CONTEXT

  The local economy of the Armagh area is characterised by a weak manufacturing base which is heavily skewed towards very small enterprise. The dependency on a small number of firms in the manufacturing, public and agriculture sectors underlines the vulnerability of the local economy. To this end the Council continually strive to promote the area as a location to live, work, visit and invest.

COUNCIL POLICY ON ATTRACTING INWARD INVESTMENT

  Armagh City and District Council maintain a close working relationship with IDB. Discussions are held with officers on a regular basis to identify ways in which Council can add value to IDB activities in this sphere, to prioritise Armagh's ranking position as a location for inward investment missions; and to inform and update on new programmes/projects under implementation in the area.

  In addition Council actively pursue their own inward investment campaign—a CD-Rom has been produced and distributed at national and international levels, review and redesign of web site is underway.

REFERENCE TO TYPE OF INWARD INVESTMENT

  The Council do not have a particular preference as to type of investment attracted but rather would seek to review and assess any potential project on its merit taking into account displacement, environmental impact, and other extenuating circumstances as appropriate.

  Nonetheless, Armagh City and District like many other authorities recognise the considerable investments being undertaken in the Information Communications Technology sector. They have begun to explore the infrastructure requirements of this sector and the compatibility of the local area to satisfy the same.

  In terms of location of any project the zoned Industrial Estate at Edenvayes is a priority.

PAST PERFORMANCE

  It must be noted that Armagh has a poor record in attracting IDB support when contrasted with a neighbouring council area in terms of:

Projects by location, job, investment, IDB assistance by District Council area.

Visits to Armagh and Dungannon area by potential Investors.

  Source:   IDB Annual Report and Accounts 1998-99.

TSN POLICY

  Targeting Social Need Policy was introduced in 1991 with the aim of addressing disadvantage and to concentrate resources on areas and people of greatest need. At the time, the Department of Economic Development and its agencies marked their commitment to the spirit of TSN by adopting a declaration of interest to

"Carry out their responsibilities in a way which effectively targets those people and areas in greatest need with the effect of reducing community differentials."

  The application of Robson Indicators at a district level as a measurement tool of deprivation negates Armagh's inclusion as a Disadvantaged area at a district level. Indeed only 10 Councils, Strabane, Cookstown, Omagh, Magherafelt, and Limavady are deemed eligible.

  Armagh City and District Council recognise that a combination of criteria including technical (site specification) operational (logistics) and personnel (labour market considerations) influence the decision to locate and will vary in importance according to the potential investor. However, the Council do believe the added incentive of a higher ceiling assistance rate in a designated District Council is a contributing factor in the choice of location and indeed the reason attributable to the district's disappointing track record. All other things being equal, Armagh is considered a less favourable location compared to neighbouring districts of Dungannon, and Newry and Mourne.

  The application of this tool at district level ignores the local social need. In a polarised community such as Armagh where pockets of deprivation exist, it fails to have the effect of narrowing economic differences between the two communities as well as reducing disadvantage overall within the district.

  Any intention to reduce community differential must be flexible enough to operate at the level at which differentiation occurs. It is evident that consideration of disadvantaged at district level is inappropriate to targeting social need within districts.

  People in disadvantaged areas are often poorly serviced by public transport and by definition (as car ownership is one of the Resource Base indicators of deprivation) less likely to own or have access to a car. A number of other factors related to poverty and marginalisation contribute to reduce the propensity to travel to distant sites.

  There is merit in locating business in or close to disadvantaged areas provided this does actually impact on the disadvantaged mainly through the creation of employment opportunity.

  The higher the differential the less accurate the targeting, eg factories in Dungannon in preference to Armagh do/expect to recruit from the Armagh District. Given the lack of mobility of people for reasons outlined above the impact is to increase community differentials in the non-designated area.

  An approach to Targeting Social Need is required which is flexible and operates at an appropriate level to ensure that there is the desired impact.

  Armagh City and District Council would appreciate if the Committee of Northern Ireland Affairs could take on board the following recommendations to redress the issue:

Review of IDB TSN policy tool

  IDB policy currently operates at a district level. Revisit to the Robson Indicators used for assessment of deprivation and transfer of policy application by IDB to ward level as adopted by other agencies eg T & EA, thereby achieving greater policy uniformity. This option is difficult. At a smaller scale, amendment to the indicators to account for deprivation differentials which exist between districts and recalculate using a suitable weighted index may be more viable.

Impact Consideration for projects

  As each investment project is considered on its own merit, so too could its impact on disadvantaged people and areas, ie its contribution to Targeting Social Need. Selective financial assistance awarded by the IDB could be calculated on the basis of a standard award plus an enhanced rate according to the potential contribution of the project to Targeting Social Need. Using this formula, more acute targeting would be achieved and the discrimination against non-designated district with the resultant negative impact would be avoided.

Partnership approach integrating social, economic and labour market strategies

  A partnership based approach along the lines of a "territorial pact" whereby all of the actors involved in the promotion of economic development co-ordinate their efforts to help strengthen the economy and provide pathways to employment could provide a means for Targeting Social Need at a local level. Through a pact, a complementary linkage can be established between social, economic and labour market strategies.

26 November 1999