BACKGROUND

  The introduction of legislation under the Local Government (Miscellaneous Provisions) NI Order 1992 provided local authorities in Northern Ireland with the statutory authority to set aside funds to promote economic development. The level of support was established at 2p in the pound product of the rates.

  This development was complemented by the encouragement and opportunity offered by the European Structural Funds (1994-1999). Under the local economic development measure, additional funding up to a maximum rate of 50 per cent has been offered to supplement economic development funds generated from the rates.

  Following necessary preliminary activity, Belfast City Council launched a strategy document in early 1995 that set out the Council's strategic aims for the period 1995-2000. The three themes of inward investment, business development and community economic regeneration were identified as priorities. Two concurrent action plans, setting out programmes, targets and costs for the period, underpinned each of the three priority themes.

INWARD INVESTMENT POLICY

  Since 1995, Council's efforts to attract inward investment have been guided by the following aims:

(i)  To promote a positive image of the City to attract and retain inward investment projects;

(ii)  To attract inward investment projects to Belfast in partnership with IDB;

(iii)  To target projects concentrating on Advanced Technology and Information Technology;

(iv)  To facilitate the development and promotion of Belfast as an "Info-City";

(v)  To investigate, promote and support best practice in Information Technology;

(vi)  To investigate the support structures required in encouraging Advance Technology and Information Technology development in Belfast;

(vii)  To promote the use and benefits of Information Technology within the community and priority groups.

  A driving force within this approach has been Council's desire to build an economy based on new knowledge-based industries. As the policy has evolved, recent emphasis and resources have been focused on the support of information and communications technologies, life and health sciences and environmental technology.

  To that end, following a widespread consultation process and the establishment of an Investment Forum, which drew together key public sector agencies, business leaders and academia, it was agreed to establish a public/private partnership company to lead this area of the Council's work. Investment Belfast was launched in February 1999.

  The Company's Board is comprised of representatives of each of the main political parties, senior business representatives and officials of key central government agencies. Its aims are:

(i)  To provide leadership and co-ordination in meeting the needs of potential investors;

(ii)  To encourage innovation and entrepreneurship;

(iii)  To promote Belfast domestically and internationally as an investment opportunity;

(iv)  To ensure that the citizens of Belfast benefit from the investment growth.

  A key function of the company is to identify, and to facilitate a process to address, infrastructural gaps, in such a way as to create the conditions that will attract both potential inward investors and indigenous companies.

PROMOTION OF BELFAST TO POTENTIAL INWARD INVESTORS

  Historically, the promotion of Belfast as a location for inward investment has been constrained by a continuing absence of political stability. In such circumstances, almost inevitably, Belfast has relied heavily on consolidating relationships with those North American cities with which it has had an existing civic relationship. Such relationships have been marked formally through signing Memoranda of Understanding with Belfast, Halifax, Nova Scotia, Portland Maine and Boston, thus forming the "Atlantic Rim" initiative.

  In addition, the creation of a "Friends of Belfast" Network has been instrumental in fostering strategic alliances at civic and political levels, beyond the "Atlantic Rim" context.

  With improving prospects with regard to political development, Belfast City Council is convinced that it should now adopt a proactive approach to the promotion of the city. Such an approach is reflected in a recently adopted Trade Mission Policy, which seeks to target geographic areas—including, but not exclusively confined to, the "Atlantic Rim" cities of Boston, Portland Maine and Nova Scotia. Other geographic locations of strategic significance most notably in Europe, will be identified, where it is considered tangible outcomes can be achieved. Common throughout all activity will be an emphasis on those growth sectoral areas of information and communications technologies, life and health sciences and environmental technology.

  A copy of the Trade Mission Policy is attached as Annex 1, page 177.

EVIDENCE OF SUCCESS

  The newly adopted Trade Mission Policy thus seeks to give added impetus to an approach that has paid encouraging dividends, despite being relatively new to the Council.

  An inaugural Trade Mission to London in 1997 was followed by a successful partnership initiative with LEDU to Boston in 1998, involving some thirty local companies. The latter resulted directly in £20 million of trade.

  A third Trade Mission is planned for April 2000. Two cities—Boston and Pittsburgh, have been targeted by LEDU, Investment Belfast Limited and Belfast City Council. Outputs will be rigorously monitored in relation to a provisional investment target of £30 million.

  Belfast City Council can point also to the creation of some 80 jobs by small inward investment companies, under the auspices of Investment Belfast, as further evidence of its success.

PRIORITY GIVEN TO TSN AREAS

  Belfast City Council is particularly aware of its responsibilities under the overarching policy objective of New TSN to target services and resources to those individuals, groups and communities in greatest need.

  The desire to ensure that all citizens of Belfast are afforded an opportunity to benefit from investment growth is not restricted, however, to efforts to encourage the location of industries in those geographic areas characterised by high levels of social deprivation.

