Stormont Watch: Big Name Casualties Grow in Number

[Stratagem]

The list of household names hit by the credit crunch grows apace, with Waterford Wedgwood, Adams Childrenswear and Zavvi all in trouble.

Anglo-Irish firm Waterford Wedgwood, famous for its Waterford Crystal, Wedgwood pottery and Royal Doulton delph, has gone into receivership in the Republic of Ireland while its UK arm has called in the administrators.

Meanwhile, the BBC says Adams has announced that it has closed down 111 of its stores throughout the UK, five days after calling in the administrators. This includes five shops in Northern Ireland.

These developments come on the back of music retailer Zavvi going into administration before Christmas and highstreet staple Woolworths closing its doors in Northern Ireland and across the UK.

Some observers have predicted that other big names could soon face similar trouble.

[John McMullan]

Clearly it is worrying when we hear of closures and companies going into administration but we do need a media response to these events which is saavy and reflective, not just sensation driven. Some of the recent closures resulted from weak business propositions and as with frail people, catching the cold can be a terminal event. I don't suggest ignoring the reality of this recession, as it seems deep and will be difficult. But we do neeed a responsible media that reports the detail and background to some of the closures, to avoid us all being talked into a deeper and longer recession than it needs to be.

[Gráinne Walsh]

John,
It's worth listneing to the BBC's Westminster Hour's one off episode of the Sunday Supplement. Hugh Hendry, a hedge fund manager, talks about what the Austrian economist Joseph Schumpeter had to say about the role of government at a time of recession, as well as the role of recession in redressing the balance in business. here's the link - enjoy!
Ihttp://news.bbc.co.uk/1/hi/programmes/the_westminster_hour/7823198.stm

[Joanne Stuart]

Grainne, I listened to the podcast, and I found myself agreeing with a lot of the Schumpeter ideas. I believe that economies cannot sustain unbroken periods of continuing growth, and a period of slow down is good for everybody to take stock. Innovation and entreprenuerism are the areas that we have to encourage and invest in, particularly in a recession as these are what builds the foundation for the future. At a recent meeting with Invest NI a positive message was the continued strong take up of the R&D grants. The IoD will be rolling out workshops across NI this year specifically looking at Innovation and R&D and helping organisations to identify how they can improve in both areas. I also put up a blog in December which talked about the NESTA report looking at Innovation in a Recession. NESTA are currently doing some work to see how this report can help NI companies - watch this space!

Having said all that, I still think that the government can do more with their spending to support companies, and we need to ensure that it is targetted in the right areas.