RECORD OF MTSPs SUB-GROUP MEETING – 24 MARCH 2006

 

Present:    
  Bob Barbour (Chair) Centre for Competitiveness
  Jim McCusker NIC/ICTU
  Michael Maguire Institute of Directors
  Nigel Smyth CBI
  Richard Ramsey DETI
  Richard Johnston DETI
  Stephen Moore DETI
     
Apologies:    
  Seamus McAleavey NICVA
  John Gilliland UFU
  Raymond Mullan Further Education

 

 

Minutes of Sub-Group meetings

 

1.              The minutes of the meetings on 11 November 2005 and 15 December 2005 were agreed, without amendment.

 

Review of Action Points from meeting on 11 November 2005

 

2.              EDF Communications Strategy – Stephen Moore reported that a final draft of the communications strategy was circulated to all members following the Forum’s plenary meeting in December.  He noted that some further comments had been received, which had been incorporated into the draft and that the strategy had been published to the Forum’s website.

 

3.              NI Priorities and Budget 2006 – 2008 – Stephen Moore reported Seamus McAleavey had written to DFP as agreed.

 

Regional Forecasts Ltd – Update on Progress

 

4.              Members discussed the refinements of the indicator framework recommended by Regional Forecasts (RF) and agreed the following:

 

Public sector employment:  NI public sector employment to be reported relative to total NI employment and compared to the public sector share of total employment in the UK.  It was also agreed a UK public sector forecast should be added to the model.  The trade union representative indicated that his sector would have preferred to use the ratio of the number employed in the public services to the total population.

 

Public sector expenditure: NI public expenditure to be reported as a proportion of GVA relative to the UK.

 

Private sector employment:  The framework will be revised to show (1) the relative share of employment in business and financial services and (2) the relative share of employment in manufacturing.

 

Employment in tourism: the framework will be respecified to show employment in tourism relative to the UK.

 

Skills Levels:  RF proposed this indicator be reported as relative to the UK, using individual skill levels rather than cumulative levels.  The Sub-group did not accept the proposal and asked that it be discussed further by the Skills Sub-group.

 

ACTION –        EDF Secretariat to ask Skills Sub-group to discuss RF proposal.

 

Essential skills for living: The Sub-group accepted advice from Regional Forecasts and the DETI, DEL, DFP and OFMDFM Steering group that monitoring this indicator is not essential and it could be removed.

 

5+ GCSE’s A*-C:  The Sub-group declined Regional Forecasts recommendation that this indicator be revised to show the proportion of school leavers with A level qualifications relative to England and Wales.  It was noted that the proposed A level indicator would exclude the young people who qualify via Further Education for entry to Higher Education.  It was agreed however that whilst the current indicator should be retained, the indicator’s value would be enhanced by revising it so that Maths and English are included in the 5+ GCSE’s A*-C.

 

ACTION –        DETI Economists to ensure Maths and English are included in the 5+ GCSE’s A*-C indicator.

 

Changes in employment of people from NTSN:  The Sub-group accepted the recommendation that the employment rate in NTSN areas should be used rather than the actual number change.

 

Deprivation Theme & relative measure of the level of income support claimants:  RF recommended consideration is given to a separate deprivation theme and a relative measure of the level of income support claimants.  The Sub-group declined the proposal as the additional indicator would not be essential and would possibly complicate the existing Vision framework structure.  The Sub-group also declined a proposed relative measure of income support claimants, but did agree that a measure, with a particular focus on poverty, may be useful and proposed that this be scoped for inclusion next year.

 

ACTION –        DETI Economists to scope a measure, with a particular focus on poverty, for inclusion next year.

 

Business R&D as proportion of GVA:  The Sub-group agreed this should be re-specified relative to the UK.

 

Product innovation, process innovation and % BERD devoted to commercialisation:  The Sub-group agreed to remove the existing indicators due to data difficulties and adopt two very similar measures from the Community Innovation Survey (CIS).  These indicators are the percentage of firms with novel product innovations relative to the UK and the percentage of firms with novel process innovations relative to the UK.

 

Percentage of BERD devoted to commercialisation:  The Sub-group agreed this indicator should be removed, as it overlaps with the novel innovations indicators to be adopted from the CIS.

 

Proportion of manufacturing employment in high-tech companies and proportion of employment in knowledge based tradeable services:  The Sub-group agreed to the recommendation that these indicators should be presented alongside equivalent UK indicators to permit meaningful comparison.

