The Role of Local Authorities in Economic Development and Job Creation

Presentation to LAMAPresentation to LAMA

April 2012

Sinead Carr Director of Services

South Tipperary County Council

� LA’s have always been involved in economic development � Traditional economic interpretation of the LA role

� “Traditional focus” has been and is an important and critical platform for laying a sustainable and robust critical platform for laying a sustainable and robust basis upon which the broader economy can grow and develop� Critical to the effectiveness of other enterprise support agencies

- the LA has created the environment in which these agencies can fulfil their role and supported and assisted them to achieve their aims (CEB; IDA; EI etc).

� Support from LA has always been generously forthcoming in this regard

� But the LA have always had a broader agenda in economic development than the traditional “view” held by external agencies and stakeholders

� The purpose of this paper is to highlight what � The purpose of this paper is to highlight what this role has been over the last 10 years and in particular to highlight how the structures at LA level, if allowed to expand to its full potential in this area can � meet the broad and specific requirements of the Programme for Government in the economic development area

� and successfully undertake the actions outlined in the Action Plan for Jobs 2012

� The mandate of LAs through their elected representatives is to have a view of all areas which have an impact on their administrative area

� But whilst they were able to form a holistic view and could see where the linkages might take place, they did not always have the where with-all to progress and address the deficits/opportunities.

In particular, local authorities up to now did not have a direct � In particular, local authorities up to now did not have a direct responsibility in the area of enterprise grants, enterprise development, enterprise training, enterprise mentoring etc,

� Notwithstanding this, LAs have worked to stretch the boundary of their economic remit and work in a manner that maximises the economic value to the citizen. As a result LAs have become leaders, persuaders, enablers, facilitators

� LA’s are the key link between the business communities, the variety of economic agencies and the service receivers at local level.

� The Programme for Government has recognised that the needs of businesses are complex and multi-dimensional� It recognises that the manner in which economic agencies are currently

structured do not always lend themselves to dealing in a flexible manner to the needs of enterprises and businesses and indeed misses out on key sectors

� None of the myriad of enterprise agencies currently in existence operate across the entire breadth of the business sector typesacross the entire breadth of the business sector types

� It identified the need for a one stop shop for the business community

� The economic support system up to now has resulted in lost opportunities for collaboration between businesses themselves and between agencies and businesses - in particular� The complex linkages between industries can be missed and the

opportunity to feed off firms of different size and type� Opportunities can be lost to develop more “inter-connectivness” between

sectors� Loss of opportunities to explore sub supply and to link up supports

between firms of different sizes and different markets� The Jobs Action Plan 2012 tries to address these deficits and LA’s are well

placed to meet these gaps

� The varying economic agencies also operate at different spatial scales (regional versus local) and this can result in local needs being overlooked or potential valuable links being missed

� Local economic development agencies (LDC; CEB’s etc) have a minimal mandate to persuade, encourage or drive the regional economic agendas to deliver at etc) have a minimal mandate to persuade, encourage or drive the regional economic agendas to deliver at local level and meet local business needs� LA’s are in fact the one agency which effectively has the

mandate (through the Elected Member & the CDB structure) to work with all agencies and does this through persuasion and enablement

� However LA’s have the potential to have a far more effective role and are in a position to also enable those sectors that are not typically assisted by the above mentioned agencies (i.e local service providers etc)

� Since 2000 in particular LA’s have expanded their economic remit and have very effectively used their lead role to address local economic issues & opportunities.

� The next number of slides give a very brief glimpse of some of the wide ranging initiatives that have been some of the wide ranging initiatives that have been undertaken/initiated/facilitated/enabled through and by the LA in their CDB capacity. For ease of reference , slides will be grouped as� Strategic initiatives

� Internal LA structural changes

� Information Initiatives & Marketing Initiatives

� Job Creation/Addressing Closures/Downsizing

� Collaborative Initiatives & Direct Enterprise Engagement

� LA, in it’s CDB capacity, has developed a common integrated and practical approach to economic development which is linked in with the needs of businesses. This has allowed agencies to work together to meet gaps or to collaborate on key strategic initiatives (Economic Component of Strategy and other key strategic economic documents). Examples include� the collaborative approach to the development of a Tipperary Science

and Technology Campus in Clonmel which is a collaborative effort between STCC; the IDA and LIT TI

� The establishment of Kilmeaden Fields Task Force with Glan Bia, � The establishment of Kilmeaden Fields Task Force with Glan Bia, Waterford CoCo, EI and IDA to promote a strategic development site

