Development plan · Louth County Council
Louth County Development Plan 2021–2027
The council's development plan written statement: its strategy, policies, objectives and development standards.
Louth County Council · 2021–2027 · 548 pages
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- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-9 5.5.5 Louth Economic Forum Louth Economic Forum was established in 2009 and consists of a multi-disciplinary team from the public and private sector including local businesses, state agencies, and the Council. The forum functions as a one stop shop for potential investors providing advice and information. A 10 Point Plan published by the Forum identified 10 specific areas on which to focus. A series of Action Plans have been prepared by the task groups in the Forum. These Action Plans provide a useful insight into the local economy in Louth in addition to setting out a vision as to how it is intended to grow and develop the economy3. 5.6 RECENT ECONOMIC TRENDS The Irish economy was performing strongly until March 2020 when the economic shock associated with the Covid-19 pandemic became apparent. At the time of writing there were various arrangements and policy responses in place for people, businesses, and government agencies and services across the economy and society to cope and manage in these uncertain times. These responses are impacting on economic output and performance. Prior to the outbreak of the Covid-19 pandemic the Irish economy had emerged from a prolonged period of economic contraction and stagnation to become one of the best performing economies in Europe in recent years. Year on year growth had been experienced since 2014, resulting in increased employment, wages, and consumer spending. In Q4 of 2019 the unemployment rate was 4.8%, the lowest since 20074. The pace of growth in comparison to the rest of Europe was evident by a comparison of growth rates. Between 2010-2019 the annual average growth rate of the Irish economy was 4.5%, whilst in the rest of Europe, during the same period, it was 1.6%5. Economic projections following the outbreak of the Covid-19 pandemic indicate that the economy will shrink in 2020 and fall into recession6. This is in contrast to the projections prior to the outbreak of the pandemic, which had projected a continuation of growth, albeit on a more modest trajectory than previous years. Due to the uncertainty surrounding the pandemic, it is difficult to predict its long term economic impact. However it is widely accepted it will take a significant period of time to return to a normal functioning economy. This Plan will support the collaboration between the Council, its Local Enterprise Office and the agencies such as the Industrial Development Authority (IDA) and Enterprise Ireland in working closely with businesses and employers in responding to the pandemic and providing assistance where possible. It will also seek to set out a framework that will support the creation of an environment attractive for economic investment and employment creation when growth begins to return to the economy. 3 Click here to access the Action Plans published by the Louth Economic Forum 4 Labour Force Survey Q4 2019 5 ESRI Quarterly Economic Commentary Winter 2019 6 ESRI Quarterly Economic Commentary Spring 2020
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-10 5.6.1 Challenges to Future Economic Growth Covid-19: The Covid-19 pandemic is the greatest threat the Irish economy has faced since the global financial crisis. The response to the spread of the virus has resulted in significant job losses across the economy, with an unemployment rate of 28.2% recorded in April 2020 7 . In September 2020 the Government published a ‘Resilience and Recovery Plan for Living with COVID 19’ to manage the risk associated with the pandemic and deal with the social and economic consequences. Due to the uncertainty surrounding the medium-long term impacts of the pandemic it is anticipated that the opportunities for economic growth and investment in the immediate future will be limited. International Trade Tensions: Ireland has an open economy which means it is exposed to any changes or volatilities to the economic environment at a global level. Foreign owned multinational companies make a significant contribution to the Irish economy in terms of jobs, exports, and fiscal revenue. The restrictions on international travel and the lockdown put in place in countries across the world, as a result of the Covid-19 pandemic, has had significant implications for international trade, commerce, and tourism. Ireland’s open economy is exposed to these volatilities. The reliance and interdependency of Ireland on global trade and investments means the response of the global economy to the management of the pandemic will have a significant impact on the future performance of the Irish economy. Other concerns in the global economy relate to ongoing trade tensions between the US and China, and the uncertainty surrounding the future partnership between the UK and the EU following their withdrawal