Londonderry Chamber welcomes Economic Recovery Action Plan

Londonderry Chamber President Dawn McLaughlin

Londonderry Chamber President Dawn McLaughlin

Reacting to the publication of the Economy Minister’s Economic Recovery Action Plan, Londonderry Chamber President Dawn McLaughlin said:

“This is a welcome plan which will give businesses and our economy the foundation from which to recover and rebuild post-pandemic. The Chamber, alongside other business organisations, have been calling for a detailed plan and strategy from the Executive to support our businesses as they get back on their feet after an extremely difficult 12 months.

“Initiatives in the plan like the High Street Stimulus Scheme, a Tourism Voucher Scheme, more funding for skills, apprenticeships and a new Skills Strategy for NI, and the establishment of an AI Centre of Excellence are exciting proposals and will go some way to both stimulating economic activity again and building on existing strengths we have here in Northern Ireland.

“In particular, the commitment to support North West air connectivity with the rest of the UK with funding over the next two financial years is very welcome. Strong and reliable connectivity by air, road and rail is crucial for a region like ours and it is important that the Executive and the UK Government support these vital routes.

“This plan is a welcome first step for our economic recovery. We look forward to seeing the Executive’s roadmap out of restrictions next week to get a sense of when businesses can reopen, under what circumstances or stipulations, and when they can welcome their customers back.”

Organisations welcome Derry and Strabane City Deal & Inclusive Future Fund progress

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The NI Executive, UK Government and key delivery partners have today signed off the Heads of Terms for the Derry and Strabane City Deal and Inclusive Future Fund. In addition to the £210m funding being provided equally by the Executive and the Westminster Government, a further £40m investment from Derry City and Strabane District Council and its delivery partners means the region is set to benefit from a £250m economic package. The transformative investment will bring massive benefits to the North West and today’s signing reflects the shared commitment to continued progress on this important investment plan.

Dawn McLaughlin, President, Londonderry Chamber

Dawn McLaughlin, President, Londonderry Chamber

Reacting to the announcement that the Derry City and Strabane City Deal Heads of Terms have been agreed, Londonderry Chamber President Dawn McLaughlin said:

“We are thrilled that the City Deal Heads of Terms have been agreed between project partners and funders and we hope this will lead to the swift roll-out of the Deal’s projects. The North West stands to benefit from over £250m in funding which will boost our innovation and research, tourism, regeneration, create new jobs and attract further investment, and build on emerging industry clusters we have here in the North West like medical and life sciences.

“The Derry and Strabane City Deal is among one of the most generous and substantial City Deals in Northern Ireland and across the whole of the UK. By maximising the potential benefits of the Deal, we can work towards fulfilling the unlocked potential, economic and otherwise, of the North West and address regional imbalances and inequalities. The Chamber looks forward to working closely with key City Deal stakeholders like Ulster University, Derry City and Strabane District Council, North West Regional College, C-TRIC, and others to progress these projects and we are excited about the positive change they can bring to our region.”

Brian McGrath, Chief Executive, Foyle Port

Brian McGrath, Chief Executive, Foyle Port

Foyle Port Chief Executive Brian McGrath added:

“This is excellent news for the entire North West region. The City Deal has real potential to bring new investment, new jobs, and innovation and enterprise to Derry and Strabane. It is an exciting programme of forward-thinking projects which will harness new skills in digital, tech, and life sciences. As we develop and expand our own enterprise and innovation offer here at the Port, we look forward to being involved to support the full roll-out of the deal’s projects over the coming years.”

Derek McCallan, Chief Executive, NI Local Government Association

Derek McCallan, Chief Executive, NI Local Government Association

Northern Ireland Local Government Association Chief Executive Derek McCallan also welcomed today’s announcement, saying:

“Today’s announcement is a much needed boost for the North West region. City and Growth Deals in Northern Ireland must be accelerated and be locally led.  Over £250m will be allocated for key innovation and research projects, tourism, and regeneration, which means new, highly-skilled jobs being created. Derry City and Strabane District Council is proud and capable - at the forefront of this project - and we look forward to other City and Growth Deals rolling out regionally across NI.”  

