Friends First Socio-Economic Assessment of the West of Ireland

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Regional Economic Imbalance must be rectified despite Savage Recession according to Friends First Report.

Challenge for Regional Economies is Particularly Acute

Despite the recent economic downturn the Government needs to deliver on infrastructural development projects for the West of Ireland in order to protect existing employment and stimulate further job creation, according to Jim Power, Chief Economist, Friends First. Mr. Power was speaking at the launch of ‘Friends First Socio-Economic Assessment of the West of Ireland’ report in Galway today.

The assessment, commissioned by the Friends First West Region, examines the effect that the economic boom has had on the socio-economic fabric of counties Donegal, Leitrim, Sligo, Mayo, Roscommon, Longford, Offaly, Galway and Westmeath*; the current economic conditions of these counties and the future outlook for the region.

Speaking at the launch of the report Mr. Power said: “One of the most worrying features of the strong Irish economic performance of recent years has been the unbalanced nature of regional economic growth and development. These regional imbalances and disparities are now being seriously exposed by the savage recession. It is critical that infrastructural developments are not delayed or postponed despite the challenging economic conditions.

“It is incumbent on policy makers and stakeholders to rectify this regional imbalance which won’t be easy in today’s testing economic and financial circumstances. The challenge for the Government and policy makers is to ensure that national policies, such as Transport 21 and the National Development Plan, are delivered to the fullest extent possible despite the difficult economic and financial environment we now find ourselves in. Already, some projects are being deferred or delayed and certainly there is a clear risk that this will get worse over the next couple of years as the Government struggles to rebalance the national finances,” said Mr. Power.

Specific improvements highlighted by Mr. Power include:

As planned under Transport 21, complete the development of the inter-urban motorway network by 2010 and radically improve the level and quality of rail services.
Fund essential capital works at the six existing regional airports.
Upgrade the N5 with an investment of €220million over four years to protect 9,000 manufacturing jobs. According to the Mayo Industries Group** the bad condition of the road from Longford to Scramogue in Roscommon is damaging product, delivery and travel times are slow and cost competitiveness is being negatively affected.
Energy provision is vitally important for the region. There is an opportunity to extend the 220 KV Line from Sligo to Ballina, Castlebar, Westport and on to Galway, and to provide a strategic gas route through Connaught to service Knock Airport, Ballaghaderren, Carrick-on-Shannon, Boyle, Sligo and into Donegal.
Broadband availability needs to be improved. It is a key business and economic enabler particularly important for geographically remote areas without adequate transport infrastructure.

Mr. Power said: “Private sector interests who are prepared to invest in these very uncertain times should be given as much support as possible. IDA supported employment in the Midlands, North west/Donegal and the West accounts for just 16.7% of total employment by IDA supported companies in the country. The challenge of creating meaningful jobs in these areas primarily reflects the attractiveness of the East coast where infrastructure is much more developed.”

John Corr, Regional Sales Manager, Friends First said: “The West of Ireland is a significant business centre for Friends First and one that we are committed to. It is imperative that policy makers address the issues that have been clearly identified by interest groups in the region for the future prosperity and development of the West of Ireland.”

The report examines a number of areas in detail including disposable income, labour market trends and housing sector developments. Key observations include:

The Midlands region has the lowest level of disposable income in the country (9.4% lower than the national average, 19.3% lower than the highest region Dublin) with the Border region second lowest (8.9% lower than national average and 18.9% lower than Dublin) and the West region third lowest (7% lower than national average and 17.2% lower than Dublin).
The unemployment rate of the Midlands, Border and Western counties is 11% or more, which is above the national average of 10.2%. The region also has a significantly higher labour market dependence on agriculture, manufacturing and construction than the country as a whole.
Many of the counties are now saddled with thousands of unoccupied and unfinished properties.

Mr. Power concluded: “The West of Ireland region does have a lot of natural advantages that need to be exploited if the economic potential is to be realised. Tourism, the agri-food industry, the marine and alternative and renewable energy sectors are just some that offer potential. It is critical to avoid mistakes made at a national level which resulted in too much dependence on the construction sector.”

Notes:

*For the purposes of the report, the West of Ireland is defined as counties Donegal, Leitrim, Sligo, Mayo, Roscommon, Longford, Offaly, Galway and Westmeath.

** The Mayo Industries Group is a group of manufacturing companies that share a common interest in protecting and increasing investment in the Mayo region. The group includes Allergan, APC, Baxter, Chesapeake, Coca Cola, Fortwayne Metals, Hollister, Killala Precision and Lionbridge.

Download the complete report here

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