North/South Ministerial Council: Trade and Business Development

Ministerial Statements – in the Northern Ireland Assembly at 1:00 pm on 14 January 2013.

Alert me about debates like this

Photo of Arlene Foster Arlene Foster DUP 1:00, 14 January 2013

With your permission, Mr Principal Deputy Speaker, I wish to make a statement in compliance with section 52 of the Northern Ireland Act 1998 regarding a meeting of the North/South Ministerial Council in trade and business development sectoral format.  The meeting was held in the offices of the North/South Ministerial Council (NSMC) in Armagh on Wednesday 28 November 2012.

The Executive were represented by me in my capacity as Minister of Enterprise, Trade and Investment and by Carál Ní Chuilín MLA, the Minister of Culture, Arts and Leisure.  The Irish Government were represented by Richard Bruton TD, the Minister for Jobs, Enterprise and Innovation.  The statement has been agreed with the Minister of Culture, Arts and Leisure.  I am making the statement on behalf of us both. 

The Council noted the findings of InterTradeIreland’s cross-border study on the innovation ecosystem, which reinforces the view that supporting innovation is a critical channel by which to foster growth.  Ministers welcomed InterTradeIreland’s programmes that support an open system of innovation throughout the island.

Ministers also noted the work that InterTradeIreland has undertaken to support companies, which includes the piloting of two new programmes, Challenge and Elevate.  Those programmes support small and medium-sized enterprises (SMEs) and microbusinesses to grow and develop through innovation and exporting against difficult market conditions in both jurisdictions.  Two specific Challenge programme participants were highlighted, the Clada Group and Fast Engineering Ltd.  Both companies have reported significant benefits from participation in the programme.

Ministers welcomed ongoing and future initiatives that are being developed by InterTradeIreland to encourage and stimulate greater co-operation to increase applications to EU framework programmes.  In the period from November 2011 to July 2012, there were an additional 63 North/South submissions, of which 19 were successful and resulted in funding of €20·5 million.  That represents an increase in funding of 51·2% compared with the figure for the period from the start of framework programme 7 (FP7) to November 2011.

Ministers welcomed the continued success and development of the US-Ireland Research and Development Partnership, including the latest collaborative proposal, WiPhyLoc8, in the newly added area of telecommunications.

The Council noted proposals for the Irish presidency of the EU in 2013 in the trade, research and innovation, employment regulations and competitiveness areas.  It was also noted that Ireland will host a number of conferences and events to progress science, technology and research issues during its presidency.  Ministers also noted that, over coming months, officials will liaise on the potential for Northern Ireland's Ministers or their representatives to attend events that are relevant to the trade and business area during the EU presidency.  Participation could include involvement at relevant events that are associated with trade and competitiveness informal councils, InterTradeIreland’s 'Collaborate to Innovate' conference, and the Week of Innovative Regions in Europe (WIRE) and EURO-SME conferences.

The Chairperson and the CEO updated Ministers on InterTradeIreland’s half-year performance against its 2012 business plan targets.  InterTradeIreland has made good progress in the first half of the year against its end-of-year 2012 targets, including 21 first-time innovators against a full-year target of 35 and a jobs impact of 115 against a full-year target of 150.  It is also on track to deliver efficiency savings of 6%. 

The Council agreed that the next trade and business development meeting should be held in early summer 2013.

I commend the statement to the Assembly.

Photo of Patsy McGlone Patsy McGlone Social Democratic and Labour Party 1:15, 14 January 2013

Go raibh maith agat, a Phríomh-LeasCheann Comhairle.  Gabhaim buíochas leis an Aire chomh maith as a ráiteas.  I thank the Minister for her statement.  In regard to the Irish presidency of the EU this year, I note that there are broad thematic areas.  Has the Department identified key areas or issues of specific interest or policies to be raised during the Irish presidency of the EU?  Has it done any preparatory work in that regard?

Photo of Arlene Foster Arlene Foster DUP

I thank the Member for his question.  My permanent secretary, along with the permanent secretary from Minister Bruton's Department, sits on a group that identifies the areas where we think we can get the most out of this period of time.  It will not surprise the Member to know that innovation, and research and development are the two key areas for us moving forward.  That is why I referred to the innovation week conference being hosted by the Republic of Ireland, which we will, of course, get an invitation to attend.  It is important that we try to get the most out of Europe in respect of innovation. 

 

The Member will know that FP7 has been a tremendous programme, but a lot of SMEs had difficulties accessing the funding.  We want to make sure that, with Horizon 2020, we are really up to speed in order to make sure that we draw down as much money as possible and, of course, get the benefit of innovation.  So, I would say that innovation is probably the key area where we want to make sure we work collaboratively with the Irish presidency and make an impact on Northern Ireland.

Photo of Robin Newton Robin Newton DUP

I thank the Minister for her statement and for what is, indeed, a very encouraging report, which comes on the back of the Enterprise, Trade and Investment (ETI) Committee report on research and development.  Is the Minister satisfied with the level of co-operation on innovation and in that area generally?  Is there an opportunity to further expand the level of co-operation by perhaps encouraging suppliers to work more closely with customers on innovation?