NI Executive failing out-of-work young people

Unissu Chief Executive Eddie Holmes

Unissu Chief Executive Eddie Holmes

A Belfast business owner has said the Executive is failing young people in Northern Ireland by scrapping a planned scheme to help 16-24-year-olds find employment.

Eddie Holmes, Chief Executive of property tech company Unissu, was due to take on 20 young people as part of the Department for Communities Jobstart scheme but has been forced to cancel the paid placements after the Draft NI Budget 2021-22 revealed that the scheme had been scrapped.

Announced by the Department for Communities in July 2020 and due to begin in November, Jobstart was initially modelled on the Kickstart scheme running in other parts of the UK and was intended to provide funding to employers to create job placements for 16-24-year-olds seeking employment.

The Draft NI Budget 2021-22 published earlier this month however showed that the Department for Communities budget and a number of key services including labour market interventions will be seriously hit.

Unissu Chief Executive Eddie Holmes said:

“It is shameful that the Jobstart scheme has been cancelled, at a time of rising unemployment in general, but especially when our young people are particularly struggling to find jobs. My company was ready to take on 20 young people last year as part of the scheme but unfortunately, we weren’t able to find roles for them all after it was postponed and now cancelled.

“However, the most worrying aspect of all this is that we are really only the tip of the iceberg. For these 20 positions, we received over 700 applications. It is clear that there is a youth unemployment crisis bubbling under the surface in Northern Ireland.

“For years, our politicians have spoken of the brain drain and its effect on the Northern Ireland economy. Without schemes like Jobstart, especially as the economic shock of the pandemic continues, more and more young people will find themselves out of a job, unskilled, or economically inactive, and will be forced to leave NI to pursue opportunities elsewhere.

“It’s time for the Executive to match their rhetoric on youth unemployment with action. Funding the Jobstart scheme is estimated to cost just £17m, a drop in the ocean compared to other Covid financial support schemes. It goes without saying that the potential cost of inaction will far outstrip the cost of the scheme. Ministers must put their money where their mouths are and fully fund this vital scheme.”

Bronagh Haughey, Marketing Intern at Unissu, said:

“I graduated from my master’s degree at Ulster University last year and, after finding it difficult to find graduate work during the pandemic, I applied to Unissu as part of the Jobstart scheme. It was a big relief after months of job hunting so it came as a bitter blow when it was postponed twice and then finally cancelled.

“Young people have already feel left behind over the past year and we don’t feel as if the Executive really understands how the pandemic has impacted and affected us. The toll on our mental health has been huge, we’ve missed out on important milestones, lost out on education and development, and now we’re at the bottom of the pile when it comes to finding employment.

“Ironically, I could return to Liverpool where I did my undergraduate degree and be employed by Unissu under GB’s Kickstart scheme. Without government support soon, I may be forced to look elsewhere for a job. I would urge the Executive to protect young people like me, help us find meaningful work, and support us as much as possible.”

Shape of new NI Fiscal Council and Fiscal Commission outlined by Finance Minister Conor Murphy MLA at Assembly

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Finance Minister Conor Murphy has put forward proposals to the Executive for establishing a fiscal council and a fiscal commission which includes terms of reference and membership of both bodies.

 Here’s the rundown:

  • Once the Executive has considered those proposals, he hopes that he will be able to put the council and the commission in place very quickly so they can begin their work.

  • The intention is that the fiscal commission will look at the broad range of economic, policy and revenue-raising levers available to the Executive and make recommendations.

  • It is envisaged that the fiscal commission will engage over the rest of this calendar year and produce a report for the Executive.

  • Given the time frame in this mandate, it is more than likely that it will become a point of action for an incoming Executive, says the Minister.

  • When its work has been done, any decisions taken by the Executive will then become a matter of immediate interest to a fiscal council. The Minister says that he sees the work of both bodies being interlinked.

  • For the fiscal council, the Finance Minister has brought initial propositions in order to set it up.

  • He has asked the personnel involved in the fiscal council and the fiscal commission to engage early with stakeholders, including the Finance Committee.

  • Senior officials in the Department will support the council, the commission and the secretariat.

  • The fiscal council will be operational as soon as the Executive approve it, which should be in “a matter of days”.

