MINUTES OF THE TWENTY-SevenTH meeting
ECONOMIC DEVELOPMENT FORUM,
7 MARCH 2006
MALONE HOUSE
Present: See attached list (Annex 1)
Apologies: Angela Smith, Shaun Woodward, Stephen
Quinn, Peter Bunting, Patricia McKeown, John Mann
1.
WELCOME
AND APOLOGIES / MINUTES OF LAST MEETING / MATTERS ARISING
1.1
The Chair advised members of the Minister’s unavoidable
absence because of a parliamentary commitment.
She had hoped to be at today’s meeting particularly for discussion on
corporation tax and the regional economic strategy and had offered to meet with
a delegation of EDF members to gain a first-hand appreciation at a future date. The Chair went on to advise members that following recent staff moves, Bruce Robinson
now represented DFP and Aideen McGinley represented DEL. Today DE would be represented by Robson
Davison. He explained that Stephen Quinn
now represented DETI but was on leave at present and looked forward to meeting
members at the June plenary.
1.2
The Chair welcomed Stephen Kingon
to the Forum as Invest NI’s representative and also welcomed the political
party representatives: George Dawson, DUP, Mitchell McLaughlin, Sinn Fein, Roy
Beggs, UUP and Sean Farren, SDLP. He
also welcomed Sir George Quigley and Professor John McCanny who had joined
members for discussion on the work of the Industrial Task Force.
1.3
The minutes of the last meeting were accepted without
further amendment.
Matters Arising
Communications Strategy
1.4
The Chair advised that a final draft of the Forum’s
Communications Strategy incorporating comments received from members had been
issued. Pending some further comments
received, members were content to accept this as a working strategy and for it
to be uploaded to the Forum’s website.
ACTION: Secretariat to arrange for
Communications Strategy to be uploaded to EDF website.
Planning Item
1.5
Members were advised that this item had been deferred until
the June meeting and that Planning Service had agreed to join members for their
discussion.
Start A Business Evaluation
1.6
The Chair reminded members about Invest NI’s evaluation of
the Start A Business Programme and invited Stephen Kingon to update members on
progress.
1.7
Mr Kingon advised that a draft report had been received
from the consultants and early indications were that although the Programme had
made an economic impact its focus needed to be sharpened. In mid-March the report would be issued to
key stakeholders for an 8 week consultation period. This would include Enterprise NI, local
councils and the organisations represented on EDF.
1.8
Members enquired about Invest NI’s funding position in
terms of the latest funding round and the concordat. Members were particularly keen to know if the
funding situation would result in any lost opportunities for investment. Members welcomed the assurance that if the
concordat could be activated then the present situation – while not perfect –
was workable, but asked that the agenda for the June meeting include an update
on Invest NI’s funding position.
ACTION: Invest NI to provide an update
on its funding position for the June 2006 meeting.
2.
SKILLS STRATEGY
2.1
Heather
Stevens set the context for the Skills Strategy in terms of EDF’s Skills
Sub-group objectives, the background to the development of the strategy, its
aims and its target groups. She explained
that it was an overarching strategy which brought together various strategies
including, amongst others, essential skills, the FE review and management and
leadership. She went on to explain that
the strategy was divided into four themes of: understanding the demand for
skills; improving the skills levels of the workforce; improving the quality and
relevance of education and training provision; and tackling the barriers to
employment and employability. These
themes were supported by a total of 16 projects and 4 underpinning strands.
2.2
At
a regional level, a Skills Expert Group, which had replaced the NI Skills
Taskforce, had been established and met for the first time on 27 February. From a local perspective skills would be
considered by employer-led workforce development forums. Mrs Stevens explained that it would be
important to have effective two-way communication between regional and local
levels. At sectoral level, 25 Sectoral
Skills Councils (SSCs) had been set up on a
2.3
In
response to a number of queries members were advised that:
–
although
a lot of information on labour market analysis was already available further
information would be collected by the SSCs but this would be on a sectoral
basis;
–
although
the SSCs had been established on a
–
in
terms of the quality improvement strategy and teachers,
–
over
the years there had been a significant focus on research into skills and the
disadvantaged. The skills research
projects detailed in paper 6 provided a snapshot of the research agenda at the
present point and members were referred to previous labour market bulletins
which would provide a fuller picture; and
–
in
relation to cross border input, particularly on lessons to be learnt, members
were advised that Roger Fox was a member of the Expert Skills Group.
