworld. On the whole, Debenhams, which inhabits a 120,000 sq ft premises in Castle Court in Belfast, is also struggling – closing almost a dozen stores across the UK. “I fear that in the coming months, we’re going to be hit by more stories of erstwhile giants falling by the wayside because they can’t meet their financial commitments, or they haven’t been able to adjust to a rapidly changing market,” David McClure, managing director of commercial property firm Osborne King, told Ulster Business. According to David, the internet and changing consumer habits have led to massive changes. “It’s extremely pronounced once you get out

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Belfast city centre

of the main urban areas and into what were traditionally market towns and provincial settings. It’s a trend that cannot be stopped. We’ve got to face the fact that our towns and cities are going to change forever.” Yet, behind the closure notices, a quiet revolution is underway. Independents are bucking the trend, opening high street shops and fighting for their right to retail. “It’s the smaller, more strategic, focused retailers that don’t just survive but thrive,” said Glyn Roberts, chief executive of Retail NI. “Big is no longer beautiful when it comes to retail. Things are going through unparalleled period of change. Retailers who can adapt to that change, innovate, are the ones who will reclaim the future.” Suitor Brothers, a family-run menswear

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business in Belfast, is one such maverick. According to Chris Suitor, the store’s proprietor, this shop reacts to changing and evolving market conditions.

to Glyn: “We have to create an experience: family-friendly high streets. We have to make them fun places where people want to come back time and time again.”

“We can scale up or down, depending on how our business is going,” he said. “What allows us to exist and hopefully ride the storm, as an independent retailer, is our ability to be dynamic and change. A lot of multinationals are guided by head office and traditional kinds of sales and retailing. If we see a downturn coming, we can use promotional ideas to drive footfall. We can be more dynamic in the retail space and more reactive with our PR.”

Putting the social into shopping certainly appears to be part of Suitor’s success. “We are finding that a lot more people are coming to us for a tailored experience,” said the tailor. “They see their idols wearing tailored jackets, suits, and coats. They maybe go into a multinational store, trying to find that look, then wonder why it doesn’t look the way it does on their phone.

According to Diane, Chris Suitor’s approach is in line with global trends. “Be more flexible, not so standardised, more localised. That’s what people want,” she said. Retail and hospitality are merging, according

“We deconstruct and reconstruct the garment to make it look the way you want. We allow a lot of autonomy with the staff. There’s a lot of banter. It’s very casual, relaxed. We do not put pressure on you to buy anything. Not being pushy makes the customer buy more.” >

RETAIL

Chris Suitor (left) with brother William (right) at the Belfast Telegraph Business Awards with Peter McBride

The market, meanwhile, may be in the favour of indies. Osborne King has seen examples of independent retailers buying high street properties, due to keen prices. There is business logic behind securing a property on a freehold basis, as opposed to paying rent. “You can probably pick up vacant retail accommodation, on a for sale basis, in any town, even historically strong ones such as Ballymena and Bangor, for £20 per street foot. In a place like Bangor, they might have paid much more than that in rent,” David said. Nevertheless, the high cost of doing business in NI is hampering retailers. “We have a perfect storm of cost issues,” Glyn said. “We have a significant rise in the living wage and energy costs. Our members are paying the highest business rates anywhere in the UK.” A spokesperson for the Department of Finance told Ulster Business that “a full and comprehensive” review of business rates has been undertaken in response to the changes in Northern Ireland’s high streets and town centres. “The review is about ensuring our business rates system is effective, fit for purpose and fair... the public consultation closed in late November and officials have been examining the extensive range of responses.”

According to the spokesperson, the options for rates relief provision for 2020/2021 will be considered in the context of the consultation. But even with rates relief, family-friendly high streets are nothing without local residents. “We need to encourage developers to return commercial or retail premises to residential,” David said. “Bring people back in and that will create activity. In England and Wales, if you have a vacant office building in the city centre, you don’t need planning permission if you change its use to residential. It is covered under permitted development. We haven’t managed to get ourselves to that stage (in Northern Ireland) yet.” Chris Suitor believes that multinationals are not doing enough to entice shoppers – and this is why they are failing. “They almost make it an incentive to shop online,” he said. “If I’m a consumer and I can buy £200 of stuff online, get it delivered for free and save £20, why would I even want to go into their store and pay £20 extra?” Yet technology might also save the high street. Pointy, an app founded by Irishman Mark Cummins, connects the inventory of local shops to online e-commerce channels. When you search for products online, it brings up

results from local stores. “For all the hype around e-commerce and the media narrative of retail apocalypse, people still make the vast majority of their purchases in local stores,” Mark said. “But local retailers have lost out in not having their products visible online and we solve that problem. We help stores to be more visible online. It seemed crazy to us that people had to wait two days for Amazon to deliver a product that could be 100 yards away in a local store.” Google, when it noticed that Pointy was starting to gain traction with US retailers, took notice. Last month, the tech giant bought the app for a reported £122m. Footfall statistics might be worrying, but the fight is not over yet. Glyn said that his Retail NI members are positioning for the future and learning from past mistakes: “I wouldn’t be too downbeat about the future of the high street.” Chris, who continues to make high street retail look smart, concurs. “Whenever I close the door at night and see my name above the door, it’s a wonderful experience,” he says. “It’s a tough market, a tough job, but a wonderful place to be. It’s the most rewarding thing you can imagine.” π

SURVEY

Consumer conﬁdence slipping in NI Conor Lambe

onsumer conﬁdence in Northern Ireland dropped further at the tail end of the year – with the then ongoing political stasis in part to blame.

their confidence levels since we to the impact of higher prices as introduced this question to our the factor having the biggest survey in the third quarter negative impact on how they of 2017, so the return of were feeling, particularly the devolved institutions given the relatively strong Those who said a Around 40% of those surveyed said absence at the start of this year is rate of wage growth. The lack of Executive was of devolved government was the largest drag undoubtedly a welcome latest figures show that the biggest negative on confidence levels, while Brexit was another development,” Conor inflation in the UK was driver of consumer factor that adversely impacted how people Lambe, Danske Bank chief running at just 1.3% at the confidence were feeling. economist said. end of 2019, considerably below the 2.1% observed at the That’s according to the latest Danske Bank “Despite the UK now having left the end of 2018 and the 3% at the end of Northern Ireland Consumer EU, I believe that Brexit will continue 2017. But despite the lower headline inflation Confidence Index for the fourth to dampen the confidence of local rate, prices are still increasing and local people quarter of 2019. people throughout this year. are signalling that those rises are negatively There is still a high degree of impacting how they view their financial Looking ahead, there’s uncertainty around how the position.” Number of those who UK and EU will trade with each a mixed picture for consumers. Almost a other once the transition period He said the labour market here remains feel their finances quarter of people expect comes to an end, and how the “one bright spot from a local economic have deteriorated their finances to worsen over Northern Ireland protocol within perspective”. “The employment rate in the next year, compared with the Brexit Withdrawal Agreement Northern Ireland is currently the highest on 18% who expected their financial will be applied in practice. If progress record and the unemployment rate is the joint position to improve. in the negotiations around these areas can’t be lowest on record.” evidenced relatively quickly, then nervousness Meanwhile, 11% of people expected to related to Brexit could begin to build and However, while Northern Ireland’s become more secure in their job, while confidence levels could soften further. unemployment rate remains lower than the 12% expect their job security to worsen. rest of the UK and the Republic of Ireland, “Consumers had been pointing to the lack of “It is somewhat surprising to see such a large overall economic inactivity remains significantly an Executive as one of the biggest drags on proportion of people continuing to point higher, and wages and output lower. π

40%

25%

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RETAIL

Sales growth boosted by diversification in retail at Henderson Group

enderson Group has started 2020 with a bang – not only have they entered into what will be one of their biggest years of growth yet, but they posted a sales boost of 3.8% over the four-week Christmas sales period.

