Time to support our own!

One Swallow doesn’t make a summer! It is not one good quality that makes a man!

These are certainly two sayings that could well be used to paraphrase the Festive shopping period in Waterford City. Some, quite wrongly assumed, that as there appeared to have been large numbers of people visiting Waterford in December, taking in the wonders of Winterval, exploring the architecture of Ireland’s oldest city, visiting our retailers, that businesses have, figuratively speaking, made a “killing!”

This of course could not be further from the truth.

Many businesses have done well over the festive period, with the hotels, restaurants and entertainment establishments being particularly buoyant. There can be no doubt, that general retail had at best flat sales when compared to 2016 and some sales were even slightly down on last year. Many will ask just how this could be, when guesstimated numbers for Winterval could be in excess of half a million, going on the 2015 figures (we are still awaiting the official bean counter announcement)!

All the data released so far, will back up the fact that Christmas sales were, for many retailers, very disappointing. As these could account for up to 30% of a businesses’ annual turnover, the real cost of a poor Christmas, in terms of sales, hits home during the months of January, February and early March.

There are many contributing factors to these poor sales and there can be no doubt that countless shoppers, are simply holding on to more of their hard earned cash due to continued uncertainty in the economy. In addition, Waterford and across the wider southeast, we continue to be a low wage economy with higher unemployment, when compared to national averages. This in turn means that we have less disposable income to spend in our local shops. After all, if you only have €50 of disposable income in Waterford, compared to €150 in another city, then who will have a stronger, better economy – it really is that simple. WE have far less to go around.

 

For years we have suffered, as regional strategy, after regional strategy, has left Waterford City and the southeast’s economy trying to play catch-up.  We have been running the 100m, against the likes of Mr Bolt. But we have been wearing wellies that are two sizes too big, filled with custard and our lane has been coated in treacle! It is proving impossible to get on even terms, let alone be in with a chance of winning the race.

To throw even more fuel on the fire, we have very low third level attainment and we are the only region not to have a University. This in turn means that we have limited higher education capacity for our children. The lack of IDA visits is a constant thorn in our side and for the period 2011-2015 the southeast accounted for only 4% of new IDA jobs created. There are many other metrics that clearly show we have much to do to get back on an even keel. But then you the readers already know this! Don’t you?

But here is the crux of the issue. Getting people to talk openly and honestly about where our economy is, proves very, very difficult, time and time again. There are very few people willing to speak up, because they somehow fear that speaking the truth, will sound negative! Yet, our very own excellent academics, in WIT, have been saying the above for many years. So why can’t we be more honest and say it like it is?

If our businesses do not start speaking loudly enough to be heard, then many of those in power (locally and nationally) will, wrongly assume, that Waterford’s economy is “booming”. Come the Council budget next year, scores of our Councillors will vote for commercial rates increases. Maybe increased car parking charges, increased property taxes and who knows what else.

We need to stop being the “Quiet people of Waterford” and start to shout just a wee bit louder. In the meantime get out and support your local businesses – because once they are gone they are gone!

Do our Festivals matter?

Festivals & mud go hand in hand!

Yes they do!

As a City and County that prides itself on a huge number of diverse annual festivals and events, some of which have actually reached International status, we should be very proud of the fact that we can state that Waterford is one of the busiest festival regions in the country.

Yet we are still, in the perception of many, lagging way behind the likes of Galway, Dublin and Cork, and when you look at what is on offer I often wonder why we are perceived to be somehow a lesser festival product than these other Cities.

Maybe they just shout much louder than us!

At last week’s plenary meeting of Waterford Council, in addition to clarification on the newly introduced Commercial Rates levy on empty premises, which along with the general commercial rates revenues, circa €33,000,000, which help fund our many festivals and events, the issue of festival funding was discussed and debated quite robustly by a number of our Councillors.

It was refreshing to see such vigorous debating, with a number of valid and poignant reasons why the proposed contributions by Council to festivals and events had to be right for the City and County.

Waterford Walls.

With circa €1,430,000 of disposable spend available to the 58 identified festivals and events the Council must get the support grant structure accurate, fair and true, to nurture the very best of these, whilst allowing a significant financial contingency to support new fledgling festivals and events, that will ultimately replace those that have come to the end of their natural lifespan.

We do need a constant conveyor belt of new festivals and events and that is why any grant or support funding available must be distributed as equitably as possible and disseminated by knowledgeable qualified people who know, or at the very least have familiarity with, what will and will not work for Waterford.

The initial draft Council document has suggested that future funding would be evaluated by a nominated three person panel. Quite rightly our Councillors literally jumped all over this suggestion by stating that these decisions should be made by Waterford’s Councillors, as they are elected to represent the people and the businesses of Waterford. An external panel, no matter what their experience, will not be as focused and or as in touch with Waterford’s event needs.

For the first time in a long time it was refreshing to hear our Councillors speaking with one voice on this matter and demanding that the Executive bring the issue of allocating grant funding back to the Councillors for their direct input and ultimately authorisation.

It would be absolutely criminal to think that a festival or event could thrive or fail on the recommendation of a three person panel who may not know the history or relevance of a particular festival or event.

The support funding available to festivals and events is a vital building block to allow growth, regionalisation and ultimately, where relevant, nationalisation through the generation of extra bed nights to the City and County.

From small acorns large trees can grow, but only if the soil conditions are right and the tree is maintained and looked after.

Up, up & away!

We can see the huge and well deserved success that Spraoi is now having, despite loss of some national funding, and the acorn planted many, many years ago has now seen this organisation support its first ever UK festival, in sunny Scarborough.

The variety in our festivals and events is a joy to behold and whilst some get huge grant income, up to circa €430,000 that some might feel could be better spent, others clearly get smaller contributions that perhaps fit the profile of a fledgling festival looking to establish roots and grow.

The split between City and County is always an interesting debate but we all know that a great festival or event for City or County is good for everyone concerned.

After all are we not one of the same?

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.