Reactive Statement on announcement by Economy Minister on Vocational Qualifications in Northern Ireland

Michael McAlister, Chief Executive of South West College and Chair of the College Principals’ Group in Northern Ireland.

Speaking on behalf of the Further Education Colleges in Northern Ireland, Michael McAlister said:

“The Further Education Colleges are pleased that there is now an agreed way forward for students undertaking vocational and technical qualifications and essential skills in Northern Ireland.

“Understandably, there has been very real anxiety among our student population about what Covid-19 means for them and their qualifications.

“We welcome the Minister’s direction that calculated results will be used on general vocational and technical qualifications and essential skills and the assurance that all students are treated fairly and equitably in line with arrangements for GCSEs and AS/A Levels. This will allow a significant number of our students to progress to higher and further education and provides them with some certainty so they can plan ahead.

“For other courses where alternative solutions are required, we must wait on further guidance from the regulator and we want to assure students that our staff will work with them in the coming weeks so they can be awarded the grades they deserve.”

Give Magee Medical School the green light, says Londonderry Chamber President

Redmond McFadden, President, Londonderry Chamber of Commerce

The President of the Londonderry Chamber of Commerce has written to Executive Ministers urging them to make an immediate decision on the Medical School at the Ulster University’s Magee campus.

Redmond McFadden has written to the First and deputy First Minsters and Health Minister Robin Swann this week asking the Executive to bring forward a decision on the Graduate Entry Medical School at Magee to ensure it can open to new students in September 2021.

The establishment of a Medical School at Magee in Derry~Londonderry is a core commitment within the ‘New Decade, New Approach’ Agreement which led to the restoration of the Executive in January.

Redmond McFadden, President of the Londonderry Chamber of Commerce, said:

“The establishment of a Graduate Entry Medical School in the city has long been promised for the North West. Its importance, however, has been made even clearer in light of the COVID-19 crisis. By training and retaining new doctors, nurses and other healthcare workers locally, we can significantly bolster Northern Ireland’s healthcare workforce and ease pressures on our health service.

“A medical school in the North West would not just have significant benefits for our health service but also for our regional economy. It has also been identified as a core capital project of the Derry and Strabane City Deal. An increase in students in the city would lead to an economic boost and a more highly-skilled local labour force would be a key economic driver for the entire region.

“Our health service is under extreme strain at the moment and our health and social care workers are undertaking huge efforts to keep us safe. Delivering a Graduate Entry Medical School in the North West would be a fitting legacy to the efforts of our frontline healthcare staff. I am urging the Executive to deliver on its commitment, bring forward a decision on the medical school, and urgently consider establishing the school to strengthen our health service and boost our regional North West economy.”

Urgent measures needed to save North West economy, writes Londonderry Chamber CEO

Paul Clancy, Chief Executive, Londonderry Chamber

* Originally appeared in the Derry Journal on Tuesday 21 April

The impact of the coronavirus on our society has been swift and devastating. As has so often been said, this is not only a public health crisis but an economic one. Businesses and organisations across the North West are under immense pressure, with issues like cash flow at the fore of their concerns. Thousands of workers have either been laid off or furloughed on the government’s coronavirus Job Retention Scheme, and households across the region are understandably anxious about what the future holds.

A UK-wide recession is all but a certainty at this point. Recent figures suggest that the UK economy could shrink by up to 35% in the next quarter, while the Northern Ireland economy is facing its fastest ever decline according to Ulster Bank. As the smallest regional economy in the UK, Northern Ireland will need direct, comprehensive and bespoke solutions from the government to keep our economy afloat. 

The Chancellor Rishi Sunak responded quickly to the economic impact of this virus and spoke of launching an unprecedented rescue package for affected businesses and workers. However, while initially welcomed, it has become clear that these schemes are incomplete and not reaching everyone. According to a recent survey carried out by us and our colleagues in the Belfast, Causeway, and Newry Chambers, fewer than a fifth of businesses have applied to the government’s Business Interruption Loan scheme whilst less than half are eligible for the Executive’s grant schemes. Around 80% of businesses also plan to use the government’s furlough scheme to protect jobs but immediate certainty is needed over when these payments will begin to reach businesses. 

