MINUTES OF THE TWENTY-SIXTH meeting

ECONOMIC DEVELOPMENT FORUM, 6 DECEMBER 2005

INVEST NORTHERN IRELAND

Present: See attached list (Annex 1)

Apologies: Shaun Woodward, Peter Bunting, Michael Maguire, Patricia McKeown, John Hunter, Gerry McGinn

1. WELCOME AND APOLOGIES / MINUTES OF LAST MEETING

1.1 The Minister welcomed those present and thanked Fabian Monds for hosting the meeting at Invest NI. She noted apologies and welcomed Peter McNaney, who had replaced Michael McGuckin as the SOLACE representative on the EDF, to his first meeting of the Forum. She went on to advise members that, due to another commitment, she would have to leave the meeting early.

1.2 The Minister explained that the agenda for the meeting had been developed through consultation with Chairs of the EDF Sub-groups. She explained that an item relating to the 2005 Budget Outcome had since been removed from the agenda as final outturn figures would not be published until 16 December. Members were content with the revised agenda.

1.3 The minutes of the last meeting were accepted without further amendment.

2. INVESTMENT STRATEGY FOR NORTHERN IRELAND

2.1 The Minister introduced David Gavaghan, Chief Executive of the Strategic Investment Board Limited (SIB) to give a presentation on the ISNI and the contribution that it can make to economic development during its implementation over the next 10 years. A copy of the presentation is attached and can also be found on the SIB website (www.sibni.org).

2.2 David Gavaghan advised that ISNI provides a 10-year view of public infrastructure investment across health, education, transport etc. He emphasised the need for cross Departmental support and active engagement with stakeholders. He went on to explain that the strategy was not an amorphous mass but was made up of over three hundred individual projects each of which was focussed on society’s civil needs.

2.3 Mr Gavaghan set out a number of needs/issues across health, education transport and the environment and provided members with examples of the projects being taken forward in these areas. He explained to members a number of the issues needed to ensure delivery of the strategy including a balance of small, medium and larger projects, the need to focus on programmes of investment, proficient and sufficient skills, a step-change in public sector delivery, joined-up thinking across government with the opportunity in time to export capability particularly from a private sector perspective.

The Minister left the meeting at this point.

2.4 In response to members’ queries Mr Gavaghan advised that investment in infrastructure itself would not guarantee economic growth and that stimulating the enablers for economic growth needed to be progressed in tandem with infrastructure development – he referred members to Southern Italy as an example of a region having a good infrastructure but only a limited economy. He referred to the pyramid that features in the document “Ahead of the Curve” a document published in 2004 by the Enterprise Strategy Group in the Republic of Ireland. It provides a very useful context for the role that infrastructure plays in the overall arena of economic development.

2.5 Members also referred to the issue of joined-up thinking and the process of agreeing projects for funding. Mr Gavaghan advised members about a Belfast schools’ library project which involved 7 Departments. He explained that it had been difficult but that useful lessons had been learnt that would hopefully mean that we would find it easier to make cross departmental projects happen in the future.

2.6 In relation to project selection he explained that it was based on a process as outlined in Appendix 3 of the ISNI (pages 83 and 84). In the next iteration of the ISNI it is hoped that it will focus on three principal strands; first the need for the infrastructure to provide a platform for economic growth; secondly, the role it can play in creating social and community cohesion and thirdly addressing the issue of regional disparity. These three themes were the key areas that emerged from the consultation exercise following the publication of the draft ISNI. He also highlighted that the SIB did not determine priorities – this was a matter for Ministers and the Departments to determine. He advised members that a challenging issue for the future would be how to create more flexibility in departments and the concomitant duties of the accounting officer with the overriding prerequisite to move to a culture focussed on outcomes.

2.7 Members referred to the Review of Public Administration (RPA) and the opportunity it would provide to drive economic regeneration. David Gavaghan agreed that the RPA provided opportunity and referred members to two initiatives, the Lyons initiative and the Wider Market Initiative.

2.8 In response to a query about what policy changes might improve NI’s economic position and the forthcoming scenario planning work to be undertaken by EDF, Mr Gavaghan advised that, in his experience, an improved economy relied on an enterprising private sector although it was recognised that a change in the culture within the public sector would also be required. It was accepted that both private and public sectors in NI needed to adapt and accept the challenges ahead.

2.9 In response to a query about whether or not SIB had sufficient resources to deliver the ISNI, Mr Gavaghan referred members to the Belfast schools project which had been allocated 3 staff and advised that a similar project in England has 12 staff. This was clearly an issue that the public sector would need to address and it was recognised by officials present that more focus and resources would need to be allocated to the delivery of infrastructure projects to ensure that they happened to time and budget. Members suggested that thought be given to capitalisation of costs. In terms of delivering the ISNI it was important to recognise that the SIB could only support a finite number of projects as determined by Ministers and Departments given its resources. There clearly needed to be recognition across the NICS that appropriate resources were allocated to deliver this unprecedented level of infrastructure investment across Northern Ireland over the next ten years.

