County Donegal Development Plan 2024–2030 (As Varied)

1. Page 101

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   County Donegal Development Plan 2024-2030 (As Varied) 98 Chapter 7 Economic Development • Working with existing digital hub operators to support the operation of hubs to ensure they meet the emerging needs of remote workers and employers. This includes supporting the established network of hubs to ensure they are in a position to leverage economies of scale in marketing, training and funding applications etc. • Facilitating engagement of digital hubs and coworking spaces through networking opportunities at a local, regional and national level ensuring that Donegal hubs are well represented on regional and national platforms as well as availing of opportunities from regional and national programmes and activities. This includes engagement through the Atlantic Economic Corridor Network and the Connected Hubs network. See page 14 of Remote Working Strategy https://donegal.ie/media/2300/dcc-remote-working-forbusiness-strategy.pdf Atlantic Technological University The importance of the Atlantic Technological University (ATU) campuses at Letterkenny and Killybegs is acknowledged as key economic drivers for the county and wider region, increasing the attractiveness of the county as a potential investment location by both providing a pool of educated and skilled prospective employees and building the research and innovation capabilities that strengthen the county’s economic resilience and competitiveness. The contribution of the ATU to the economy and employment offering of the county and wider region is set to grow, amid continuing collaboration on a cross-border further and higher education cluster with Ulster University, North West Regional College and Donegal ETB (Education & Training Board), and in terms of its strategic partnerships and its growing research and development capabilities. Driving Innovation The development of strong research, development and innovation capability is evidenced by the investment in the ATU’s business start-up innovation centre, ‘CoLab’ which also houses WISAR a Technology Gateway. In addition, there has been an increased focus on R&D with projects such as the Bryden Project and the increasingly strong cross border collaborations with Ulster University and the North West Regional College in Derry under the auspices of the North West Tertiary Education Cluster. The county’s innovation capability has been enhanced further through the new Alpha Innovation Centre which will form a central part of the new Business and Innovation Quarter in Letterkenny and plans are afoot for a new Ocean Innovation Centre on the ATU campus in Killybegs. New Work Patterns While Covid 19 presented significant challenges for businesses, it also accelerated the move towards flexible working arrangements including remote working. This has resulted in opportunities emerging for locations like Donegal, where businesses and employees can have both excellent working conditions with good broadband connectivity as well as superb work life balance opportunities. No longer do employees have to choose between advancing their careers or improved work life balance, they now have every opportunity to achieve both by locating in Donegal or other similar locations. The growth in the network of co-working spaces and locally based digital hubs in Donegal has also facilitated this move and such spaces and hubs have become an important community facility in many towns and villages across Donegal.

2. Page 102

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   County Donegal Development Plan 2024-2030 (As Varied) 99 Chapter 7 Economic Development Deficit in Enabling Strategic Infrastructure Alongside the significant growth that has taken place in the county and the wider city region in recent years, a number of challenges remain to be addressed, including deficits in key enabling strategic infrastructure including roads, rail, electricity, gas, rural broadband, water and wastewater. These ‘long-held’ deficiencies serve only to restrict the county in meeting its full potential. The extent and nature of such deficiencies are detailed in the relevant sections of this plan. Donegal County Council is committed to working with government departments & agencies to support the delivery of this critical infrastructure during the plan period and beyond. Property Solutions for Business In addition, the shift in business’s preference for town centre grade A office accommodation is also proving to be a challenge especially in larger centres such as Letterkenny. The proposed development of the new Business and Innovation Quarter in Letterkenny which will comprise of the Alpha Innovation Centre and the Beta Business Centre, will help address this need and should also trigger or act as a catalyst for further private sector investment of this nature. Good quality and affordable housing options are also proving to be a challenge for businesses looking to grow and expand in the county, with particular challenges being experienced in Letterkenny and the surrounding areas. In some instances, this is resulting in businesses curtailing or postponing their development plans, presenting further barriers to development and growth in Donegal. The need for serviced land for economic development and job creation purposes is also emerging as an essential requirement in a number of centres across the county and a key policy of this plan must to be to look at how land can be released in various locations to facilitate this type of essential investment that will support and facilitate expansion of locally based businesses as well as enabling inward investment opportunities to materialise.