� Destination Waterford City Tourism Initiative which included developing The House of Waterford Crystal; joint marketing & the development of product offerings. Led by WCC and actively supported by FI, WIT, Traders

� CDB structure could and has also been used to develop appropriate regional enterprise initiatives/cross boundary initiatives where it is clear that potential exists (accessing of European funds)� Examples include Delivering recommendations in the South East

Regional Employment Strategy

� LA’s through the CDB structure can be used to facilitate “think tank” sessions around key enterprise topics and the CDB structure can be used to drive the innovation agenda at county level in an integrated manner� Innovation and Enterprise “Think In” session in South

Tipperary led to a practical integrated action plan signed up to Tipperary led to a practical integrated action plan signed up to by all agencies to promote innovation. Actions included the introduction of the PLATO model (co-funded by STCC and CEB); setting up of an Engineering Network (supported and funded by FAS; LIT TI and STCC); Encouraging the inclusion of a business component in all 3rd level courses in LIT TI; making active introductory links between businesses in the area and LIT TI (enabled by STCC); Set up links with the “Third Banking” Sector and have assisted applicants to progress through their processes (STCC and selected “Mentors”)

� Business Support Units/Economic Development Units set up in each County to co-ordinate information around this area of activity & more focused economic role within all sectors of the LA. Examples of achievements made by the BSU’s (EDU’s) to date include� In STCC, the Economic Development Unit has

� addressed the vacancy issue in the Council Business Parks with additional jobs being created – 2009 had 60% occupancy. Now 100% and expanding jobs from 80 to 135);

� linked the tenants in the business parks with the relevant economic and educational agencies and initiated valuable initiatives i) Intellicom and FAS project (lead to Intellicom taking on 15 additional workers and working with an educational agencies and initiated valuable initiatives i) Intellicom and FAS project (lead to Intellicom taking on 15 additional workers and working with an additional training centre in the east of the county with the potential of taking on more of the trainees);

� Linked Pharma Assist with the Alimentary Pharmbiotic Centre (APC) in UCC on the development of a food supplement (APC is EI supported);

� linked small artisan food producers with a larger more industrial food producers to see if synergies between the two could work in both interests;

� worked with businesses to raise their awareness of funding opportunities; grant opportunities and linkage opportunities (Hanley Controls; Surecom; etc).

� Linked them in with Intertrade Ireland’s Acumen Programme; “Going Global” EI grant; feasibility studies to the LDC and EI; FP7 funding; Innovation Vouchers ; SEI funding opportunities etc

� In Waterford City, the BSU has worked with IDA; EI; SEBIC and CEB promoting entrepreneurship (Innovate to Compete; Fresh Start; Unemployment Fair ; attracting large scale events to Waterford City etc)

� Economic agenda within most LA’s has been prioritised in all service areas � (development contribution scheme – 30% off zoned employment areas/town centre areas etc);

� development plans – in 2007/09 new initiatives to assist small start up enterprises in rural/village areas;

� Struggling businesses actively encouraged to link with finance � Struggling businesses actively encouraged to link with finance section and supportive approach to payment of rates/charges/contributions;

� linkage provided through planning applications with CEB (business plans); LDC (grants etc)

� Waterford County – business advice in advance of pre-planning (assistance with business model; provision of business mentoring support; advice on grant assistance on offer etc)

� A County Data Unit has been set up in Fingal County covering all key data sets.

� Through the business networks set up in South Tipperary, disseminated information on the opportunities available in the export area ; holding information sessions on demystifying the exporting process; identifying the supports available and using the experience of businesses who have already successfully gone through the process to promote this opportunity (STCC; gone through the process to promote this opportunity (STCC; FAS; EI; TI)

� Development of a Waterford Business Information Website where all of the information on the economic and entrepreneurial supports in Waterford City are available on line (WCC) – other counties have similar

� Developed and Disseminated the “Galway Good Food Guide” to Artisan, Speciality and Premium Foods in Galway County (GCC; HSE; Teagasc; Food producers; Galway Rural Development; FI; An Bord Bia; GMIT; Food Retailers and Chefs Representatives)

� LA can and is acting as a one stop shop for existing and potential entrepreneurs (irrespective of size or type) in relation to the myriad of supports, grants and assistance that are available at both regional and local level from all economic support agencies

LA acts as the local champion to ensure delivery of � LA acts as the local champion to ensure delivery of integrated supports between the enterprises of different scale and type

� LA can act as the central statistical hub for the County –analysing economic trends and indicators; supply information to support applications and attract inward investment

� Provide a consultative mechanism to facilitate economic input to the drafting of National Regional and other Plans.

