MINUTES OF THE THIRTy-NINTH meeting

ECONOMIC DEVELOPMENT FORUM, 18 JUNE 2009

STORMONT HOTEL

Present: See Annex 1.

Apologies: Sir Reg Empey, Conor Murphy, Stephen Kingon, Professor Peter Gregson, Patricia McKeown, Bro McFerran, Peter Bunting, Professor Richard Barnett, Stephen Quinn

1 WELCOME, APOLOGIES AND MINUTES OF LAST MEETING

1.1 Members were welcomed to the 39^th meeting of the EDF.

1.2 The Chair welcomed Jim Sammon as the new representative from the Londonderry Chamber of Commerce, Bryan Keating, deputy for Stephen Kingon and Ian Raphael, deputy for Conor Murphy. The Chair also welcomed Ann McGregor and Sandra Beattie (Northern Ireland Chamber of Commerce) and Mark Nodder (Wrightbus).

1.3 In addition the Chair advised that minutes of the plenary meeting on 12 February had been agreed by Members, by email, and posted to the EDF website.

2 MATTERS ARISING

Progress on December Action Points

2.1 The Chair referred Members to Paper 2.1 which outlined the progress against action points from the previous plenary meeting. Jim McCusker stressed the importance of investment in social housing to create employment and kick-start the construction sector. The Chair advised that this would be discussed by the DSD Minister during the June Monitoring round.

Departmental responses to the proposals of the Sub-group on the Economic Downturn

2.2 Brian Ambrose welcomed the positive Departmental responses to the proposals of the Economic Downturn Sub-group. He stressed the importance of consolidating all the proposals and prioritising those to be taken forward for urgent delivery.

3 EDF SUB-GROUP ON EXPORTS

3.1 Bill McGinnis introduced the Exports Sub-group paper and provided an overview of work of the Sub-group. He noted that the Sub-group had worked well, drawing on the experiences from large, small and first time exporters, with good engagement from Invest NI, DEL and the business bodies. Ann McGregor discussed each of the proposals in detail. EDF Members were asked for their feedback and agreement on the proposals.

3.2 Bryan Keating welcomed the Sub-group’s paper. He recognised the importance of communicating / sign posting Invest NI’s product offerings and encouraging companies to develop their export potential. In relation to the proposal on graduate placement programmes, Aideen McGinley advised that DEL is currently working with the Universities and Business in the Community. She advised that information on a range of mechanisms to assist graduates would be released shortly to coincide with graduation time. She stressed that their focus is on what mechanisms are working well, and what resources can be targeted effectively.

3.3 Members welcomed the Sub-group’s proposals and raised a number of points in response. Bob Barbour highlighted the importance of strategic integration when smaller companies are working with large multinationals. The venture capital scheme was also discussed. Joanne Stuart suggested partnership and collaboration will be vital. She also stressed the importance of supporting graduates, and the need to enhance management development programmes to include a focus on exports.

3.4 Jim Sammon proposed the need for a strategic look at NI plc, identifying the strengths in NI businesses and formulating strong policies focused on developing these strengths. Gerry McCormac reminded Members of the work of the MATRIX panels, which is going into implementation stage. He also reassured Members that work is ongoing to keep graduates economically active and provide them opportunities to develop their CVs. Peter McNaney stressed the importance of using local structures e.g. business organisations, FE colleges, local government, to raise awareness of existing programmes and support. The Chair agreed with this and highlighted that Invest NI have been engaging with local bodies, and will continue to so.

3.5 Speaking about the recent attacks on the Romanian communities in Belfast, Peter McNaney stressed the serious negative impact such attacks will have on the image of Belfast and Northern Ireland as a place in which to live and do business. This was endorsed by the Chair, and all Members of the Forum.

4 EDF SUB-GROUP ON MANUFACTURING

4.1 Mark Nodder provided a brief overview of the current environment in which manufacturers are operating. He noted that while manufacturers are doing everything to mitigate the effects of the downturn, recovery, in his view, was some 12-18 months away. He provided a detailed overview of the proposals which focused on relieving the cost pressures, ensuring focused training and skills development and identifying catalysts for growth. Key points emerging from his presentation included the significant costs manufacturers are facing, difficulties faced by companies dealing with Invest NI, the fragility of the supply chain and the need to retain investment in R&D.

