Brown O’Connor Communications Weekly Look Ahead: Week Commencing 4 May 2020

Forward Look

• Two major business groups – the CBI and Ibec – have written to the governments in both Dublin and Belfast to urge co-ordination in the recovery from coronavirus. They have said an economic reboot will need “the highest level of co-operation, co-ordination and joined-up thinking”.

• The Northern Ireland Budget 2021 will be debated in the Assembly on Tuesday 5 May.

• The Northern Ireland economy will shrink by 7.5% this year as a result of coronavirus, according to Danske Bank Chief Economist, Conor Lambe.  

• A Stormont consultation on the review of tariffs for the RHI scheme has suggested increasing subsidies again. Tariffs were cut to rein in costs but reductions left many legitimate users financially worse off.

• The Northern Ireland Affairs Select Committee has launched an inquiry into the UK Government’s proposals on dealing with the legacy of the past. Deadline to respond is 1 June.

• The Prime Minister has promised to set out next week a plan on how schools and workplaces could safely reopen once lockdown restrictions were eased. Michelle O’Neill, deputy First Minister, told BBC’s The View that the Executive will communicate to the public their lockdown relaxation measures next week, by next Saturday 9 May at the latest.  

• The NI Assembly debated the Second Stage of the Domestic Abuse and Family Proceedings Bill this week. The Committee Stage of the bill has yet to be scheduled.

• Lord Kerr of Tonaghmore from Northern Ireland is set to retire as a Supreme Court Justice in September 2020, after ten years at the Supreme Court.

• Translink are considering whether to furlough some staff to cut costs during the pandemic, Infrastructure Minister, Nichola Mallon MLA, told the Infrastructure Committee this week. Minister Mallon will also make a statement to the Assembly on Tuesday 5 May.  

• Journalist, Siobhán Fenton, has joined Sinn Féin as an adviser in Leinster House.

• Former Shadow NI Secretary of State, Tony Lloyd MP, has stepped down from the role to take time out to recover from coronavirus. Louise Haigh MP, who had stepped into the role on an interim basis, has now been made permanent Shadow NI Secretary.

• Former NI Secretary of State, Julian Smith MP, will give evidence to the Northern Ireland Affairs Select Committee on Thursday 7 May as part of its inquiry into the ‘New Decade, New Approach’ Agreement.

• The Tourism Recovery Steering Group, which will lead the planning and preparations for the recovery of tourism in Northern Ireland, is due to meet for the first time next week.

• A recruitment process has been launched for a Northern Ireland Veterans Commissioner. The new role was a commitment in the ‘New Decade, New Approach’ Agreement.

• Schools are likely to offer a mix of online and in-class learning when they return, but no date has been set yet according to Department of Education Permanent Secretary, Derek Baker. Mr Baker will brief the Education Committee again on Wednesday 6 May on his department’s coronavirus response.

• Representatives from the Londonderry, Belfast, Newry, and Causeway Chambers of Commerce will brief the Economy Committee next Wednesday 6 May.

• The Finance Committee will hear from the Head of the NI Civil Service, David Sterling, on Wednesday 6 May as part of its scrutiny of Jim Allister MLA’s Functioning of Government (Misc Provisions) Bill.

• The Ad-Hoc Committee on the COVID-19 Response will meet on Thursday 7 May.

Planning and Community Consultation– New Guidance Published on Pre-Application Community Consultation (PACC) -Temporary Removal of Public Event Requirement

Today (1 May) the Department for Infrastructure published new guidance on the Pre-Application Community Consultation (PACC) -Temporary Removal of Public Event Requirement. Here’s some of the key points and highlights:

Proposal of Application Notice (PAN)

Prior to submitting a major application, prospective applicants must give notice to the appropriate council, or as the case may be, the Department that an application for planning permission for the development is to be submitted.  There must be at least 12 weeks between the applicant giving the notice and submitting any such application. 

During the current emergency period the Department expects that specific detail will be included in the PAN indicating what consultation methods the prospective applicant is proposing to ensure that the local community is able to access, and comment on, information about a proposed development, despite the absence of a PACC public event. 