from the EU. These uncertainties may result in businesses holding back on investment and a reduction in consumer spending, with people saving more of their disposable income. Brexit: The location of Louth along the border makes the County particularly exposed to the uncertainties surrounding Brexit, with businesses having customers, supply chains, and producers on both sides of the border. At present there is a seamless transfer of goods and services across the border as both countries are within the Single Market. The agri-food sector will be particularly affected by any changes to these circumstances as it will impact on supply chains and logistical arrangements. The possible introduction of tariffs, or regulatory divergence, would increase costs and result in delays in transporting goods and services and would therefore increase the cost of doing business. Fluctuations in currency also have an impact on costs and can result in changing patterns of consumer behaviour, particularly in border locations where people take advantage of the lower exchange rates. This can have a particular impact on tourism, with less visitors travelling from Northern Ireland and Britain due to the devaluation of sterling. Whilst there are challenges to the Irish economy as a result of Brexit, opportunities also exist. Ireland will retain all the benefits of EU membership and the access to an educated, skilled, English speaking workforce will be an important factor in attracting foreign direct investment. 7 CSO Monthly Unemployment, April 2020. Note that when persons on the special pandemic payment are excluded, the unemployment rate was 5.4%.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-11 Opportunities: The location of Louth along the border, where there is excellent connectivity with both Dublin and Belfast and access to a well-educated and skilled workforce, makes the County an attractive location to UK businesses who require access to the European market and Irish, European, and International businesses who require access to the UK market. 5.7 DUBLIN-BELFAST ECONOMIC CORRIDOR Louth is strategically located between the two largest cities on the island, Dublin and Belfast. The excellent connectivity between the cities via the high capacity road link (M1 Motorway), which forms part of the EU TEN-T Core Network, the inter-city rail link, in addition to the international links via the ports and airports, has created significant opportunities for economic investment and job creation. The NPF and RSES highlight the importance of this corridor in supporting economic growth and maintaining economic competitiveness. Opportunities to strengthen links along this corridor and in particular, the cross border links between Drogheda-Dundalk-Newry, have been identified as a potential driver for economic growth. The international dimension of this corridor has added significance in the context of the UK withdrawing from the EU. In addition to the cross-border links, there is also a strong connection between Louth, Meath, Monaghan and Cavan in the provision of services, employment, and education, which creates a wider cross-border network of counties and settlements in the north-east of the country. This Plan will continue to promote and support economic development along this Corridor. As part of the strategy of developing centres of scale, the Regional Growth Centres of Drogheda and Dundalk will be identified as the primary locations for economic growth. Policy Objective EE 1 To maximise the economic potential of Louth by building on its locational advantage along the Dublin-Belfast Economic Corridor and promoting and marketing the Regional Growth Centres of Drogheda and Dundalk for economic investment. Policy Objective EE 2 To engage and work closely with the Eastern and Midlands Regional Authority and adjoining Local Authorities in promoting economic development along the Dublin- Belfast Economic Corridor. 5.7.1 Cross Border Investment There is strong support from governments on both sides of the border for continued co-operation in cross border projects and initiatives. The economic potential of the Drogheda-Dundalk-Newry network is identified in the NPF and RSES. These settlements have the critical mass to compete in the global economy and appeal to higher value segments of the business chain by offering sizeable pools of suitably qualified workers, supporting infrastructure, and high quality public and commercial services.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-12 EU Structural Funds such as the INTERREG VA Structural Programme provides funding for cross border projects. This fund is designed to help overcome issues that arise due to the existence of a border. The issues can range from health, transport, environmental issues, and enterprise development. The fund is managed by the Special EU Programmes Body (SEUPB). There is a commitment from the EU to continue funding for cross border projects after the UK withdrawal from the EU. At a local government level cross border cooperation is evident in a Memorandum of Understanding (MOU) that was developed and signed by both Louth County Council and Newry, Mourne, and Down District Council. The MOU sets out the detailed workings, which seek to support and promote the economic development and competitiveness of the region. The focus for both Councils is on strength in people working together to help and support the local communities they serve. An example of some of the ongoing cross-border projects in the area are set out in Table 5.1. 