  • The council's relationship with the Department of Finance is that the costs will be met by the Department, already budgeted for.  

  • The fiscal council will have responsibility to look over the Executive's finances to make sure that we are on a sustainable footing.

  • Interaction with the Procurement Board, which provides policy for spending £3 billion, will be an important function. Any agencies or bodies that have an impact or give advice on spending will be of interest to the council. The Finance Minister has said that he fully expect the council, when it is up and working, to have wide engagement not only with bodies outside government that have an interest but with this institution, Departments and arm's-length bodies.

Brown O'Connor Communications Weekly Look Ahead: Week Commencing 22 February 2021

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Forward Look

  • The Executive has agreed to extend the current lockdown restrictions until 1 April, with a review to take place on 18 March. A Pathway to Recovery Framework will be published on 1 March. Pre-school, nursery, and primary school pupils up to Primary 3 will return on 8 March, exam pupils will go back on 22 March.

  • Economy Committee Chair Caoimhe Archibald MLA has advised committee colleagues that the Budget Bill is expected to enter the Assembly on Monday 1 March. Granted accelerated passage, it will have its Second Reading on Tuesday 2 March.

  • Cabinet Minister Michael Gove MP and European Commission Vice President Maroš Šefčovič have met with Belfast business representatives to discuss east-west trading arrangements. The next Joint-Committee meeting will be on Wednesday 24 February.

  • The Draft Budget 2021-22 Consultation will close next Thursday. To respond: LINK.

  • The House of Commons’ Petition Committee will debate the DUP’s petition to trigger Article 16 of the NI Protocol on Monday.

  • Economy Minister Diane Dodds MLA has stated she hopes to bring forward plans for a skills budget for Northern Ireland in the coming weeks.

  • Department for the Economy officials are currently exploring a mechanism to extend European Social Funding (ESF) into the new financial year. The Minister is expected to make a formal announcement in due course.

  • Education Minister Peter Weir MLA has said that bringing forward legislation that addresses the flexibility of the school starting age is a “key legislative priority” for his department this mandate.

  • Department of Health officials have confirmed that the Adoption and Children Bill, which sets out to modernise the legal framework for adoption, is set to be introduced in the Assembly by the end of March.

  • Question Time will take place for The Executive Office and the Finance Minister on Monday. The Health Minister will answer questions on Tuesday.

  • The Economy Committee will receive a briefing from the FSB, Logistics UK, the NI Retail Consortium and Retail NI on EU Exit and the NI Protocol on Wednesday.

  • The Executive Office Committee will hear from departmental officials on the Department’s Spending Plans on Wednesday. The committee will also hear from the Junior Ministers on Brexit issues.

  • On Thursday, the Communities Committee will hear from NILGA, the PSNI, and the NI Alcohol and Drug Alliance on the Licensing and Registration of Clubs (Amendment) Bill.

  • Belfast has been named as the location for MIT Technology Review’s ‘EmTech Europe’ conference for the next 3 years. Kicking off virtually on 27/28 May - the conference will look at 'Forging a Brighter Future'. For more information and to register: LINK.

Other Stories this week

  • Northern Ireland’s Covid-19 Vaccination Programme has been extended to include carers and more people with underlying health conditions. The vaccine rollout will be divided between GP practices and seven regional vaccination centres.

  • The Department of Education has named Mark Browne as its new Permanent Secretary taking up post on 1 March 2021.

  • The Finance Minister has announced plans to open new regional civil service hubs in the spring to facilitate remote working.

  • Party nominations have now closed for two upcoming Seanad by-elections. One of the vacancies follows the resignation of Sinn Féin Senator Elisha McCallion in October. A date for the elections is yet to be set.

  • Sinn Féin Economy Spokesperson Caoimhe Archibald MLA has called for an Economy sub-committee to be established to address the trading issues associated with the NI Protocol. To read the full statement: LINK

  • The Assembly’s All-Party Group on Community Pharmacy held its inaugural meeting on Wednesday.

  • Michael Robert Humphreys QC has been appointed High Court Judge for Northern Ireland.

  • The UK Government’s former Chief Brexit negotiator Lord Frost has joined the Cabinet Office with responsibility for forging a new relationship with the EU.