  Access to relevant economic opportunities has been identified as a crucial aspect in attempts to target social need. The following barriers to access have been identified:

—  relevant skills;

—  mobility, both in terms of public transport provision from areas of social need to areas of employment; as well as individuals being prepared to travel beyond their immediate neighbourhood (often reflecting religious and political homogeneity) and feeling safe to do so;

—  The availability of development land.

  These factors have informed and helped shape a response to strategic issues of employability, training, public planning and transport. The prestigious Gasworks site provides evidence of Council's strategic capacity to address complex issues through holistic operational programmes.

  Thus, through its direct involvement in site decontamination and infrastructural development, Belfast City Council accepted the risk of undertaking necessary and preliminary activity in an area of proven market failure. Subsequently, matching the needs of investors in respect of a skilled workforce, with those of deprived communities adjacent to the development location, with regard to employment opportunities, has been a focus of Belfast City Council intervention and has led to the creation of a local employment initiative.

  The recent announcement by a national financial institution of its intention to establish a call centre, employing up to 1,500 people within five years, provides substantive evidence of the success of this approach. Significantly, in terms of TSN, seven identified areas of deprivation adjacent to the site will benefit from the customised programme of preliminary training and mentoring, as a means of increasing employment opportunities.

  It is imperative that the impact of such initiatives is rigorously monitored by Belfast City Council, to enable subsequent evaluation to take place. In common with other public sector policy areas, the absence of such substantive quantitative evidence makes it impossible to state conclusively the impact upon designated areas of deprivation of such investment programmes.

CO -ORDINATION WITH IDB

  Belfast City Council strives to promote a close working relationship with the IDB. Bi-monthly meetings are held between the Council's Director of Development, the Chief Executive of Investment Belfast Limited and the Chief Executive of the IDB, to brief on programmes and to identify areas for joint working.

  The IDB is represented also on the Board of Investment Belfast.

SUCCESS FACTORS

  Success can be attributed to several factors:

—  Undoubtedly, a factor of critical influence, particularly with regard to potential investors from North America, has been the adoption and promotion of a bi-partisan approach to economic development by local politicians. Such cross-party endorsement carries substantive weight at the level of city governance in the American context.

—  Clearly, the emerging context of political stability is of increasing attraction to overseas investors. Taken in conjunction with the physical regeneration emanating from Laganside and Belfast City Council, substantive evidence of potential investment opportunities is now apparent and is receiving a higher international profile. The re-branding of Belfast as an investment opportunity, as opposed to an image of civil and political conflict, is of critical importance to future investment patterns.

—  At an operational level, Investment Belfast has provided crucial, specialist support necessary for focused delivery. Thus, support to investors coming into the city through the provision of welcome and assimilation programmes, introductions to key contacts, and sourcing premises has been instrumental in enhancing both efficiency and effectiveness.

—  Similarly, through stimulating debate and addressing key infrastructural issues through conferences and seminars, key issues of significance are raised by Investment Belfast Limited and discussed in an environment of constructive analysis and co-operation. To date these have included:

—  "Success Through Innovation"


—  "Unlocking land for Commercial Development"


—  "Improving Access to Broad Band Width"

OTHER RELEVANT MATTERS

  A forthcoming report conducted jointly by the University of Ulster and the Northern Ireland Economic Council is likely to contain evidence of both the efficiency and effectiveness of local authorities with regard to job creation and associated costs, as compared to both the IDB and LEDU.

  While, as noted above, Belfast City Council enjoys close working relationships with both LEDU and the IDB, Council believes such independent analysis is noteworthy, particularly considering the wider political environment within it has had to operate.

  Council is convinced that should powers of local authorities be enhanced under a regional Assembly, in line, for example, with those proposed for local authorities in England, that greater efficiencies could be effected with regard to job creation costs.

  Council would argue that local authorities provide the primary vehicle through which inward investment should be generated and that powers and resources should be allocated accordingly.

INWARD TRADE MISSION POLICY

  As civic leader of the City of Belfast and in keeping with the Economic Development priority theme of attracting Inward Investment opportunities to the City, Belfast City Council will seek to host Inward Trade Missions from the Atlantic Rim Partner areas of North America with a specific focus on the following industrial sectors;

—  Life and Health Sciences

—  Environmental Industry

—  Information and Communication Technologies

—  Software Development

—  Financial Services and Legal Sectors

—  Telecommuncations.

  Belfast City Council will also target inward trade mission activity within these sectoral areas in other geographical locations of strategic significance. Belfast City Council will carefully assess all future Trade Missions within the stated criteria before offering civic hospitality.

  Belfast City Council will also retain the right to host one off major cross sectoral Trade Missions led by senior individuals such as Governors, Mayors and other VIP's which would be important for the City of Belfast from a civic, commercial or political perspective.

  Belfast City Council will communicate this Trade Mission policy to the current Atlantic Rim partners with whom the City has formal trade links, to prospective partners and to existing and future Friends of Belfast.