The SPAR Kilwaughter store in Larne

It’s a ‘start as you mean to go on’ mentality for the wholesaler and retailer, which owns the SPAR, EUROSPAR and VIVO brands in Northern Ireland. Last year saw 17 new retail accounts open with the Group, while their property teams continued to diversify what convenience is in Northern Ireland by renovating stores to make them even more shopper friendly, which saw a 3.7% growth in retail space with the average store size growing by 1.7%. Paddy Doody, sales and marketing director at the Henderson Group says that they are constantly developing within the sector which certainly means investment, but also creating a niche which sets them apart in this increasingly competitive market. Examples of this can be seen with the sheer number of new stores and renovations which have launched and completed in the past 18 months. The first sea change came with SPAR Fortfield, Carrickfergus, opening in December 2018, which put SPAR NI’s food-to-go offering at the forefront of convenience retailing. Paddy says this is a new way of designing stores so that they are offering what shoppers want and need. “Food to go has been a significant area of growth within our stores, so much so that we now have a partnership with Greggs in our SPAR Kilwaughter store in Larne, the first of its kind in Northern Ireland. “When shoppers enter our stores, they can shop food for their lunch right now, and food for later in the day by picking up components for their dinner, thanks to our newly developed own-brand ranges.” The ranges include the new The Chef collection of fresh meals that are handmade at

the company’s new kitchens in Randalstown, created by their new in-house chef, Carl Johannesson and his team which saw a £500,000 investment from the company. Carl’s global credentials and experience as head chef at some of Belfast’s top restaurants ensures top quality ingredients and flavours, which wouldn’t normally be expected from a convenience range. Paddy says: The products are ready made for the shopper, but they are artisan, homemade and are packed full of flavour. The Chef has been well received, with positive sales within its first three months on our shelves and with plans for increasing distribution in the coming months.” Technology is also a huge factor for the future of retailing, which is where Henderson Group excels thanks to its dedicated tech company, Henderson Technology. The company has recently been trialling Ubamarket’s Scan as you Shop software through its EDGEPoS check out systems, which is a first for convenience stores in Northern Ireland.

“The multiples have brought in this technology on a wider scale, however, our shoppers are looking for a combination of store navigation and ease of purchase, which this app delivers,” Paddy says. “They can create shopping lists on their phone, see where it is in our stores and tick the box for a time efficient shopping trip. The app and software are currently being trialled at SPAR Sunnyside Street in south Belfast and Mulkerns EUROSPAR in Newry, with a view to roll out to all stores this year.” The Scan as you Shop app joins the awardwinning waste management app, Gander in the technology that is leading SPAR and EUROSPAR in their fields, with Paddy adding; “Gander enables shoppers to see, in real time, what yellow label stickered products are available at a reduced price, which helps us to hugely reduce our food waste from stores. “Sustainability remains a high priority for retail and we are continuing to work with suppliers to reduce packaging, create biodegradable packaging and reduce food waste throughout our retail network of over 450 stores and supermarkets in Northern Ireland.” π

ANALYSIS

Conditions making corporation tax cut unlikely It’s perhaps unsurprising that the issue of reducing Northern Ireland’s rate of corporation tax has come back on the agenda and that some continue to advocate for it, writes Ulster Bank’s chief economist, Richard Ramsey

he devolution of corporation tax has been a long-fought campaign and has been the flagship economic idea over the last decade to help transform the local economy. However, much has changed in this time and the reality is that the political, social and economic environment has shifted to one that is much less conducive to such a policy. At a national level, George Osborne led the way in reducing corporation tax when he was Chancellor, and the UK headline rate was due to hit 17%. However, the current government has scrapped this plan, and the rate will remain at 19%, signalling that the political attitude towards business and reducing corporation tax has very much changed. Indeed, it is more likely that the next move could actually be up rather than down. In Northern Ireland, the New Decade New Approach deal talked at length about the need to create sustainable finances; the reality is that there seems to be little of any scope for absorbing the cost associated with reducing the local corporation tax rate. Society’s attitude towards these issues has also changed, and in recent years there has been a significant focus on how much, or not, firms have been paying in tax. With public services under

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pressure, the prospect of reducing tax for large businesses seems a difficult concept to sell to a public that is increasingly more concerned with issues like the environment and health rather than the economy. Even from an economic perspective, the potential benefits have been diluted by issues such as Brexit. The attractiveness of reducing corporation tax for Northern Ireland is in the perceived ability of the policy to attract foreign direct investment and to support the expansion of indigenous firms. However, with so much uncertainty and complexity surrounding Brexit, the economic environment certainly is not currently favourable to enable such a policy to be effective. With all that is to play out regarding Brexit, there almost certainly also isn’t the bandwidth within government in Northern Ireland to deal with the corporation tax issue. All of this is not to say that a reduction in corporation tax wont happen, nor that it would in principle be a bad thing. However, the conditions for making it happen certainly aren’t in our favour and many of the assumptions on which the case was originally made are no longer current. And there is an argument to be made that there are other things that we can more easily do to boost the economy. The main thing is to make better use of the money that we have at our disposal. And rather than chasing new tax varying powers, we should perhaps doubledown on existing taxes such as rates, where an inevitable increase could provide a ring-fenced pot of money to help fund our wastewater infrastructure; something that is critical to enable investment. Arguably such a rates hike would be a water charge in all but name. π

INTERVIEW

Kevin Holland: Invest NI’s new man at the helm Invest NI’s new chief Kevin Holland speaks to Margaret Canning about the challenges he expects to face, and overcome, in the post-Brexit world, and moving to Northern Ireland

he new chief executive of Invest NI has been getting to grips with the role he took over from Alastair Hamilton last year.

That has included visiting some of the province’s biggest companies, like Bombardier in east Belfast – where he’s met the chief of the aerospace manufacturer’s new owner, Spirit AeroSystems. He recently visited Denroy Plastics with a group including Denroy customer Sir Martin Donnelly, managing director of Boeing UK and Ireland. But Kevin Holland’s former territory of China, where he worked for three years as a diplomat, is also on his mind. Invest NI employs seven Chinese nationals in offices in Beijing, Shanghai and Guangzhou. But the offices have been temporarily shut. Networking events and meetings have also been halted due to coronavirus, which has claimed the lives of more than 1,000 people in China.

global market,” he said. “It’s having a tough time from coronavirus but it will recover from that and the Chinese Government will invest a lot of money into economic stimulus after the virus settles down in a couple of months’ time. So I think there will be many opportunities created out of that and it creates opportunities for UK and NI companies.” But Invest NI said it was too early to speculate on the types of economic opportunities which might arise. The international business executive, who is originally from Bristol, praised Northern Ireland as a place to live. “I’ve been moved to lots of countries around the world but personally moving to Northern Ireland is wonderful. It’s a beautiful place. People are very welcoming,” he said.

Mr Holland was formerly employed in the British Embassy in Beijing, and regularly visited Belfast as part of its outreach to encourage UK companies to explore the China market, particularly healthcare.

Being a newcomer himself is helping put him in the shoes of potential foreign investors. “I’ve been here for 90 days and it’s the longest I’ve spent in a single country in 25 years. So it’s been wonderful going out to meet companies, visit universities, talk to the Chambers of Commerce, visit the councils and hear their views,” he said.

But he said there could ultimately be business opportunities when the virus is contained. “China is a global economic powerhouse with a market of 1.5 billion people, hungry for growth and development. It’s a critical

He had worked with Invest NI in China, including hosting and organising client workshops. “One of the team from Invest NI sat about two metres from me in the Embassy in Beijing,” he said.