Upcoming key political and business events

Consultations

72% of North West businesses confident of growth in 2021 despite pandemic, new survey reveals

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72% of North West business have said they are confident that their business can grow in 2021 despite the Covid-19 pandemic, a new survey has found.

A survey of Londonderry Chamber members revealed optimism for the year ahead from North West companies despite the ongoing difficulties presented by Covid-19 and Brexit.

However, respondents said that the new post-Brexit trading arrangements are posing a variety of challenges including supply chain difficulties, increased paperwork, and barriers to trade.

When asked what measures will help them recover post Covid-19, 7 in 10 businesses called for the extension of the furlough scheme into the second half of 2021. Businesses also wanted to see greater flexibility surrounding Stormont grant criteria and relaxations on CBILS loans.

In a statement, Dawn McLaughlin, Londonderry Chamber President said:

“These survey results are a cause for optimism after a tough 12 months. With the vaccine roll-out progressing well, businesses are looking forward to putting Covid-19 in the rear-view mirror and focusing on recovery.

“However, this survey also lays bare the devastating impact government restrictions have had on local businesses. With nearly 8 in 10 businesses being impacted by restrictions, businesses in the North West are still reeling from the effects of lockdown. The Executive must now produce a workable, strategic economic recovery plan, to ensure that the current lockdown is the last of significant restrictions imposed on businesses.

“North West businesses are clear that the furlough scheme must be extended to protect jobs and livelihoods. Ahead of the UK Budget on 3 March, Executive ministers must ensure they lobby the Treasury and the Chancellor to extend the scheme well beyond its current end date of April to protect jobs and boost the post Covid-19 economic recovery.

“Businesses in North West are also experiencing real difficulties caused by Brexit. The Executive must work with the UK government and the EU to iron out the supply-chain difficulties, paperwork issues and trade barriers that are now faced by businesses across the North West.

“In 2021, we have an opportunity to bounce back from the Covid-19 pandemic and focus on boosting our regional economy. This will only be possible if the Executive and UK Government provide businesses with the support they need going forward.”

 

Belfast chosen as location for MIT Technology Review’s European technology conference

Gideon Lichfield, MIT Tech Review Editor in Chief on stage at EmTech Mena in 2019

Gideon Lichfield, MIT Tech Review Editor in Chief on stage at EmTech Mena in 2019

Belfast has been chosen as the location for MIT Technology Review’s ‘EmTech Europe’ conference for the next three years.

EmTech Europe, one of the world’s most prestigious technology conferences will be held in Belfast in 2021, 2022 and 2023, taking place virtually on 27 and 28 May this year.

A convergence of technology, business and culture, the event will unite those at the heart of the next technology revolution, including CEOs, researchers and policy makers, to share groundbreaking research and discoveries.

Together, the most brilliant minds the continent has to offer will explore innovative, practical and commercial ways to harness the world’s cutting-edge technologies - including Artificial Intelligence, Greentech, Connected Health - to create an economy and society with sustainability and inclusivity at its core.

The power of technology to deliver positive economic transformation for companies, regions and citizens will be the cornerstone of EmTech Europe, coming at a time when the world is both reeling from the Covid-19 pandemic and facing global climate and economic crises. 

With a reputation as an emerging global tech hub, Belfast forms an appropriate backdrop for the flagship MIT event. The city boasts a dynamic, highly skilled and innovative workforce and many indigenous tech companies that are recognised as world leaders in their own right.

In partnership with Belfast City Council, ‘EmTech Europe 2021 - Forging a Brighter Future’ will explore the following themes:

  • A Sustainable Future

  • An Intelligent Future

  • A Healthy Future

  • An Equitable Future

EmTech Europe will return to Belfast in 2022 and 2023.

Nico Crepaldi, Head of Custom Content at MIT Technology Review, said:

“MIT Technology Review's mission is to equip audiences with the tools to understand and contribute to a world shaped by technology—our events bring that mission to life around the globe. Today, we are delighted to see the EmTech series returning to Europe, better and stronger than ever before, with Belfast as its hub.”

