Selling sand to the Arabs!

The good news, gossip and social media diatribe about the significant €300 million property investment, by the Al Hokair group from Saudi Arabia, started to trickle through various media channels early last week. By Tuesday morning the local and some national media sources (not unsurprisingly in limited column inches!) sources began reporting about this “Game changer” for Waterford City, County and the wider South East region.

Behind the heavily fortified closed doors of City Hall, our 32 Councillors were given first sight of this far eastern promise, by the Council CEO Michael Walsh. Refreshment must have been provided for this late evening session, which had all the potential to drive the City out of Division One and straight back into the Premier League. No need for any more relegation battles. Surely this €300 million, in one fell swoop, would regain our position as the fourth City of Ireland?

Our 32 Councillors unanimously passed a motion, allowing the CEO to engage further with the Al Hokair group, on behalf of the City and County.

As an aside, I read one or two funny remarks on social media, asking if “All” the Councillors had backed the plan, after many a post stating the word “Unanimously”! There were also some very strange comments, completely off topic and you often have to wonder if people are actually reading the same posts?

The devil is always in the detail, with any contractual negotiation. I have no doubt that the shrewd, wealthy business people of Saudi have ALL their ducks lined up and know that a proposal, for a multi-million Euro investment into Waterford City, would be grasped with both hands and feet, for that matter. This is one gift horse, whose teeth do not have to be inspected, or do they?

Waterford City has to be seen as a prime location for investment for all manner of reasons. The main one being, that the price of land and property is just so much cheaper than any other City. Just look at RTE selling circa 9 acres of land, in D4, with a guide price of €75 million. The likely outcome is that these few golden acres will realise much, much more than the €75 million guide, as property prices are once again ballooning in all corners of the Capital (Let’s hope we don’t see another prick bursting said balloon!). The North Quays and Michael Street are a mere fraction of this price, so why would you look elsewhere?

In addition to the cost of land being very “Cheap” in Waterford, the relatively low cost of housing also reflects the current economic climate. Yes, we do get so much more for our money down here on the South East coast and this has to be a significant attractor, when tempting the likes of 1,221,887,632 Saudi Riyals to Waterford.

Let us face facts. Property developers invest in projects to make substantial sums of money and Al Hokair will be investing in Waterford, because they see a future return on their million Euro investment. The potential has always been there. It is just that we have not been able to persuade someone to speculate to this level before in Waterford.

What is for sure, is that this investment will make others aware that Waterford and the wider South East region have REAL potential.

 

As Dublin smothers in increasing housing and rental costs, regions such as Waterford, must be an attractive alternative option. Appropriate infrastructural investment, by Government, needs to be accelerated. It was great to see Minister Coveney, down here pedalling his bike on the Greenway. However, he needs to guarantee and deliver money for this City, to ensure that we are a viable alternative to Dublin, Cork, Limerick and Galway. Governments’ record on this is not great for Waterford, so we will need to keep the pressure on, to make sure they finally deliver.

“Selling sand to the Arabs”, was a phrase often trumpeted to me when I worked at Wembley Arena. The venue was the MUST play indoor arena for any musical act.

Wouldn’t it be great if in the next few years Waterford became such an easy sell?

One year on!

It has been one year since I started writing my wee column in the Waterford Today. WOW, time does fly as you get older!

I switched from another “Waterford” free sheet, due to the fact that it was not really being produced in Waterford. As a “blow-in”, who is passionate about Ireland’s Oldest City, I was very conscious that to be supporting the “Made in Waterford” brand, I had to be contributing to a Waterford produced product. A chat with Paddy (The Editor) Gallagher and we agreed a seamless transfer to Waterford Today. A publication that has a small, but significant, tagline that you may never even have noticed - “ABC accredited circulation”.

It is funny that having worked, so many years ago, for the exhibition arm of a European publishing company, that literally sold hundreds of thousands of pounds of monthly advertising, I would once again understand the significance of Audit Bureau of Circulation figures. These are figures that detail just how many people are reading a particular publication.