3. Page 103

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   County Donegal Development Plan 2024-2030 (As Varied) 100 Chapter 7 Economic Development Impact of Brexit Brexit has had a significant impact on Donegal and the wider North West City Region. This impact has been felt most acutely in our coastal communities as a result of the impact of the reduction of fishing quotas as per the Trade and Cooperation Agreement reached by the EU and UK in December 2020. This impact on Ireland’s fishing industry has been felt strongly in Donegal. Donegal is the county in Ireland that is most reliant on the sea food sector and arguably most affected by Brexit. The SeaFood Taskforce established by the Minister in 2021, has introduced measures to help mitigate the impact on coastal communities including through a range of funding initiatives under the auspices of the Brexit Adjustment Reserve Fund. Grant Thornton, in their 2021 report14 commissioned by Donegal County Council, noted that Brexit was not an event but a process and one that will continue to be played out over the next number of years with a number of outstanding or unresolved matters still to be agreed, leading to continuing levels of uncertainty in many sectors. The report noted this continued ‘uncertainty’ cyrstallised the need for solutions to address long standing issues, particularly emanating from a legacy of under investment in key enabling infrastructure in and to the county. 14 Grant Thornton – Responding to Brexit: An Investment Plan for Donegal and the North West Region, March 2021

4. Page 104

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   County Donegal Development Plan 2024-2030 (As Varied) 101 Chapter 7 Economic Development Blue Economy New opportunities are emerging for coastal communities in terms of the blue economy with an increased focus on areas such as value-added seafood production, aquaculture, tourism and renewable energy. The recently formed Killybegs Marine Cluster presents opportunities for businesses to collaborate to maximise the potential from these sectors with a view to enhancing business development opportunities. Killybegs is home to a well-established world class marine engineering cluster servicing a range of sectors including commercial fishing, fish processing, aquaculture and on and off-shore renewable energies on an international scale. These businesses have developed strong relationships with other engineering businesses across the county resulting in a strong engineering cluster presence in Donegal. Killybegs is also an established cruise ship destination, due to its deep-water capacity, and already 30 cruise ships are set to dock in the port in 2023. Killybegs Harbour Killybegs is Irelands premier Fisheries Harbour and continues to contribute significantly to the economy in Donegal and the wider North West region. The Department of Agriculture, Food and the Marine has invested significantly in the port facilities in recent years including in the Smooth Point Pier Extension as well as a range of other measures including energy saving measures. In addition, a technical study prepared by Byrne Looby and commissioned by the Killybegs Harbour Development Group, found that there is a requirement for investment in a number of other key areas including further pier extension and associated wave attenuation structures, as well as dry docking facilities for large vessels in order to enable the harbour to continue to grow and develop to meet the emerging needs of the blue economy in Donegal. Killybegs is also strategically positioned to service the emerging Offshore Renewable Energy sector given its natural advantage as a deep-water port, its strategic location in the North West and the base of world class marine engineering businesses located in close proximity to the port. Dublin Offshore in their report on ‘The Growth of Onshore to Offshore Wind - Atlantic Region Wind Energy and Supply Chain Study’ found that Killybegs was one of only three ports in the Atlantic Region that presented strongly in terms of its capability to service the offshore wind sector and noted that the planned infrastructure developments at the Port would further enhance Killybegs capability. The EU-UK Trade and Cooperation Agreement has had a significant negative impact on the fishing sector in Donegal. To counteract this impact €50m has been invested from the EU Brexit Adjustment Reserve Fund under the Brexit Process Capital Support Scheme to businesses in the Fish Processing Sector in Killybegs with the aim of making the port a more attractive location for fishing vessels to land and discharge catch. Killybegs Marine Cluster, funded by Enterprise Ireland and hosted by the ATU is an industry-driven marine cluster that aims to continue to build capacity with businesses working within the blue economy with the aim of improving their competitiveness, internationalising their businesses, and maximising their efficiency and productivity.

