Thursday, March 10, 2011

Galway Independent Column - 9 March 2011

Yesterday was International Women’s Day which is an appropriate time to mention the ongoing work of one of Galway Chamber’s projects, the EU Network of Ambassadors for Female Entrepreneurship operated by the Enterprise Europe Network.

Statistically within Europe the lack of exploitation of entrepreneurial potential is even more acute when analysed by gender. Compared with men, fewer women are self-employed in the EU, and fewer women start-up businesses. A couple of years ago the European Commission made a decision to promote female entrepreneurship and create a business environment that facilitates the creation and development of women-led companies. In 2009 the European Commission issued a call to establish an EU Network of Ambassadors for Female Entrepreneurship to be operated by the Enterprise Europe Network.

The aim of establishing this network of Female Entrepreneurship Ambassadors is to boost the rate of female entrepreneurial activity across the EU. The network of Ambassadors should, it said, inspire women to become entrepreneurs and to set up their own business. The Ambassadors help to raise the confidence in setting up and creating successful businesses. They are also role models to inspire other women to become entrepreneurs by “telling their story”.

Responding to the call, members of the Irish Enterprise Europe Network submitted an application to establish the Irish Network of Ambassadors for Female Entrepreneurship. The application was led by Galway Chamber of Commerce in partnership with Dublin Chamber of Commerce and Cork Chamber of Commerce. A total of 10 Ambassadors were nominated in Ireland and recommended to the European Commission for inauguration. The 10 Irish Ambassadors join an EU wide network of over 120 successful European businesswomen who kicked off the campaign to encourage more women to become entrepreneurs and start their own businesses.

The EU Network of Ambassadors for Female Entrepreneurship was formally appointed on 5th October 2009 by Commissioner Vladimir Spidla at an inauguration event organised by the European Commission in collaboration with the Swedish Presidency of the EU in Stockholm, Sweden. The Ambassadors received their diplomas by HRH, the Crown Princess Victoria of Sweden who supported the event.

The three Galway Ambassadors are: Liz Cassidy – Irish Time Design; Judy Greene – Judy Greene Pottery and Audrey Kinahan – University Late Night Pharmacy who each have excelled in their chosen area of business and who have already made their mark in the entrepreneurship sector and can use this experience to inspire female entrepreneurship and encourage women to turn their ideas into reality.

Galway Independent Column - 2 March 2011

Dear Derek, Eamon, Brian, Noel and Sean, and Ciaran, Paul, Colm and Michael,

Congratulations to all of you on your election as TDs to represent Galway West and Galway East constituencies in the 31st Dail. The majority of you represent the Political Parties that are likely to form the coalition Government that will govern our country for the next five years and some of you may hold positions of authority, power and influence in the new administration. The national challenges you face are considerable, however, the opportunities for you to positively influence the economic development of Galway City, Galway County and the wider West Region are also significant.

On behalf of the Members of Galway Chamber of Commerce and on behalf of the broader Business Community in Galway I want to take this opportunity to remind you of the priority issues that you need to tackle when in Government in order to ensure that our economy grows and livelihoods are protected:

Jobs – every job is important, existing jobs must be saved and job creation must be at the core of all Government Policies. Enterprise supports currently available from Enterprise Ireland should be extended to SMEs in traditional non-exporting sectors.

Commercial Rates – Local Government Reform must result in lower Commercial Rates for Business. The costs of ensuring a reliable supply of clean water to every business and household should be spread across business and domestic users. The Cost of Government must be reduced. The Local Government Efficiency Review Group has identified potential savings of €511 million – the implementation of its recommendations must be a priority in order to reduce the burden of costs on small businesses.

Enterprise Support – Government must provide a working capital fund to enable viable businesses access credit until the Banking system is fully functional. Access to working capital is essential to business survival and job retention and Government must step in where necessary to ensure that it is available through this difficult economic period.

Confidence and Competitiveness – Government must secure the 12.5% Corporate Tax Rate as a central plank in attracting Inward Investment and the National Debt must be managed within the capabilities of the National Finances and at Interest Rates that the country can afford. It is essential that Ireland does not bow to pressures from our EU partners, many of whom have mechanisms which help businesses pay effective rates that are much less than 12.5%.

Government commitment to Regional Development – the incoming Government must (a) secure the future of Galway Airport, (b) Deliver the Galway City Outer Bypass, (c) Support the Galway Port Development Project and (d) Maximise the Tourism potential of the West Region by investing in Tourism infrastructure.

Galway has the potential to deliver further significant revenues to the national exchequer and in so doing can play a major role in restoring the national finances. As our political representatives, whether in Government or in Opposition it is incumbent on you to ensure that Galway is provided with the physical (Galway Airport, City Outer Bypass, Ceannt Station, the M18, and Galway Port) and technical (Broadband) and Tourism (Concert Hall, Art Gallery, School of Music, Conference Centre) infrastructure necessary to maximise job creation. The emerging Energy Sector affords the West Region the opportunity to take a leadership role in Wind and Wave Energy technologies and the Corrib Gas Project must be brought to fruition.