5.8 EDUCATION AND TRAINING A well-educated, skilled, and adaptable labour force is a fundamental part of economic growth and development. Louth has benefitted from the presence of a higher education facility in the County, with Dundalk Institute of Technology (DkIT) providing opportunities for education and skills development for people and collaboration between local businesses and industry. DkIT is the focal point for higher education in the north-east and has a catchment extending to both sides of the border. The research portfolio of DkIT in addition to the access to an educated workforce strengthens the knowledge based economy in the County which makes the area attractive to potential investors. DkIT has responded positively to the changing educational and training needs of both business and industry. A strong partnership has developed between DkIT and local employers, with the Institute adapting modules and courses to be more responsive to the needs of employers. This partnership approach has been a key element in supporting enterprise development in the County. The Louth and Meath Education and Training Board (LMETB) was awarded funding in June 2020, through the Border Enterprise Fund, for an Advanced Manufacturing Education and Training Centre in Dundalk. The investment and development of this facility will provide the labour force with opportunities to develop and enhance their skills in Advanced Manufacturing techniques, which is a recognised area of innovation and competitive advantage required if businesses are to successfully compete in the global market. Drogheda Institute of Further Education (DIFE) provides a range of Further Education courses for school leavers and adults returning to education. The modern facilities available, and the close relationship with employers means courses remain relevant and students can become familiar with the technology of the workplace.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-13 Table 5.1 Ongoing Cross-Border Projects in Louth Themes Projects Renewable Energy and Green Technology VARSITIES, Action for Biodiversity; Energy Efficiency and Micro Generation; Source to Tap; SWELL project Tourism and Recreation Carlingford Lough Greenway; Tourism Management; Greenore to Greencastle Ferry; EU_SHAFE Sustainable Economic Growth and Job Creation Drogheda/Dundalk/Newry Cross Border Economic Zone, CO INNOVATE Emergency Planning Major Emergency Management Service 5.9 CO-WORKING FACILITIES AND HOME-BASED ACTIVITIES Advances in technology have resulted in changing working environments. There are occupations where employees do not have to be in their main place of employment all the time, as they have the ability to work remotely. This is recognised by employers who acknowledge the benefits of remote working. These benefits include an improved quality of life for employees due to a reduction in commuting, with businesses benefitting from a reduction in costs for large areas of office space in prime commercial locations. This Plan supports the development of coworking facilities which provide flexibility in the working arrangements that will meet the needs of both start-up enterprises and established businesses, where employees have a local base that reduces the requirement to commute long distances on a daily basis. It is also recognised that small scale home based economic activities can be appropriate in certain locations, subject to the nature of the business operations and uses not negatively impacting on the character and amenities of the area in which they are located.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-14 Policy Objective EE 3 To facilitate and support the sustainable growth of the economy in County Louth whilst maintaining and improving environmental quality. This economic development policy shall strive to deliver the following key aims: • To strengthen existing employment centres supported by enterprise, innovation and skills; • To strengthen the integration between employment, housing and transportation with a view to promoting compact urban areas and reducing car dependency; • To promote measures to improve the County’s attractiveness as a location for investment and increase entrepreneurial activity; • To improve the cluster-specific business environment by putting in place a favourable business ecosystem for innovation and entrepreneurship that supports the development of new industrial value chains and emerging industries; • To facilitate economic growth by consolidating existing industrial and commercial areas and by ensuring that there is an adequate supply of serviced employment lands at suitable locations; • To