The Chamber has engaged frequently with the Executive, including the First and deputy First Ministers, the Economy Minister and the Finance Minister. We welcome the business rates holiday announced by Finance Minister Conor Murphy, but we need to see this extended for a longer period than three months. And, while grant schemes were announced by Economy Minister Diane Dodds to support hospitality and retail businesses, it is already clear that there are significant gaps. Social enterprises, charities and those who are multiple premises owners are just some who have fallen through the cracks so far.

Speed is of the essence to ensure that our SMEs don’t go bust waiting for cash and we urge the Executive to process these applications as swiftly as possible. An extra £40m has also been set aside by the Executive for further support for businesses. We need urgent clarity over how this is to be spent and when. More support is needed to save our economy and it’s needed now.

The Chamber represents a diverse range of businesses across the North West in every sector including manufacturing, retail, hospitality, tourism, healthcare, IT and professional services. No industry has avoided taking a hit in this crisis. Our members have reported the decimation of turnovers and revenues, the slashing of daily footfall, and significant changes to how they operate.

But our business community is resilient and filled with talented, compassionate workers and leaders. Our local economy will recover from this crisis, but we need further support for that to happen. We welcome what has been done so far to help, but more is needed to ensure local businesses survive.

More joined up planning, investment and actions needed for local government says NILGA President reacting to analysis on future economic output by Centre for Progressive Policy

Commenting on new analysis by The Centre for Progressive Policy of the short-term economic impact of COVID-19 across Councils in Northern Ireland, NILGA President, Cllr Frances Burton said:

“These are deeply concerning figures and are sadly unsurprising. Firms across Northern Ireland are severely impacted by the COVID-19 crisis in the short-term and well beyond, especially areas like Mid Ulster and Mid and East Antrim, heavily reliant on manufacturing and industrial sectors for jobs and economic activity. These are sectors which have been severely affected in recent weeks. This analysis will be extremely worrying for local employers, employees and economic support bodies working hard to sustain the fragile economy.”

Cllr. Burton added:

“Northern Ireland’s councils are responsible for driving entrepreneurial activity in their areas and have a key role to play in supporting local firms through their economic development programmes. It is time for Northern Ireland’s councils to be resourced for this activity, through a local business hardship relief fund, provided through national level investment. Such on the ground coordination - as with so many other similar interventions - will help councils guide businesses through this emergency and support our economic recovery. Councils working with businesses and their partners, locally, will result in regeneration and recovery, but a dedicated fund is needed now to foster enterprise.”

COVID-19, Construction and Contracts - Navigating the legal complexities in the time ahead - Matthew Howse, Partner, Eversheds Sutherland Belfast

Matthew Howse, Partner, Eversheds Sutherland, Belfast

The COVID-19 pandemic presents challenges for us all in ways none of us could ever have imagined. The same is true of the construction and engineering sector which is in the eye of this particular storm. As well as concerns about protecting the health and wellbeing of employees throughout this, many in the sector are also worried about the supply of materials, labour shortages and ultimately, delays to projects.

Combine this worry with mixed messages from the government and a lack of clarity on what constitutes an essential building project and the difficult situation which the industry finds itself in is clear.

While there is no doubt that this is a difficult time there are steps which can be taken to navigate the legal complexities and risks of the deep freeze on the industry. The logical starting point is to consider contractual obligations under the most commonly used contracts - Joint Contracts Tribunal (JCT) and New Engineering Contract (NEC).

Like any good relationship, co-operation is essential. Under NEC both parties should continue to notify of early warnings such as events which could increase costs or delay completion. Under JCT, the contractor should proactively notify relevant events and matters.