Newspaper Advertisement

The requirement for a prospective applicant to publish a notice in a local newspaper circulating in the locality in which the proposed development is situated also remains, though the required content during the emergency will be as follows:-  

The newspaper notice must contain:

• a description of, and the location of, the proposed development;

• details as to how information may be obtained concerning the proposed development;

• a statement explaining how, and by when, persons wishing to make comments to the prospective applicant relating to the proposal may do so;

• a statement that comments made to the prospective applicant are not representations to the council, or as the case may be, the Department, and if the prospective applicant submits an application there will be an opportunity to make representations on that application to the council or as the case may be the Department at a later stage.

In addition to the previously stipulated notice requirements, prospective applicants should indicate in this advert the alternative consultation arrangements which have been put in place.

Pre-application Community Consultation Report 

The requirement for a prospective applicant to prepare a pre-application community consultation report to accompany the planning application remains.  The report should confirm that pre-application consultation has taken place in line with the statutory requirements.  During the emergency period, the report should also set out the steps that have been taken to facilitate community consultation in the temporary absence of the PACC public event.  

Alternatives to a Pre-Application Community Consultation Public Event

There is an expectation that prospective applicants will replace the PACC public event with alternative consultation measures.

The intention should be to find alternative ways to enable the exchange of views that would otherwise be achieved by face to face interaction.  Local councils also retain the ability to require additional consultation steps to those specified in legislation, however, when using these powers, councils should take into account the prevailing public health advice and the constraints this may put on a prospective applicant’s ability to comply with any additional requirements.

Prospective applicants should continue to ensure that their pre-application community consultation process will enable people to: 

• have access to information;

• put forward their own ideas and feel confident that there is a process which enables those ideas to be considered; and

• have an active role in developing proposals and options to ensure local knowledge and perspectives continue to be taken into account.

Prospective applicants may consider some of the following means of digital or remote consultation while being unable to hold a PACC public event:

• Web-based Engagement

• Social Media

• Community Surveys

• Information Sheets and Newsletters

Londonderry Chamber welcomes airport funding package

Paul Clancy, Chief Executive, Londonderry Chamber

Reacting to the news that the NI Assembly and UK Government have announced a package to support air passenger routes, Londonderry Chamber Chief Executive Paul Clancy said:

“This is very welcome news which will maintain crucial airlinks between our regional airport and the rest of the UK. Securing this connectivity is important for our regional economy and government support will help ensure that these vital airlinks will still be there for businesses and travellers after this crisis passes.”

Ireland’s largest Trade Credit Insurance Broker calls on NI Executive to push UK Government to act quickly over trade credit scheme to support business in Northern Ireland.

Nigel Birney, Head of Trade Credit at Willis Towers Watson has urged the Northern Ireland Executive to lobby the UK government and press them hard to act immediately and implement proposals put to them by UK Credit Insurers for a scheme to assist the trade credit insurance sector to continue to provide cover on companies caught in the middle of the Covid19 emergency.

The call comes as all credit insurers are now actively reviewing downwards the ratings on specific UK, Irish and foreign companies who they feel have been most adversely affected by Covid19, cancelling or significantly reducing available limits.

LOBBY: Nigel Birney, Head of Trade Credit at Willis Towers Watson

Without trade credit insurance in place, companies expose themselves to huge risks including non-payment as the companies that they are supplying into go bust or have elongated payment terms which places a significant strain on cashflow.

The Northern Irish export market is one area of the economy which relies heavily on the safety net of having trade credit insurance in place when selling goods overseas. It is expected to grind to a halt without government action.

In many cases, credit insurance is also taken as collateral by banks and commercial funders to facilitate the provision of working capital facilities. Access to such facilities is going to be critical once the economy is fully open for business again.

Already, several Governments across Europe including Germany, France and Denmark have agreed schemes with the EU to stabilise their own internal credit insurance market.

The UK Government is now being pressed to make a similar decision as local companies are now exposed, more than ever, and will be at a distinct trading disadvantage if this request for support is ignored.

Nigel Birney, Head of Trade Credit Insurance at Willis Towers Watson said:

“We should not underestimate or ignore the potentially devastating impact the withdrawal of credit insurance cover will have on many NI businesses. We need to see the UK government intervene and shore up the credit insurance sector so that confidence can be restored, and businesses can continue to access trade credit insurance cover which provides that vital safety net.”