Tom Gray, Group Chief Technology Officer of FTSE 250 Company Kainos and Curator of EmTech Europe said:

“To secure EmTech Europe for Belfast is a major coup for our burgeoning tech sector and wider industries. MIT Technology Review is a globally respected publication and being able to play host to one of its flagship conferences affirms Belfast’s place as a growing global tech hub.”

“The conference will platform Europe’s most influential leaders in technology, policy and business, and will help start new conversations on how technology itself can rebuild a world that has been turned on its head.” 

“EmTech Europe in Belfast coincides with the rollout of the Covid vaccine and a time when the world is tentatively looking at how to rebuild economies and societies. But this is not just about economic recovery, it is about using technology as a means of creating more opportunity, more prosperity, and ultimately making life better for everyone.”

“In light of the pandemic, we will welcome delegates on a virtual platform this year but are hugely excited for them to see what Belfast has to offer when we welcome them in person in years two and three.”

To find out more and register for the virtual two-day conference which takes place on 27 and 28 May, visit: https://emtecheurope.com/

Cross Border Workers Coalition reacts to the announcement of the 'Connect2' project from Finance Minister Conor Murphy MLA

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Reacting to the announcement of the ‘Connect2’ project from the Finance Minister, which will create up to 10 regional hubs for civil servants across Northern Ireland, Conor Dowds, Co-Chair of the Cross-Border Workers Coalition (CBWC) has said today:

 

“The Cross Border Workers Coalition (CBWC) welcomes the announcement of the ‘Connect2’ project. The creation of these regional hubs will give civil service staff more flexible working arrangements and illustrates a growing trend towards remote work accelerated by the Covid-19 pandemic. For those living outside Belfast, the opportunity of ‘blended’ working arrangements, where you can work from home one day and go to a co-working space on another, will be very attractive.”

 

“However, due to restrictive personal tax liability rules in the Republic of Ireland, cross-border workers who live in the Republic and work in NI will be left behind and unable to gain the significant benefits of ‘blended’ working arrangements. If a Donegal-based civil servant, for example, attends a regional hub in Derry four days a week, but works from home on a Friday, under current RoI legislation he/she could be taxed twice on their income.”

 

“For these regional hubs to fully accommodate the ‘new normal’ of post-pandemic working practices, these restrictive personal tax laws in the Republic must change. On Wednesday 16 February we sent a letter requesting to meet with Irish Finance Minister Donohoe to examine current remote working tax legislation in the Republic. We now ask Finance Minister Murphy to work with his southern counterpart to ensure that cross-border workers are not left behind in this welcome project.”

Social value of hospitality sector to the economy and society key component in accelerating planned recovery

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When we talk about the hospitality sector it is often through the prism of profit and loss. Firing on all cylinders pre-pandemic, we contributed £2bn to the economy per year and employed around 65,000 people with 45,000 of those in food and drink service. Growth presented by greater tourist numbers and reform of liquor licensing meant that opportunity was there for the taking.

However, lockdown after lockdown took that away. Businesses in the sector have gone to the wall already, and many more likely to follow. It is a pretty clear indicator of the state of things.

What has not been so clear, but worth focusing on, is the significant impact on the social value created by the hospitality sector. Without the ability to go to the pub for a pint or out to a restaurant for dinner or stay in a hotel, and with everyone confined to home, many have begun to realise just how important the role the hospitality industry plays in community inclusion and social cohesion.

The hospitality sector is evolving to ensure that it reflects and meets consumer demands. Whether that is things like low or no alcohol drink options, reduction in red meat on menus and providing choice for those with specific allergies, it is reflective of the fact that hospitality venues are the meeting point of choice. They are no longer regarded as a place ‘to get the drinks in’. They play a huge part in being community hubs – regardless if that is in a rural or an urban setting.

Venues and establishments across the north have for years been the places where local book groups and families meet, charities host special fundraising nights and teams go for  a post-match drink. They serve a significant purpose for friendship and business meetings and are the spaces in which millions of pounds are raised for good causes every year.

It’s clear that we need to get the hospitality sector up and running again. Yes, there is a strong need to get the registers ringing again, but we also must remember that the hospitality sector is so important in tying together our social fabric here.