4.2 Members welcomed the Sub-group’s report. Jim McCusker suggested it was important to retain the focus on manufacturing, especially as the employment opportunities in other sectors e.g. financial services, had diminished. He also advocated attaching conditions to the proposed rates holidays, and he presented the case for a short time working subsidy. Aideen McGinley reminded Members that Skillsmart was already having an impact using EU social funds. She commented on a number of the proposals, and advised that DEL will respond on each. Bryan Keating reflected on the importance of sign-posting Invest NI’s services and specifically on the fact that Invest NI works very hard to be a client facing organisation.

4.3 Wilfred Mitchell suggested the Sub-group’s report had presented an accurate and realistic picture of what FSB members have been facing, especially in terms of cash flow and financial pressures. John Gilliland re-iterated this, focusing on the food industry and specifically on the opportunities presented by carbon footprinting. Trevor Neilands reminded Members of the important role FE colleges can play.

4.4 Again Members stressed the urgency surrounding some of the proposals in the Sub-group’s report, suggesting action will be critical for some manufacturing companies in Northern Ireland.

ACTION: DETI to review the proposals from both Sub-groups, and where appropriate share, with other Departments. Response papers to be provided at September Plenary.

ACTION: Bill McGinnis, Brain Ambrose and Mark Nodder to meet with Senior DETI Officials to agree priority proposals and an action plan. One composite progress report to be provided at September Plenary.

GREEN NEW DEAL FOR NORTHERN IRELAND

4.5 Nigel Smyth (CBI), John Woods (Friends of the Earth) and Iain Osborne (NI Utility Regulator) joined the meeting to present their proposals for a Green New Deal for Northern Ireland. The presentation focused on who the Green New Deal Group are, the rationale behind their proposals, their suggestions for financing and implementing the proposals and their requests of both Government and EDF.

4.6 The Minister welcomed the presentation and noted that it was very timely as DETI is about to go out to consultation on a new Strategic Energy Framework. She also outlined the work of the Sustainable Energy InterDepartmental Working Group and suggested the proposals are shared with this working group.

4.7 Members welcomed the proposals and the papers presented by the Green New Deal group, and suggested that focusing on this area could be the big idea EDF has been looking for. Seamus McAleavey, Jim McCusker and John Gilliland suggested that Northern Ireland could take the lead in this area, and urged EDF to back the proposals. Discussion focused on the rates surcharge proposal, the need for more research in the area, governance issues and the need to get the economics right.

ACTION: EDF Secretariat to share the proposals with the Sustainable Energy InterDepartmental Working Group.

ACTION: New Green Deal Group to discuss proposals with Sustainable Energy InterDepartmental Working Group and DETI to report back to EDF at the September Plenary.

5 FORWARD LOOK/ JUNE 2009 MEETING

5.1 Referring to future agenda items, the Chair indicated that the Independent Review of Economic Policy (IREP) is due to report their findings in the Summer and suggested that should be the substantive item for the September Plenary. The Chair also suggested response papers to both the Exports and Manufacturing sub-groups, and an update on the prioritisation work to be undertook by the Sub-group Chairs and Senior DETI Officials.

5.2 Jim McCusker also suggested the response of the financial institutions in Northern Ireland to the economic downturn. The Chair agreed to this, and noted that she was due to meet the Banks to discuss take up of the Enterprise Finance Guarantee Scheme.

6 ANY OTHER BUSINESS

Strategic Energy Framework

6.1 Jenny Pyper provided an overview of the draft Strategic Energy Framework (SEF). She highlighted that five years have passed since the last SEF and outlined the changes which have occurred since then.

6.2 She advised that the draft SEF details Northern Ireland’s energy future over the next ten years and illustrates the energy goals in terms of competitiveness, security of supply, sustainability and infrastructure. It also proposes new and challenging renewable electricity and renewable heat targets to 2020 and beyond. She also reminded Members that there are many challenges in trying to balance the competing environmental and cost issues.