5. Page 105

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   County Donegal Development Plan 2024-2030 (As Varied) 102 Chapter 7 Economic Development Greencastle Greencastle is one of Ireland’s major harbours along with the six designated Fisheries Harbour Centres of Killybegs, Dunmore East, Ross a Mhil, Castletownbere, Howth and Dingle. Greencastle is the 2nd largest white fish port in Ireland and is also home to a large inshore fleet mainly engaged in shellfish and crab, making it a key town in Ireland’s seafood sector. Greencastle has significant fishing support services including fish processing, marine engineering, boat building and net making. 200 people are either directly or indirectly employed in the marine sector in Greencastle and the surrounding areas. Works are currently underway on a rock armour breakwater to the south-west of the harbour entrance, representing an investment in the region of €18m secured under the EU Brexit Adjustment Fund. This work will create safe entry for all vessels, reduce vulnerability of vessels within the harbour to wave climate and improve the safety and effectiveness of the harbour for all users including for tourism and leisure users. Greencastle is also home to the BIM National Fisheries College, a specialist seafood and fisheries training centre. The Centre offers courses in Marine Engineering, Skipper and Crew Training, Safety Training and Communications. Courses are also offered for seafood processors and retailers as well as the Green Seafood Business Programme. Renewable Energy A recent Dublin Offshore Report15 was commissioned by the Regional Enterprise Offices and Local Authorities along the western seaboard, including Donegal County Council and the Western Development Commission, to examine the potential for developing the Offshore Wind sector along the Atlantic coast. The report found that 90% of future new build offshore energy capacity in the Atlantic Region will be Floating Offshore Wind (FOW). The unique selling point of floating offshore is the ability to develop offshore wind farms in deeper water and with a more consistent wind resource, resulting in increased capacity generation. To quantify the scale of the opportunity, the report found that by 2037 there could be upwards of 5,000 jobs supported directly by the offshore wind sector off the western seaboard generating €400 million in gross value added (GVA) annually to the Atlantic region economy. The proximity to the offshore continental shelf and the natural strategic advantage in terms of a sustained wind resource and the deep water port at Killybegs makes Donegal an attractive investment location in the offshore wind sector. This report also found that in terms of the suitability of key ports in the Atlantic region, Killybegs Port presented strongly in terms of its capability to service the offshore wind sector and noted that the planned infrastructure developments at the Port would be essential if Killybegs is to achieve its potential. The report also called for investment in high capacity grid connection of at least 220kv in order to ensure that there is certainty of route to market for the energy produced. The Atlantic Region including Donegal has the capacity to produce multiples of the current electricity demand on the 15 Dublin Offshore, The Growth of Onshore to Offshore Wind in the Atlantic Region, Wind Energy and Supply Chain Feasibility, November 2021