“Not being able to get credit insurance is having a destabilising effect on the local economy and we are keen to ensure that this is recognised, particularly by our own Ministers.”

“If the UK Government does not act urgently to support the UK’s credit insurance community the potentially catastrophic commercial effects of Covid19 will be acutely felt by many businesses in Northern Ireland.”

He added:

“Potentially you could have the unpalatable situation whereby a company in Ballymena is unable to get insurance on a business in Portadown because the UK insurer is uncomfortable with the risk profile of the buyer whereas a supplier in Germany could sell to the same buyer in Portadown and the debt would be insured under the German Government backed guaranteed scheme.”

NI charity sector faces 'imminent collapse' new findings show - representative body calls on Executive for urgent intervention

Nora Smith, Chief Executive, CO3

The live survey results of charity leaders in Northern Ireland has revealed shocking new evidence showing three quarters of organisations are approaching a funding cliff-edge because of the Covid-19 crisis.

The survey was carried out in the last week by the third sector’s Chief Executive group CO3, in partnership with the Institute of Fundraising.

Of the 206 leaders who responded:

• 76% are now reporting ‘serious financial difficulties’

• 38% describing their cash flow position as ‘unstable’

Many charities rely on public fundraising activities which have stopped overnight with one charity reporting that despite a 70% increase in referrals to its service, its income is down by 90%.

Despite a £750m package for struggling charities being announced on 8 April, only £21m has been allocated to third sector organisations in Northern Ireland, representing around £3,400 for each of Northern Ireland’s over 6,000 registered charities.

The survey also revealed that charities have been locked out of government support schemes.

• Around 97% of organisations are ineligible for the Coronavirus Business Interruption Loan (CBIL) Scheme

• Only 8% have managed to access government grants,

• Only slightly more than half have been able to furlough their workers on the government’s job retention scheme

CO3 is urging the Northern Ireland Executive and UK Treasury to create a bespoke rescue package to sustain local charities and voluntary organisations which will protect jobs, protect incomes and cash flow, and maintain key services.

Nora Smith, Chief Executive of CO3, said:

“The situation for charities and third sector organisations in Northern Ireland is desperate. This survey paints a stark picture of the position many of our members find themselves in and it’s no surprise that over 75% of charities have reported serious financial difficulties since this crisis began.

“Organisations have seen their incomes slashed overnight and are now in the position where they need serious, targeted and comprehensive Executive intervention.

“We have seen very targeted and comprehensive support packages for businesses, but many charities and social enterprises are ineligible to apply for them. This is despite the fact that in Northern Ireland, over 45,000 people are employed by the sector and it contributes over £1.5billion to the local economy.

“In addition, charities are providing many public services that are needed now more than ever. We’ve seen charity directors having to make very tough decisions in recent weeks about cutting services at a time when people really need them.

“If we are to get through this crisis together, it is important that charities are supported by government to continue delivering much needed support.

Charities have also reported having to stop some key services due to financial pressures. Nearly 40% of respondents have already been forced to stop some of their charity services, while another third said they could take similar steps in the coming days and weeks.

Roisin Foster from Cancer Focus NI said:

“We have already been forced to take some very difficult decisions to suspend some of our most needed services including most of our counselling services for cancer patients. We know that this will cause distress, but this crisis has already caused huge damage to our income and hard choices have had to be taken. Some staff have also been furloughed to protect our cash flow.

“We urgently need intervention from the Executive to protect against the worst impacts that the Covid-19 pandemic will have.”

Now more than ever, Fintech is crucial for the Northern Ireland Economy writes Fintech Envoy for Northern Ireland

Andrew Jenkins, Fintech Envoy for Northern Ireland

COVID-19 has changed everything, and Fintech is not immune. This week we should have been coming together to celebrate and acknowledge the role that Fintech plays in the economy across the UK with a range of events throughout Northern Ireland. Our focus has rightly shifted, and the global Fintech community is gathering virtually to hear experts cover a myriad of topics through a series of online events.

I am proud that Northern Ireland will feature prominently throughout this in showcasing how the industry is empowering resilience during this current crisis and supporting eventual recovery. Today (30 April) I will host a webinar with senior industry leaders including John Healy OBE, Rose Mary Stalker, Richard Kirk, Alex Lee and William Smyth as we look to the future of Fintech in Northern Ireland.  However, there is no doubt the industry is being impacted by today’s crisis - most notably our start-up community.