Kevin Holland

Mr Holland spent 15 years with international healthcare company Baxter, and he’s keen to help develop that sector here. But he believes Invest NI has a strong sector mix in the companies it helps, ranging from advanced manufacturing to financial and professional services, as well as cyber security and information technology. It’s now in a strategic planning process for 2030. “We’re looking at the future of work and what are the type of businesses that are going to be successful in this 10-year timeframe and then we will use that to look at what are the new areas we want to move into,” he said. Its 25

INTERVIEW

international offices are crucial but new ideas are being developed, including a new hub in London. “We’ve set up a facility that businesses can come into, you can do hot-desking, smartdesking, you can use it for client meetings or to launch a new product or meet investors in London. We’ve had a soft launch and will go to full launch soon,” he said. “We will then try and replicate that in some other locations. Probably the next one will be Dublin. Clearly south of the border is a very important driver for the economy.” He says he’s heard the arguments in favour of

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lowering corporation tax here. “For us, when we go overseas to encourage companies to build businesses here, it’s a very useful thing to have in our suite of offerings,” he added. “I don’t think it’s essential but it is an advantage.” He’s also happy that an Executive is now in place. “For me, when I took the job there was no Executive and now there is. We welcome that. We look forward to working with Economy Minister Diane Dodds,” he said. Brexit is also looming large but he regards NI as well placed for a prosperous future,

with what he sees as three well-meaning neighbours – Britain to the east, the US to the west and the Republic to the south. “Before the January 31 Brexit date, we’d worked with about 2,500 businesses coming into workshops,” he said. “We’ve been able to give 90 to 100 grants to businesses to prepare for life after the EU. “As we go through the next 10 or 11 months, there’s intensive discussions and negotiations to have between the UK and Europe on exactly how things will work from January 1, 2021 and then we will be building a package of support around that.” π

HOSPITALITY

Italian restaurant creating 15 new Belfast jobs

round 15 new jobs are being created as a new Italian restaurant opens in south Belfast.

Kristian Nicolo and Stephen Toney, who co-own Nico’s Pizza Pasta takeaway in south Belfast, are to expand their portfolio with the new restaurant situated at the former Doorsteps premises on the Lisburn Road. They took over the premises, which faces the City Hospital, a couple of months ago and it is currently undergoing a full refurbishment. They hope to open the doors of the Nico’s Pizzeria restaurant at the beginning of March. They have been trading at their takeaway for six years. It won best takeaway in Northern Ireland at the British Takeaway Awards on two occasions. Mr Nicolo said they wanted to expand into having a sit-in restaurant and will offer lunch and dinner menus. They have applied for a drinks licence for the new restaurant.

“We have a popular takeaway in south Belfast and we also did operate a Nico’s in east Belfast, but this branch is now closed to allow us to open and concentrate on our first sit-in restaurant which we have dreamed of doing for many years,” Mr Nicolo said. “But we still deliver to the east Belfast area from our south Belfast store so our delivery customers remained unaffected.” The restaurant will have capacity for 40 guests, with an additional 20 outside. The owners say they are hoping to build on the success of Nico’s Pizza Pasta on Sunnyside Street, where they currently employ 30 staff. “Business is booming at the moment in Nico’s and trade increases on a weekly basis. We have great feedback thanks to our dedicated staff that make this possible,” he said. “Many of the staff have been working with us from day one.” The menu will feature the same favourites from

Nico’s and will expand to include other pasta dishes and also cater to gluten-free and vegan diners. Mr Nicolo grew up working in his father’s restaurant in Reggio Calabria in southern Italy and has lived in Belfast for 19 years. “We have been lucky to have the experience and family recipes that to this day are being used at Nico’s and by our family in Calabria,” he said. Initially, the new restaurant will be open for lunch and dinner and, down the line, Mr Nicolo said they may also offer a brunch menu. He said there has been great interest in their new venture from passers-by and on social media. “We have been getting a crazy amount of exciting social media messages from current customers looking forward to trying this new restaurant experience. We are expecting to start off with a bang.” π

BUSINESS RATES

Pubs ‘face 20% hike in rates’ Colin Neill

ubs in Northern Ireland look set to face a 20% increase in their rates bills amid a new revaluation, Ulster Business can reveal. The latest analysis shows that a new draft re-look at rates could see pubs and other licensed businesses hit by the largest surges.

The revamp is part of the Department of Finance’s Reval2020 – which is a reassessment of the rates system which businesses pay, and is based on the rentable value of the business and financial performamce. While still a draft schedule of values, each council will also have to apply its own regional rate, based on the new proposed figures.

Annual Value) double or more as a result of the revaluation.

relevant information before the new valuation list comes into force on April 1, 2020.”

Industry group Hospitality Ulster has also written to the newly established Stormont finance committee to outline its concerns.

Meanwhile, reacting to the announcement that a new Liquor Licensing Bill will be introduced to the Assembly, Colin Neill said: “This is very welcome news from the Assembly this afternoon that the legislation to modernise our outdated liquor licensing will be introduced.

It’s warned some businesses could look at cost-cutting or passing on the increasing overheads to customers. It says it has “grave concerns” on the current method of evaluating rates bills. The organisation is calling for LPS to “reengage with the representative organisations to develop a fair ‘receipts and expenditure’ (R&E) methodology before requiring individual businesses to supply trading accounts for revaluation.”

According to new research, the pub increases are higher than other sectors including, retail (-1%), manufacturing (+2%), warehouses (+2%) and offices (+8%)

A spokesman for Land & Property Services previously told Ulster Business: “In Northern Ireland, nearly 40% of pubs will have no change or a decrease in their Net Annual Value (NAV).

Eight licensed business could see their valuations increase by £100,000 or more, and around 58 pubs saw their NAV (Net

“Any business rate payer who thinks their new valuation may be incorrect, can contact LPS to arrange an informal review and supply any

“Now is the time to bring real and meaningful change to support the hospitality sector. We look forward to engaging with Executive Ministers, MLAs in the Assembly and Committee members to ensure the swift passage of this Bill through the house.” “The transformative effect that this will have on the sector, tourism and the economy will be very positive and help us become competitive at a time when the likes of inflated rates and a high level of hospitality VAT are barriers to growth. “We have had many false dawns with the Bill previously being introduced in the last Assembly before suspension, now is the time to make it count.” π

IT & technology

Sponsored by

MOTORING

Just your Type

ne of the best looking sports cars around is the Jaguar F-Type and it has just received some styling and engine updates.

The new 2020 F-Type looks more beautiful than ever and embodies Jaguar design DNA in its purest form. The two-seat sports car offers a perfect balance of performance and driver appeal with an even more muscular, assertive design and a cabin defined by rich, luxurious materials and details. The range of powerful, responsive engines includes four- and eight-cylinder options, all matched to eight-speed Quickshift transmissions using either the SportShift gear selector or the steering wheel-mounted paddles. The new F-Type also offers more driverfocused technology, including a 12.3inch interactive driver display, ‘touch pro infotainment system’ with Apple CarPlay and Android Auto as standard and softwareover-the-air functionality so future software updates can be made at the customer’s convenience, without having to visit a retailer. Two superb Meridian sound systems also

offer enhanced sound reproduction. Super-slim pixel LED headlights with updated daytime running lights, and sweeping direction indicators, blend perfectly into the new clamshell bonnet. The new front bumper and subtly enlarged grille deliver even more visual impact and presence. The interior combines traditional Jaguar craftsmanship with rich, contemporary materials such as Windsor Leather and satin-finish ‘noble chrome’. Details include monogram stitch patterns in the seats and door trims, Jaguar Leaper motifs in the headrests, and subtle ‘Jaguar Est 1935’ markings on the centre console finisher, glovebox release button surround, and seatbelt guides.

