NI Trade Credit Insurance Chief says market insight points to further insolvencies

The head of Credit Insurance specialists, Trade Credit Brokers has warned that market intelligence on several sectors could spell out more catastrophic failure for a variety of Northern Ireland companies.

Nigel Birney, Head of Trade Credit and Political Risks, Trade Credit Brokers, has said that the unwelcome news won’t stop at McMullen Facades Ltd, Carillion, Williams Industrial Services, and Schlumberger. He expects more could follow, particularly in the construction and retail sectors. 

As a specialist credit insurer, Trade Credit Brokers keeps a watching brief on companies and their creditworthiness and are often the first armed with the market intelligence that can signal that an organisation is in trouble.

This comes at the time when the Association of British Insurers have claimed in recent weeks that insolvency rates have hit their highest level since 2013, stating that there were 300 insolvencies a week in 2017 in the UK.

Nigel Birney, Head of Trade Credit and Political Risks, Trade Credit Brokers commented:

“The market intelligence that we are seeing shows that there are many companies out there who are on the brink of failure and are very exposed particularly in the construction and retails sectors.”

“Underwriters are telling us that they are facing a big challenge not to withdraw their support in some sectors, which indicates that there will be more insolvencies in the early part of this year.”

“The unfortunate example of the likes of McMullen Facades Ltd, Carillion, Williams Industrial Services, and Schlumberger and the potentially catastrophic impact that it will most likely have on their supply chains, shows just how exposed these businesses were without appropriate credit insurance cover in place.”

“This is a big lesson to many businesses out there who think that they could never be affected by a situation like this. These very public examples should encourage those without cover, that financial protection against an unforeseen and potentially catastrophic impact of a bad debt is vital in these challenging times, for many businesses, as they try to manage their credit risk ”.

“We encourage anyone who wants to see out any credit risk pressures that they might be under to make sure that they speak with a specialist credit insurance intermediary before it’s too late.”  

VSS LAUNCH PEACE IV VICTIMS AND SURVIVORS PROGRAMME

The Victims and Survivors Service in Northern Ireland has officially launched the EU PEACE IV funded programme, Shared Spaces and Services – Victims and Survivors 2017-21.

This is a project supported by the European Union’s PEACE IV Programme, managed by the Special EU Programmes Body (SEUPB).

The aim of the programme is to improve the health and wellbeing of victims and survivors and will target hard to reach and marginalised individuals and communities that have suffered as a result of the Troubles/Conflict.

Since the programme commenced, VSS has developed a network of health and well-being caseworkers and advocacy support workers based within our community and voluntary partners across the region, who support victims in their local communities and deliver services and support where it is needed.

The VSS previously opened a call for applications under the Victim Support Programme and PEACE IV in November 2016. 55 organisations were successful in securing funding and this allowed for the establishment of a network of Health and Wellbeing Caseworkers and an Advocacy Support Programme in addition to the development of a number of new and innovative resilience initiatives.

Chief Executive of the VSS, Margaret Bateson said:

“We are pleased to formally launch the PEACE IV Shared Spaces - Victims and Survivors programme today. The programme has been underway since 2017 and already a significant amount of work has been undertaken to adopt a new and innovative needs-based approach to delivering bespoke services that support the unique and individual needs of victims and survivors.

“The new programme will look at how victims and survivors can be supported through a range of services, with a specific focus on improving health and well-being.

“We know we still have lots to do but we are already seeing early indications that this new approach is working, and we are seeing some real changes to the lives of victims and survivors. 

“We encourage those who need support to come forward and contact us on 02890 279100 or one of our community partners http://www.victimsservice.org/find-support-in-your-area/..”

Speaking at the event Gina McIntyre, CEO of the SEUPB, said:

“The PEACE Programme since its inception in 1995, has provided support to the victims and survivors of the troubles and conflict. This has been an integral part of each PEACE programme and is reflective of a genuine desire to fund the important work required to help alleviate the suffering caused to citizens in this region. 

“The support that has been provided under the current PEACE IV Programme recognises that victims and survivors are an extremely diverse group with very unique and complex needs. This funding support being announced today will be used to develop a number of important new services that will improve their health and well-being including a resilience building and advocacy support programme,” she continued.

NILGA host Business Breakfast on the Economy and Local Government

Last Friday at The MAC, the Northern Ireland Local Government Association (NILGA) hosted a business breakfast entitled ‘driving the economy forward through our local councils’.

A presentation was given by leading economist Dr Peter Kenway from the New Policy Institute with debate from panellists including Derek McCallan, Chief Executive of NILGA, Dr Theresa Donaldson, Chief Executive of Lisburn & Castlereagh City Council and Suzanne Wylie, Chief Executive of Belfast City Council. The event was hosted by broadcaster, Mark Carruthers.

