MINUTES OF THE TWENTY - FIFTH meeting
ECONOMIC DEVELOPMENT FORUM,
14 SEPTEMBER 2005
Present: See attached list (Annex 1)
Apologies: Shaun Woodward, Seamus McAleavey,
Richard Sterling, Peter Bunting, Anne O’Reilly, John Mann, Raymond Mullan, John
Hunter, Lawrence Smyth, Sean Neeson
1.
WELCOME
AND APOLOGIES / MINUTES OF LAST MEETING
1.1
The Minister welcomed members and representatives from the
main local political parties, Mervyn Storey, DUP, Dara O’Hagan, Sinn Fein, Sean
Farren, SDLP, and Roy Beggs, UUP to the meeting. She noted apologies and thanked Lisburn City
Council for hosting the meeting.
1.2
The Minister noted two changes in membership - Janice
Tracey had replaced Niall Birthistle as Londonderry Chamber of Commerce’s deputy
member and John Hunter had replaced Andrew McCormick as the DFP representative.
1.3
The minutes of the June meeting were agreed without
amendment.
Invest NI Budget
1.4
Professor
Fabian Monds provided an update of the Invest NI budget position, highlighting
that since the last meeting of the Forum additional funds had been found. In response to Dr Farren’s query about resources
being available to address funding shortfalls in Invest NI's Entrepreneurship
programmes, Prof. Monds explained that Invest NI was maintaining its budget
commitment to the Start A Business programme, and outlined the EU funding
aspect. Although Invest NI was not in a
position to make up the EU shortfall at this point in time, a contract had
recently been signed with Enterprise Northern
1.5
The
Minister advised members that an evaluation of Invest NI’s Start A Business
programme was underway and a report was expected in December 2005.
2. CURRENT NI ECONOMIC PERFORMANCE AND FUTURE OUTLOOK
2.1
The
Minister referred members to the most recent Quarterly Economic Review (QER),
published at the end of July and advised that EDF members had been added to the
circulation list for future editions of the QER.
2.2
Dr
Hutchinson noted that the
2.3
Dr
Hutchinson concluded by highlighting some of the challenges that
must be addressed if the productivity gap between the Northern Ireland and UK
economies was to be closed further and the need for concerted action in the
four Vision productivity driver areas, innovation, enterprise, skill and
infrastructure.
2.4
Members
commented on a number of key issues and questions included:
–
how
can the trajectory of the economy be changed?
–
current
initiatives seem to be tracking but not closing the gap;
–
the
economic projections of CBI and others were less optimistic;
–
the
need to drive the private sector?
–
how
to address the shrinkage of the private sector?
–
need
to consider regional disparity issues;
–
how
to achieve a step change in the economy?
–
how
to get into high value added manufacturing and services?
–
how
sustainable were current levels of public sector spending?
2.5
In
summarising the discussion, Mr Robinson noted that the response to the key challenges
would determine how quickly NI would converge with the
3. VISION SUB-GROUP REPORTS
Innovation
Sub-group
3.1
David
Dobbin noted that he was encouraged by progress made and highlighted key issues
in the Sub-group report. He outlined the
way forward and recommended more interaction between the Chairs of the
Sub-groups and suggested they should meet on a more frequent basis.
3.2
Issues
raised during the discussion which followed included: private services and the
need to establish more clearly, the high value added services that should be
targeted; and levels of funding available to NI universities, particularly for
R&D, and the role of the universities and the Further Education sector might
play in supporting the development and competitiveness of NI’s SMEs.
3.3
Wilfie
Hamilton informed members that DETI would shortly be publishing its policy
response to the findings of the research projects on the future of
manufacturing and tradeable services.
Enterprise
Sub-group
3.4 Lord
Rana explained that as the issues discussed by the Sub-group covered a wide
ranging area, the Group’s proposed work programme was divided into the 3
overarching themes of strategic support; profile raising; and shaping research. He provided an overview for each theme of the
key issues and actions detailed in the proposed work programme. He also advised members that in addition to
the actions detailed, the Sub-group believed action by EDF was required on
fiscal incentives and the risk averse culture within the NICS, if the Vision was
to be achieved.