Over the last two years our country and our economy has had to deal with an unprecedented downward economic spiral – the collapse of the construction sector and with it the collapse of our banking system, the massive destruction of personal wealth, the return to high levels of unemployment followed by mass emigration of talent and experience, the erosion of control over our national finances and most recently the implementation of severe austerity measures.

From the dark economic days of the 1980’s we have proven that we can successfully overcome high inflation, high interest rates, high unemployment and mass emigration to create a prosperous country which was the envy of the world. The challenges facing the new Dail and the new Government are immense but not insurmountable provided the correct decisions are taken in relation to our national finances, provided the new Government acts courageously in tackling wasteful public expenditure, and provided enterprise across all sectors is supported and encouraged.

You all have a key role to play and we wish you every success – our futures depend on your success.

Michael Coyle
CEO
Galway Chamber of Commerce

Galway Independent Column - 23 February 2011

As part of our preparations for the upcoming general election Galway Chamber has published an extensive Election Manifesto setting out the priority issues facing our Members and the broader business community.
The manifesto document has been sent to all candidates in the Galway West and Galway East Constituencies and to the Party Secretaries of all the political parties.
Over the closing days of canvassing we will be voicing the main points of the Manifesto directly to candidates and via the media and in this way we hope to influence the upcoming programme for Government.
Each member of Galway Chamber also received a copy of the Election Manifesto document and now we would greatly appreciate feedback. The endorsement of the document by Members will strengthen our key message that business/enterprise/jobs must be at the core of policy making by the incoming Government. By way of receiving this feedback we have issued a short survey to all members by email. It only takes a minute to complete.

Feedback from members is the backbone of our lobbying activity on your behalf. We received the following from a long time member of Galway Chamber when he received our Manifesto:

‘As Managing Director of an SME I hope that whatever government is voted into office will be pro business and will quickly take decisive steps to ensure that Ireland continues along the path to improved competitiveness which most SME’s embarked on in 2008.

I also hope that the new government will recognise the need for new and existing businesses to survive and thrive as the SME sector has a key role to play in providing much needed employment and taxation revenue if it is given the chance to do so.

Specifically I would like to see a new government take the following actions within its first twelve months in office:-

1. Instruct the Irish headquartered banks to make a certain amount of funds available to profitable SME’s whose future is threatened by serious cash flow difficulties. These instructions need to be backed up by meaningful sanctions such as a withholding of financial support to banks which refuse to assist viable businesses with short term cash flow challenges.

It is nothing short of a scandal that we are seeing profitable SME’s closing because of cash flow difficulties. Many of these companies could have been saved had the outgoing government made it a condition of rescuing the banking sector that these same rescued banks had been compelled to make funds available to viable businesses with cash flow difficulties.

2. Take positive steps to facilitate entrepreneurs to set up new ventures in sectors where there is a reasonable possibility of success. There are openings in the ICT, financial services and medical devices sectors and in the green technology sector which should be actively encouraged.

3. Amend the absurd bankruptcy legislation which unreasonably punishes company directors whose businesses might have failed due to market forces. As well as being unjust this deprives the economy of the expertise of directors who should be afforded the opportunity to get back into business rather than suffering the stigma of being branded a bankrupt for 12 years. As a society we need to accept that some businesses do fail and business people should not be scapegoated because their companies have had to cease trading. Instead I would argue that these directors should be afforded the opportunity to learn from their failure and make a fresh start. Changing the bankruptcy legislation would help to remove the unnecessary stigma associated with business failure and this would encourage more people to take the risk of starting a new business.

4. Amend the social welfare rules which punish people whose businesses have failed by depriving them of normal unemployment benefit entitlements– this is an unjust and foolish way to punish people who took risks and provided employment and taxes in the economy

5. In general terms the new government should commit itself to increasing awareness that Ireland needs to have a thriving private sector in place before it can provide the range full of services citizens have a right to expect in a properly managed economy. It is alarming to hear so many people talking about their entitlements without having any sense of awareness of how these ‘entitlements’ are actually paid for.

6. The process of wage and salary determination needs to be revisited. There can be no doubt that the so called ‘partnership process’ lost its way in the past ten years and resulted in grossly inflated expenditure which was financed by taxes ensuing from a short term property bubble. It is a scandal that the SME sector had no say in the partnership process – if it had an input I am confident that the high level of pay increases and the notorious benchmarking fiasco would not have been allowed to happen.

7. The new government needs to urgently tackle the issue of government induced inflation. Two obvious costs is the issue of energy costs where the ESB monopoly and cost structure has to be addressed and also the area of commercial rates where businesses are now paying considerably more money for a significantly reduced service than they were getting ten years ago.

8. The new government should propose a referendum to write an article into the constitution prohibiting any future Irish government from spending more than it takes in taxes. After the austerity that the citizens have had to put up with since 2008 this referendum is necessary so that the country can never be run into the ground again

This list is not intended to be exhaustive but I do think most businesses would be satisfied if the list of proposals were acted on in the next twelve months.’

This is what the Election is all about from a business point of view. This is why our members are our strength. Make your vote count for business on Friday.