6. Page 106

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   County Donegal Development Plan 2024-2030 (As Varied) 103 Chapter 7 Economic Development island of Ireland and investment in technology innovations such as Green Hydrogen is needed to realise the export potential that exists. The last number of years has seen an unprecedented period of change not just locally but globally and this includes Brexit, the Covid pandemic, the acceleration of the climate change agenda, the war in Ukraine and the ongoing energy crisis. While these challenges have created high levels of economic uncertainty, a unique set of opportunities for Donegal and the wider region has emerged. The Bioeconomy The RSES defines the bioeconomy as ‘those parts of the economy that use renewable biological resources from land and sea to produce food, feed and bio-based materials and energy. This includes crops, forestry, fisheries aquaculture, animals and their residues and by-products from processing industrial feedstock resources such as municipal solid waste and wastewater or novel products such as micro-organisms.’ The RSES provides support for this sector in several RPOs. 7.2 Strategic Policy Context The economic framework set out in this chapter has been drafted in the context of the following national, regional plans, policies, and guidelines. 7.2.1 National Planning Framework The National Planning Framework (NPF) recognises the economic contribution and potential of Donegal and in particular the Regional Growth Centre of Letterkenny. The NPF recognises the important economic role of urban settlements at a county and regional level, and rural settlements at a local level, whilst identifying the need to strengthen rural economies and communities by broadening the employment base of rural areas, improving connectivity and addressing infrastructural deficits. A number of National Planning Objectives (NPOs) reference the interconnection of employment with land use planning. NPO 7 encourages population growth in strong employment and service centres, regeneration of smaller urban centres, addressing the legacy of unplanned growth and facilitating ‘catch-up’, balancing population and employment growth. NPO 11 states a presumption in favour of development that can encourage more people and generate more jobs and activity within existing towns and villages. In terms of job creation in urban areas, the overarching guidance provided in the NPF is that job creation should coincide with population increase at a ratio of 1.0. 7.2.2 National Development Plan 2018-2027 The National Development Plan provides a framework for the government’s capital expenditure in alignment with the National Development Plan (and the RSES) under the umbrella of Project Ireland 2040. Four Project Ireland 2040 funds have been established including: The Climate Action Fund, Disruptive Technologies Innovation Fund, the Urban Regeneration and Development Fund, and the Rural Regeneration and Development Fund. A collective budget amounting to an estimated €4 billion over the ten-year period has been allocated to these funds. Key strategic investment priorities will be accelerated in County Donegal under these funds. The plan identifies key infrastructural investment projects which are crucial to future economic growth and prosperity in the County.

7. Page 107

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   County Donegal Development Plan 2024-2030 (As Varied) 104 Chapter 7 Economic Development 7.2.3 Regional Spatial and Economic Strategy (RSES) for the Northern and Western Region 2020-2032 The focus of the Regional Spatial and Economic Strategy (RSES) is on place-based assets as well as sectors and clusters. The RSES approach aims to realise the full potential of the region through investments in placemaking, developing places that are attractive for business investment and for people to live and work. At a macro level there are a number of RPO’s that encourage settlements to; harness their export capacity by promoting trade and global opportunities; by being vibrant and distinctive, where our communities act as a spur for quality of life, creativity and innovation and are attractive for innovators, investors, business, visitors and all residents. 7.2.4 North West Regional Enterprise Plan 2022-2024 This Enterprise Plan includes projects and initiatives across the three North-West counties of Donegal, Sligo and Leitrim. The strategic objectives of the plan are centred on encouraging entrepreneurship, scaling of SMEs and promoting the region’s economic strengths including capitalising on new work trends such as remote or agile working arrangements. In particular, the strategy identifies ‘wind energy’ and the ‘blue economy’ including a key objective to support the regional blue economy and marine cluster in Killybegs. The plan looks to encourage the regions enterprises to transition to low carbon operations and grow the circular economy in the region. The plan recognises our unique position as a cross-border region and looks to strengthen our cross-border relationships in order to further enterprise growth in the North-West. The plan examines options to assist in addressing challenges around talent retention and attraction in the North West. 7.2.5 Donegal 10 Year Strategic Enterprise Plan 2021-2030 This Enterprise Development Plan is predicated on 4 pillars of development which work with government agencies, various industries and academia to attain sustained enterprise growth and value, expand business activity within the SME sectors, generate more and better employment opportunities, attract new talents and skills, enhance the competitiveness of the sector in order to increase exports, accentuate the development of human resources in tandem with key sectors (ICT Digital, Patient Centre Healthcare, Tourism +, Engineering/Advance Manufacturing, Blue Economy, Creative and Food) and increase foreign direct investment inflows and improve the governance of the local economy. 7.2.6 Our Rural Future – Rural Development Policy 2021-2025 Our Rural Future outlines a vision to support the regeneration and development of rural towns and villages to contribute to local and national economic recovery, and to enable people to live and work in a vibrant environment. The Our Rural Future Plan recognises the importance of digital connectivity for rural communities and enterprise, focusing on remote working, education and enterprise opportunities and reiterates the ambition of delivering high speed broadband to rural areas. The Plan seeks to regenerate rural towns and villages and provide more employment in rural areas. It includes a policy to develop 9 no. Regional Enterprise Plans and work with the IDA to target 400 no. investments and 19 no. Advanced Technology Buildings all in regional locations. The Plan seeks to provide improved public transport, heath care, housing and childcare in rural areas. A key consideration when assessing economic development proposals in the rural area will be compliance with policy on access to national roads as set out under Policy T-P-12.