Enterprise NI Chief Executive Announces Retirement

Enterprise NI has announced that Chief Executive, Gordon Gough, is set to retire as the head of the membership body.

Gordon has been the Chief Executive since his appointment in 2008 and has led the organisation for a decade. 

He will continue in post until June when a new replacement Chief Executive will take over.

The forthcoming process to find Gordon’s successor will be managed by executive search company, 4C Executive and is expected to be launched this week.

Enterprise NI represents the 28 Local Enterprise Agencies, working with thousands of entrepreneurs, helping them set up their businesses in Northern Ireland, and enabling them to grow and develop.

Nicholas O'Shiel, Chair of Enterprise NI commented:

“Gordon’s contribution not only to Enterprise NI but to the wider business sector which supports entrepreneurship, has been immense over the last decade.”

“Under Gordon’s leadership, the local enterprise agencies are deeply embedded in their local communities and contribute significantly to the economic regeneration of their respective council areas.”

“Gordon has worked tirelessly to develop the positive impact of Enterprise NI. During his time at the helm there has been a significant volume of new business start-ups developed and financially supported through a variety of programmes.”

“He leaves a great legacy and will be missed at the organisation. We wish him well in his forthcoming retirement.”

Gordon Gough said:

“It has been an enormous privilege to lead Enterprise NI and develop it as the voice of entrepreneurship.  It had been very rewarding to lead the organisation during a period where its influence and impact has grown. Our success is down to the hard work and dedication of our staff and members through some very challenging economic times. I would like to pay tribute to them for their professionalism and dedication.”

“I leave at a time when the organisation is in the best shape it has ever been in and I wish the new incoming Chief Executive well in this role.”

Upcoming Key Political and Business Events Feb - April

• 8 February, RICS Planning and Development Conference, Belfast City Hall
• 15 February,  Bank of England, Economic Outlook, Belfast
• 15-25 February, NI Science Festival  
• 22 February, Ministerial Advisory Group on Architecture on Town Centre Living, Belfast
• 28 February, The Future of Work in NI, Solutions Summit, Waterfront
• 1 March, Chief Executive Third Sector Conference, La Mon Hotel
• 2 March, Management and Leadership Summit, Titanic Belfast
• 7 March, InterTradeIreland’s annual Venture Capital Conference, Belfast
• 8 March, Agenda NI, Digital Government, Titanic Belfast
• 9 March, IoD NI Women’s Conference, Belfast
• 13-15 March, MIPIM Property Conference, Cannes
• 22 March, Ministerial Advisory Group on Architecture, Annual Symposium
• 24 March, Alliance Party Conference, La Mon Hotel
• 10-12 April, Peace and Beyond Conference, Belfast

NILGA critical of proposal to remove Rates Support Grant in Department of Finance budget consultation paper

NILGA, the representative body of the councils in Northern Ireland, has called for a whole system review of how NI’s annual budget of £20 billion to deliver our public services is planned and delivered.

NILGA has criticised as “anti-investment” the Department of Finance’s budgetary briefing paper idea of removing the Rates Support Grant – a fund which leverages an estimated £183 million per annum into the private sector and social economy of 7 local councils - ten times the sum itself.  

NILGA President, Alderman Arnold Hatch

The briefing paper has outlined the scrapping of central government support of £17.6 million per annum (based on 2017-18 levels) - a critical investment tool assisting councils that are less well off.

In its submission to the consultation (on the broad strategic issues that will help inform decisions on a Budget for 2018-19 and 2019-2020) which closes today, NILGA has stressed that at a time when councils are the only politically functioning element of government here, there should be no proposals to cut allocations and investments which have direct impact such as the Regional Support Grant.

As many as 7 out of the 11 councils would lose out on leveraging tens of millions of pounds in economic development capabilities. This support grant also contributes significantly to developing and sustaining hundreds of jobs across Northern Ireland, creating the taxes and investment needed to sustain other parts of the public purse including roads, health and education. 

Alderman Arnold Hatch, NILGA President commented:

“We understand that this is just a proposal at present and not a settlement, but the fact that it is being highlighted at this early stage is extremely worrying.”

“Any scrapping or even reduction in this fund will have a significant impact on service delivery right across Northern Ireland. It will exacerbate a two-tier economy in Northern Ireland with most of the resources to create enterprise being consolidated in just four of our councils, curtailing the ability of the other seven who need to develop new businesses and modern infrastructure to invest in developing their districts.”

“The rates support fund also creates direct savings for rate payers. For example, in Derry City & Strabane District Council the support of around £3.75 million per annum saves rate payers on average 6-7% on their rates bill which equates to about £65 a year.”

“NILGA wants a restored and effective Stormont as soon as possible. In the meantime, the 11 councils need legislation, policies and resources to deliver services to local people whilst – in the Assembly’s absence - protecting local democracy and decision taking. We must protect mechanisms such as the Rates Support Grant”.