‘quiet start’ function, which ensures a more subtle, refined sound. The distinctive crackle and pop on the overrun synonymous with F-Type remains; the sounds tuned to suit the range of powerful four and eight-cylinder engines. The new 450PS supercharged V8 has been developed to offer exploitable and rewarding performance – its maximum torque of 580Nm being generated from just 2,500rpm. It is offered with a choice of all-wheel drive and – for purists – rear-wheel drive. Both versions can accelerate from 0-60mph in just 4.4 seconds and reach a maximum speed of 177mph.

The F-Type also features flush, deployable door handles and air vents. Pressing the start button brings the car to life with its hallmark exhaust flare as purposeful as ever.

Raising the output of the all-wheel drive F-Type R supercharged V8 to 575PS and 700Nm (up from 550PS and 680Nm respectively) delivers truly outstanding performance in all weathers and in all conditions, while retaining its inherent tractability and day-to-day usability.

All engines feature active exhaust systems, which are switchable either as an option or as standard. Customers who choose the 450PS or 575PS supercharged V8s benefit from the new

Performance is exceptional: the benchmark sprint to 60mph takes just 3.5 seconds, while maximum speed is an electronically-limited 186mph. Prices start at just over £54,000. π

MOTORING

The classy new Clio T

he new fifth generation Renault Clio has just been launched and the new model sets new standards for technology, refinement and build quality.

Completely redesigned inside and out, the all new Clio is more spacious and refined than ever, plus it introduces cutting edge driving assistance and infotainment systems to the supermini class. The new Clio also continues Renault’s strong tradition for safety, having already been awarded a five-star EuroNCAP rating.

highlights is the option of new, larger 9.3-inch Easy Link infotainment screen and a 10-inch TFT instrument cluster – features normally reserved for larger and more expensive cars. From the outset the designers wanted to give the Clio a true premium feel, with soft touch plastics, satin finish metal trim and new, more enveloping seats all helping push the car upmarket. And with careful attention paid to ergonomics, the Clio is the most comfortable and refined version yet.

Following Renault’s EasyLife model strategy, the 2020 Clio is available in popular Play and Iconic trim levels, as well as new S Edition and RS Line versions. All models are extremely well equipped and packed with premium features, yet with prices starting at £14,295 the 2020 Clio remains as affordable as ever.

There’s also more space than ever in the Clio, despite being 12mm shorter and 8mm lower than its predecessor. A new front seat design not only delivers more comfort and support, its carefully shaped semi-soft shell back liberates more legroom for those sitting in the rear. Elsewhere, boot capacity has been increased to a best in class 391 litres, plus the cabin itself boasts a further 26 litres of storage.

At the heart of the Clio is a totally new interior that sets new standards for quality, technology and practicality. One of the

A double height floor simplifies loading, while the rear seats fold down to provide a flat floor. Even the optional premium BOSE audio

system has been carefully designed so that its subwoofer speaker does not encroach on boot volume. For now, the Clio is available with three engines: two petrol and one diesel. Starting with the TCe 100, this new petrol engine comes with power and torque figures of 100PS and 160Nm respectively. Fitted as standard with a five-speed manual gearbox the engine is also available with a seven-speed CVT gearbox. Next up is the TCe 130, which makes its debut in the Clio having already been seen in the Kadjar, Mégane and Scénic. Available exclusively with the seven-speed EDC dual-clutch transmission, the sophisticated combination makes for impressive performance and smoothness. The Blue dCi 85 diesel gets a six-speed manual transmission and is capable of returning an impressive 78.5mpg. Tuned to be as effortless and efficient on a long run as around town, the 1.5-litre unit develops a muscular 220Nm of torque at 1750rpm. The new Clio range starts at £14,295. π

MOTORING

Panda and 500 go Hybrid

he 500 and the Panda are two Fiat icons and are extremely popular across Europe. Hybrid versions which combine a new petrol engine with a rechargeable battery powered electric motor have just been launched and are the company’s first steps towards electrification of the its current range. A purely electric powered 500 will be launched later this year.

The 500 and Panda are available with a new petrol mild hybrid engine that combines the latest three-cylinder FireFly 1.0-litre engine with a 12-volt Belt-integrated Starter Generator (BSG) electric motor and a lithium battery that delivers a combined 70hp. Compared to the outgoing 1.2-litre 69hp petrol engine, the mild hybrid version improves fuel efficiency, reducing CO2 emissions on the road by up to 30% without impeding performance. The 500 Mild Hybrid has CO2 emissions as low as 88g/km (NEDC2) with the Panda at 89g/km

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(NEDC2). Fuel economy for the 500 stands at 53.3mpg (WLTP Combined), while the Panda returns 49.6mpg (WLTP Combined). The BSG system is mounted directly on the engine and is operated by the belt that also drives the auxiliaries. The system recovers energy during braking and deceleration, stores it in a lithium battery and uses it, at a maximum power of 3,600W, to restart the engine in ‘stop and start’ mode and to assist it during acceleration. This technology allows the petrol engine to switch off by shifting into neutral at speeds below 18mph. The dashboard, which displays information on the hybrid system, prompts the driver when to shift. The mild hybrid unit used in the Panda and 500 drives through a six-speed manual transmission aimed at improving fuel economy in out-of-town driving. The new system also involves lowering the engine

by 45mm so the car behaves better on the road thanks to the lower centre of gravity. The special series can be recognised by the ‘Hybrid’ logo on the rear and the exclusive ‘H’ logo, formed by two dew drops, on the centre panel. The Launch Edition seats are the first in the automotive sector to be made of Seaqual Yarn, derived from recycled plastic, 10% of which originates from the sea and 90% from land. Seaqual Yarn is produced by transforming plastics collected from the sea into flakes of polyethylene terephthalate. These flakes are then used in the yarn from which the fabrics are made. In the weaving phase, marine polyester is mixed with other natural, recycled or recovered fibres. Hybrid Launch Editions come with exclusive exterior paint colour and interior fabrics and are priced at £16,795 OTR for the 500 and £14,385 OTR for the Panda. π

MOTORING

Golf sticks the course T

he VW Golf has always been a very popular seller in Northern Ireland and the forthcoming Mark 8 Golf will continue that trend. The predicted best-seller – the Golf Life 1.5 TSI 130 PS six-speed manual – will start at £23,875.

The new Golf 8 is the most connected car Volkswagen has produced to date. Initially, it can be specified in two trim levels with four engine and gearbox configurations. Life and Style are the two trim levels available at first, with popular R-Line joining them at a later date. From launch two petrol and two diesel engines are offered. The petrol line-up consists of two 1.5-litre TSI engines with 130 and 150 PS, both mated to a sixs-speed manual gearbox, while diesel options include 115 or 150 PS 2.0-litre units, the former with a six-speed manual. The more powerful diesel engine benefits from a seven-speed DSG transmission as standard, and is available only in the Style trim. In addition to the sporty R-line trim level, more engine options will arrive over the

coming months as production in Wolfsburg ramps up. These include 1.0-litre three-cylinder TSI petrol engines, as well as eTSI 48V mildhybrid 1.0-litre and 1.5-litre petrol engines. These class-leading eTSI power plants are fitted exclusively with a seven-speed DSG transmission. All new Golfs feature cutting-edge Car2X technology. This facilitates wireless communication between the new Golf and other Car2X-equipped vehicles on the road, as well as so-called ‘street furniture’, allowing the car to more effectively pre-empt hazards on the road such as stationary traffic ahead, approaching emergency vehicles and more. This is the most important mainstream car to have Car2X fitted as standard to date. As Europe’s best-selling model, the Golf will bring this tech to millions of people. The Golf Life also features Volkswagen’s ‘innovision cockpit’ which incorporates a 10.25-inch Active Info Display in the car’s instrument binnacle, as well as a large and clear 10-inch ‘discover navigation’ touch-

screen infotainment system. For the 2020 model year all Golfs will be equipped with discover pro navigation. This comes complete with DAB and FM radio, as well as USB and Bluetooth connectivity with wireless app-connect. It also includes a three-year subscription to We Connect Plus, unlocking a wealth of information and services ranging from media streaming to parking space information, and an in-car wi-fi hotspot. The Golf Life’s suite of driver assistance systems further enhances both safety and ease of use, and includes adaptive cruise control, a driver alert system, dynamic road sign display, lane assist and front assist, with extended pedestrian protection measures also installed on the model. An XDS electronic differential lock, first introduced on the Golf GTI Mk 7, now features on the new Golf, providing improved traction and handling. Many of these features contributed to the Golf’s recent five-star safety rating from Euro NCAP. Further Golf models, including the Estate, GTE, GTI, GTD and R will follow later in 2020. π