3.5 During
the discussion which followed, the Minister noted the importance of the links
between the Sub-groups and Government and Lord Rana concluded by noting that the
key issue was the creation of wealth creating global industries. He explained that NI needed to look ahead to
the next 10 years, to predict trends, emerging markets and their impact on the
NI economy.
Skills Sub-group
3.6
Dr
Michael Maguire explained that Sub-group members were agreed there was a need
for a close alignment between the EDF Vision and the NI Skills Strategy and had
concluded that much of what EDF wanted to achieve appeared to be contained
within the Skills Strategy. He then
explained that members had been attempting since the last EDF meeting to
understand the confusing picture presented by the existing network of skills organisations
and providers and outlined that members had agreed to focus on a small number
of areas with the purpose of:
–
improving
careers guidance and education in
–
building
better linkages between schools and the FE sector to widen the opportunities
available to young people; and
–
developing
better management capacity in
3.7
Dr
Maguire explained that: collaboration between
3.8 In the discussion that followed, members
highlighted:
–
a
key challenge was how to motivate young people to acquire skills;
–
there
was a need to connect better with parents;
–
careers
advice for children needed to be more impartial;
–
there
was a need for better interaction between careers teachers and career officers;
–
there
was a need for emphasis on workplace and lifelong learning in both the private
and the public sectors;
–
the
role of the Higher Education institutions in producing tomorrow’s innovators
and entrepreneurs should not be overlooked;
–
consideration
needed to be given to the impact of subsidised tuition fees for certain
courses, particularly in healthcare, which was resulting in many of the
brightest students being attracted into healthcare rather than into courses
linked more closely with enterprising careers;
–
consideration
also needed to be given to the way in which schools were funded that encourages
schools to retain pupils for as long as possible rather than encouraging them
to progress, if appropriate, to a
Infrastructure Sub-group
3.9 Jim McCusker reminded members that the
Sub-group’s work had been concentrated on examining three areas: the barriers
to the uptake of Broadband, and the opportunities for NI to capitalise on both
public and private sector investment in this area; public sector procedures
which might impede the delivery of infrastructure projects; and the economic
case for giving road priority to commercial traffic. He outlined the progress made by the
Sub-group and advised that the Sub-group had also discussed Statutory Planning Processes.
3.10 Members noted the contents of the Infrastructure Sub-group’s
report and commented on two issues:
– On the planning process, members commented that the speed of the planning process seemed to slow down markedly if a proposal involved any degree of innovation; there was a need for a more holistic approach; scope for a fast track process should be investigated and that developers would be prepared to pay for a fast track process, such as can be seen in Manchester; and
–
On
transport, members noted that the Sub-group did not seem to have considered the
role of the rail system and highlighted the poor condition of the rail track
north of Ballymena.
Medium Terms Strategic
Priorities (MTSPs) Sub-group
3.11 Bob Barbour, Deputy Chair of the MTSPs Sub-group presented the
Sub-group’s report and highlighted the following key points:
–
The
Sub-group was proposing EDF adopted a new ‘Vision’ framework, which was a
refinement of the MTSPs framework, to track the progress of NI economy towards
the goals of the Economic Vision;
–
Regional
Forecasts Ltd would model variations in the drivers of change to inform
discussion on which of the drivers could be prioritised to close the gap more
quickly;
–
EDF
would publish an annual statement on progress, even if this was only a short summary
of the position published on the Forum’s website; and
–
The
MTSPs Sub-group should not be stood down at this time but its role revised to
include responsibility for overseeing, monitoring and co-ordinating the scenario
modelling work as well as overseeing monitoring and forecasting the performance
of the NI economy.
3.12 Following a short discussion, members agreed to all the
proposals in the Sub-group report.
ACTION: Vision Sub-groups to:
(1)
consider
the economic monitoring indicators allocated to their Sub-group’s productivity
driver area and advise DETI of any additional indicators that should also be
considered; and
(2)
start
to develop modelling scenarios for submission to Regional Forecasts and feed
these to DETI.
