MINUTES OF THE THIRTY-SEVENTH MEETING

MINUTES OF THE FORTIETH MEETING

ECONOMIC DEVELOPMENT FORUM, 17 SEPTEMBER 2009

STORMONT HOTEL

Present: See Annex 1.

Apologies: Stephen Quinn, Stephen Kingon, Brian Ambrose, Jim Sammon, Will Haire, Wilfred Mitchell, Peter McNaney and Bob Stronge.

1 WELCOME, APOLOGIES AND MINUTES OF LAST MEETING

1.1 Members were welcomed to the 40th meeting of the EDF.

1.2 The Chair welcomed Kevin McCann, deputy for Stephen Kingon and Nigel Smyth, deputy for Brian Ambrose. The Chair also welcomed Kathryn Thomson from NITB.

1.3 Members noted that minutes of the plenary meeting on 18 June had been agreed by email, and had been posted to the EDF website.

1.4 The Chair noted that Stephen Quinn plans to retire in early October. On behalf of Members, she thanked Stephen for his valuable contribution to the work of the Forum over the years and wished him well in his retirement.

1.5 Members were reminded that the Independent Review of Economic Policy (IREP) had previously been suggested as a possible substantive agenda item for the meeting. However, as the Panel had not yet published their report, this was no longer practical. Members agreed to discuss the IREP report at the next EDF meeting, which would be brought forward to early November to facilitate this discussion.

2 MATTERS ARISING

Progress on June Action Points

2.1 The Chair referred Members to Paper 2, which outlined the progress against action points from the previous plenary meeting.

2.2 In relation to the Green New Deal proposals, the Chair advised that work is ongoing in this area, and a summary paper will circulate to Members as soon as it is available. Joanne Stuart provided a short update in respect of the Green New Deal working groups, particularly in relation to Housing and Finance.

ACTION: EDF Secretariat to circulate Green New Deal update paper to Members as soon as it is available.

2.3 The Chair also reminded Members that the public consultation on the Strategic Energy Framework is ongoing, and responses are due by 30 September. Members were3 encouraged to provide any comments via the public consultation process.

3 EDF SUB-GROUPS

Departmental responses to the proposals of the EDF Exports and Manufacturing Sub-groups

3.1 The Chair advised Members that the recommendations of the Exports and Manufacturing Sub-groups were shared with relevant Departments and that Paper 3.1 was a summary of the responses received. She suggested it was positive to note that many of the proposals suggested are already being actioned on an ongoing basis across Departments/NDPBs.

3.2 Catherine Bell provided Members with an update on the proposals relevant to DEL. She advised Members that 2,300 young people had signed up for the programme led apprenticeships, and that an additional 200 places had been funded for the INTRO scheme. Sir Reg Empey advised Members that discussions regarding provision for unemployed graduates are currently underway with the Department, the Universities and Business in the Community.

3.3 Discussion focused on the recent negative press regarding programme-led apprenticeships. Sir Reg Empey agreed that employer-led apprenticeships were favoured, but advised that many employers had halted recruiting apprentices. He noted that the programme-led scheme was a response to an emergency situation and would ensure many young people did not become NEETS (Not in Employment, Education or Training). Discussions also focused on funding mechanisms for the programme, the level of training provided and the flexibility of the programme to respond to improved economic conditions.

3.4 Kevin McCann provided Members with an update on the proposals relevant to Invest NI. He focused on the importance of communication and outlined work Invest NI is currently undertaking to raise awareness of their programmes. Updating members on how Invest NI is responding to the current needs on NI businesses, he provided data in relation to the uptake of the Short Term Aid Scheme. He also noted that Invest NI had assisted companies in other way e.g. increased training, improved research and development.

3.5 Joanne Stuart welcomed the update from Invest NI. She also stressed the importance of the local structures e.g. local councils, Enterprise Ireland, the Princes Trust and suggested improving the awareness of these structures will be of benefit to many businesses. Peter Bunting enquired why Northern Ireland had not availed of the European Globalisation Adjustment Workers Fund. The Chair advised that the fund had been considered at the time of the Visteon lay offs, however she advised that the threshold criteria prevented it from being accessed. Sir Reg Empey concurred with this.

