Our jobs and retail conundrum.

"Scoop" - a very good digger.

I like to think that I am a good “digger”, not may I add in the garden, as most things I plant unfortunately die. The green fingers in the Garland Clan definitely belong to the fairer sex – I could not even grow my GIY garlic!

What I mean is that when I wish to write about a particular topic I do my very best to dig out some research or at the very least I look for some statistical information that will help get my writing juices flowing. This in turn allows me the time to bash away on my keyboard, time and time again, so that I now really enjoy expressing my views and opinions though the medium of print.

I regularly use a number of reference sites, on the old Interweb, and the Central Statistic Office (CSO) site was used to last week garner some interesting statistics about the regional variations in a measure called Gross Added Value (GAV). This measures “the difference between production value and intermediate consumption and represents the value added by the firm.” This is a great site for statistics but I do feel that it is overly complicated to use and maybe this is deliberate so as to dissuade people from engaging.

This GAV figure is measured in Euro and the state’s average for 2012 (the last statistical data point) is €34,308, Dublin measured €51,839 and the South East came in at €23,588. Quite a significant variation then across the country, as you would expect. The South East’s high for GAV was back in 2007 when the figure was at €29,884, but this was still significantly below the state average for that year of €39,522.

This GAV figures reflects the low wages economies across the South East which should, in theory, make the SE a more competitive inward investment option.

However, a multi-national will not invest into a region based on low wages alone, it may need a specific skill set or a multi-faceted spread of skills that will ultimately help generate profit to offset what would be a multimillion Euro investment. The stakes are very high!

The low GAV also backs up the statistics that show, right across the SE, there is significantly lower disposable income for our very localised economy. After all if you have only €50 to spend at the end of the week you will spend €50 and if you have €300 the difference this makes is to our economy is considerable. This much lower disposable income directly influences the retailing opportunities in our City Centre and across the whole SE region.

Our current conundrum is this.

To get a better retail mix and a better retail branding in the City we need to see more money being spent in our local economy. But we cannot increase this spend until such times as we attract better higher paid jobs. But attracting those better higher paid jobs will affect our GAV and possibly makes us even more unattractive to future investment.

It actually is a very difficult set of balls to be juggling.

But the balls have been juggled now for many, many years and yet we appear to be no further forward in actually making Waterford and the SE an important place for increased FDI and other indigenous investment streams.

We can only improve the Status Quo by radically looking at just how attractive we are for investment, because the route we have currently chosen is clearly not working. The City, County and Region need to look for far-reaching solutions that will make the SE THE most attractive place to invest.

 

We need to be better than every other region full stop!

Perhaps one quick immediate solution is to stop looking at commercial rates as a simple cash cow and start actually incentivising investment through a lower rate structure and essentially reducing the cost of being in business in Waterford.

If we do this the future statistics will show that in 2016 was in fact a benchmark year, a year when we put Waterford back on the investment map. New foundations are needed so let us start building them now.