The column with an ear for experience... How did you start out in your business? I started with the family construction business at the age of 17 as a working labourer/ plant operator but strived to push myself into the role of supervisor, then further into management side of the business. I managed contracts through my early 20s and progressed into property development and other business opportunities outside of construction. I was made a director in 2003, and appointed managing director in 2010. What have you found the most challenging during your years of business, so far? The most challenging years in business so far have been the last three years. The Flynn company has been maintaining public service assets for 30+ years and with the collapse of devolved government and no set departmental budgets this has had a direct impact on the company’s continuing success. We have had to quickly restructure the business in line with the reduced activity and revenues which had a direct knock on impact on a loyal workforce that has suffered as a result of the paralysis at Stormont. How would you describe your management style? My style of management is very focused and driven, I expect results but will roll the sleeves up to help the team achieve this. I treat people as how I would like to be treated being with respect and dignity but must always have a laugh along the way. My strength is reading people and negotiating a situation. By having these two natural gifts you can convert to manage a problem or provide a sound solution to the team. What would you change if you could go back and do it all again? I would have probably worked harder at my study years to achieve a degree qualification something I have always regretted not

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Name: Aidan Flynn Position: Managing director, Flynn achieving. If I had hindsight for the pre-2007bust years, I wish would have been more astute with the big property deals and not have accumulated as much financed related debt. I would also try to be less aggressive in my approach and listen to others more intently when sound advice was given. Have you done it all on your own? I would like to say I have but to be honest nobody does it their own way. To succeed in business, you need to be able to take heed of sound advice. It is very important to get sound professional advice/opinions at that crucial decision moment. In the end you must make the final call. As second generation in a family run business, I was lucky to have the luxury of my father’s guidance in the tricky decisions in a growing business. I believe that no matter what sector you are in, business is all the same, people do business with people and that’s always been my approach. The digital era has fragmented the ability of direct one to one business engagement.

How would you like your business to be remembered? I would like to think that the in years to come the Flynn brand will be synonymous with the company ethos of a caring honourable hardworking family run enterprise. We rebranded the business in 2016/17 and there’s real pride when I see the Flynn staff in the yellow jackets delivering a quality product for our clients and end users. What piece of advice would you give to a 20-year-old you? From a personal perspective eat less, exercise more would be the first thing. From a business-related perspective, I would have to say that you need to use your natural senses better, listen more, speak less. Study harder and don’t be so bullish in your attitude and approach to things, as this has caused undue irritation to others along the career journey. Concentrate on your family, time flies and you will only miss them when they’re not there. π

APPOINTMENTS

Angela Keery has been appointed tax director at Baker Tilly Mooney Moore. She will work with a wide variety of corporate tax clients. Jo-Anne Dobson joins the AgriSearch board as an independent farmer trustee. A former MLA she is a partner in the family’s beef and cereal farm in Co Armagh. Martyn Blair has been appointed as a trustee of AgriSearch. He is a poultry farmer from Co Antrim and holds a Master’s degree in agri-marketing.

Laura Streight has been appointed government contracts manager at Wilsons Auctions. She is responsible for the operational delivery of all government and large sector clients. Amber McCullough has been promoted by Wilsons Auctions to auction support supervisor at its Belfast head office. John Ardill is now Northern Ireland general manager at Wilsons Auctions. He is responsible for both the Belfast head office and Portadown branches.

Neil O’Prey has been appointed financial director for Re-Gen Waste Ltd. Formerly of PwC, he will take on responsibility for driving business improvement and growth at Re-Gen. Neil Hughes has been appointed associate director, people and change consulting, at Grant Thornton in Belfast. He will provide strategic HR and change management solutions to clients. Hastings Hotels has announced that Peter Gibson has been appointed as its new finance director. He brings considerable experience from previous roles including global workspace provider, IWG plc.

APPOINTMENTS

David Tighe has been appointed managing director, Bauer Radio Northern Ireland. He will be responsible for the future development of Cool FM, Downtown and Downtown Country. Law firm Shoosmiths is pushing ahead with its growth strategy in Northern Ireland with the appointment of real estate lawyer Mark Blair. Lynsey Carroll is now revenue manager at Hastings Hotels. Sheâ&#x20AC;&#x2122;s responsible for the revenue management and distribution strategy of the Europa, Grand Central and Stormont Hotel.

Patrice McGurk is business development manager at the Grand Central and Europa hotels. She is responsible for growing corporate business for the hotels at a local, national and international level. Graeme Bennett has been appointed as a director of IPC Mouldings. He will drive the strategy for growth within IPC, implementing change where necessary and developing the team. Cathy Scott is now revenue manager with Hastings Hotels. She is responsible for the revenue management, distribution strategy of the Slieve Donard, Culloden Estate & Spa, Ballygally Castle and the Everglades hotels.

Charles Hurst has appointed Keith Logan as general manager of Charles Hurst Van Centre. He joins at the helm of Charles Hurst Van Centre during a period of growth. Jamie Cairnduff has been appointed at investment analyst at Whiterock Finance. In her new role she will be responsible for due diligence on potential investments and analysis on investment transactions. Ex-Bank of England director Martin Stewart has joined the board of Northern Bank Ltd (Danske Bank UK) as a nonexecutive director. He has almost two decadesâ&#x20AC;&#x2122; board-level experience.

MARCH 2020

PHOTOCALL

1. The Department for the Economy and PwC have launched a new PwC Future Business Assured Skills Academy. Pictured are Claire McNally, PwC, Siobhan Lyons, Belfast Met, Stephen McNamee, Ulster University and Graeme Wilkinson, Department for the Economy. 2. Yuile Magee, managing director at Agnew Group is pictured with Phil Alexander, chief executive at Cancer Fund for Children. Agnew Group has raised more than £300,000 for its charity partner in three years. 3. Law firm A&L Goodbody has, for the sixth consecutive year, been ranked as the leading legal advisor by value of total M&A deals transacted in Northern Ireland in 2019, according to Experian, advising on deals worth more than £6bn since 2014. Pictured is Alastair Keith, head of corporate.

4. Square Box, is top of the league following the signing of new contracts with the Irish Rugby Football Union (IRFU) and Ulster Rugby. Pictured are Ulster Rugby’s Jonny Petrie, Square Box founder Harry Harpur and Bryn Cunningham. 5. Randox has been announced as the sponsor of the Ulster National at Downpatrick Racecourse for the next five years. Pictured are Peter Stewart, Downpatrick Racecourse chairman with Dr Peter FitzGerald, Randox managing director.

PHOTOCALL 6. Belfast Metropolitan College has launched a new digital construction training platform called BIMcert Digital Skills. Pictured are Paul Mc Cormack, Maja-Marija Nahod, Martin Lennon, Marie Therese Mc Givern, Gordon Sutherland and Dr James Harty. 7. Stena Line is offering a special ‘MOT Day Trip’ from Belfast to Cairnryan from only £129 for a car and two people return, amid the issues around testing in Northern Ireland. Pictured are Adam Harwood and Anna Hazzard.