ACTION: DETI to review criteria for accessing funds via the European Globalisation Adjustment Workers Fund.

3.6 John Gilliland discussed the proposal relating to the low carbon economy and specifically raised the issue of carbon footprints in the food sector. He was concerned that Invest NI’s Resource Allocation Model only allocated 5% to the environment.

ACTION: Invest NI to consider with John as a follow up to meetings he has had with Invest NI.

3.7 Bro McFerran welcomed the updates in both papers. Speaking specifically about the exports sub-group paper he suggested there was agreement on ‘what’ needs done, but ‘how’ this is taken forward was missing. He noted the need for collaboration between the public and private sector, and suggested a role for the Chamber of Commerce in this area. Nigel Smyth suggested that ‘when’ was also missing from the report, and stressed the need for urgency.

ACTION: Chamber of Commerce to lead on private sector proposals emerging for the exports sub-group paper

3.8 Speaking about the proposals relevant to DFP, Mike Brennan updated Members on the meetings between the DFP Minister and NI Manufacturing. He also noted that a small business rate relief scheme had been agreed with the Finance Committee, and would be going through the Assembly in 2010. In relation to 100% capital allowances, he highlighted that this had been raised several times with Treasury, but had always been rejected.

3.9 David Sterling noted that the reports were living documents which the Secretariat will continue to monitor and update.

ACTION: EDF Secretariat to monitor and update the EDF sub-groups reports on a monthly basis.

David Sterling assumed the role of Chair, as the DETI Minister left the meeting.

Update on the prioritisation work to be undertaken by the Sub-group Chairs and Senior DETI / DEL Officials

3.10 David Sterling presented a paper outlining the prioritisation work which had been undertaken by the Sub-group Chairs and Senior DETI and DEL officials. He highlighted that the paper was a business view of the key priorities for the economy. Again, he stressed it was a living document which the Business Alliance will continue to review and update.

3.11 Peter Bunting suggested the paper was light on detail, and highlighted that the ‘how’ and ‘when’ were missing. Patricia McKeown also commented on the need for action. Specifically discussing the construction proposals, she asked how Members will know when actions have been progressed. David Sterling advised that the ISNI tracking scheme had been launched, and included details of departmental contracts. Speaking about the ISNI tracking system, Joanne Stuart suggested there were fewer projects than expected for a £1.7billion investment project. She also suggested that some departments have been better than others at updating this system. A number of members suggested priority should be given to employment intensive projects to stimulate job creation.

3.12 In relation to budgets Mike Brennan advised that no bids for additional maintenance budgets had been met in the June Monitoring round. Patricia McKeown suggested this was very near-sighted and she provided examples of how other countries have advanced their maintenance projects to save companies, jobs and public services. Conor Murphy reiterated the budget pressures all departments are facing, but assured Members that the DRD infrastructure spend is going ahead as planned, and that DRD has tried to get local companies involved in bidding for the contracts, to stimulate the local economy.

3.13 The need for external sources of revenue / capital was also discussed by Members, e.g. the Emerald Fund, use of bonds. Members stressed the need for innovative thinking around the issue.

ACTION: Business Alliance to review Consolidated Proposals Paper with EDF Secretariat with a view to inserting timeframes and reporting mechanisms.

4 BANKING AND CREDIT

Response of the financial institutions in Northern Ireland to the economic downturn

4.1 David Sterling provided an update on the DETI Ministers engagement with the main banks in Northern Ireland to discuss lending to business. He stressed she was keen to understand why uptake of the Government’s Enterprise Finance Guarantee (EFG) was much lower in NI than the rest of the UK. He advised that all banks confirmed that they have signed up to the EFG and that the banks had assured her that knowledge of EFG is widespread amongst their staff.