8. Page 108

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   County Donegal Development Plan 2024-2030 (As Varied) 105 Chapter 7 Economic Development (T-P-12 policy is the subject of Draft Ministerial Direction to delete some of the policy and amend policy for more information refer to www.donegaldevplan.ie or consult.donegal.ie. ) 7.2.7 Town Centre First – A Policy Approach for Irish Towns 2022 “The Town Centre First policy aims to create town centres that function as viable, vibrant and attractive locations for people to live, work and visit, while also functioning as the service, social, cultural and recreational hub for the local community”. The series of actions put forward in the policy collectively create the framework required to support our towns to achieve the desired outcomes and deliver on their own unique vision. These Actions are centred around improving our knowledge and understanding our towns and what they need, enhancing the capacity of delivery agents to implement this ambitious policy, building new structures at national and local level, and ensuring that new and existing funds are co-ordinated and targeted towards the implementation of Town Centre First in each town. 7.2.8 Enterprise 2025 Renewed Enterprise Policy in Ireland is formulated by the Department of Business, Enterprise and Innovation. Current enterprise policy is provided by ‘Enterprise 2025 Renewed’. The policy is based on export-led growth, underpinned by talent and innovation, with the objective of driving resilience in the enterprise base so that full employment is sustainable over the longer term. 7.3 Economic Profile Population is a key economic indicator at regional, county and settlement level. How population is concentrated and configured determines critical mass levels in an area, which in turn drives economic growth, service provision and infrastructural delivery. 7.3.1 Population Demography - North West City Region The North West City Region is the fourth largest urban agglomeration on the island. The city region of 400,000 inhabitants’ interconnects Donegal, Derry and Strabane as illustrated in figure 7.116. Demography – Nationally by County The publication of census 2022 data shows the population of Donegal at 167,084. Over the period 2016-2022 Donegal enjoyed a net population growth of 4.5%. This increase of 7,129 persons positively surpasses the fall experienced between 2011-2016. In the national context Donegal experienced the lowest population growth of any county in the state, with a state average of 7.6%. 16 North West City Region Investment Plan – Technical Document, commissioned by Donegal CC on behalf of the North West Strategic Growth Partnership Figure 7.1 North West City Region in the island context