8. Hannon Travel managing director Eimer Hannon is pictured with director Mukesh Sharma showing their support for Go Carbon Neutral, a new campaign to assist local businesses offset their carbon emissions by funding woodland creation across the island of Ireland.

9. The Department for the Economy, in partnership with Deloitte, is offering 20 places in a new Business Transformation Assured Skills Academy. Pictured are Siobhan Lyons, Belfast Met, Graeme Wilkinson, Department for the Economy along with Deborah Campbell and Karen Butler of Deloitte. 10. Kevin Holland, chief executive of Invest NI, Economy Minister Diane Dodds and Darren Dillon of Microsoft. Ms Dodds announced that Microsoft has chosen Belfast as the location for a new Cyber Security Centre.

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PHOTOCALL

11. Celebrating the Top 100 Hospitality businesses in Northern Ireland 2020 is Irish international rugby star Tommy Bowe with Danny Coyles, chairman of Hospitality Ulster and England international star Ugo Monye. 12. Steven Kennedy, Henderson Group, with Louis Ludik, one half of Hellbent, which has won its first major retail listing with the group and will now be on sale in 27 EUROSPAR supermarkets across NI. 13. Boost founder Simon Gray celebrates a record year for the drinks company in Northern Ireland with Gareth Hardy, managing director of Co Antrim-based Hardy Sales and Marketing. 14. Belfast-based Fiontar Group is planning to open a Manchester office after already expanding its operations into Dublin. Pictured are Joanna Rea, Chris Higgins, Mary Moss, Stuart Jameson, Stuart McFadden and Gerard De BrĂşn.

15. Energia chief executive Ian Thom, Infrastructure Minister Nichola Mallon, Wrightbus chairman Jo Bamford and Translink chief executive Chris Conway pictured as Belfast is set to receive the first hydrogen-powered double decker buses in Ireland before the end of 2020.

PHOTOCALL 16. Celebrating their Brighter Communities funding award from Power NI are Street Soccer representatives Helen Heyburn, Terry Moore, Justin McMinn, Conor Owens and (front right) Chris Miller. 17. Openreach has brought full fibre broadband to 52 premises at the Ballymena Business Centre through its Community Fibre Partnership scheme. Pictured are Allen Irwin, Openreach and Stephen Scullion, Ballymena Business Centre. 18. Ballymoney-based payroll provider, Payescape, is investing more than ÂŁ1m and creating 20 jobs to grow its business. Pictured is John Borland, Payescape alongside Des Gartland, Invest NI.

19. Icon Accounting, a company specialising in services for professional contractors, has launched a new product tailored to the needs of SMEs, called Kalc Accounting. Pictured are Stephen Kinch, John Bell and Gerard Kiernan. 20. Carson McDowell has announced Catherine Cartonâ&#x20AC;&#x2122;s promotion to partner in the defence insurance team. Pictured are Claire Harmer, partner and head of defence insurance litigation with Catherine Carton alongside Roger McMillan, managing partner.

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PHOTOCALL

21. The inaugural conference from the Young Entrepreneurs Network Northern Ireland (YENNI) has taken place at Riddel Hall, Belfast. Pictured are Aaron Furphy, Katie Matthews and Robert McConnell. 22. Twelve new construction projects started in Belfast city through 2019, up from nine new starts registered a year earlier, according to the latest Belfast Crane Survey from Deloitte. Pictured are Jackie Henry, Deloitte and Belfast City Council’s Suzanne Wylie. 23. Manufacturing NI has launched the 2020 Leadership ‘Anchor High’ Summit, which takes place on March 10 -11 at the Lough Erne Resort in Fermanagh. Pictured are Stephen Kelly and Mary Meehan, Manufacturing NI.

24. South Eastern Regional College has hosted its inaugural meeting for a new initiative in conjunction with industry. Pictured are Paul Mercer, Heather McKee, Ivan Shields and Keely Sherry. 25. Patricia Rodriguez, Tara Moore, Dr Paul Thompson and Dr Terry Cross OBE are pictured as the skin cancer research team at Ulster University have launched a new skin cancer awareness campaign called #LoveYourSkin.

PHOTOCALL 26. Four properties owned by Hastings Hotels have won awards at the CIE Tours International 30th Annual Awards of Excellence. Pictured are Elizabeth Crabil, Fiona Ross, Aileen Martin, Stephen Meldrum and Andy McNeill. 27. AIB has launched a series of celebration events to mark its recent rebrand from First Trust Bank with a networking breakfast at its flagship Donegall Square North branch in Belfast. Adrian Moynihan, head of AIB NI is pictured with Angela McGowan, director of CBI Northern Ireland.

28. Belfast International Airport managing director Graham Keddie has renewed calls for the removal of air passenger duty on short-haul flights. He’s pictured with Aviation Minister Paul Maynard MP during a visit to the airport. 29. Soda & Starch’s chef Raymond Moran, is pictured with Ciaran O’Neill, managing director of the Bishop’s Gate Hotel. Soda & Starch Pantry and Grill was included in The Sunday Times 100 Best Restaurants in Ireland for 2020. 30. Law firm Tughans celebrates being named NI’s busiest corporate law firm, according to Experian. It advised on 53 deals during 2019. Pictured from Tughans are John McGuckian, David Jones, Patrick Brown, Rebecca Moffett and James Donnelly.

MARCH 2020

THE CHAIRMAN

The Chairman It’s back to business for the Chairman, and the last few weeks has been a chance to rub shoulders with our biggest and brightest

hile the dust is now settling on the big leave date, and with the festive social season now well, well behind us, it’s back to proper business. Following on from a three year break at Stormont, our MLAs returned to the Hill a few weeks back. The Executive was formed, press releases and photoshoots aplenty, along with a minor crisis here and there. It’s not been the smoothest sailing so far, but hopefully they’ll make it work.

A return to Stormont for our representatives also meant a visible return by the business community. Businesses and business groups have been the leading voices in speaking up for Northern Ireland, the economy, and its people, over the last three years, in the run-up to Brexit. With no devolved government for such a lengthy period they provided much-needed stability and reasoned debate when others in GB were flying the flag for a hard exit – potentially devastating for our economy. Trade NI, which is the alliance of Manufacturing NI, Retail NI and Hospitality NI, used The Long Gallery at Stormont for the first major business event – Northern

Ireland Economy – What Now? – on the Hill since it was restored. The reception at Parliament Buildings followed on from a series of high-level political engagements in September last year, which included the launch of Vision 2030 at Westminster with an audience including the Secretary of State and MPs from across the UK, and a reception with the Prime Minister Boris Johnson. Among those in attendance were Stephen Kelly, chief executive of Manufacturing NI, Sinead McLaughlin MLA, Colin Neill, chief executive of Hospitality Ulster, Dr Caoimhe Archibald MLA, and Glyn Roberts, chief executive of Retail NI. Launching the event, the group said it was a “radical 10-year plan for the future of the Northern Ireland economy which we believe can provide the policy direction for the new Executive Programme for Government. We must break the cycle of limited economic growth and allow for potential investment to flow into Northern Ireland.” The group’s overall Vision 2030 document sets out a plan to reboot the Northern Ireland economy and the potential to create 65,000 new jobs. Those also turning out for the event included Danny Coyles, chairman, Hospitality Ulster, First Minister Arlene Foster, Con O’Neill, chairman of Manufacturing NI and Nigel Maxwell, chairman of Retail NI.

It was then over to Pinsent Masons for a Stonewall reception event to recognise Northern Ireland’s top LGBT-inclusive employers.