promote the regeneration of underutilised industrial and town centre areas in a manner which enhances the local economy and encourages a sequential approach to development; and • To provide for a range of business accommodation types, including units suitable for small business. Policy Objective EE 4 To work in partnership with national employment agencies including Enterprise Ireland and the IDA, the EMRA, and the Council’s Local Enterprise Office in promoting Louth as a location of choice for economic investment and supporting employment generating initiatives and maximising job opportunities within the County. Policy Objective EE 5 To work closely with the IDA and other agencies in promoting and facilitating foreign direct investment in Louth. Policy Objective EE 6 To collaborate and work in partnership with infrastructure agencies including Irish Water, Gas Networks Ireland, ESB Networks, the National Transport Authority, Transport Infrastructure Ireland, and the Office of Public Works in identifying and progressing infrastructure projects required to facilitate economic development in the County. Policy Objective EE 7 To engage with the Local Community Development Committee, the Local Enterprise Office, Louth Economic Forum and various stakeholders in supporting the implementation of the Local Economic and Community Development Plan 2016- 2021 and any subsequent Plans.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-15 Policy Objective EE 8 To promote the work of the Louth Local Enterprise Office in providing support and guidance to small and micro enterprises in the County. Policy Objective EE 9 To continue to promote collaboration and partnerships between business and industrial groups and DkIT that will encourage research and development and provide further education and training opportunities for workers. Policy Objective EE 10 To collaborate and work in partnership with Local Authorities in the Eastern and Midland and Northern and Western Regions in attracting and facilitating economic investment and employment generating projects and developing the all-island economy. Policy Objective EE 11 To engage with Government agencies and key stakeholders in Northern Ireland in developing joint economic programmes and initiatives that support cross-border economic co-operation and development. Policy Objective EE 12 To support the development of a strong economic base particularly along the Dublin-Belfast economic corridor that is supported by enterprise, innovation and skills whilst maintaining environmental quality. Policy Objective EE 13 To support businesses and enterprises, in association with agencies and stakeholders including the IDA Enterprise Ireland, and the Council’s Local Enterprise Office, in responding to challenges and uncertainties associated with the UK withdrawal from the EU. Policy Objective EE 14 To ensure there are sufficient appropriately located lands identified for enterprise and industrial uses in the County in accordance with the designation of each settlement in the Settlement Hierarchy that will support economic investment and employment growth. Policy Objective EE 15 To promote and facilitate the provision of a range of employment and enterprise units of different size, scale, and layout that will increase the choice of such facilities to meet the requirements of the various enterprise and employment sectors in the County. Policy Objective EE 16 To facilitate and support unexpected opportunities for valid propositions for enterprise development that may emerge for which there are strong locational drivers that do not apply to the same extent elsewhere.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-16 Policy Objective EE 17 To recognise that attractive, healthy, and sustainable communities have a fundamental role in delivering economic success and attracting foreign and domestic investment. Policy Objective EE 18 To encourage and facilitate the re-use and rejuvenation of vacant and underutilised industrial, enterprise, manufacturing, and warehousing units. Policy Objective EE 19 To identify locations in the County for different enterprise activities including startup/incubator units, small-medium sized enterprise development, micro enterprises and large international businesses and corporations. Policy Objective EE 20 To recognise the significant economic and employment benefits of similar enterprises clustering in an area. Policy Objective EE 21 To support the implementation of the concept of ‘smart specialisation’ as part of the Economic Strategy for Louth. Policy Objective EE 22 To recognise the importance of and to encourage and facilitate the growth and development of local indigenous enterprises in appropriate locations in the County. Policy Objective EE 23 To support the provision of co-working facilities and digital hubs that promote flexible working arrangements for established businesses, self-employed persons, and start up enterprises. Policy Objective EE 24 To support home based economic activity where it can be demonstrated the nature of the business operation is of an appropriate scale for its location and would not be detrimental to the character or amenities of the area. Policy Objective EE 25 To support on-site renewable energy projects and any other initiatives by businesses to reduce their carbon footprint, which will contribute to achieving national targets for net zero emissions by 2050.