2.4
Members
recognised that the strategy provided a comprehensive and coherent roadmap for
the way forward but collaboration with other Departments and stakeholders such
as EDF would be critical. The Skills
Sub-group would be working closely with the Department to monitor progress.
3.
INDUSTRIAL TASK FORCE REPORT / FISCAL INCENTIVES
3.1
The
Industrial Task Force Report and a DFP paper on corporation tax were tabled as
background to discussion.
3.2
The
Chair explained that, although the potential significance of the issues
reflected in the Industrial Task Force Report were widely recognised as being
vitally important, there were obvious issues around corporation tax changes
which were set out in DFP’s paper. He
did however, stress that the timing was right for consideration of such
matters. In addition, the Secretary of
State was keen to pursue north south co-operation where the benefits of such
co-operation for NI would clear, so this was not a single issue debate.
3.3
Sir
George Quigley, Chair of the Industrial Task Force outlined the origins of the
Task Force and explained that it’s recommendation revolved around taxation,
intellectual capital and business education links. The NI economy was too dependent on the
public sector with the result that GDP per head had remained in and around 80%
of the
3.4
Sir
George advised that opportunities for profitable north south co-operation
should be grasped and such opportunities would increase once investment flows had
been freed up. Sir George said he had
been impressed by the convergence of NI political parties’ thinking on key
economic issues. The political parties
had an opportunity to influence and encourage the need to put the NI economy
onto a new trajectory through lower corporation tax and the export driven model
which was crucial to economic policy in NI.
3.5
Members
welcomed the Task Force’s report and agreed that a step change and removal of
the NI economy’s over dependence on the public sector was central. Members also welcomed the report’s focus for
interaction between the universities and industry.
3.6
Members
acknowledged that a reduction of corporation tax was not a magic bullet:
progress in a number of different areas would be necessary to take the economy
forward. Other issues such as the responsiveness
of economic policy, other fiscal flexibility, innovation, HE engagement with
industry to challenge thinking within universities and economic solutions to
civil strife would all be critical. It
was agreed that consensus on the agenda, not least on fiscal policy, would increase
NI’s chances of success and that there may be opportunities ahead through the
Comprehensive Spending Review (CSR), the north south economic co-operation and
the political process to make progress.
3.7
Professor
McCanny highlighted to members his concerns about development of innovation in
NI. The majority of jobs being created
involved back-room activities and the impact on innovation levels was therefore
quite low. He also advised that there
was an issue in terms of NI’s skills base and that a more long-term strategic
approach would be required.
3.8
Members
agreed that a meeting should be arranged with the Minister to convey the thrust
of the debate.
ACTION: Secretariat
to arrange a meeting between the Vision Sub-group Chairs and the Minister.
4.
DRAFT REGIONAL ECONOMIC
STRATEGY
4.1 Bruce Robinson referred members to the
draft of the regional economic strategy and stated that it would be helpful to
take EDF views on the draft.
4.2 Members were disappointed that the draft
strategy was not more forward looking.
It was agreed that the strategy should set out the actions needed to
make the necessary step-change in the NI economy and to do this stakeholders
needed to be involved in its development.
4.3 Members considered that the document
could build more on key existing strategies, such as the regional development
strategy. It was suggested that the role
of cities as a driver for economic development should also be reconsidered. There might also be merit in considering
policy interventions which could be beneficial not only for NI but also in other
regions of the
4.4 DFP representatives referred to the
relatively modest funding earmarked for the economic vision drivers of
innovation and enterprise. Members were
also advised that the link to the CSR had provided more time for completion of
the strategy - now due by late 2006.