4.2 He highlighted that the Minister intends to make contact with the banks again in October to see what the EFG position is at that stage. Members were also reminded that DETI had circulated an Assistance to Business table to EDF in May. This can be found on the DETI website, and is highlighted on the NIBusinessinfo website.

ACTION: EDF Members to help raise awareness of the various support schemes within their organisations.

ACTION: EDF Members to make DETI aware of instances where businesses have had difficulty in accessing support from financial institutions.

Results of the follow-up IoD survey on bank lending and credit

4.3 Joanne Stuart provided a short presentation highlighting the provisional results from the IoD follow-up survey on bank lending and credit. She advised that the survey ran from 17 August to 4 September, and specifically addressed activity in the last four months. She noted some improvements in relation to the results from the April 09 survey e.g. 44% of respondents noted conditions had worsened in September, compared with 53% back in April. She noted that awareness of the various financial schemes had improved however there was disappointment that these schemes were not always being discussed by banks.

4.4 She advised that the results would be analysed in detail and a summary paper will be distributed and discussed with the banks. Following this, a set of actions will be identified. A follow-up survey will be carried out in early 2010.

ACTION: IoD to circulate results of survey to EDF Members once analysis is complete.

4.5 David Sterling welcomed the findings and noted that the full report will be useful to the DETI Minister when engaging with the banks. He suggested there may be scope to work with professional bodies (e.g. accountancy bodies) to further promote the financial schemes.

5 TOURISM STRATEGY

5.1 The Chair advised Members that a new Tourism Strategy for Northern Ireland is currently being developed by DETI and NITB and that a full draft strategy will be issued for formal public consultation late 2009/early 2010. Members were advised that a discussion document, Paper 5, had been published and views are currently being invited on it from across the tourism sector.

5.2 A short presentation outlining the proposals for the new strategy was provided. David Sterling detailed the process for the development of the new strategy and provided a summary of the analysis completed to date. It was suggested that Northern Ireland is not yet meeting its potential and is being outperformed by its neighbours. Members were also provided with an update on the policy context and the key stakeholders involved in the process. Options and the preferred direction were outlined and members received an update on future issues and priorities for the Tourism Sector.

5.3 Kathryn Thomson outlined the work which had been completed on the NI Tourism Brand Strategy and how it would be used to create unique experiences for visitors. She highlighted the underpinning concept that NI tourism is ‘Confidently Moving On’, and the branch themes supporting this, ‘Uncover Our Story’ and ‘Experience Our Awakening’ provided an explanation on the emergence of these themes. She explained how the themes have been incorporated into some exemplar projects to date, including a customer service programme for taxi drivers and airport security guards and an IT skills programme for B&B owners.

5.4 Bill McGinnis suggested the importance of engaging with FE colleges to ensure NITB does not spend money unnecessarily. Jim McCusker commented on the image of the industry and the high staff turnover levels. He advocated more research in this area, and specifically into the economic and social benefits of growing this industry. Catherine Bell discussed the work of the Tourism Future Skills Action Group, and suggested DEL is hopeful for success similar to the success of the IT Future Skills work.

5.5 Joanne Stuart welcomed the presentation and the potential it highlighted for the tourism industry in Northern Ireland. She suggested it would be useful to take the presentation to schools to raise awareness among young people of the employment prospects in the industry. Kathryn Thomson outlined NITB’s engagement with People 1st, the sector skills council for hospitality, leisure, travel and tourism. She highlighted that proposals are being explored to include a Tourism module in the General Studies courses in schools.

5.6 Both Joanne Stuart and Nigel Smyth asked for clarification on the ownership of the strategy. The relationship between NITB, TIL and Visit Britain was explained by Kathryn Thomson. David Sterling noted that the Strategic Framework for Action did not clearly identify who was responsible for targets, however he advised the new strategy will clearly define responsibilities. Kathryn Thomson stressed the need for buy-in from all partners once the strategy is agreed if it is to be successfully delivered.

5.7 John Gilliland discussed the DARD Focus Farm Scheme, and suggested more joined up working between government departments was needed. He suggested that, with some creative thinking, existing structures could be used to facilitate the development of rural tourism.

