7th June 2007

Local Chamber Chief Ian Crowe has highlighted the fact that Derry has been identified by the Construction Information Service as a location to analyse for a major report that they are carrying out. The CIS will conduct a report and accompanying CD on Construction 'Hot-Spots' in Ireland. These Hot-Spots have been identified in a number of Government Reports and as such CIS will provide up to date information and analysis on 25 major projects in each Hot-Spot identified across all sectors of the industry. Derry is one of the 12 cities/towns on the Island that will be targeted for analysis.

Up to 25 forthcoming construction and related projects will be covered in the anaylsis. Mr Crowe commented:

"This makes interesting reading and really brings home how much is either happening in the city or in the pipeline over the next few years. The report analyses the number of projects coming up, total expenditure, jobs impact and overall economic impact for the area".

Janice Tracey, Chamber Chief Executive stressed the need to ensure that the economic impact is maximized by the employment of local firms and labour. She said:

"Too often we see major contracts going to firms outside the NW and even outside of Northern Ireland. Whilst in many cases this is due to capacity, we need more measures in place to ensure that as many local economic multipliers as possible are built in to the contracts."

The Coolkeeragh Supplier Model, originally funded by Invest Northern Ireland and the Local Strategy Partnership and delivered by NW Marketing was a good example. Set up to ensure that local firms could benefit by being in a better position to sub contract from the main contractor at Coolkeeragh, the model is now being rolled out further afield. Derry's Chamber of Commerce Chiefs are calling from much more of these initiatives on a number of different levels.

But it's not only local firms that need to benefit. At a recent Workforce Development Forum the idea of using "Local Labour Clauses" for major contracts was muted. This is a concept of including a clause in large regeneration project contracts that a certain % of labour employed must be local and/or longterm unemployed. Janice Tracey says:

"To many this may seem a controversial idea but it has worked really well elsewhere. As long as it doesn't flout equality legislation and make business uncompetitive then it can be a very good model. In Sheffield where they have gone through massive regeneration, similar to the projects being undertaken in Derry, local labour clauses have been responsible for over 500 people being taken off the long term unemployed list. In a city where almost 50% of our working age population is not actually working, this type of positive action has to be a consideration."

Of course awarding of government contracts in construction related projects is only one aspect of procurement. Government procurement across the board is one of the hardest markets for an SME to access. Issues relating to public procurement have been to the fore recently in representations to Chamber from our members. Typical topics have included concerns over the number of NW companies on select lists, the use of qualifying criteria, capacity of SME's to compete for tendering, the need for more multipliers from the system and how sustainability as one of the key principles of procurement is achieved.

Chamber President Ian Crowe is concerned that not enough is being done to support business. He said: "We will be engaging with the Central Procurement Department to find out what steps and interventions can be developed to ensure geographical equity. There is a suggestion that not enough NW companies are on select lists - we need to find out the facts and if this is the case explore ways in which this can be rectified. The Chamber is pulling together a plan of activities to support members in this activity and lobby on issues of relevance. "

For further information contact Helena @02871262379