4.5 It was agreed that DFP and other
Government Departments would work with the Vision Sub-group Chairs to develop
the draft strategy to ensure that its focus was appropriate and that it would
help deliver the economic vision. It was
also agreed that a revised draft text would be produced for discussion at the
next plenary meeting.
ACTION: DFP and other Government
Departments to work with Vision Sub-group Chairs to develop the regional
economic strategy and produce a revised version for discussion at the June
plenary meeting.
5. SUB-GROUP
REPORTS
Innovation
Sub-group
5.1
David
Dobbin, Chair of the Innovation Sub-group referred members to the Sub-group
report which provided members with an update on the 9 issues which the
Sub-group had identified as areas where action and / or support from the Forum
might achieve tangible results. In
relation to the Group’s earlier concerns about proposals for the establishment
of a regional science-industry council type body, Dr Dobbin advised members
that further work had been done on the rationale and role and he indicated that
the Group’s report for the next plenary would be positive.
Enterprise
Sub-group
5.2 As Lord Rana had to leave the meeting early due to another
engagement, Seamus McAleavey summarised the progress made by the Enterprise
Sub-group. In conclusion he highlighted
the need for reconfiguration to allow the private sector to grow which would
subsequently encourage enterprise.
Skills
Sub-group
5.3 Michael Maguire referred members back to the presentation on
the skills strategy, implementation of which would be a key focus of the Skills
Sub-group. He explained that at a macro
level some work would be required to identify skills needs and he suggested
that dialogue between the Skills Expert Group and EDF might be
appropriate. He also highlighted
concerns about accepting 25 SSCs just because they were established on a
Infrastructure
Sub-group
5.4 Jim McCusker, Chair of the Infrastructure
Sub-group advised members that the Sub-group had considered and agreed the
recommendations to be given the highest priority and what action the Group
needed to take to ensure delivery.
5.5
Mr
McCusker advised that the Sub-group had agreed that its priorities would
revolve around uptake of broadband, the level of competition among broadband
providers in NI and early engagement of consultants with Departments in
relation to economic appraisals. He
concluded by advising that in view of recent developments there might also be
an opportunity to consider some action in relation to energy costs.
6.
RESEARCH – OVERVIEW OF
6.1 Members noted the research paper which provided an overall
view on
7. ANY OTHER BUSINESS
Future
Agenda Items
7.1 It
was agreed that the Reform Agenda would be included on the agenda for the June
meeting. Members agreed that the
Secretariat would continue to work with the Sub-group Chairs to agree future
agendas.
Press Release
7.2
Members
agreed a number of points for inclusion in a press release. It was agreed that the Secretariat would pull
together a draft press release based on these points and forward the draft to
the Sub-group Chairs for clearance.
ACTION: Secretariat
to prepare a draft press release and forward to Sub-group Chairs for approval.
|
Wilfie Hamilton |
Acting Chair |
|
Attendee |
Organisation |
|
David Dobbin |
CBI |
|
Michael Maguire |
IOD |
|
Bob Barbour |
CforC |
|
Stephen Kingon |
Invest NI |
|
Lord Rana |
NICCI |
|
Richard Sterling |
|
|
John |
|
|
Tom Gillen |
NIC/ICTU |
|
Jim McCusker |
NIC/ICTU |
|
Bernie Hannigan |
Higher Education |
|
Raymond Mullan |
Further Education |
|
Seamus McAleavey |
NICVA |
|
Anne O’Reilly |
NICVA |
|
Wilfred Mitchell |
FSB |
|
Peter McNaney |
SOLACE |
|
George Dawson |
DUP |
|
Mitchell McLaughlin |
Sinn Fein |
|
Roy Beggs |
UUP |
|
Sean Farren |
SDLP |
|
Sir George Quigley |
Industrial Task Force |
|
John McCanny |
Industrial Task Force |
|
|
|
|
Heather Stevens |
|
|
|
|
|
Doreen Brown |
DRD |
|
Bruce Robinson |
DFP |
|
Michael Brennan |
DFP |
|
Graeme Hutchinson |
DETI |
|
Helen McConkey |
DETI |