The analysis from leading economists does not make for pretty reading with many predicting a deep recession. The IMF have predicted the worst global downturn since the Great Depression in 1929. Locally, Ulster Bank’s economist Richard Ramsey has forecast that Northern Ireland’s economy could contract by eight to ten percent in 2020 and described the recovery as “an escalator back up”.

Despite the uncertainty and challenges which many in the industry and wider society will face, there is an opportunity for Fintech to do what it does best and play its part in the economic recovery, speeding the escalator up. Afterall, it’s worth remembering that the rise of Fintech can be traced back to the global financial crisis of 2008.

It is this resiliency, adaptability and innovation that helped to solidify Northern Ireland’s place as a leading global location for Fintech development investment and made it a key driver of the economy. In the times ahead, they will be at the forefront once again.

I have spoken previously of my optimism for the Fintech sector in Northern Ireland. This optimism remains unchanged. Our industry is brimming with talented individuals and companies who are making a difference across the globe. You only have to look at the work which Allstate, Citi, Liberty IT, The CME Group, FSCOM and Datactics are doing to see that we are working and succeeding on the world stage.

By sustaining and even creating jobs, the Fintech sector will remain a crucial tenet of the Northern Ireland economy. It is important that our Minister’s speak confidently about Fintech in Northern Ireland as they seek to attract investment. Indeed, in March, Economy Minister Diane Dodds announced the establishment of a new Fintech centre in Belfast by Atlanta-headquartered risk management firm Riskonnect and the creation of 100 jobs. The Northern Ireland Executive has also pledged its commitment to further supporting cyber security and artificial intelligence (AI).

These are welcome and positive announcements, and ultimately a further vote of confidence in our global reputation as a centre of excellence for financial technology.

Right now, the number one priority is the health and wellbeing of our local communities; but we must also be prepared to address the economic health of Northern Ireland which may not be in the best shape, at the appropriate time. As Fintech Envoy, I will continue to work with the UK Government, the NI Executive and industry to embed Fintech in economic development programmes and ensure that Northern Ireland is the best place in the world to start and build a Fintech company.

The webinar, which will be hosted by Andrew Jenkins can be accessed at 1pm on Thursday 30 April via: https://www.innovatefinance.com/events/looking-to-the-future-of-fintech-in-northern-ireland/

HIV Charity Positive Life reacts to shortening of blood donation deferral period announcement by Health Minister

Reacting to the announcement that the Health Minister Robin Swann has brought rules on men who have had sex with men (MSM) and Blood Donation in Northern Ireland in line with England, Scotland and Wales, Jacquie Richardson, Chief Executive of Positive Life, Northern Ireland’s only dedicated HIV charity said:

“We welcome the reduction for men who have had sex with men (MSM) to be allowed to donate blood after a three month deferral bringing Northern Ireland in line with the rest of the UK. We have come a significant way from the lifetime ban in the 1980’s and even the 12 month deferral which was introduced in November 2017 elsewhere.”

Jacquie Richardson, Chief Executive, Positive Life

“We commend Minister Swann from taking this evidence based decision which will contribute to the chipping away of the stigma that is often associated with HIV. A small action such as this helps to communicate that HIV is no longer the life limiting condition that it was once portrayed.”

'Looking to the future of Fintech in Northern Ireland' - Senior NI business leaders to take part in UK Fintech Week 2020 Webinar

HM Treasury appointed Fintech Envoy for Northern Ireland, Andrew Jenkins, is set to host a webinar with local senior industry and academic leaders as part of the Innovate Finance, UK Fintech Week 2020.

Participants taking part in the webinar on Thursday 30 April at 1pm will include:

• John Healy OBE, Vice President and Managing Director, Allstate NI

• Rose Mary Stalker, Founder 4C UR Future and Chair, Invest NI

• Richard Kirk, Director, WorkPlus

• William Smyth, Lecturer in Financial Services, Ulster University

• Alex Lee, Chairman, fscom and Director, FinTech NI

Over 500 participants from across the UK and further afield are expected to tune in. The webinar is expected to focus on the achievements of the sector in Northern Ireland and what the future might hold.