3. SUB-GROUP REPORTS

3.1 Mr Robinson invited the Chairs of the Sub-groups to update members on the work progressed to date.

MTSPs Sub-group

3.2 Seamus McAleavey advised that the MTSPs Sub-group had met on 11 November to discuss Regional Forecast’s monitoring, comparative analysis and forecasting model. He reported that members had raised a number of issues relating to the model and that a further meeting with Regional Forecasts had been arranged to address these issues.

3.3 He reminded members that the Sub-group had been tasked with finalising the Forum’s communications strategy. He explained that comments received from the other Sub-groups had been incorporated into the strategy and a revised version had issued to members for final comment before publication to the Forum’s website.

3.4 Seamus went on to explain that the Sub-group proposed that, in early summer 2006, the Forum should publish its 2005 annual statement. Members were content with this proposal and it was agreed that the MTSPs Sub-group would prepare a draft statement for members’ consideration at the June 2006 EDF meeting.

ACTION: Secretariat to email details of the meeting with Regional Forecasts scheduled for 15 December to all EDF members.

ACTION: MTSPs Sub-group to prepare draft annual statement for the June 2006 plenary meeting of EDF.

Innovation Sub-group

3.5 David Dobbin, Chair of the Innovation Sub-group reported that the Sub-group had met on two occasions since the last plenary meeting. He went on to explain that the Group had identified 9 priority areas covering tradeable services; nanotechnology; technology transfer to SMEs; the Centres of Excellence; the need for an overarching body to advise on strategic direction; clustering; innovation skills; innovation metrics; and the Foresight Programme. He advised that the Group was recommending immediate action on the first four priority areas recommended and it would maintain a watching brief on other areas and take possible action in the future.

3.6 Members welcomed the Sub-group’s report and emphasised the importance of the FE sector in relation to technology transfer to SMEs and suggested that EDF should strongly recommend the introduction of an HE / FE Collaboration Fund to the Minister. In response to a query about the Sub-group tracking global practice it was agreed that this would be considered by the Sub-group. Mr Haire referred members to DEL’s links with Dr Martin Lancaster, North Carolina.

3.7 Members recognised that the innovation indicators contained in the revised framework needed to be improved and endorsed the sub-group’s work in relation to innovation metrics.

3.8 Members were content that the Sub-group’s work over the coming 3 months would be concentrated around recommendations for the next budget round, including the HE/FE Collaboration Fund and nanotechnology, consideration of the establishment / merit of an overarching group such as Regional Science-Industry Council and the global tracking of innovation.

ACTION: Secretariat to upload Minister’s speech from the Exporter of the Year event (which included reference to the research into the future role of the tradeable services sector in the NI economy) onto EDF website and notify members accordingly.

Enterprise Sub-group

3.9 Lord Rana reported that the Sub-group had met on 3 occasions since the last plenary and that the Group’s work programme had been refined and finalised through consultation with Invest NI and the Business Alliance. He explained that the Group proposed that enterprise priorities for the coming months would revolve around the establishment of an Advisory Group following the AES review; stimulating exports by raising the profile and importance of trade and encouraging smaller businesses to export; improving the marketing of NI; and an examination of the entrepreneurial culture in NI. He also explained that lead responsibility for taking forward each of these issues had been allocated to individual group members. Members were content with the Sub-group’s proposed work programme.

3.10 Lord Rana also explained that the Sub-group had recommended that the issues of fiscal incentives and inadequacies of the local planning service merited discussion at a plenary meeting. In relation to the planning issue Mr McCusker explained that the Infrastructure Group had voiced its concerns to the Planning Service and referred members to a letter received from the Service’s Chief Executive. He endorsed the Enterprise’s Group’s proposal to include planning on a plenary meeting agenda. Members agreed with this approach and that planning should be included on the agenda for the next plenary meeting.

3.11 The issue of fiscal incentives was also discussed and it was agreed that as this was a broad issue discussion at the next plenary would cover the research undertaken to date, DFP’s analysis on corporation tax and DETI’s research agenda.

ACTION: DFP via Secretariat to circulate DFP analysis on corporation tax to EDF members.

ACTION: Secretariat to include local planning and legislation on the agenda for the next plenary meeting of EDF.

ACTION: Secretariat to include fiscal incentives on the agenda for next plenary meeting of EDF.

Skills Sub-group

3.12 In Michael Maguire’s absence, Tom Gillen, Deputy Chair of the Skills Sub-group reported that the Skills Sub-group had met once since the last plenary. He explained that the Group was continuing its work on alignment between the Economic Vision for skills and Departmental initiatives. He reported that following discussions with key organisations about the development of a Management and Leadership Development Strategy for NI the Group had identified a number of challenges facing the private, public and community and voluntary sectors. He went on to advise that a consultation document would be available in January 2006.

3.13 Mr Gillen reminded members that one of issues highlighted in previous reports was careers guidance. He advised members that Sub-group members would be invited to a forthcoming event to review the career guidance and education systems.

3.14 Mr Gillen closed by advising members that the expertise of the Sub-group had been broadened through the co-opting of Gordon Bell (ex Chief Executive of Liberty Information Technology), Richard McMullan (MD of Sliderobes) and Chrissie McCann (Operations Director of Select Recruitment).