Sometimes, you do wonder if such stated figures are correct. But, judging by the number of people who do tell me that they read my wee column, on a regular basis, I have to assume that, in the case of Waterford Today, their readership numbers are extremely high and reflective of the ABC accreditation.

That is good news for me. As I know that when the newspaper arrives through your letterbox or is collected at your local newsagent, you will read this and share with other family members in the household. Yes, I also publish the article as a blog and this in turn is shared through the Waterford Business Group and the Ferrybank Newsletter (both on Facebook). These additional outlets give the article extremely high readership numbers and for that I am eternally thankful and, well, surprised and humbled.

To have the opportunity to speak one’s mind, through the medium of print, without the need to hide behind a pseudonym, is a wonderful opportunity to spark debate and openly discuss significant issues. As can be seen from the reaction to my recent article on Summerval. Front page headlines in one weekly newspaper and headline billing on Deise AM!

The point of such articles is to inform, you, members of the general public, by making more

transparent the information that is readily available to you, but is perhaps deliberately difficult to find. For Waterford to move forward we do need more inclusiveness and this starts with early engagement and a more open communication flow. Something that we in Waterford are, if the truth be told, not particularly good at.

There appears to be a communication block when it comes to getting many a vital message across. Maybe, the people of Waterford have just switched off to the current crop of communicators, as they feel that they are constantly being spun. Or perhaps the way that the information, deigned to be divulged, is being packaged is wrong, inappropriate and written in gobbledegook. The messaging becomes irrelevant because it is presented very poorly.

An advert on local radio does not reach ALL the masses. A notice in the local papers is NOT always read. A leaflet left in a public building is NOT always picked up, and so on.

To get any message across and understood you need a combination of many resources. Perhaps the one most forgotten about and most powerful is face to face interaction. Nothing beats “wearing out the old shoe leather” when you need to maximise communication messaging.

My wee column, “Waterford Business Matters”, is my contribution to help readers understand the many, many, issues that I see face the City, County and SE Region. If we do not know the issues then we cannot tackle the source of our problems.

Economically and socially we are in a very tough place and I feel that we need to be more open, honest and frank with our discussions on how to make Waterford so much better for EVERYONE.

Roll on the next 12 months.

The worst "since records began!"

In meteorological terms the 1^st of June always marks that start of summer.

Irish weather forecasting!

This date is the reference point that is used by meteorologists to allow year on year comparison with weather related statistics and probably allows comparisons “since records began”. Not that many of us actually understand what this phrase really means. We apparently had absolutely no records of any weather patterns until one day some bright spark started writing down what the weather was like on any given day they woke up, and so “since records began” started. That first date must have been an amazing date when it was simply the hottest, wettest, driest, windiest and coldest day on record!

Not that the weather this week has felt anything like summer and as we all hope that, that one day of wonderful weather we had back in May was not summer, we all keep our fingers crossed that this summer will be the best “since records began”.

The compiling of statistical information is hugely important for businesses when they need to refer back to weekly, monthly and yearly key performance indicators. This inevitably leads to direct comparison and more importantly details a statistical evaluation of how the business is performing. This can then allow for real time adjustments to strategy to get a business back on track in terms of the annual budgetary goals that would have been set at the start of the financial year.

Using the correct statistical information is also a fundamental if we are to assess accurately how we are performing.

I heard only last week a lot of commentary that Waterford is now “moving in the right direction” in terms of its economic recovery. Well this is and is not true.

Footfall!

Yes, we are seeing some great economic news on the jobs front, particularly in the pharmaceutical and service sectors. And these positive news stories will no doubt bring greater attention to the City and hopefully more investment.

But our retail sector continues to struggle with falling footfall (stagnant at best), very low disposable income per household, high commercial rates, high cost of planning regulation and years of neglect. As we are selling Waterford Inc to potential investors the very heart of Waterford, its City Centre, MUST develop at an accelerated pace in order to keep up with other industry led expansion.