� LA’s have and are working with business communities to undertake international, national and regional promotional initiatives

� Assist, support and part fund the organisation of cultural/festival events and in particular can link up the softer supports of arts, heritage and link up the softer supports of arts, heritage and culture with economic initiatives given their importance in attracting and sustaining employment initiatives

� LA has the flexibility to work with particular sectors and assist them to work in a collaborative manner to maximise their marketing appeal. Examples include:-

� STCC - A Promotional DVD promoting “doing business” in South Tipperary and used interviews held with a number of key business leaders who have good “business standing world wide”. The DVD will be used by the IDA in its marketing and is also being used actively by the Council when the opportunities arise (i.e. Eoin Kelly/White House; the media entourage/Queen’s visit; all of the businesses who took part in the DVD (Kents; MSD; J&J; Coolmore etc)� Celebration and promotion of enterprise activity in South Tipperary –� Celebration and promotion of enterprise activity in South Tipperary –A number of planned rolling initiatives were undertaken which included a civic reception to key achievers (Hugh O’Donnell - CEO of Kents); a high profile launch of a number of integrated economic initiatives undertaken at County level (launched by the Minister of the day and key business leaders); positive coverage of the various events by the local newspaper and by the national media. Purpose was to expose the proactive and enterprise friendly place to do business

� Destination Waterford City Retail Committee – established to motivate the retailers to raise their standards in terms of presentation, promotion, customer service etc – aim is to promote the collective retail offering in the City Centre (Waterford Chamber; Retailers Association & WCC)

� Development of a specific integrated retail action plan to energise and support the retention and expansion of the retail sector in South Tipperary (Collaborative marketing programmes; supporting festivals/events, working with retail trade in smaller towns to develop bundles of attractions; develop grant schemes for vacant shops, promoting and supporting social media training etc). (led by STCC with Chambers, Traders, Town Councils etc)

� In Limerick county and city and Louth County pilot grant schemes have been introduced to revitalise the business sector & increase have been introduced to revitalise the business sector & increase jobs

� Use of Waterford Festival of Food (Dungarven) to raise profile of area and of food products (over 10,000 visitors)

� Use of key sporting names to raise profile and develop initiatives (Sean Kelly Cycling Tour and John Tracey Classic Run) (Waterford County Council & WSP)

� Dundalk Economic Development Group – a public private partnership which promoted Dundalk as a prime place to live, invest and visit (branding; DVD; website; database of available landbanks; BIDS; Green technology Fund; targeted training etc)

� LA’s over the years have worked with and at times led the relevant agencies to attract significant employers to their county� Addressed infrastructural deficits and Provided much needed

information (Guidant)� Acted as the local link with the existing large employer and addressed

their requirements and assisted them to expand/win contracts for expansion (J&J) & attract employees

� Developed and operated business parks

� In more recent years, LAs have taken the lead in dealing with closure/downsizing of large scale enterprises and worked to minimise/replace the lost jobs. Examples include� CDB officials Group in STCC (led by LA & inclusive of IDA; EI; FAS;

LIT TI; VEC; CEB) – set up initially at the Sea Gate Closure and successful in working with national level to attract in Guidant (LA delivered in the area of infrastructure; key data requirements; analysis etc where required)

� It also worked with businesses who were closing;- linking in with employees & assessing their needs and opportunities; identifying skill sets; assisting with information supports; supporting and mentoring those who wished to start their own business. Always well received

� LA have always actively developed business parks and have worked with the relevant stakeholders to sustain and expand these. Through the development Plan, they have always identified strategic land-banks and in numerous cases, purchased same. Examples includeinclude� Development of Community Enterprise Centres

� Purchase of strategic land banks

� Provision of broadband infrastructure

� Provision of incubation space for craft industries

� Financing and Developing of tourism infrastructure (Waterford Crystal Visitor centre; Forest Cycling Trails; Swimming Pools; Parks; leisure areas etc)

� Use of derelict sites to develop town centre initiatives (urban renewal areas, village enhancement areas etc)

� LA’s because of their recognised key role at local level have a history of working collaboratively with other stakeholders to deliver on the needs for their area

� LA’s have used their influence to persuade and facilitate joint action in key areas (national, local and regional)

� Facilitated and supported the development of tourism � Facilitated and supported the development of tourism as an economic primer, including product development and marketing and the setting up of Tourism Companies

� Supported the development of early stage entrepreneurial behaviour and skills support – science and technology festivals, critical thinking initiatives; enterprise competitions etc

� Pursued innovative ideas such as the development of a business start up loan to fund SME’s