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-17 5.10 MARINE OPPORTUNITIES INCLUDING PORTS Louth has a coastline of over 90kms providing significant opportunities for the support of a range of marine activities such as aquaculture, defence, energy, fisheries, mining and aggregates, ports, harbours, and shipping, telecommunications cables, tourism, safety at sea, sport and recreation, and waste-water treatment and disposal. The National Marine Planning Framework (NMPF) is Ireland's first plan for more sustainable, effective management of marine activities. This will guide decision makers, users and stakeholders towards more strategic, plan-led and efficient use of marine resources. Following the preparation of the Marine Spatial Plan the Council will ensure that there is alignment and consistency between land use and ocean based planning. A challenge to the maritime economy is the effective management of available space and the ability to maximise the economic, social and environmental benefits of access for all. Consideration will be given to the co-existence of activities where possible. This will enable activities to continue and/or grow while minimising competing demands for limited space and/or resources. This is particularly important in areas close to the coast where many locations are already busy, with aspirations for emerging growth, such as in Carlingford and Clogherhead. The Council recognises the importance of the blue economy and maritime heritage and recognise that there are significant opportunities in the marine or blue economy relating to fishing, renewables, seaweed harvesting, aquaculture, and tourism. Ports have an important role in enabling economic growth and providing international connectivity. This is recognised in the RSES, which identifies regional ports as important centres of economic activity. Regional Policy Objective 8.23 of the RSES supports the protection of marine related functions of the ports in the Region while also pointing to the potential opportunities around offshore renewable energy development. There are three commercial ports in Louth at Drogheda, Dundalk and Greenore, all of which have been identified as Ports of Regional Significance in the National Ports Policy 20138. Drogheda is the largest of these ports, and principally handles bulk traffic. It also operates a limited roll-on, roll-off service. Greenore Port is a deepwater port with lift on/lift off facilities. It handles noncontainerised cargo including bulk animal feed, feed chemicals, fertiliser, rock, steel, and woodchip. There are bulk dry storage facilities a short distance from the Port that can cater for a range of dry bulk products. Dundalk Port is a general cargo Port. The Port imports materials such as plasterboard, feedstuff, oil, coal, timber, and steel. Exports include scrap metal and turf. Clogherhead Port functions primarily as a fishing port. The harbour area was recently upgraded which provides facilities for a large fishing fleet. In addition there are facilities for sea anglers. Figure 5.5 provides details of the tonnage of goods handled by commercial ports in Louth in 20199. This highlights the volume of goods passing through the ports and is an indication of the importance of these facilities in providing international connectivity to business and industry in the region.
- Chapter 5 – Economy and Employment Louth County Development Plan 2021-2027 5-18 This Plan will support the expansion and improvements to Port facilities in the County in order to maintain connectivity and competitiveness and support the economic growth of the County and wider Region. 8 Table 2.8 of the National Ports Policy (2013, Dept. of Transport, Tourism and Sport 9 Statistics of Port traffic, CSO Figure 5.5: Tonnage handled by Louth Ports 2019 Policy Objective EE 26 To ensure alignment between the policy objectives of this Plan and the Marine Spatial Plan following its publication. Policy Objective EE 27 To support the development and growth of the maritime economy and balance the competing demands for available space along the coast by different users and encourage co-location and co-existence of activities and infrastructure while having regard to appropriate environmental considerations. Policy Objective EE 28 To recognise that the Port facilities at Drogheda, Greenore, Dundalk, and Clogherhead are an important economic resource and to support any improvements or expansion to these Port facilities at Drogheda, Greenore and Clogherhead and the consolidation of Dundalk Port, subject to the preparation of a Masterplan and appropriate environmental considerations. 1,530,000 1,023,000 78,000 Tonnage Handled by Louth Ports 2019 Drogheda Greenore Dundalk
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