The lowering of the cost of operating a business in the City Centre will bring in a better retail mix and will, I am sure, give additional impetus to the Michael Street and Apple Market projects. Both of these projects incidentally have been championed by the Waterford Business Group for the last two years and it is refreshing to see this level of commercialism from within the Council. However, the caveat to this is to have the Council drive the project at a commercial pace and deliver for the City in a shortened time frame. There are far too many examples of Local Government and National Government moving at a snail’s pace when a cheetah’s pace is needed. Waterford is a prime example where not only is the clock ticking but we will very shortly need a Doctor Who like time machine to catch up.  

By the end of the first month of the summer we will be halfway through the financial year for many companies in Waterford. There will be much soul searching and pressing of calculator buttons, as businesses right across the City Centre realise that the financial predictions made at the start of the year are falling way short of what is needed to actually keep trading and stay in business.

Apple Market artists impression.

This is the actual position many of the businesses in our City Centre find themselves in today. They are not worried about lasting to the end of the year or lasting to the end of the summer, they are worried about surviving to the end of the week!

Reality bites when as a business owner you have no salary to take home and you are sacrificing your own wellbeing in order to keep your staff employed. Yet there is an assumption that the business owners of Waterford City are somehow making absolute fortunes at the moment as we hear more and more misplaced commentary about the economic recovery across Waterford City. 

Yes, there are astonishingly rapid recoveries happening in Dublin, Cork, Galway and Limerick but these four Cities are not in the third tier of economic recovery. Waterford and the South East are and this is a fact. You only have to look at the Pobal HP Deprivation Index, as used recently by Mr Browne and his boys, to understand just the scale of the economic recovery needed across the South East. Just to catch up with the likes of Galway and Limerick there is a massive amount of work needed and it is not as though the Pobal information is old. The Pobal HP Deprivation Index was generated in 2011/2012 some four summers ago!

So how are the City Centre’s businesses going to survive this week, this month and this summer?

The very minimum that is needed is a further 20% reduction in the commercial rates for City Centre businesses in 2016. A 20% reduction was enabled two years ago when Minister Hogan was lobbied by the Waterford Business Group.

There are now more commercial rates going into the City’s coffers with the many new industrial premises being built and the various expansions taking place. This increase in industrial rates must be offset against a reduction in City Centre commercial rates and every Councillor in the City and County must start working on driving the cost of operating a business in our City Centre DOWN.

 Omnishambles or Dr Who?

Our City Centre can only be at the heart of our City and County if we have a progressive commercial rates structure, which in turn will attract a wider variety of retailers, which in turn will increase footfall, which in turn will increase employment, which in turn will increase commercial rates revenue for the Council and so on. It is very simple and is a WIN, WIN for all.

If we do not want this summer to be the worst “since records began” for our City Centre businesses we must act now or it will simply be too late and even Doctor Who will not be able to help.

LE Aoife a sad loss for Waterford City.

It was with great shock that I read last week that the Government had decided to “gift” the LE Aoife to the Maltese Government to help with the humanitarian crisis currently faced by this small island nation strategically situated in the Mediterranean, and an ideal target destination for those having to flee North Africa.

Whilst I applaud the Government’s rapid response to the crisis currently affecting many Mediterranean countries, surely there should be a coordinated Pan-European response to the problem and it cannot be the sole responsibility of Ireland to come up with an individual solution. There are many, many asset rich Mediterranean and European countries that are far better placed than Ireland is to offer relatively modern patrol vessels suitable for the Maltese Armed Forces exacting needs.

The fact that it now appears the Maltese Government and the Maltese Armed Forces deem the LE Aoife “unsuitable for the role” begs the question why was the LE Aoife offered in the first place? Was there sufficient pre-offer discussions? Or was the Minister genuinely offering help in response to the crisis? I believe the Minister indisputably wanted to help and in his eagerness to do just that offered the LE Aoife without completing a suitability study. 