Other topics for discussion will include the importance of digital skills, apprenticeships, funding and access to finance and how opportunities for further growth in Northern Ireland can be harnessed.

Northern Ireland is regarded as a world-renowned driver of the Fintech sector and has been named as one of the leading global Fintech locations of the future, in the 2019/20 fDi league table alongside cities including Singapore, New York and London.

The webinar, which will be hosted on the Innovate Finance, Fintech Week 2020 website can be accessed via: www.innovatefinance.com/ukfintechweek/

Andrew Jenkins, Fintech Envoy for Northern Ireland said:

“Despite the current restrictions, it was important that we still gather virtually to recognise the accomplishments of the sector and showcase how the industry is empowering resilience during this current crisis and supporting eventual recovery.”

“By bringing together this group of senior leaders in this webinar, Northern Ireland will be well represented in the programme of fantastic events.”

“The recent successes of the Fintech industry are significant, and the opportunities are endless, but challenges do exist particularly around talent, skills and access to funding. Only by collaborating across the various government, industry and education sectors can we harness our true potential and achieve further growth.”

He added:

“COVID-19 has illuminated the innovation at the heart of the industry which will be crucial for the future. Leveraging the power of technology, agile ways of working and a disruptive and innovative mindset, Fintech is providing consumers and businesses with access to better, fairer and more sustainable financial products and services.”

“As Fintech Envoy for Northern Ireland, I am determined to continue engaging with policymakers and the wider Fintech industry including the NI Fintech Association which is doing incredible work, to ensure that Fintech remains front and centre as we face the economic and societal challenges in the coming period.”

DfI Press Release: Minister Mallon announces temporary changes to major planning application process

Infrastructure Minister Nichola Mallon has today announced changes to the process for major planning applications, temporarily removing the requirement to hold a public event as part of the pre-application community consultation.

The changes which come into effect on 1 May, will apply for five months and will be accompanied by guidance for applicants suggesting alternatives to this important element of the consultation process.

Applicants will still need to comply with other requirements to ensure communities are aware of and can input to major development proposals for their areas, however, this will allow major planning applications to continue to be submitted during the COVID-19 outbreak. 

Minister Mallon said: “The planning system will have a critical role in supporting our future economic and societal recovery from the COVID-19 crisis. It is vital that the process continues to function, keeping an eye to the future and to keep Northern Ireland moving forward at this difficult time.

"My team is working closely with local government in partnership to ensure the planning system responds as effectively as possible.

“I am pleased to announce that I have introduced legislation today to temporarily remove the requirement for public events as part of the pre-application process for major planning applications, given that they cannot happen at this time. This is an essential step that will help unlock significant major planning applications across the North. If legislation is not implemented this would result in the application process being invalid, leading to a backlog of major applications which could hinder our economic recovery after COVID-19 restrictions are lifted.

“Public participation remains an important part of the planning process and to ensure that this is not compromised I will be publishing advice and guidance on appropriate measures to replace face to face public events, such as on-line engagement.  This will ensure that pre-application public participation in the planning process can continue during the emergency period and will facilitate a more consistent approach across the 11 Council areas.

"I have also made the Infrastructure Committee aware alongside Executive colleagues. Partnership working is required right across the board to get us through this challenging time and ensure that we are all still looking ahead to a better tomorrow.  I will continue to work closely with all partners and sectors to explore creative solutions that are needed to get us through this period and beyond."

Brown O’Connor Communications Weekly Look Ahead: Week Commencing 27 April 2020

Forward Look

• First Minister Arlene Foster said that NI could emerge from the current restrictions at a different pace from other parts of the UK. She said the criteria for easing the lockdown would be set down and agreed by the NI Executive in conjunction with colleagues in the UK.

• Health Minister Robin Swann MLA confirmed that a rigorous programme of testing, tracing and tracking will be implemented in NI. This expansion will include additional front line and key workers and their households.

• The CMO said that an enhanced contact tracing programme for Covid-19 will start in NI next week.

• Economy Minister Diane Dodds MLA announced the establishment of a Tourism Recovery Steering Group. The Minister will lead the steering group and a working group will be chaired by John McGrillen CEO Tourism NI.