The reception, which was addressed by Belfast’s Lord Mayor Daniel Baker, came one week after Stonewall announced its list of Top 100 LGBT-inclusive employers for 2020. This year, the list included four organisations with NI operations, with Pinsent Masons being named the NI’s front-runner. Three other organisations with Northern Ireland operations also made the list, including Citi, Baker McKenzie and Allen & Overy. Those turning out included Gill Warwick, Andrea McIlroy-Rose and Paul Gillen of Pinsent Masons, Annette Whelan, Businesses for Love Equality, Ricki Kettle, Stonewall Trans Role Model of the Year, John O’Doherty of the Rainbow Project, David Sterling, head of the Northern Ireland Civil Service, Lord Mayor Daniel Baker, along with Sanjay Sood-Smith and Fergal McFerran from Stonewall. During the event a special recognition award was also presented by Stonewall to David Sterling for his work in highlighting the need for LGBT inclusion, and championing change within and beyond the Civil Service since assuming his role in 2017.

And for something a little lighter, perhaps not on the stomach, it was time for the launch for Belfast Restaurant Week. The event, which took place in February, is a collaboration between Belfast One and Destination CQ, in a bid to get people to try more of the city’s restaurants, offering up a host of offers across a wide range of spots. According to the organisers, Belfast Restaurant Week has previously attracted an increase in footfall of up to 75%, representing a £151,000 spend in city centre restaurants in just seven days and menus. And those turning out included Gareth Neill of Destination CQ and Clare Maguire of Belfast One, Wendi Kane of Belfast City Council, blogger Hama O’Reilly, along with Joanna Walsh and Clare Maguire of Belfast One. π

THE CHAIRMAN

Joanna Walsh and Clare Maguire of Belfast One

Danny Coyles, First Minister Arlene Foster, Con O’Neill and Nigel Maxwell

Wendi Kane of Belfast City Council and blogger Hama O’Reilly

Stephen Kelly, Sinead McLaughlin MLA, Colin Neill, Caoimhe Archibald MLA, and Glyn Roberts

Gareth Neill of Destination CQ and Clare Maguire of Belfast One

Gill Warwick, Annette Whelan, Ricki Kettle, John O’Doherty, Andrea McIlroy-Rose, David Sterling, Lord Mayor Daniel Baker, Sanjay Sood-Smith, Paul Gillen, Fergal McFerran

David Sterling and Sanjay Sood-Smith

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Andrea McIlroy-Rose, head of office, Pinsent Masons

Lord Mayor Daniel Baker

TRAVEL

now falls softly on my shoulders as I duck deeper into the warm, bubbling water. My hot tub is surrounded by majestic mountains and I’m alone in the chilly night, apart from a handsome, bearded man standing metres away wielding an axe. He’s chopping wood for the fire that will warm the families gathered inside feeding their children pasta.

This intense scene is taking place in Morzine, an Alpine town of gingerbread gorgeousness in the French departement of Haute Savoie. Its location, between Lac Leman to the north and Mont Blanc to the south, ensures superb snowfall. We’re right in the heart of Les Portes du Soleil ski region, one of the biggest in the world, with 600kms of trails varying from atmospheric fir-lined runs and wide, undulating slopes to dramatic descents and tough mogul fields. Morzine is also home to the infamous Swiss Wall; this blackest of black runs is so steep it is in fact concave. My daughter Natasha and I have flown from our respective homes in London and Dublin to Geneva, from where we take a 90-minute transfer to our base for the week, Au Coin du Feu, flagship property of the Chilly Powder group. Francesca and Paul Eyres met in Morzine in 1992. Francesca was a Cordon Bleu chef (trained in Dublin by Alix Gardner, she worked in various stately homes here – Castletown House and Luttrelstown Castle among others) when she went to France for a working holiday and met quantity surveyor Paul. They fell in love and a few years later, their business Chilly Powder (she thought up the name sitting in London traffic) was born, with Francesca looking after the creative and culinary side of the business and Paul in charge of construction and finance. Today their portfolio comprises several chalets and apartments offering catering and selfcatering options. Au Coin du Feu is a hotel but doesn’t feel remotely like one. It is more like the family home it once was and this is the ambience Francesca wanted to create. Her late mother’s memorabilia was used to furnish the 16 bedrooms, each of which has its own theme; our Oriental chamber features a silk

Taking to the peaks Madeleine Keane enjoys the snowy peaks of Morzine and finds a warm welcome as well as a host of high-end creature comforts

jacket, fans, chopsticks and delicate prints. Everything here is thought through in detail. For example, our equipment has been organised for us through Doorstep Ski. The chalet is located a five-minute walk from the gondolas which whizz up to nearby Avoriaz, but you can also ski right to the door. I’m a complete snowflake when it comes to skiing – nervy and needy – and it’s only when I see a man with a prosthetic leg carving his way down a demanding run, that I tell myself to get a grip. I sign up for a private lesson and an hour works wonders, so much so that Natasha is amazed by the increase in both my speed and my confidence. My instructor, the endlessly patient Pierre has been teaching for 30 years and such is his skill that I feel

equipped to spend four hours the next day skiing on my own. The one-on-one hour-long class costs €45 (£38) and is worth every cent. Chilly Powder staff are also first rate. Nothing is a problem and they combine ultra-efficiency with a relaxed, friendly manner. When they ask you, as they frequently do, how was your skiing (a question they must pose a thousand times over the course of a season), you feel they are genuinely interested in the answer. Natasha strains her neck – too much looking over her shoulder to see if Mama has come a cropper – and they are solicitous and helpful, providing ice packs and advice. Post-Christmas and pre half-term, the resort is pleasantly quiet, apart from a couple of apres-ski forays when we bump into bunches of happy Trinity students.

TRAVEL

There’s also a creche is on site – so there’s no dressing up your toddler in all their outdoor gear, dismantling the buggy and tramping into the frosty air – and operates from 8.45am to 4.45pm. The little ones also get taken out for treats to the local creperie and down town for spins on the carousel. A children’s tea is served at 5pm. Food is always a highpoint. But it takes on special significance if you’ve spent all day cutting up the slopes and inhaling that heady mountain air. Chilly Powder has it down to a fine art. Guests gather around 7.30pm for cocktails and canapes – tiny quiches, duck blinis, goat’s cheese bruschetta – and a gong sounds precisely at eight bells.

MARCH 2020

Dining is communal and convivial around two large tables and the food is hearty and tasty: standouts from the week include fragrant carrot and coriander soup, excellent lamb cutlets with creamy mash, lemon posset with almond shortbread, and every dinner concludes with a cheese board. I book a sports massage which takes place in an outdoor yurt and it is one of the best experiences I’ve had in a long time. The yurt is a warm and beautifully scented space, curated with all the flair and care evident throughout Au Coin du Feu. Six of us are driven to Geopark Chablais where we don snow shoes – plastic rackets with tiny crampons which attach to your

boots. Then armed with ski poles we head uphill. My fellow walkers are sophisticated sexagenarians and very fit they are too. They effortlessly follow our guide Yann, climbing through silent forests and over frozen streams, eventually reaching the Lac des Mines D’or. As if on cue, it starts to snow and the already exquisite scenery takes on a magical cast. We continue walking for a couple of hours, with a short stop for a tot of mint tea with honey and a shot of absinthe returning full circle back to our van. Even though I’m soaked to the skin after my snowshoe shuffle, I’m utterly exhilarated and despite my exhaustion the trek, curiously energised. Having long regarded L’Hexagone my spiritual home, this snowflake turns into a snow angel in an ivory heaven. π

TECHNOLOGY

Interview: Apple’s Tim Cook Apple boss Tim Cook speaks with Adrian Weckler to share his views on privacy, tax, products and the value of the firm’s Irish base in Cork

im Cook is just off an overnight flight but manages his traditional, southern-tinted greeting on a crisp, cold Dublin day. “Hiiiii,” he says, beaming. As he walks around the small Dublin office of an app developer before this newspaper interview, he has questions. A lot of questions. “Can you prototype this?… where did you get this idea from?”. As usual, he lingers a little longer than is scheduled, soaking up the studio’s work and art. Later, he will refer back to why Apple still thinks about the intersection of art and technology, a combination that can help tech “see around the corner”. (Whereas, by contrast, for “people that only focus on technology, those technologies have produced really unfortunate results that are distracting from society”.)