Infrastructure Sub-group

3.15 Jim McCusker, Chair of the Infrastructure Sub-group explained that the Sub-group, in its September 2005 report to EDF, had set out the areas where action might be taken to improve NI’s infrastructure. He explained that the Group had continued to carry its work forward but would not be able to complete this until after the publication of the Investment Strategy for NI. The Group had identified 12 recommendations, a majority of which could be split into 3 distinct areas of broadband, the appraisal process and planning.

3.16 Members noted interest about a forthcoming event in relation to a single energy market. Mr Gilliland agreed to forward details of the event to Infrastructure Sub-group members for consideration. Members also raised the issue of prioritisation of the Infrastructure’s recommendations and how these would be taken forward. During discussions which ensued the Sub-group agreed to consider and agree the recommendations to be given the highest priority and in turn agree what action the Group needed to take to ensure delivery.

Future Working Arrangements for Vision Sub-groups

3.17 Mr Robinson reminded members that when the Vision Sub-groups had been established it had been agreed that the Groups’ primary role would be to contribute to the successful delivery of the Economic Vision by producing a prioritised list of the issues to be progressed in each Driver area. Groups had also been tasked with identifying the necessary action to address these issues. Mr Robinson asked members if they were content for the work of the Sub-groups to continue and if the operation / membership of the Groups needed further consideration.

3.18 In general, members were content with how the work of the Sub-groups was progressing but agreed that some strengthening of membership might be required. Members agreed that co-opting of members was a good way forward and that each Group should consider its agreed actions and focus on what additional membership they might be required to ensure delivery of agreed priorities. In relation to future Sub-group meetings it was agreed that less meetings between plenary meetings might be appropriate but that it would be up to the individual Sub-groups.

4. DETI RESEARCH & EVALUATION AGENDA

4.1 Dr Hutchinson advised that DETI economists had commenced work to prioritise the research projects to be delivered during 2006-07 and were keen to take onboard members’ views. He explained that a number of the 2005/06 projects would continue into early 2006/07 and that a number of projects published in the research agenda for 2005/08 would be progressed during 2006/07.

4.2 Members were concerned about the need for skills research and it was also suggested that some work into barriers to growth might need to be considered. Members suggested that it would be helpful to have an overview of research across DETI, DEL and other NI Departments as a means of informing their decision about priorities within the DETI research agenda.

ACTION: DETI to provide an overall view on DETI, DEL and other Departments on research for future years on the agenda for next plenary meeting of EDF.

5. DEVELOPMENT OF REGIONAL ECONOMIC STRATEGY

5.1 Leo O’Reilly advised members that an informal draft of the regional economic strategy had been circulated to NI Departments as a first step in ensuring that economic strategy commitments were aligned to Departmental priorities. He provided members with a brief update on the development of regional strategies across the UK.

5.2 In relation to the process for developing NI’s strategy Mr O’Reilly advised that it was intended that a series of regional economic principles would be identified followed by formal circulation of the draft strategy to NI Departments and EDF early in the new year to allow DFP to meet the HMT March 2006 deadline.

5.3 Members suggested that consideration should be given to a special chapter in the economic strategy relating to NI’s unique position within the UK of having a land border with another EU country. During the discussions which followed, members indicated they were content with the proposed process to develop the strategy but suggested that it might be appropriate for the strategy to be discussed at Sub-group level in advance of a discussion at plenary. It was also agreed that the next plenary would be arranged for late February / early March 2006 to facilitate the HMT deadline. Finally, members were reminded that EDF had agreed to maintain regular contact with the main local parties and it was agreed that representatives of the parties would be invited to the next plenary meeting.

ACTION: Vision Sub-groups to discuss draft regional economic strategy in advance of next plenary EDF meeting.

ACTION: Secretariat to arrange next plenary meeting for late February / early March 2006.

ACTION: Secretariat to invite the economic spokepersons from the main local political parties to the next plenary EDF meeting.

6. ANY OTHER BUSINESS

6.1 This issue was not discussed due to the overrun of the meeting.

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ANNEX 1

ECONOMIC DEVELOPMENT FORUM MEETING – 6 DECEMBER 2005

ATTENDEES

Angela Smith	Chair
Bruce Robinson	Deputy Chairman
Attendee	Organisation
David Dobbin	CBI
Denis Rooney	IOD
Bob Barbour	CforC
Fabian Monds	Invest NI
Lord Rana	NICCI
Richard Sterling	Londonderry Chamber of Commerce
John Gilliland	Ulster Farmers’ Union
Tom Gillen	NIC/ICTU
Jim McCusker	NIC/ICTU
John Mann	Higher Education
Raymond Mullan	Further Education
Seamus McAleavey	NICVA
Anne O’Reilly	NICVA
Wilfred Mitchell	FSB
Peter McNaney	SOLACE
Will Haire	DEL
Doreen Brown	DRD
Leo O’Reilly	DFP
Michael Brennan	DFP
Wilfie Hamilton	DETI
Graeme Hutchinson	DETI
Helen McConkey	DETI