Understanding the impact of COVID-19 on your project requires sharing information with and discussions with all project partners to manage, mitigate and review risks – both those currently happening and those which are foreseeable. Even if your contract does not require this approach, it is commercially critical.

Earlier this week it was reported that 65 per cent of construction work by value had already shut down. The implications of this will be felt by all in the vast supply chain and certain costs could unfortunately be lost as a result.

If work has already started, the employer must rely on an express contractual right to suspend the works. JCT allows ‘postponement’. NEC allows the contract administrator to instruct the contractor to stop or not to start work at any time. Ultimately, prolonged suspension without a contractual right is a breach of contract, allowing the other party to terminate the contract.

In extreme circumstances, terminating the contract may be the only option and terminations based on contractual provisions will depend on the agreed terms set out in the termination clause. Government imposed restrictions on travel and movement which directly affects the delivery of work should be provided for. However, termination outside of the contractual provisions is much trickier and relies on the undefined ‘force majeure’ or ‘suspension without cause’. This is obviously a worst-case option but unfortunately will be one which is considered in the coming weeks and months.

What comes next is uncertain - amid this pandemic we are living from day to day unsure of what tomorrow will bring. However, decisions will have to be made regardless of how difficult or unpalatable they may be and so understanding contractual obligations will be vital. Like everyone in society, those in the construction and engineering industry will be hoping for a quick resolution.

NILGA President: "Acts of arson and the intimidation of engineers are despicable and must stop in the interests of the community"

Adding to the statement by Minister for the Economy, Diane Dodds MLA, on the “abuse of telecoms engineers doing their jobs”, “criminal damage and intimidation”, “at a time when the importance of telecommunications has never been so prominent”, Cllr Frances Burton, President of the Northern Ireland Local Government Association (NILGA) said:

NILGA President Cllr Frances Burton

"Telecoms is an essential service, now more than ever. NILGA acknowledges the diligent service provided 24/7 by telecoms workers, who are keeping the vulnerable and wider society connected. In terms of emergency and essential services, particularly NHS, key businesses, government, councils, community staff and volunteers, we simply cannot do such jobs - thereby helping every one of us  - without connectivity.”

“Acts of arson and the intimidation of engineers are despicable and must stop in the interests of the community they are trying to serve right now. Such actions will lead to serious disruptions if telecoms staff and operating masts are targeted now and in the coming weeks. Longer term, they will lead to criminal prosecutions for the perpetrators.”   

“I hope that treatment for the very sick, and wellbeing contact for those living alone, will come to the minds of those involved and that they stop these attacks immediately." 

Brown O’Connor Communications Weekly Look Ahead: Week Commencing 13 April 2020

Forward Look

• An agreement for a grand coalition between Fine Gael and Fianna Fáil is expected to be formally signed off on Good Friday, according to The Times. Smaller parties like the Greens and Labour will first consider the framework document being produced by the two parties before deciding whether to join the coalition.

• The Northern Ireland economy could contract by almost 10% this year due to coronavirus, according to a report by Ulster University. Economists at the Ulster University Economic Policy Centre also suggest that 250,000 workers could be placed on furlough.  

• Ministers will review the UK’s coronavirus lockdown to consider whether restrictions should be extended. New legislation stipulates that the Health Secretary must review restrictions every three weeks, with the first review due by 16 April.

• Speaker of the NI Assembly Alex Maskey has been advised to self-isolate at home for 12 weeks for health reasons. The deputy speakers will rotate in the chamber during Mr Maskey’s absence.

• The Assembly’s Education Committee will hear evidence from the department’s Permanent Secretary Derek Baker on Wednesday 15 April.

• The Ad-Hoc Committee on the COVID-19 Response will meet on Wednesday 15 and Thursday 16 April, hearing statements from the Health, Infrastructure, and Economy Ministers.

Other Stories

• Former Belfast councillor Niall Ó Donnghaile was re-elected to Seanad Éireann last week. Mr Ó Donnghaile was elected to the Seanad’s Administrative panel.