9. Page 109

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   County Donegal Development Plan 2024-2030 (As Varied) 106 Chapter 7 Economic Development Live Register: Overall, since 2018 numbers on the live register have dropped 15% from 10,634 to 9,032. Disposable Income is used as a proxy for determining potential spending and economic activity relating to salary earning. 2020 figures from CSO identify Donegal as having a disposable income of 18,322, the lowest disposable income per person of any County in the State. Occupancy in residential and commercial buildings – In terms of residential buildings, Census 2022 data shows that there has been a 3% increase in housing stock in Donegal between 2016 – 2022 compared with a 4.5% increase in population. Census 2022 data shows that 13.4% or 10,861 dwellings have been returned as vacant in the County. According to Geodirectory,17 the residential vacancy rate in County Donegal is at 9.7% compared to 4.2% nationally while the commercial vacancy rate is the 3rd highest nationally at 17.2%. As of December 2021, housing stock in the County comprised 79.3% occupied, 11.1% Holiday Homes and 9.7% vacant. A national comparison of this breakdown is detailed in Table 4.5 appended. Vacancy and dereliction levels are key indicators of vibrancy in town centres and particularly in our strategic growth settlements. Vacancy rates across the main settlements range from 8.3% in Raphoe to 31.5% in Bunbeg Derrybeg. These urban vacancy levels in many instances are greater than the State average of 11.7% and represent a quantum of latent capacity with an opportunity for take up by a range of enterprises types. Agency Assisted Employment: The total number of IDA Ireland client companies based in Donegal amounted to 17 in 2021, representing 1% of the total stock of IDA Ireland client companies. 2022 was a strong year for IDA job announcements in Donegal with 830 jobs announced up to the end of October. The Annual Employment Survey provides an analysis of employment levels in ‘Industrial and Services’ companies under the remit of IDA Ireland, Enterprise Ireland and Údarás na Gaeltachta. For 2021 this survey shows Donegal running in 11th position as regards the number of jobs by County in the State. The number of agency assisted jobs in Donegal grew by 3,191 over the period 2012-2021. Year on year this represented growth rates varying between 2 and 9 %, with the exception of 2020. 7.4 Economic Development Framework This Economic Development Framework is grounded in 6 Key Pillars as set out below. 7.4.1 Aligning Economic Development and Job Creation with the Core Strategy Linking the economic and spatial dimensions of the plan by aligning job creation with the settlement hierarchy is essential in ensuring the coordination of business growth and housing provision in the county. This involves the identification of key employment locations as economic drivers in the context of their placement in the Core Strategy while recognising the critical role of smaller settlements and rural places in the economic development of the county. Jobs growth will, to a large extent, be connected with population growth during the lifetime of this plan. The core strategy sets the location and quantum of population growth across the county’s 17 Geodirectory Database 2022

10. Page 110

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    County Donegal Development Plan 2024-2030 (As Varied) 107 Chapter 7 Economic Development settlement hierarchy over the next six years. Alongside these population targets the National Planning Framework and Regional Spatial and Economic Strategy identifies jobs targets for key settlements at a ratio of 1.0 representing one job for each resident worker indicating a balance between the residential and employment functions of a settlement. In these areas it will be important to ensure that there is an adequate supply of zoned land for employment purposes at appropriate locations to accommodate employment growth and cater for the number of jobs that would help achieve this balance. In effect, this brings specific jobs targets to our key settlements as set out in table 7.1 below. Table 7.1: Resident Workers and Total Jobs by Settlement These targets bring a new focus in terms of how we implement our urban development plans, local area plans, regeneration plans and town centre first plans in our towns and villages to support business development and create new enterprise opportunities on the ground. The Development Plan supports the preparation and implementation of these town and village plans to enable economic development and job creation. Objectives ED-O-1 To align job creation with the Core Strategy’s Settlement Hierarchy with a view to achieving a jobs ratio of 1.0 and above in Letterkenny and those settlements identified as County Growth Drivers. ED-O-2 To support appropriately scaled and located economic development projects in the County’s smaller towns and villages. ED-O-3 To support appropriately scaled and located rural economic development projects where they are functionally related to the countryside. ED-O-4 To support the development of Páirc Ghnó Gaoth Dobhair as a business, enterprise and manufacturing centre to support the employment base, economic vitality and in turn the linguistic vibrancy of the Gaeltacht. ED-O-5 To facilitate cross-border collaboration to enable and sustain regional economic, cultural and social development opportunities including through the North West Settlement Name Population 2016 Resident Workers Total Jobs Jobs: Resident Workers Letterkenny 19274 7669 11395 1.486 Buncrana 6785 2327 1988 0.854 Ballybofey Stranorlar 4,852 1,530 1,878 1.227 Donegal 2618 996 1673 1.680 Carndonagh 2471 791 1062 1.343 Ballyshannon 2,299 787 875 1.112 Bundoran 1963 723 588 0.813

Source Donegal County Council: County Donegal Development Plan 2024–2030 (As Varied) (2024–2030) · Licence the publisher's termsText read from the publisher’s PDF; tables, maps and drawings do not survive as text, and page numbers are the PDF’s (its first page is 1). Check the original before relying on a passage.