Derek McCallan, Chief Executive, NILGA:

“88% of NI’s £20 billion yearly budget is determined at Stormont, which hasn’t met for over a year. This compares to less than half this percentage in Cardiff and Edinburgh. We’re in real danger of not just taking catastrophic decisions on the sustainability of key public services, but also, losing our competitive advantage because of fiscal planning frozen in time.”

“Legislation is needed today to resource councils to help develop the practical services people need. It is illogical that an investment pot such as the Rates Support Grant, which has been proven to create up to ten times the original sum, is even being put forward. Arguably, this is both short sighted in terms of sustainable local government and anti-investment in terms of enterprise creation.” 

NILGA Chief Executive, Derek McCallan 

“There is mounting expectation on local councils - considering the suspension of the Assembly - to deliver additional services such as winter maintenance, all aspects of emergency planning and community level support – yet, councils are without the resources to do these things.”

“Expectations from departments, government bodies and more importantly the community itself will have to be matched by negotiated and formal funding for councils before such ideas can be designed and delivered. It is surely the time now for all levels of government – elected members and officials – to sit down, through the Partnership Panel and other task and finish mechanisms, to rewire how the public’s services are sustained and delivered in N. Ireland.”

Digital disruption in NI social care sector key to saving providers hundreds of thousands of pounds per year

BY Fearghal McKinney, Co-Founder, PickaShift App

A recent economic study by the Northern Ireland Social Care Council showed that the overall contribution to the economy of the adult social care sector was over £800m - supporting employment for over 100,000 people here. Set against the context of such a small population these are significant numbers.

It also shows that the reliance on the social care sector is high and that it is a lifeline for many. Not only do nursing and residential care homes provide much-needed care for individuals, it also assists the family members and friends of those who need support.

Fearghal McKinney, PickaShift App

The sector provides a range of jobs in local communities right across Northern Ireland and gives opportunity to those who work in the sector the chance to gain qualifications and skills which may not always be available in other sectors.

The NI Social Care Council pointed out in their report that the impact of sustainable jobs and chance to upskill collectively in this sector helps to knit together the social fabric of our villages and towns across Northern Ireland.

High staff costs

A vibrant local residential and nursing home offer is important for local communities, but they are expensive to run due to the high input costs. These homes often face significant bills when it comes to filling shifts at short notice because of illness or holiday cover. The home does not have a choice – the shift must be filled to comply. It means they often must turn to expensive agencies.

Ensuring that a home has the right staff in place at all times is often a difficult and expensive job for home owners. The care home sector is heavily regulated to ensure standards are met by health and social care providers so that qualified staff are on duty at all times. Failure to do so has consequences for the provider.

Against the backdrop of pressured budgets, along with the strength of agencies in the market, homecare businesses are constantly looking for ways to cut costs and increase productivity.

Technology provides solution

In December, the Adult Social Care Report ‘Power to People: Proposals to reboot Adult Social Care and Support in NI’ detailed that the use of technology in the sector is underutilised but has enormous potential to assist in the provision of care here.

As a response to this problem, we have developed a new app called PickaShift. Care homes using the app save in terms of costly administration, a bigger pool of certified available staff can benefit from more work and pay and the home owner can avoid paying the expensive agency.  Employers and staff both benefit, which ensures a consistent level of service provision for those in their care.

The idea of the PickaShift app has been developed in direct response to the growing pressures that nursing and residential homes have found themselves in, due to a growing ageing population and the scarcity of supply of staff.

By helping to cut down on the administration process, and providing an alternative to expensive agency fees, Pickashift is helping to address these issues while also delivering significant savings. In some cases, this could be in the hundreds of thousands of pounds for larger care home providers.

Gareth Planck from Eversheds Sutherland on 2018 Date Centre Growth

In 2018 data centre growth is expected to be even stronger. Gareth Planck, Partner at the Belfast office of Eversheds Sutherland outlines why having a local law firm with global reach in this area is vital.

Supporting data centre growth

Over the last 20 years, the demand for digital data has grown massively. Data centres now underpin our digital economy – for corporate IT services, digital media, financial services, mobile computing, social networking and internet access. Data centres have advanced dramatically over the past few years with outsourced data centre infrastructure in Europe likely to tip towards 40% by 2019.

The UK and Ireland are two of the most active data centre markets in the world today. With the demand for cloud storage growing, the need for local processing power closer to the customer base in Northern Ireland will become even more prevalent in 2018 as micro data centres begin to multiply. It will become increasingly important to have in place a local legal team with global connections.

Gareth Planck, Partner at the Belfast office of Eversheds Sutherland

This is due to fact that they will be best placed to understand the full range of tenant concerns, especially the complexities of different occupational structures (and the attendant tax and accounting treatments) and service level agreements. Data centres are energy-intensive, and electricity consumption is usually the single largest component of operational costs. We at Eversheds Sutherland also place an emphasis on thorough energy due diligence and – when handling leasing and customer contracts - clear and concise electricity charging regimes, particularly where the data centre is supported by private renewable energy sources.