 

Definition of Knowledge Based Tradeable Services:  The Sub-group agreed to the recommendation that the definition of knowledge based tradeable services be realigned for the purposes of consistency to the definition used in the International Trade in Services survey.

 

Manufacturing and tradable services exports:  The Sub-group accepted the recommendation that the indicators for manufacturing and tradable services exports be revised to show exports as a proportion of GVA relative to the UK.

 

Tourism visitor numbers and tourism expenditure per visitor:  The Sub-group agreed with RF that, as currently specified, these indicators, whilst giving an indication of trend, give little indication of whether existing numbers are satisfactory.  The sub-group agreed the indicators should be re-specified relative to population and presented alongside equivalent indicators for UK and the ROI.

 

Job quality – inward investment income compared to NI private sector:  The Sub-group noted the difficulties RF was still having in sourcing data for this indicator.  However, in light of information that Invest NI would make data available in March 2006, the Sub-group decided to decline RF’s recommendation that the indicator be dropped.

 

Take-up of broadband:  The Sub-group concluded that, in the absence of any better alternative, the current broadband availability indicator should be retained.  However, the Sub-group agreed with RF that, now NI has 100% broadband coverage, the use of broadband rather than its provision is more important.  It was agreed an indicator that measures uptake or usage would be more appropriate and should be sourced.  A number of data problems were discussed, in particular the fact that the sample size of the ONS e-commerce survey does not permit a regional breakdown.  It was agreed that EDF, via its Infrastructure Sub-group, might consider pressing ONS to enhance its e-commerce survey to permit a regional breakdown, by enlarging its sample size.

 

ACTION –        DETI Economists to consider Sub-group’s proposals.

 

Average road speeds:  The Sub-group agreed that a composite indicator should be created to track the trend in average road speed on NI major routes.

 

Share of inward investment in NTSN areas:  The Sub-group agreed that ‘employment rate in NTSN areas’ is a better measure of the impact of inward investment on people living in NTSN areas.

 

Additional public transport related infrastructure indicators:  The Sub-group discussed additional indicators relating to the usage of public transport that might be included within the infrastructure driver area.  It was noted that bus and rail passenger data is available from Translink for a number of years to 2004 and it was agreed that an aggregate indicator should be added, to the infrastructure driver area, to track the number of passengers on public rail and road transport.

 

Energy Costs:  The Sub-group agreed with RF’s view that energy prices are another important infrastructure indicator and that an indicator could be added, if sufficient data were available.  It was also noted however that forecasts would be difficult for a number of reasons.  The Sub-group agreed an energy indicator would not be pursued at this stage. 

 

 

Scenario Planning

 

5.              Richard Johnston highlighted a number of key points from Regional Forecasts’ Interim report.

 

                 The primary objectives of RF’s contract in 2005 were to advise EDF on how the original ‘long-list’ of indicators and targets should be refined and then to develop a forecasting model for EDF based on a more manageable and meaningful structure of indicators.

 

                 Only a small proportion of the 2005 project’s budget was invested in actual development of the model for scenario planning.  This was due to the complexity inherent in the set of indicators and the effort needed to build a model incorporating some of the complex linkages and interdependences between the frameworks 46 indicators.

 

                 The 2006 contract provides more scope for developing the model and this should allow NIPS to be improved and structured in such a way to facilitate scenario modelling. 

 

                 The forecasts and simulation results produced by the model are intended to inform discussion of trends in indicators and future policy options.

 

                 The programme for further developing the model has two main strands:

o        Development modules:  Distinct elements of the modelling framework that will be analysed to ensure the relationships built into the NIPS framework are appropriate; and

o        Scenario capabilities:  Development work to ensure the model is capable of running a number of useful scenarios.

 

                 Due to the complexity of the NIPS model RF cannot guarantee the success of any individual changes.  The model contains approximately 4,000 Northern Ireland specific variables and any change to linkages and equations is a complex procedure involving careful sensitivity testing and ‘tracing’ of impacts through the steps of the model.  It may also not be possible to successfully incorporate all of the linkages and steps set out in RF’s development programme.  Consequently, the development programme for the NIPS should be viewed with an awareness that the model is evolving and improving as understanding deepens.

 

6.              It was agreed that DETI will identify and advise the Chairs of the Sub-groups of scenarios that might be run on the model and seek their guidance on the levels that might be set scenario indicators so that these are as realistic as possible.

 

ACTION –        DETI Economists to identify and advise the Chairs of the Sub-groups of scenarios that might be run on the model.

 

Any Other Business

 

7.              None.

 

Dates of Next Meetings

 

8.              To be advised by EDF Secretariat.