Oireachtas Joint and Select Committees
Thursday, 23 April 2015
Joint Oireachtas Committee on European Union Affairs
European Semester - Draft National Reform Programme 2015: Discussion
2:00 pm
Mr. Neale Richmond:
I thank the committee for having us back. In Ireland, although there has been a very welcome and robust reduction in unemployment, there are marked differences in regional performance, with recovery unevenly spread across the regions. Using the Nomenclature of Territorial Units for Statistics, NUTS, III classification, since 2012, employment has fallen in the west and south west, while unemployment rates are highest in the midlands and south east. Labour force participation rates are lowest in the Border and mid-west regions. As far as income is concerned, Central Statistics Office figures indicate Dublin as the only region with higher per capitadisposable income than the State average during the entire 2003 to 2012 period. The midland, Border and west regions have continuously earned less than the State average. For example, in 2012, the disposable income in the midlands was less than 80% of the Dublin figure.
The focus of the economic recovery has been on the greater Dublin area and although there is potential for the recovery in greater Dublin to spill over into neighbouring counties, there needs to be concerted action to prevent structural shifts that could further weaken outlying counties and regions. Statistics can be presented in such a way as to back up differing arguments but it is undeniable that there are regional and local disparities that are best addressed with targeted actions. For example, it is recognised that city regions are the drivers for economic investment and growth. Dublin, therefore, is competing globally with the likes of San Diego and Shanghai, rather than locally with Sligo. Greater Dublin and the "Silicon Docks" area in particular, is a global hub for ICT investment and Dublin is recognised as one of the best places in the world for technology start-ups. However, a relative decline in Dublin's status as a financial services centre demonstrates that the city and the region must strive to improve its competitiveness and attractiveness to ensure continuing foreign as well as domestic investment.
There are major challenges facing the metropolitan area that could put future investment in jeopardy, such as the availability of reasonably priced housing, increasing congestion and the very small degree of wiggle-room with water resources now available. Equally, the relative decline of our universities in global rankings needs to be reversed. Whatever about average GDP rates, there are pockets of deprivation that need targeted interventions. More broadly, these differing regional strengths and weaknesses indicate that more nuanced regional targets, taking heed of regional strengths and weaknesses, may be more appropriate than one size fits all national targets. A particular challenge for the eastern and midland regional assembly established in January in addition to its statutory responsibilities will be to forge its identity with the wider public service sector over the coming years and develop its own operational programme for Structural Funds. This process would start with the realignment of the NUTS regions next year.
We also very much appreciate the strong regional element of the Minister for Jobs, Enterprise and Innovation's 2015 Action Plan for Jobs, based on the NUTS III regions. We strongly welcome this process to support job creation across the country by supporting agencies and organisations within each region to build on their particular strengths and assets and drive new job creation projects and strategies. The eastern and midland regional assembly area naturally includes the midlands, with its own set of priorities and challenges, and I congratulate Longford County Council and Coillte on the recent Center Parcs announcement, which is a great example of ensuring that every region has the opportunity to make the best of its own resources.
I will hand over to my colleague, Ms Maria Byrne from Limerick City and County Council, who will highlight elements of recent local government reform relevant to the national reform programmes.
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