Northern Ireland Affairs Appendices


APPENDICES TO THE MINUTES OF EVIDENCE


APPENDICES TO THE MINUTES OF EVIDENCE

TAKEN BEFORE THE NORTHERN IRELAND AFFAIRS COMMITTEE

APPENDIX 1

Memorandum submitted by Moyle District Council

  In 1995 Moyle District Council made a decision as part of its Economic Development Plan, not to actively pursue a strategy to develop inward investment. The reason for this was due to limited financial resources, being the Council with the lowest rate base in Northern Ireland and mindful of the considerable costs involved in such a project, and also that the total ERDF funding allocated to Moyle for the LED programme was only £70,000 for the two years from 1995-97.

  The economy of Moyle is also heavily dependent on tourism and, in its entirety, it is designated an Area of Outstanding Natural Beauty. Large scale industrial development might not therefore be practical or desirable.

  It was decided instead to concentrate resources on encouraging local business growth and development.

  However, the Council are very keen to attract small to medium size, environmentally friendly type enterprises to locate in the area which incidentally is the unemployment black spot of Northern Ireland with 11.9 per cent unemployed in September 1999.

  The Industrial Development Board were advised of the Councils Local Economic Development strategy in 1995 and it was emphasised that Council would be dependent on them to attract the appropriate investors to the area.

  In 1997, the Council was becoming increasingly concerned regarding the lack of IDB activity in the area, and a meeting was held with Baroness Denton, then Minister for the Economy.

  A paper summarising the concerns at that time is found below.

  Unfortunately since the meeting the situation in Moyle has worsened with the closure of one of the three IDB client companies in the area, Coneen Textiles with the loss of 75 jobs.

  Although the IDB have subsequently purchased and developed a six-acre site in Ballycastle, the Council is not aware of any further visits or new jobs promoted in the area since 1996.

  Taking into account the continued lack of IDB activity in Moyle. The Council have recently been making an effort themselves to make contacts in North America through the Sister Cities Organisation. The long term aim is to attract inward investment or possibly open new opportunities for strategic business alliances. However this is still very much in the early stages.

  An application is presently with the DED for ERDF assistance under the Local Economic Development measure for the production of up to date promotional materials. The Council are awaiting the outcome of this.

Meeting with Minister for the Economy—7 February 1997

IDB ACTIVITY IN MOYLE

DISCUSSION POINTS

  The Northern Ireland Economic Research Centre (NIERC) Report on the socio-economic profiles of the district council areas (published December 1996) states:

    ". . . most district council areas can expect one project with several hundred jobs every two to three years. District councils with suitable sites and good access to the airport and seaports can expect to fare better".

  Between 1990-96 the IDB promoted a total of 42,391 new jobs in Northern Ireland. In Moyle the number of new jobs promoted over this period was nil. (80 jobs were however "safeguarded" in 1994-95).

  Between 1989-93 employment in the two IDB client companies fell by 38 jobs (or 15.6 per cent). The addition of a third client company in 1993-94 was followed by a further loss of 15 jobs (5.9 per cent) in the period up to 1996. The trend has therefore been one of significant decline over the whole period.

  Between 1993-96 a total of 726 visits were made to Northern Ireland by potential investors. Only one of these (in 1993-94) was made to Moyle. No visits were made in 1994-95 and 1995-96.

  Between 1993-96 IDB provided assistance totalling £379,900,000 for the whole of Northern Ireland. Of this amount only £100,000 was spent in Moyle (ie 0.026 per cent of total assistance compared to Moyle's 0.94 per cent share of the NI population).

  It would appear that IDB's Area Profile for Moyle has not been updated since September 1987.

  Concern about the lack of activity was raised with IDB in December 1995. The response from the Board stated that "Moyle . . . is regarded as an area of disadvantage by IDB under the Government's Targeting Social Need priority and we are committed to using our best efforts to stimulate and encourage industrial development in the areas so designated. To this end, IDB has . . . decided to purchase a six acre site at Leyland Road, Ballycastle . . ."

  Although the land at Leyland Road is currently being purchased by IDB, the North Antrim Co-operative is now attempting to acquire part of this ground for a new livestock Mart. If this is sold, will IDB be prepared to acquire other ground from the adjacent "white land"?

1 November 1999


 
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