• The DUP has selected Dean McCullough to replace former Deputy Lord Mayor of Belfast Guy Spence as Belfast City councillor for Castle.

• Communities Minister Deirdre Hargey has released £1.5m to local councils from the COVID-19 Community Support Fund to target need and alleviate poverty.  

• Alan Kelly has been elected to replace Brendan Howlin as the leader of the Irish Labour Party.

• NI’s Chief Scientific Adviser, Professor Ian Young, has urged people in Northern Ireland to stay at home over the Easter bank holiday weekend. He said now would be the wrong time to become complacent and suggested that social distancing was “beginning to have an effect”.

• The first meetings of the Assembly’s Ad-Hoc Committee on the COVID-19 Response took place this week, hearing statements from the First and deputy First, DAERA, Education, and Communities Ministers.   

Consultations

• Belfast Resilience Strategy Belfast City Council. Deadline 10 April.

• New Decade, New Approach Agreement Inquiry NI Affairs Select Committee. Deadline 20 April.

• Unfettered Access: Northern Ireland and customs arrangements after Brexit NI Affairs Select Committee. Deadline 20 April.

• Belfast City Council Improvement Objectives 2020 – 21 Belfast City Council. Deadline 24 April.

• Call For Evidence: Function of Government Bill Committee for Finance. Deadline 24 April

• Consultation on pilot to instruct experts in the family proceedings court Department of Justice. Deadline 8 May.

Live Results of Manufacturing NI’s Survey of Manufacturers Released

Manufacturers in Northern Ireland have been hit particularly hard by the Covid-19 pandemic, with 81% of manufacturers confirming that they have put staff on furlough. 

This week, Manufacturing NI have been surveying the sector to get a live understanding of the issues faced and actions taken in their business to deal with the current Covid crisis.

Stephen Kelly, Chief Executive, Manufacturing NI

What is clear is that we are fighting not only a public health emergency but an economic emergency too.

The UK Government and the NI Executive have taken action to help protect firms and jobs, but this appears to be only delaying a major economic crash in the weeks ahead.

Understandably, people are focused on the here and now and not about what will happen one, two or three months down the line.  For now, it is about anything that keeps the doors open.  An example is that 78% of firms are using cash from within their business to sustain employment and other costs.  A small number of firms even confirmed that they were using savings / pensions to fund this current period.

The biggest issues remains a lack of certainty on the Jobs Retention Scheme.  81% of manufacturers have confirmed they have put some staff on furlough (confirming they have taken action on the intentions signalled in the NI Chamber of Commerce survey earlier this week). 

72% have furloughed more than half their workforce, with 1 in 4 completely closed and 60% having furloughed more than three quarters of the workforce meaning in whole parts of the sector there is no active production taking place.  The manufacturer sector is largely closed down

Less than 1 in 5 firms have furloughed less than 10% of the workforce.

If, as the Chancellor has made clear, the furlough scheme is to avoid redundancy for now, then we have to be deeply concerned that we will be unable to restart the sector if we leave the lock down for too long.  With most manufacturing taking place outside of the cities (83% of respondents), this must sound alarm bells for the economic health of provincial and rural communities in the months ahead.

Companies who may still be able to produce goods are putting in place contingency measures such as sourcing new suppliers, stockpiling, flexible working patterns including staggered shifts and shortening production lines to offset the impact of Covid-19.  Many companies are also struggling to source materials and having to look for alternative suppliers.

The Government has provided it’s 3rd update to the furlough scheme overnight which is welcome but uncertainty remains until the scheme opens on 20th April.  It is critical that the Government stand over their commitment to support all firms who took their advice on since 20th March and guarantee the furlough payments.  To renege on this jeopardises the short and long term future of a huge part of the sector.

Two thirds have seen their markets or customers disappearing as their first or second biggest challenge with half saying that cashflow is currently one of their biggest challenges.  Significantly 20% said that labour relations in the past two weeks was their biggest issue.  With the potential for many firms to come off furlough on 20 April, it is important that we all work to ensure there is a clarity in our messaging to avoid unnecessary conflict in the workplace again.