Cohesive communities and successful local hospitality businesses are mutually beneficial. They need each other. Lockdown restrictions and the decline of the sector have, without doubt, impacted on increased social isolation, mental health and wellbeing. We are social animals, and this socio-economic issue should not be overlooked when decisions are made around future re-opening

We now have one eye on the plans for the recovery programme. It is not going to be easy, nor will everyone survive, but we must encourage our Executive, Departments and Public Health advisers to make sure they consider the social purpose that society benefits from with a vibrant hospitality sector.

Brown O'Connor Communications Weekly Look Ahead: Week Commencing 15 February 2021

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Forward Look

  • The Executive will meet on Thursday 18 February to review the current Covid-19 regulations. First Minister Arlene Foster MLA said there will be one more push to reduce infection rates. A pathway to recovery document will be published in the coming weeks.

  • The EU-UK Joint Committee on the Withdrawal Agreement will convene no later than Wednesday 24 February to provide ‘political steer’ on the NI Protocol. Committee Co-Chairs Michael Gove MP and Vice-President of the European Commission Maros Sefcovic said work to address all issues with the Irish Sea Border will be intensified.

  • The Executive Office and the NIO have four weeks to find a solution to fund Troubles pensions after the Northern Ireland Court of Appeal ruled that the responsibility lies with the Executive.

  • First Minister Arlene Foster MLA confirmed that a Programme for Government framework will be agreed by the Executive by the end of April, with a complete programme in action before the summer. She also said that officials are engaging with Irish counterparts on how the Shared Island Fund may be spent on PfG commitments.

  • Department for the Economy officials say they are on target to bring forward a Bill to introduce Statutory Parental Bereavement Leave Pay. The Bill will be brought forward in May and is expected to pass before the end of the current Assembly mandate.

  • The Department of Finance intends to conduct research on the efficacy of the Gender Recognition Act 2004 in Northern Ireland, to assess whether it can be retained in its current form and to recommend future policy. This will inform a full legislative review, due to take place during the next Assembly mandate.

  • Chief Medical Officer Dr Michael McBride said restrictions will not be fully lifted until at least 70% of the population has been vaccinated. At present, around 22% of adults have received their first dose. Health Minister Robin Swann MLA stressed the need for caution and said mandatory face coverings in shops and on public transport may remain the ‘new normal’.

  • Education Minister Peter Weir MLA told the Education Committee that the Executive will make a decision on the reopening of schools ‘possibly around 18 February’. On the issue of vaccination for special school staff, he said only specific staff caring for clinically vulnerable children will be prioritised.

  • Finance Minister Conor Murphy MLA has announced £226.5m in funding following Departmental bids. Some £175m was allocated to purchase additional PPE. The figure also includes the £27.3m of additional student support announced last week. Minister Murphy has again urged departments to come forward with bids for the remaining £250m the Executive must spend before the end of March.

  • Question Time will take place for the Economy, Education and Communities Ministers on Tuesday.

  • The Infrastructure Committee will receive a briefing from NI’s four ports on Brexit & Current Issues on Wednesday. Glyn Roberts from Retail NI will also give a briefing on Brexit & Covid Issues.

  • The Communities Committee will hear from Tourism NI, the Institute of Licensing and the Wine and Spirit Trade Association on the Licensing and Registration of Clubs (Amendment) Bill.

  • The All Party Group on Micro and Small Business will meet on Wednesday.

Other Stories this week

  • Manufacturing NI published a survey on the experience of NI businesses with the Protocol. Most respondents said they want it to work, while 23.7% said they are struggling with the post-Brexit transition and 19% said it should be replaced. To read the report: LINK.

  • The Department of Health published the Online Safety Strategy and Action Plan to ensure children and young people in Northern Ireland can safely enjoy the benefits of the online world. To read the full strategy: LINK.

  • The Protection from Stalking Bill passed its Second Reading in the Assembly and will progress to the Justice Committee for scrutiny.

  • Communities Minister Deirdre Hargey MLA allocated an additional £2.435m in Rates Support Grant to councils, to assist with the financial pressures of Covid-19.

  • Staff working at Department for Agriculture, Environment and Rural Affairs border posts at Larne and Belfast ports returned to work on Wednesday 9 February.

Upcoming key political and business events

Consultations