People in Northern Ireland were expecting to get one of their best presents for Christmas 2004 – the re-establishment of the Province’s devolved government.
The region missed its opportunity for self-government two years ago because of the incapability of the political parties – principally the unionist DUP and the republican Sinn Fein – to work together.
It meant Northern Ireland’s 1.6m population is now under direct rule from London. Some commentators believe this has hampered Northern Ireland’s development – and it has meant that planning and infrastructure projects have not moved quickly enough in the past two years.
At the start of December, the situation looked set to change when it seemed there would be a compromise between the province’s two main parties. However, as so often happens in Northern Irish politics, they could not reach an agreement.
One side invariably refused to give in to the other’s demands. But, as Ian Miller, director of Europe for Investment agency, Invest Northern Ireland, puts it: “Northern Ireland has achieved stability, and despite the lack of progress in returning to a devolved assembly there is no indication that there will be a return to the situation prior to the peace process. Economically, it’s business as usual.”
Business as usual has meant that Northern Ireland’s GDP has seen the largest increase between 1990 and 1999 of all the UK’s regions. It is still growing 1% pa faster than the rest of the UK. It grew to 3% in 2004 and is projected to hit 3.5% in 2005. Unemployment levels are also at a 25-year low.
That said, manufacturers need not look at locating in the province. According to CBREGunne’s Outlook 2005, industry in the region is dying. However, this has been replaced by distribution companies – although this is still a fledging market.
Where the province has really come into its own is in the telecommunications market. Northern Ireland has become a hotbed for call centre and back offices.
Just a few months ago, HCL BPO increased the size of its workforce by 75. The company now employs 861 people — a 30% rise in staffing levels over the past year.
In total, according to INI, more than 640 foreign-owned companies have already set up operations in Northern Ireland. They employ more than 74,000 people.
This is proof that companies are not put off by Northern Ireland’s past. In fact, one aspect of the past Troubles is that there is now a lot of what INI calls “generous incentives and practical ongoing support” to be had for companies wanting to establish operations in the province.
Miller says: “Incentives may include revenue grants in support of employment, rent support, capital grants and a range of repayable assistance including shares and repayable loans. In addition, assistance with training, recruitment and other development costs is available.”
Grants and incentives go hand in hand with being able to provide the quality buildings needed to attract the likes of Citigroup, which announced in November that it is to open a Belfast office. INI contributed £7m towards the move, which will create 375 jobs.
Even with the international companies, Northern Ireland did go through a couple of years of recession in the property market. However, demand is now back.
Jago Brett, a director of agency for local firm BTWShiells, says there is limited stock at the moment but Northern Ireland’s developers will build speculatively to provide it.
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Belfast has now come so far in terms of its leisure and retail offering that some are calling the city the “new Dublin”. Realistically, Northern Ireland’s capital still has a way to go. The Troubles left the region at a very low ebb, which meant it could only go upwards. But since peace came to the province in 1996, it has sprung into life and now has a retail sector and nightlife to rival many major UK cities. And it’s not only Belfast that is growing – the Province’s other major towns and cities are also doing well. Entertainment complex During the Troubles, Belfast was literally dead at night because it was safer to stay on the city’s outskirts. However, in the past eight years, around 20 bars and clubs have opened. One of the real successes, and a first for Northern Ireland, was the 10,000-seat arena and entertainment complex, the Odyssey. Located about a mile from the city centre, on what was essentially derelict ground, owner Peter Curistan took a chance on opening the arena, which houses several restaurants and bars. Doug Garrett, director of operations at the Laganside Corporation, one of the main forces behind the regeneration in Belfast, says the success of Odyssey, took people by surprise. “They did not expect it to be as successful as it has been,” he says. The only drawback is the wait for a taxi – up to 2,000 people pour out of the Odyssey’s bars and restaurant at the same time. The venue attracts 2m visitors annually. A sure sign that Northern Ireland really has come into its own is the interest it has received from UK national companies. UK stalwarts Tesco and Sainsbury’s were among the first to make the journey across the Irish Sea. In the past six years they have been followed by the likes of Wetherspoons. The company, which is one of the UK’s most growth-oriented bar operators, opened six pubs around the province. International brand name hotels such as Hilton, Ibis and Holiday Inn have also opened in Northern Ireland. 2005 is expected to see House of Fraser opening at the Sprucefield shopping centre outside Belfast. And the retailer will be joined in future by Pizza Hut, Starbucks, Costa Coffee, Mango, and Lidl. Such is the demand for retail space in Belfast, modern units offering large floorplates are in short supply. This problem should be solved when Europe’s biggest retail scheme – AM Development’s £300m Victoria Square – opens in 2007. The resurgence in Belfast’s city-centre leisure and retail scene has been helped by the return of city-centre living. In common with the rest of the UK, the province is also seeing its house prices increase – although they are still cheaper than comparable UK cities. London is nearly twice as expensive as Northern Ireland. The University of Ulster’s last quarterly house price index of residential property showed a new high of £114,150. In Belfast, the overall average house price was £113,902 – a increase of 7.8% since last May. Rising house prices The more prestigious areas of Mid and South Down – 30-40 minutes’ drive from the city – are slightly higher. Prices in these areas increased over the year by 21.4%, and the average price is now £130,771. Renting is a better option, and prices are fairly cheap. A one-bedroom city-centre flat is £450 per month. Derry is Northern Ireland’s second city and is located 75 miles from Belfast. It has undergone major rejuvenation and there are plans for a further £100m redevelopment of its two-mile-long river front. Derry is also home to one of Northern Ireland’s three airports. The City of Derry airport, at Eglinton, just outside the city, has regular one-hour flights to London by Ryanair. The other two airports are Belfast International and City of Belfast airport. |