Photo of Arlene Foster Arlene Foster DUP

I thank the Member for his question.  At the meeting, we had a very good presentation on the work carried out on the innovation ecosystem.  It looked at different firms from across Northern Ireland and the Republic of Ireland to see what those firms believed was important to them.  That gave them the opportunity to say whether it was higher education institutes; financial services organisations; universities; innovation support agencies; customers; or suppliers.  The two with which the firms were very engaged were customers and suppliers, but they were not so engaged with other bodies that could help them with innovation. 

So, we have a job of work to try to say to those small firms that, although we understand why their customers and suppliers are, of course, primary in their thoughts when they look at their day-to-day work, they should look beyond their customers and suppliers to maybe their local education establishment or, indeed, local banks or other financial services organisations because they can help with innovation as well.  I must say that I found the piece of work by InterTradeIreland very helpful, and we can take it forward.

Photo of Phil Flanagan Phil Flanagan Sinn Féin

Go raibh maith agat, a Phríomh-LeasCheann Comhairle.  I thank the Minister for her statement.  I will be a wee bit nicer this time, and hopefully I will get an answer.  The Minister signalled her intentions to work proactively with EU presidency, and I thank her for that.  Will she consider trying to get roaming charges put on the agenda for discussion during the EU presidency?  That is a big issue in respect of competitiveness and trade, particularly in border areas where businesses and citizens cross the border on a regular basis.  There have been some indications from the EU that it wishes to abolish roaming charges.

Photo of Arlene Foster Arlene Foster DUP

I thank the Member for his question.  Indeed, I note that the ETI Committee has taken this up again.  I am more than happy to speak to my counterpart.  It is probably Pat Rabbitte whom I need to speak to about telecommunications, and I am certainly happy to raise the issue with him again.

It is an issue I raised with Everything Everywhere, when I had the opportunity to meet them recently.  It is an issue I have no difficulty in raising, because, as you say, it affects people on both sides of the border who have disproportionate fees applied to them.  As I said in what is now maybe an infamous statement — I sometimes can be on something in Brookeborough that I should not be on — we need to take on board the concerns of businesses right across the border corridor.  I am more than happy to do that, if the Member wants to write to me.

Photo of Sandra Overend Sandra Overend UUP

I thank the Minister for her statement.  Will the Minister expand on the piloting of the two new programmes she mentioned, Challenge and Elevate?  I did a quick Google search to see what they were about, but maybe the Minister will expand on the timings of the pilot, the targets and how Northern Ireland will specifically benefit from those.  I had better stop there.

Photo of Arlene Foster Arlene Foster DUP

As the Member knows, a number of programmes are available to companies through InterTradeIreland.  InterTradeIreland is not there to duplicate the work of Invest Northern Ireland; InterTradeIreland is to add value.  Indeed, as its title suggests, it is a trade organisation and is there to help people to trade.  Of the two programmes I mentioned, Challenge is to inspire companies that may be quite comfortable and do not want to think about growth to think about growth and be ambitious about growing their company and looking at all the opportunities to do that.  The Elevate programme is to get small companies ready to export and to look at markets that maybe they have not thought about looking at before.  You may say that that is surely an overlap with Invest Northern Ireland; it is not if they do it collaboratively.  I am pleased to say that the chief executive of Invest Northern Ireland and the chief executive of InterTradeIreland, along with the chief executive of Enterprise Ireland, work together to make sure that there is no overlap between the organisations.  I do not have the targets in front of me, but I am happy to write to the Member in relation to those targets.

Photo of Kieran McCarthy Kieran McCarthy Alliance

I thank the Minister for her statements.  On the first, I thank her for her determined and robust support for the UK City of CultureThe Minister will know that the chief executive of the City of Culture is a young, confident, dynamic lady by the name of Shona McCarthy.  Anything that comes from Shona McCarthy will be a success, I assure the Minister. 

In relation to the second statement, has the Minister held any discussions on the treaties established with other countries by the Republic that have implications for the level of tax payable by companies there in the telecommunications and broader technology sector?

Photo of Arlene Foster Arlene Foster DUP

I have not had any conversations in relation to that matter.  If the Member has the detail, I am happy to look at that.  As I said to Mr Flanagan, the telecommunications field is probably Mr Rabbitte's, but I am happy enough to raise the issue with him.

Photo of Gordon Dunne Gordon Dunne DUP

I thank the Minister for her statement.  Will the Minister advise what progress is being made in relation to access to finance for businesses and industry in Northern Ireland and, indeed, the Republic of Ireland?

Photo of Arlene Foster Arlene Foster DUP

Access to finance is an issue that continues to be dominant, particularly for small and medium-sized businesses.  In December, the Finance Minister and I met seven banks based here in Northern Ireland.  We listened to what they had to say and shared with them some of our concerns.  I was able to say to all the banks that they should have a closer relationship with Invest Northern Ireland, so that they can understand the market here and the sectors that we are trying to grow.  The economic advisory group, chaired by Kate Barker, has been engaged in a review of access to finance for business in Northern Ireland.  I look forward to receiving that report to try to establish, in particular for SMEs, what support is currently available, the level of uptake and the potential reasons for any gaps or deficiencies in the market.  That report should be with me in the near future.  I am sure that I will make a statement in that regard.