Despite more flexibility being provided to banks, 30% say they still have experienced difficulty getting their needs met from either existing borrowing or from the CIBLS or other schemes offered by the Chancellor.  With a rush to the banks to try to secure funding, it is understandably difficult to meet this demand quickly but hopefully the coming week will seek more requests fulfilled.

Almost 85% of businesses say that more financial support from Government is needed for the sector to sustain jobs.  Our worry would be that there won’t be sufficient resources remaining in businesses or Government to mount and sustain a rebuilding exercise in the short and medium term.

More positively, more than 12% of manufacturers so far have said they have repurposed or are working collaboratively to support the NHS and others to tackle this virus.  Extrapolated out from the sample, that means that perhaps 600 manufacturers have joined the fight on top of the many thousands who continue to provide priority goods and services here and in other markets.

Observations

• We know now that there has not been sufficient attention to keeping or supporting firms who provide resilient supply chains for our front line and priority sectors at home.  Rebuilding that has to be a focus for the Executive and Government in the months and years ahead.

• Whilst it is essential the UK Government and the Executive provide clarity on when to return to production it can only be ultimately supported by customer demand.  The Executive should begin to explore how this customer demand can be kick started whilst working to support the critical exporting sub sector who may have to wait for markets and global sectors to restart.

• Despite the challenges, many manufacturers continue to play a direct, repurposed and supporting part in the battle against Covid-19.  They need recognised and celebrated.  However, these results, combined with yesterday’s report from Ulster University Economic Policy Centre, begin to unveil the scale of the challenge which awaits after we deal with the current public health emergency.  Jobs are provided by a healthy economy but more importantly they provide for healthy families and communities.  This requires the attention of the Executive and the UK Government.

Londonderry Chamber welcomes further COVID-19 support funds

Paul Clancy, Chief Executive, Londonderry Chamber

Commenting after Finance Minister Conor Murphy committed a further £300m for COVID-19 response, Londonderry Chamber of Commerce Chief Executive Paul Clancy said:

“We welcome the allocation of significant new funding to respond to the COVID-19 crisis, in particular the Minister’s commitment that £40m will be set aside for further support for businesses. We are aware of a number of smaller businesses which have fallen through the cracks and have found themselves ineligible to apply for previously announced support schemes. We will be engaging with the Executive to ensure they benefit from future support measures and create schemes which will help all businesses across every sector. While we welcome the support schemes already announced by the Executive, we now need further and immediate clarity on how to apply and when these will become available to companies.”

Retail NI calls for ‘Triage Approach’ to business support

Retail NI has urged the NI Executive to adopt a ‘triage approach’ to further measures to support businesses struggling with the Covid-19 crisis.

Glyn Roberts, Chief Executive, Retail NI

The call comes after the conclusion of positive discussions on support for businesses such as CBILS (Coronavirus Business Interruption Loan Scheme) with the senior leadership of the four main banks. The representative body stressed the need for a speedy turnaround on CBILS applications from small businesses and interest free overdrafts to assist companies experiencing cashflow problems.

Retail NI, Chief Executive, Glyn Roberts said today:

“While the support given to businesses by the Executive is very welcome, much more needs to be done to target those companies that are struggling the most during this crisis. Retail NI wants to see a ‘triage approach’ adopted by the Executive.”

“The £10K and £25k small business grants need to be altered to support those companies with multiple premises rather than just a single payment.”

“This change would support front line independent retailers who have more than one store, continue to provide food and other essential products to consumers. It would also assist those independent retailers who have had to close their doors during this crisis."

He added:

“The Executive needs to go further on business rates relief and extend the current three months to twelve months in line with the rest of the UK. Again, we believe this should be targeted to businesses that need urgent assistance.”

“Health is the top priority but we need to ensure that we limit the damage done to our economy and provide jobs when this crisis subsides.”