4. COMMUNICATIONS
STRATEGY
4.1
The
Minister reminded members of their discussion at the June meeting on the
Forum’s approach to external communication and that the EDF Secretariat had
been tasked with the preparation of a draft communications strategy for
consideration at the September meeting. She referred members to the draft
communications strategy paper and invited members to comment.
4.2
It
was suggested and agreed that the MTSPs might take the lead in finalising the
Communications Strategy.
ACTION: MTSPs Sub-group to consider and finalise draft
communications strategy.
5. FISCAL
RESEARCH PROJECT
5.1
Dr
Hutchinson detailed progress to date and advised members that a draft final
report was expected in October with a final report available as soon as
possible thereafter. He also noted that,
before completion of the final report, Professor Harris would make a
presentation of his draft findings to key stakeholders, including members of
EDF.
ACTION: Secretariat to invite EDF members and key
stakeholders to the presentation by Professor Harris.
6. REGIONAL
ECONOMIC STRATEGY
6.1
The
Minister noted that members were aware that the development of a Regional
Economic Strategy (RES) for
6.2
Mr
O’Reilly explained the background to the strategy, highlighting the
Government’s long term priorities, the key factors in maintaining macroeconomic
stability and HM Treasury’s key policy drivers for productivity. He then outlined how this background linked
with the Economic Vision for NI and how this linked to the proposed RES. Mr O’Reilly concluded by providing some
details on progress to date and an overview of the public expenditure outlook,
national public expenditure challenges and the implications for Northern
Ireland. Members noted the current
position and a number of concerns. There
was consensus amongst the social partner members that they would like to be
more involved in the process to produce the RES. It was agreed that a draft of the RES would
be provided for the next EDF meeting.
ACTION: DFP to provide members with a draft copy of the
RES.
7. 2006/7
PUBLIC SECTOR BUDGET ROUND
7.1
Mr
O’Reilly advised members that an announcement would be made at the start of
October.
8.
FUTURE AGENDA ITEMS
8.1
In
response to the Minister’s question about items for discussion / debate at
future meetings Mr Hamilton suggested that some thought might be given to the
priorities for the key note research agenda and that this might be considered
by the Sub-groups. It was also suggested
that there might be a discussion around all island issues.
9.
ANY OTHER BUSINESS
Press Release
9.1
Members
agreed that a press release highlighting the outcomes of the
meeting should be issued.
ACTION: DETI to draft a press release and circulate to
members for comment and approval.
Broadband Conference
9.2
The Minister informed
members that following
the successful ‘ICT Demonstration of Best Practice’ conference organised in
Date of Next Meeting
9.3
The Minister closed the
meeting by reminding members that the Forum’s next plenary meeting would be on
6 December.
|
Angela Smith |
Chair |
|
Attendee |
Organisation |
|
Frances McCandless |
NICVA |
|
Michael Maguire |
IOD |
|
David Dobbin |
CBI |
|
Bob Barbour |
CforC |
|
Lord Rana |
NICCI |
|
Janice Tracey |
|
|
Jim McCusker |
NIC/ICTU |
|
Tom Gillen |
NIC/ICTU |
|
Patricia McKeown |
NIC/ICTU |
|
John |
|
|
Brian Turtle |
Further Education |
|
Fabian Monds |
Invest NI |
|
Bernie Hannigan |
Higher Education |
|
Michael McGuckin |
SOLACE |
|
Wilfred Mitchell |
FSB |
|
Mervyn Storey |
DUP |
|
Dara O’Hagan |
Sinn Fein |
|
Sean Farren |
SDLP |
|
Roy Beggs |
UUP |
|
Bruce Robinson |
DETI |
|
Will |
|
|
Doreen Brown |
DRD |
|
Gerry McGinn |
DE |
|
Leo O’Reilly |
DFP |
|
Wilfie Hamilton |
DETI |
|
Graeme Hutchinson |
DETI |
|
Anne Martin |
DETI |
|
Stephen Moore |
DETI |