6.3 EDF Members were asked to note DETI’s proposals for future proofing energy supply and usage in Northern Ireland and were reminded that the document will soon be out for public consultation. Members were also advised that a Cross-Departmental Bioenergy Action Plan was scheduled for consultation over the summer and both marine and heat strategies will be developed by DETI and will flow from the SEF.

ACTION: EDF Members to note proposals in the SEF and to provide any comments via the public consultation process, due to take over the summer.

6.4 Members welcomed the draft SEF. Discussion also focused on the effectiveness of the Single Electricity Market, the dominance of Viridian and ESB, the need for regulation and opening up the market. Iain Osborne offered some insight into the effectiveness of the SEM, noting a more transparent pricing process with big industry now paying 50% less for electricity compared with this time last year. He also cited investments in power stations and the presence of new companies in the markets.

Press release

6.5 It was agreed that it would be appropriate to issue a press release following the meeting to note the report of the EDF sub-groups. Members also agreed to unreservedly condemn the racial attacks on the Romanians in the press release.

ACTION: EDF Secretariat to agree wording of press release with Mark Nodder and Bill McGinnis and clear through the appropriate channels.

Date of next meeting

6.6 The next meeting has been arranged for Thursday 17 September 2009.

LIST OF ATTENDEES ANNEX 1

Arlene Foster	DETI Minister
Brian Ambrose	CBI
Joanne Stuart	IOD
Bob Barbour	Centre for Competitiveness NI
Ann McGregor	NI Chamber of Commerce
Sandra Beattie	NI Chamber of Commerce
Wilfred Mitchell	FSB
Jim Sammon	Londonderry Chamber of Commerce
Jim McCusker	NIC/ICTU
Tom Gillen	NIC/ICTU
Seamus McAleavey	NICVA
Bob Stronge	NICVA
John Gilliland	Ulster Farmers’ Union
Prof Gerry McCormac	Higher Education - QUB
Trevor Neilands	Further Education
Bill McGinnis	NI Skills and Employment Adviser
Peter NcNaney	SOLACE
Bryan Keating	Invest NI
Iain Osborne	NI Utility Regulator
John Woods	Friends of the Earth
Nigel Smyth	CBI
Mark Nodder	Wrightbus

Officials

David Sterling Stephen Quinn	DETI
Graeme Hutchinson	DETI
Jenny Pyper	DETI
Andrew Crawford	Special Advisor to DETI Minister
Glynis Aiken	PS Arlene Foster
Aideen McGinley	DEL
Ian Raphael	DRD
Mike Brennan	DFP
Will Haire	DE
Yvonne Curran	DETI (EDF Secretariat)

ACTION POINTS AGREED AT 18 JUNE 2009 PLENARY ANNEX 2

ISSUE	ACTIONS ARISING	LEAD RESPONSIBILITY	TIMESCALE
Proposals from Manufacturing and Exports Sub-group	DETI to review the proposals from both Sub-groups, and where appropriate share, with other Departments. Response papers to be provided at September Plenary.	DETI	By 17 September 2009
Composite response to proposals from all Sub-groups	Bill McGinnis, Brain Ambrose and Mark Nodder to meet with Senior DETI Officials to agree priority proposals and an action plan. One composite progress report to be provided at September Plenary.	Bill McGinnis/ Brain Ambrose/ Mark Nodder / DETI Officials	By end of July 2009
New Green Deal Proposals	EDF Secretariat to share the proposals with the Sustainable Energy InterDepartmental Working Group	EDF Secretariat	By end of June 2009
	New Green Deal Group to discuss proposals with Sustainable Energy InterDepartmental Working Group and DETI to report back to EDF at the September Plenary.	New Green Deal Group / DETI	By 17 September 2009
SEF Consultation	EDF Members to note proposals in the SEF and to provide any comments via the public consultation process, due to take over the summer.	EDF Members	During summer 2009 (consultation dates to be confirmed)
Press Release	EDF Secretariat to agree wording of press release with Mark Nodder and Bill McGinnis and clear through the appropriate channels.	EDF Secretariat	By 19 June 2009