What is absolutely sure is that the decommissioned LE Aoife is 100% suitable for a proposed plan to bring her to Waterford City to play a central role in a proposed nautical museum piece and would also play an essential role in a South East, 170 kilometres, Maritime Trail around some key South East’s maritime destinations.

This plan was put together by me, James Doherty and Eddie Mulligan (now Cllr Eddie Mulligan) who due to his career association with the Irish Navy took the lead role in the project.

The Maritime Trail project, with the LE Aoife at its very heart, was launched in July 2013 to the then Mayor of Waterford City and the Minister of State at the Departments of An Taoiseach and Defence. Additional presentations were made later that year and a full final business plan was due to be presented to Waterford Council this week. The business plan to bring the LE Aoife to Waterford City had been researched and benchmarked against similar projects in Ireland and in the UK such as the Dunbrody (New Ross) and Jeanie Johnston (Dublin), The Mary Rose (Portsmouth), The Discovery and Unicorn Frigate (Dundee) and HMS Belfast and Cutty Sark (London). The project would have been supported by volunteers and the manufacturing and engineering firms of Waterford City.

There can be no doubt that the LE Aoife would have been a significant tourism draw to Waterford City and would have tied in with the Viking Longboat and possibly a restoration project for the Portlairge dredger.

Three iconic ships on display, on The Quay, in Waterford City – now that would be a mouth watering prospect.

We still hold out hope that the decision can be reversed and the LE Aoife can now be “gifted” to Waterford City for the maritime project. If she does have to sail away to Malta then we wish her Godspeed.

Should we see the LE Aoife sail off into the sunset we have to be very cognisant that this is yet another potential project that Waterford City has once again missed out on. A project that would have had a significant social and community contribution, as well as generating much needed local income.

We have seen recently a repeated story of projects leeching out of Waterford City all too often, I am afraid.

Only last week we read a statement in the local media that a Dublin based architect had “won” the rights to the design for the Michael Street shopping centre development. Apparently, this company had been engaged for some time and possibly as far back as 2013. I understand that the original design and planning work for this development was done by a Waterford City based architect.

Do we not have to ask the question why was the Waterford based company not engaged to finish a project they had been involved in for so many years?

I also learned last week that the new fire station design work had also been “won” by a Dublin based company and low and behold one of the suppliers for internal furniture comes from Northern Ireland – now where is the sense in that!

You have to applaud the Office of Government Procurement for working towards getting best value for money for tendered projects and therefore our taxes. However, there must surely at the very least be a social aspect to accepting tender bids that must take into account local businesses and the simple fact that a local business will put money back into the local economy.

Rest assured the Dublin based companies are taking money OUT of Waterford’s economy and is there ANY contribution coming into our local economy from the appointment of a company from Northern Ireland?

One of the biggest Government contracts has been “won” by a company from the USA and they are working from a European base in the UK. So just how is this company contributing to the Irish economy? Is there any money coming back in terms of vat, taxes and other contributions?

When tender projects are conceived surely there has to be an acknowledgement to local companies to allow them to tender and then take into account the fact these local companies employ local people, who spend locally, pay local commercial rates and other forms of local taxes.

We must ask ourselves are we happy to let more and more contracts go outside of Waterford?

Someone must take a lead role in ensuring that Waterford companies can at the very least compete with other larger organisation for Government contracts. There has to be a built-in social aspect to any tender and we do need our leaders to stand up and fight for Waterford businesses.

I am constantly reminded that if your company is the wrong side of the Jack Lynch Tunnel you will not secure business in Cork. If you are outside of the M50 you will not secure business in Dublin.

Can we not write local government tender contracts that require a business to be “on site” within 30 or 40 minutes? This would at the very least ensure a local company can compete for a contract.

What we do need are people who want local companies to compete for local projects and we need them to put their hand up and proactively ask local companies to step up to the mark.

As Henry Ford once said, “Coming together is a beginning, keeping together is progress and working together is success.” Maybe this is where we should start? 

ENDS