� Examples include� The BSU in WCC took the lead and identified a suitable model

which allowed key stakeholders to come together and develop a Local Loan Enterprise Fund which was set up and is operating through the Waterford City Credit Unions (capital funding of up to 25,000 to SME)

� Using the BSU to create linkages and add value such as� Using the BSU to create linkages and add value such as� Working with tenants in the Business parks (public and private) –assisted a “Fine Foods” Company to set up in a public owned Business Park (nominal rent for a stated number of years to assist with start up; linked company in with the LDC to obtain funding support to test market feasibility; supported and assisted company in the preparation of the company’s business plans; assisted in identifying potential training skill supports)

� In Cappawhite and Donohill, worked with community groups to ascertain the level of interest in developing community enterprise centres

� Worked with Private Business Park on a feasibility study (setting up a food production facility in the park) – also set up and facilitated a meeting with UCC to progress action following this study

� Set up, facilitated and supported a meeting between LIT TI and Coolmore which will result in the running of appropriate courses for the equine area (and particularly for staff who are “out of season”)

� Use of council owned business space on the Ballingarrane � Use of council owned business space on the Ballingarrane Estate (good IT facilities and support) (linked with LIT TI) to facilitate start up R&D opportunities – assisted individual to access LDC feasibility grant and individual is now working with a Composting Company and using his research output to meet this company’s needs

� Working in partnership with LIT TI to develop an R&D, Enterprise and Life Long Learning Centre in Ballingarrane Science & Technology Park - unique model of financial support from the LA to ensure this is progressed and is now well under way

� Working with struggling companies to identify other potential opportunities (worked with steel making company in the preparation of a business plan and cash flow projections for a diversified product range for the company and linking in with EI at the appropriate stage) On the closure of a significant insulation plant, BSU � On the closure of a significant insulation plant, BSU worked with a promoter to draw up a successful application for a feasibility grant into a product use for the former plant .

� Actively targeting businesses in South Tipperary to engage in the FUSE initiative – one of priority under this initiative is dealing with procurement opportunities

� The LA through the Tourism Company has worked with the LDC to provide mentoring and development support to the Tourism Business Networks which have been set up under the auspices of the Butler Trail

� Working on opportunities with LIT TI to develop a creative multi media festival celebrating innovation in creative multi media festival celebrating innovation in this area and linking in with key businesses in this area

� LA’s are at the coal face of economic failure or success and are the obvious source for people to first link in with when seeking support/advice or solace!

� Lots of Initiatives work; others do not but need to work through the failures to identify what will be of benefit to the economic community

� In the Programme for Government, job creation is identified as being central to any recovery; and training is seen as a key corner stone� Exports and the implementation of innovation and commercialisation polices and actions are seen to be key drivers

� More focussed approach to the development of key � More focussed approach to the development of key sectoral areas such as tourism, food, technology and energy

� Support of SME’s is identified as crucial to the sustainment of the indigenous industries, including access to credit

� Most importantly, the Action Plan for jobs recognises need for a “whole government approach” and this integration at the top is critical as it has always been an obstacle at local level

� The Government has identified a number of potential initiatives such as � building pilot food plant kitchens; co-ordinating efforts across the

food sector; scalable manufacturing solutions for food businesses that have capacity to expand; working with small businesses and producers to develop value added Irish food brandsproducers to develop value added Irish food brands

� Improving the e-capability of our tourism product; developing and co-ordinating our niche tourism products (food; sport; culture; ecotourism; activity breaks etc) and on event tourism

� Exploiting the opportunities afforded by international educational students

� Establishing Ireland as a renewable manufacturing hub and the development of energy co-operatives

� Development of a vibrant and effective social enterprise sector (LCC & City council leading the way here)

� If this programme is to be effectively realised, the operating landscape needs to be rational, unambiguous and “easy to use” for the business citizen

� The above examples have shown that LA’s, notwithstanding their perceived narrow economic remit by others , have used their standing to lead by example, to encourage and persuade other agencies to work with them to address deficits/opportunities; they have a widespread reach into the broadest possible business base and they have also been creative, flexible and innovative in terms of and they have also been creative, flexible and innovative in terms of using the resources to hand � No other agency has such a broad and all inclusive reach and no other

agency has the democratic mandate which allows the LA to exert greater influence in how other agencies operate

� LA’s could be a very useful vehicle through which the Programme for Government could be more efficiently achieved and is the obvious hook on which to hang delivery at a local level.

� Local Authorities are up for the challenge

� They have a history of delivering and it is hoped that they are facilitated to continue to do so.so.

�THANK YOU