Legal challenges

The legal challenges facing data centres are unique, requiring a distinct blend of specialist legal advice. The looming Brexit divorce will also add a layer of complexity and uncertainty that previously didn’t exist.

It is best if the legal team you appoint are immersed in the sector, not only understanding the legal issues but also having a deep understanding of the data centre market. For decades, we have advised data centre developers, owners, operators, funders, and enterprises that need or use them on matters associated with all types of data centres, including enterprise, wholesale, co-location and managed services facilities.

Our extensive experience in this area on a global basis allows us to anticipate and manage the many challenges that are part of developing, owning and financing complex data centres, including site selection, due diligence, tax and structuring issues, operational and regulatory considerations, leasing and customer contracts.

Consideration needs to be given to the speed and ability to build and operate a data centre as opposed to acquiring an existing data centre which is readily adaptable for use. The basis of the owner or operator occupation will differ between jurisdictions with varying implications.

As an example, freehold acquisitions represent the most flexible form of land ownership, but most costly (and sometimes the slowest route to market) whereas leasehold acquisitions give ownership for a limited period (though often on longer terms, with options to renew) and therefore can be an attractive proposition for landlords, subject to extensive restrictions and conditions.

On expiry of the lease, all interests revert back to the landlord, including ownership of buildings constructed on the land (subject of course to business tenancy considerations in Northern Ireland). Care needs to be taken in negotiating the terms of the lease to ensure the owner/operator (and its funder) has sufficient flexibility in the use and occupation of the land and buildings for the purposes of its operations, that the period of the lease is sufficient to enable full recovery of any capped costs, and that sufficient protections are incorporated into the lease for funders and key customers.

Funding data centre growth

We are also advising on the funding of data centre projects and typically a funder will have separate concerns to an owner or operator. They will want to ensure title to the land/equipment is good and marketable to enable it to take adequate security over it. They will usually want independent legal advice and complex financing documents to be put in place prior to releasing funds at closing. This could impact on the ownership structure and timescales for any development. With increasing global focus on sustainability, the energy consumption and efficiency of a data centre is a significant concern with a huge impact on operating costs.

Temperate climates offer opportunities to reduce operating costs for free air cooling data centres against their chilled water counterparts. Small changes in Power Usage Effectiveness (PUE) can have a dramatic effect on energy costs (and often the costs arising from an increase in PUE will be a risk for the operator rather than the customer).

Even the most efficient data centres consume massive amounts of electricity, making energy-related strategic decisions key to successful development and operation. Interconnecting with the local grid and procuring electricity services at the most advantageous rates, including any economic development incentives, requires in-depth knowledge of the regulatory framework in Northern Ireland and practical experience in the relevant energy markets which we have.

Article first published in Business First Magazine

Dr Eamon Phoenix to be special guest at Brain Injury Matters charity event

Leading historian Dr Eamon Phoenix is set to give a special talk entitled ‘From Penal Laws to Insurrection: Belfast, the United Irishmen and the 1798 Rebellion’ in support of Brain Injury Matters at the end of the month.

Pictured with Dr Eamon Phoenix are Brain Injury Matters service users Margaret Kinnard and Jean Mc Veigh.

The charity event hosted by well-known broadcaster Noel Thompson takes place on 25th January at 7pm at the Belfast Harbour Commissioner's Office.

The event will also have music from a section of the City of Belfast Youth Orchestra and Irish Harpist, James Patience.

Tickets are £10 and can be purchased by emailing info@braininjurymatters.org.uk or calling 028 9070 5125.

Belfast City Council announces new customer service charter for planning application system

On top of other recommendations being introduced by Belfast City Council, a new Customer Charter with ten operating principles to reduce back-logs in the planning application system and speed up transactions.

The new customer service charter will incliude: 

• Customers have the right information in support of an application before submitting it;
• Consultations with the right people take place at the beginning of the process and follow correct consultation procedures;
• Site visits happen as soon as are practically possible; no later than 21 days after an application is valid;
• Customer requirements are fully understood and needs are met, such as timescales for projects;
• The ‘path’ of an application is determined as soon as possible, whether it will be approved, refused or changes needed;
• Customers know our views on their application; and opportunity should be given to address problems as soon as possible, where there is a solution;
• A Pre-Application Discussion service is provided to identify issues at the beginning of the process and before the application is made;
• Unacceptable applications will be determined as quickly as possible in the interests of the efficiency of the overall service;
• Where there is an obligation to take account of the advice from technical consultees, there will be a proportionate approach to the handling of each planning application; and
• Work will be kept moving at all times with an understanding that any blockage in the process will cause delays.