One of the relatively under-reported things that Apple is “doing well”, and which is arguably responsible for its premium valuation even as iPhone sales peak or decline, is its accessories and services. The company’s relatively new AirPods and Apple Watch would, as stand-alone products, be bigger than the vast majority of other large tech companies, even though both were lukewarmly greeted by analysts at launch. Tim thinks that augmented reality (AR) – a technology used by the Dublin app developer he’s visiting (WarDucks) – should be thought of in similar terms. Adrian Weckler chats with Tim Cook

Apple is reportedly working on a special pair of AR glasses for release some time in the next year or two. Within the industry, differences between AR and virtual reality (VR) are widely understood. But among ordinary people, familiarity isn’t as strong.

But he will also try to balance his remarks on this occasion between the company’s “unshakeable” commitment to Ireland, his view on the future of taxation, where technology is broadly going, and the ongoing live issue of Apple’s tensions with authorities over privacy. As the chief executive of the world’s most valuable company (Apple is currently trading at an all-time-high market capitalisation of £1trn, Tim Cook carries a responsibility on an almost unique scale.

‘Pokemon Go’ is probably the most well-known mass-market example of the technology’s early promise. But Tim sees more uses for augmented reality.

But whatever his other motivations, he insists that Apple’s valuation is not one of them. “We don’t think about our market cap, or our share price, even though I know a lot of other people do. We think that the share price in the company is a result of doing other things well,” he says.

He has repeatedly eviscerated tech rivals such as Google and Facebook for “selling” customers’ personal data as core commercial practice. Cynics say that this goes to Apple’s own commercial strategy, where hardware is its core financial strength, while web business is a relative soft touch.

“Maybe you’re under a car and you’re changing the oil and you’re not sure exactly how to do it. You could use AR for this. Or you and I might be talking about an article. “Using AR, we could both be looking at the same thing at the same time.

But Tim says that there are stronger motives underlying the company’s increasingly vocal objections to online exposure. “We worry about a world where people think every moment of the day that they’re under surveillance,” he said. “Just consider that for a minute. If you believe that somebody is watching what you’re doing and what you’re looking at, you begin to look less. Tim’s fear, he says, is that “expression just begins to shrink and shrink and shrink. It should not be acceptable for any of us to live in that kind of environment”. This view has pitted Apple against some tough ideological opponents. Authorities in the UK and the US have repeatedly tried to get the company to provide a back door through its iPhones’ encrypted security features to help criminal or terrorist investigations. Each time, Apple says no, even when US president Donald Trump tweets his displeasure about the company’s stance.

TECHNOLOGY

But he rejects the argument that if you’re not with the security forces, you’re aiding the terrorist. “They say that privacy and security are a trade-off, but we see that as a false choice,” he said. “Because if you look at what people are doing on their phones today, people are operating power grids on their phones, where a system administrator uses a phone as their device. So you can imagine the damage that can be done to national security if somebody hacks through and affects the power grid. So in a sense, privacy and security come together.” But Tim has form here. When the then UK prime minister David Cameron ramped up the political rhetoric against Apple’s iPhone encryption, painting a you’re-with-us-oragainst-us narrative, Apple held firm. David Cameron eventually backed down, as did Theresa May. It’s hard to see why Cook or Apple would capitulate to president Trump now. One topic which is trickier to present as a blackand-white one is the issue of tax. On stage at the National Concert Hall, the IDA’s Martin

MARCH 2020

Shanahan asked Cook about “the elephant in the room”: Apple’s €13bn (£11bn) tax ruling handed down by the European Commission in 2016. The case, which is being appealed both by Apple and Irish revenue authorities, will probably continue for years to come. But TIm Cook offered some wider thoughts on the issue of tax and large international companies. “It’s very complex to know how to tax a multinational,” he said. “It’s not like a small business that does all of their stuff generally in one country. “A multinational might manufacture in one country, service in another, sell in another, and do research and development in another. And so somebody has to decide how to apportion the profits and, therefore, the tax payments.” He said that it was a “really reasonable subject for people to debate” as a policy issue. “I think reasonable people can have different points of view,” he said.

“I think the place for that to happen is at a worldwide level, because you can bet that each country is going to have a different point of view. Companies shouldn’t have anything to do with this; they should just follow the law. And so the OECD, I think, is the place for this.” Apple, he said, “desperately wants” it to be fair. “This is where the issue comes in the commission. We believe that law should not be retrofitted, that the law is the law, and the law can change going forward but it shouldn’t change going backwards. That is at the heart of the case if you just make it very simple. It is before the court now and we have great faith in the justice system.” He went on to say that he was “optimistic” that the OECD could create a clearer tax code. “I think they have to. This is never going to be one that everybody is going to say ‘yeah, great’ because everybody would like a little bit more.” π

Uncovering the 9-5 NAME: Ciaran O’Neill POSITION: Owner, Bishop’s Gate Hotel

7am The dog alarm goes off closely followed by my wife’s alarm, 30 seconds later. We have four Shih Tzu and a Great Dane. Even when the time changes, the dogs seem to know, which is bizarre. Breakfast is a glass of orange juice and a piece of fruit. I either head straight to work or I do the doggy day care drop off. The kids are at university, so those joyful school runs are a thing of the past. 9am I’ll check in on breakfast at the hotel, chat to customers and then I’m off to reception where you’re always guaranteed a smile. That also means it’s time to collect the mail and head to the office. 9.30am I’ll review the calendar to see what the scheduled part of the day holds. Planned meetings could range from welcoming a highprofile politician to the hotel, to meeting a potential new supplier. Digital communication has become such a critical part of our business. It’s important to address it in a timely manner. I’ll check emails, bookings, reviews and other general management correspondence that is conducted online. I’ll also spend time making any follow up calls that are required. 11am This is when hotel meetings happen with suppliers, agents, tour operators, managers or I might need to hold a conference call with my business partner. Although I’m now the owner of Bishop’s Gate Hotel and not the manager, I haven’t lost my attention to detail, so I’ll still conduct an inspection of the hotel. This involves checking the rooms, speaking with housekeeping, chatting to the chefs and kitchen staff, checking that the bins have been emptied and seeing how front of house are getting on.

1pm This is dedicated office time to catch up on the strategic aspects of the business: best practice, alliances, innovation, links with other service providers, tourism bodies and local authorities. I’m also chairman of a school board of governors and I sit on four external boards so reading papers and following up on commitments from meetings can rapidly fill a diary. 4pm A visit back to reception to see what arrivals are due and what the next few days of business looks like. Hotels are complicated, with so many third parties controlling your business it’s critical that you stay on top of this and regularly take stock. I’ll also visit the restaurant and bar to make sure everything is operating smoothly. 6pm Normally my wife Anne Marie calls to see if I am coming home for dinner and reminds me

that I don’t live at Bishop’s Gate. 8pm I get home and reheat the wonderful dinner that I promised I would be home for at 6pm and we get to spend some time watching catch up television. 10pm A quick walk for the dogs, though they can be very hard to drag away from the fire. Before going to bed I’ll do a quick diary check to see what tomorrow holds. Hotel life leaves little time for hobbies. Every day is different and with people at the forefront of our business it is important to speak to and more importantly to listen to customers. A glance at my weekly analytics report tells me that I spend four hours and 28 minutes on average on my phone, take 6,400 steps and allocate 38% of my week to my Outlook calendar.