ACTION: DETI /NITB to consider utilising the Focus Farm Scheme used to facilitate the development of rural tourism.

FORWARD LOOK/ NOVEMBER 2009 MEETING

5.8 Members agreed to bring forward the date of the next EDF to early / mid November to allow for discussion of the Independent Review of Economic Policy. Members agreed that this would be the substantive agenda item for the meeting.

ACTION: EDF Secretariat to organise next EDF Plenary for early / mid November.

6 ANY OTHER BUSINESS

Press release

6.1 Members agreed not to issue a press release.

Date of next meeting

6.2 Members agreed to bring forward the date of the next EDF meeting to allow for timely discussion on the findings of the Independent Review of Economic Policy.

LIST OF ATTENDEES ANNEX 1

Arlene Foster	DETI Minister
Sir Reg Empey	DEL Minister
Conor Murphy	DRD Minister
Joanne Stuart	IOD
Nigel Smyth	CBI
Bro McFerran	NI Chamber of Commerce
Bob Barbour	Centre for Competitiveness
Patricia McKeown	NIC/ICTU
Jim McCusker	NIC/ICTU
Peter Bunting	NIC/ICTU
Seamus McAleavey	NICVA
John Gilliland	Ulster Farmers’ Union
Kevin McCann	Invest NI
Prof Peter Gregson	Higher Education QUB
Prof Richard Barnett	Higher Education UU
Trevor Neilands	Further Education
Bill McGinnis	NI Skills and Employment Adviser
Kathryn Thomson	NITB

Officials

Stephen Quinn	DETI
David Sterling	DETI
Graeme Hutchinson	DETI
Fiona McCausland	DETI
Andrew Crawford	Special Advisor to DETI Minister
Catherine Bell	DEL
Esmond Birnie	Special advisor to DEL Minister
Mike Thompson	DRD
Mike Brennan	DFP
Yvonne Curran	DETI (EDF Secretariat)

ACTION POINTS AGREED AT 17 SEPTEMBER 2009 PLENARY ANNEX 2

ISSUE	ACTIONS ARISING	LEAD RESPONSIBILITY	TIMESCALE
Green New Deal proposals	EDF Secretariat to circulate Green New Deal update paper to Members as soon as it is available.	EDF Secretariat	As soon as paper is available.
European Globalisation Adjustment Workers Fund	DETI to review criteria for accessing funds via the European Globalisation Adjustment Workers Fund.	DETI	By mid October.
Carbon footprints in the food sector / Invest NI’s Review Resource Allocation Model	Invest NI to consider with John Gilliland as a follow up to meetings he has had with Invest NI.	Invest NI	By mid October.
Proposals from the EDF Sub-group on Exports	NI Chamber of Commerce to lead on private sector proposals emerging for the exports sub-group paper.	NI Chamber of Commerce	By mid October.
Departmental Responses to EDF Sub-groups’ proposals	EDF Secretariat to monitor and update the EDF sub-groups reports on a monthly basis.	EDF Secretariat	On a monthly basis.
EDF Consolidated Proposals Paper	Business Alliance to review Consolidated Proposals Paper with EDF Secretariat with a view to inserting timeframes and reporting mechanisms.	Business Alliance	By mid October.

Banking and Credit	EDF Members to help raise awareness of the various support schemes within their organisations.	EDF Members	Ongoing
Banking and Credit	EDF Members to make DETI aware of instances where businesses have had difficulty in accessing support from financial institutions.	EDF Members	Ongoing
Results of the follow-up IoD survey on bank lending and credit	IoD to circulate results of survey to EDF Members once analysis is complete.	IoD	As soon as paper is available.
Focus Farm Scheme	DETI /NITB to consider utilising the Focus Farm Scheme used to facilitate the development of rural tourism.	DETI/NITB	By mid October
Date of next meeting	EDF Secretariat to organise next EDF Plenary for early / mid November.	EDF Secretariat	By end of September.