Photo of Sue Ramsey Sue Ramsey Sinn Féin

Go raibh maith agat, a LeasCheann Comhairle.  Like others, I welcome the statement made by the Minister.  Minister, you mentioned the initiatives developed by InterTradeIreland to encourage and stimulate greater co-operation for applications around EU framework programmes.  An increase of 51·2% in funding, compared with the previous period, is welcome news.  Nineteen of the 63 groups were successful, which means that over half were not successful.  I do not want to be negative because that additional money is to be welcomed, but is there a theme to why over half were unsuccessful?  Are we learning lessons from the programmes whose applications were unsuccessful?

Photo of Arlene Foster Arlene Foster DUP

I think that we are learning lessons.  In some cases, it is about bureaucracy, to be blunt.  This is not new; I have talked about it in the House on many occasions.  It is why we have been pushing Commissioner Geoghegan-Quinn to make sure that the next programme does not involve as much bureaucracy.  Of course, as with anything, the applications go through a process, and some will be winners, and some will be losers.  It is important that we continue to push this agenda.  As you know, Northern Ireland has increased its spend on research and development.  Like you, I very much welcome that, but there is much, much more to be done.  We need to continue to support innovation because it is the critical challenge for growth.  It means that we can move the economy forward.  We can translate innovation into profit and commercialise research and development into real and meaningful products.  It is the very essence of what we are trying to do, and I am pleased to say that InterTradeIreland is playing its part in helping us to push that whole innovation agenda.

Photo of Alban Maginness Alban Maginness Social Democratic and Labour Party

Following on from Miss Ramsey's question, I note the increase in applications to the EU framework programme.  That is to be welcomed because innovation and research should be the lifeblood of business in Northern Ireland and, indeed, throughout Ireland.  The Minister referred to bureaucracy as an obstacle, and that was certainly pointed out by the Committee in its report on this area.  What is the Minister's analysis of the reasons for the additional success now being achieved by InterTradeIreland in relation to such applications?

Photo of Arlene Foster Arlene Foster DUP

We and InterTradeIreland have, it is fair to say, become very focused on innovation.  In particular, InterTradeIreland has held a number of workshops, and I have attended conferences with them.  It is all very well talking about the concept of innovation, but, unless we can show what it means to businesspeople, they will probably think that it is a good idea but decide not to get involved.  So it is important that we show them the impact that innovation can have.  InterTradeIreland has been doing that, not only through its workshops and conferences but through its programmes.  As I said, some of those have been very good, and the Innova programme is one that takes a research and development proposal and tries to make it a reality for a company.  So InterTradeIreland's success is down to a combination of focus, workshops and conferences and, of course, programmes to try to assist in all of that.

Photo of Maeve McLaughlin Maeve McLaughlin Sinn Féin

Go raibh maith agat, Mr Principal Deputy Speaker.  I thank the Minister for her statement, and I hope that I will get an answer to my question.  I note and welcome the statement's focus on the SME sector.  I ask specifically about the Horizon 2020 programme that is coming on stream and the appointment of its manager.  Will the Minister update us on progress on the various contact points to be aligned with the universities across the North?

Photo of Arlene Foster Arlene Foster DUP

Invest Northern Ireland and InterTradeIreland are very focused on Horizon 2020.  The Member referred to its manager.  We also have someone working for us in the Office of the Northern Ireland Executive in Brussels, and she intends to be at the coalface so that she can pick up any intelligence and information on what is new and what is happening in those areas.  The programme is, of course, at an early stage, but I assure the Member and the House that we intend to up our game on Horizon 2020.  That is why we have put in place the resources to do so.

Photo of Jim Allister Jim Allister Traditional Unionist Voice 1:30, 14 January 2013

With less than 10% of our manufacturing exports going to the Republic of Ireland, in contrast to 60% going to GB, is there not a much more compelling case for an inter-UK trade body rather than an InterTradeIreland body?  Is that another example of misfocus in the systems and strategies that exist?

Photo of Arlene Foster Arlene Foster DUP

The Member knows fine well that there is a UK trade organisation: it is called UK Trade & Investment (UKTI).  We work very closely with it.  Of course, our main source of exports will continue to be to the rest of the United Kingdom, to GBInterTradeIreland was set up, as he well knows, under the terms of the Good Friday Agreement.  For the record, that is not something that I supported, but I have to deal with the hand that I was dealt.  That is why I am trying to make it more focused, make it relevant to Northern Ireland and make sure that companies get the most out of it.  It is a trade organisation; it is not a jobs organisation, as I think he may have mistaken it to be in some of his statements over the summer.  It is a trade organisation; it is there to help companies.  I hope that it continues to do so.