• The NI Assembly Economy and Finance Committees are to look at holding a joint session on the economic interventions required in response to Covid-19.

• The Economy Committee is to hold a roundtable with stakeholders on the new energy strategy for NI. This is expected to take place in the next month.

• Finance Minister Conor Murphy MLA said his department is working with the Ulster University Economic Policy Centre to design a new targeted rates relief for businesses and will have a proposal for the Executive soon.

• Chief Constable Simon Byrne said the PSNI and An Garda Síochána will conduct a joint review of their policing operations during lockdown after restrictions are lifted.

• The National Institute of Economic and Social Research estimates UK unemployment will rise by around 5 million by the end of May, but this includes furloughed workers.

• The House of Commons has agreed that MPs will be temporarily able to vote from home during the Coronavirus pandemic.

• Green Party leader Eamon Ryan said he hopes to be part of government formation talks in Ireland.

• The European Commission will present a set of rules for the safe reopening of air travel next month, including social distancing in planes and airports.

• Connor Phillips has announced a move from BBC Manchester to present Radio Ulster’s mid-morning show. David Hunter will also move from Q-Radio to Radio Foyle.

• Economy Minister Diane Dodds MLA announced the appointment of five new members to the board of Invest NI. Colin Coffey, Kieran Kennedy, Kevin Kingston, Marie-Therese McGivern and Michael McQuillan have been appointed to serve on the Board for a three-year period from 1 April 2020 to 31 March 2023.

• Economy Minister Diane DoddsMLA also announced temporary appointments to the Northern Regional College. Barney McGahon was announced as Chair while Tony Montgomery, Graeme Wilkinson and Maeve Hamilton were announced as members of the governing body until replacements are found.

• Consideration Stage and Final Stage of The Private Tenancies (Coronavirus Modifications) Bill will take place in the Assembly on Tuesday 28 April.

• The Domestic Abuse and Family Proceedings Bill will go through the Second Stage on Tuesday 28 April in the Assembly.

• The Economy Committee will receive a briefing from Minister Diane Dodds on Wednesday 29 April.

• The Education, Infrastructure and Finance Committee’s will meet on Wednesday 29 April.

• Health Minister Robin Swann will update the Health Committee on Thursday 30 April.

• Fintech Envoy for NI Andrew Jenkins will host a webinar with senior industry leaders including John Healy OBE and Rose Mary Stalker as part of Innovate Finance UK FinTech Week on Thursday 30 April at 1pm.

Other Stories this week

• Secretary of State, Brandon Lewis announced an additional £50 million funding for NI as a result of the Barnett consequential.

• SDLP and Alliance MPs Claire Hanna, Colum Eastwood and Stephen Farry wrote to the Chancellor proposing a Universal Basic Income scheme as part of the recovery plan.

• The Assembly approved a change to Discretionary Support Legislation which will provide increased access to emergency financial support for claimants in crisis. The change raises the threshold to £20,405.

• Teachers voted in favour of a pay deal from the Department of Education. They will receive a backdated 2.25% pay rise for 2017-18 and a further 2% for 2018-19.

• Economy Minister Diane Dodds MLA published guidance on making workplaces safer and the list of priority sectors. However, the Construction Employers Federation said this added little clarity.

• Economy Minister Diane Dodds MLA announced calculated results will be used to award students studying for general vocational and technical qualifications and essential skills.

• The Department of Health launched an online version of the Covid-19 NI App to help people stay informed.

• Agriculture Minister Edwin Poots MLA announced funding of £4.5 million for rural communities.

• UK's inflation rate fell to 1.5% in March, largely driven by falls in the price of clothing and fuel ahead of the coronavirus lockdown. Economists have said inflation could slide to 0.5% in 2020 as the economy shrinks.

• A survey by NI Tourist Board reported that 427 tourism businesses have temporarily laid off or furloughed nearly 9000 staff while 418 businesses have permanently laid off almost 1,300 staff.

• Big Data Belfast has been postponed until next year due to ongoing situation regarding Covid-19.

• Lord Alderdice has been appointed Deputy Chairman in the House of Lords.

• Tony Lloyd MP has been moved out of intensive care after being admitted with coronavirus.

Consultations

• 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.