Galway Independent Column - 16 February 2011

Galway Chamber is delighted to welcome the news last Monday that Fidelity Investments is to create 100 new jobs in its Galway and Dublin offices. We’re particularly delighted that more than 75% of the jobs are earmarked for Fidelity’s offices here in Galway City in the Parkmore East Business Park.

Fidelity have said in their announcements today that one of the reasons they decided to create the extra jobs here is the quality of their Irish workforce and the level of research being carried out here at Irish universities.
Galway Chamber has always said that we need to create the optimum conditions to attract foreign direct investment to Galway and these are the conditions….our workforce, our third level colleges, our quality of life and our corporation tax rate of 12.5%. We would like to commend the work of the IDA here in Galway as well as the research programmes offered by our third level colleges. We all need to continue to support and to promote job creation whether its foreign direct investment or our own indigenous industries, at this time more than ever.

We have just sent our Galway Chamber Election Manifesto 2011 to all of the candidates in Galway West and East and it emphasises that jobs are what we desperately need in this country now. The upcoming election must be about jobs and what is proposed in terms of job creation. Again this week we ask all business people to question the candidates on their own or their parties policies and proposals for job creation.

In our Manifesto we have said on a national basis that Government must be more proactive in supporting and incentivising employers to take on new staff and retain existing staff in employment. We believe that it would be appropriate to aim for a target of 30,000 new jobs to be created and supported in 2011 and a net increase of 20,000 people at work – a target of unemployment below 10% by 2014.

We believe, as we have said in this column on many occasions that the SME sector is equally important as FDI, and job retention and creation in Retail/SME equally critical, therefore we need more innovative incentives for this sector on a par with those existing for Multi-National Companies. We believe Enterprise supports currently available through Enterprise Ireland should be extended to SME’s in the traditional indigenous non-exporting sectors.
Government must also support and incentivise employers to take on new staff through a reduction in the current rate of Employers PRSI and the expansion of the Employers Job (PRSI) Incentive Scheme to include all new employment created for a period of two years instead of the current twelve months

On a more local level we believe that there must be a Government commitment to utilise the educational skills base being created in Galway by NUI,Galway and GMIT, together with the skills and experience in the BioMedical, Healthcare and ICT Sectors to maximise job opportunities in the Region. This is evidenced each time we welcome new jobs either indigenous or through FDI to Galway, as recently as the Fidelity Investments announcement this week.

We have certain natural advantages as a result of our peripheral position and Government must commit resources to exploit the employment creation potential of the Marine Sector, Marine Research, Marine Biology, and Marine Tourism and to develop ‘Green’ energy technologies, Wind & Wave.

Back in 1974 in the Local Elections for Galway Borough Council, Galway Chamber fielded four candidates running on a business platform. This hasn’t happened since (although it might be a good idea to revisit it to make a strong business voice in City Hall), so it’s even more important that the ‘business’ questions be asked of all candidates to bring the concerns of our members to a local and national stage.

Galway Independent Column - 9 February 2011

‘Curiouser and curiouser’ according to Alice in Wonderland, might well have been written by Lewis Carroll about an Oireachtas report recently released on the retail sector in Ireland. The report, which was three years in the making, makes no reference to the issue of excessively high retail rents, despite admitting that it was one of the major issues facing the retail trade.

It would seem to be quite extraordinary that this committee managed to sit for three years, produce a report and not mention rent…each day we see and hear the evidence of closures in the retail sector due to excessively high rents and indeed the upward only rent reviews in existing leases.

The retail sector has been particularly hard hit in the last couple of years and it doesn’t have the government support that other sectors have. There is an anomaly that while multi nationals and Irish exporters can be supported those supports do not exist for indigenous non exporting companies despite their employment credentials.

Therefore it’s sounds a bit like a line from Fr. Ted when the Chair of the Oireachtas Committee on Enterprise, Trade and Innovation accepted that the issue of upward-only rent reviews was a serious problem but claimed the committee had “run out of time” to discuss it.

He said intransigence among landlords who were charging excessively high rents was “causing serious problems for retailers and causing some of them to close” but he claimed that the committee had not discussed the issue formally because “we did not anticipate that the report would have to come out so quickly”.

The whole area of Reform is becoming key in the run up to this election. But reform grinds slow…if the results of this one committee are anything to go by. However, reform slow or not, is key to our rebuilding this economy.

In the Galway Chamber Election manifesto 2011, to be published next week, the areas identified as key by our members are:
 Job Creation and Retention of existing Jobs: this must be at the core of every Government initiative
 Reform of the Public Sector: we must cut the enormous cost of running Government
 Enterprise support: jobs in SME’s, retail, hospitality etc are just as important as jobs in the multinational sectors
 Restoration of Confidence and Competitiveness: only confidence in our future will encourage people to spend again…we need this confidence
 Government Commitment to Regional Development: we need to change the ‘Dublin’ mindset of Government in order to maximise the potential of the regions.
These are all ‘national’ issues but they all have a local dimension. It is often said that all politics is local and we can see the ‘local issues’ coming to the fore every day. But how the candidates respond to local issues can be a good barometer of how they will handle the national issues should they be elected.

Again we urge our members to question the candidates on their knowledge and their response to the business issues. Their answers should determine our votes.

Galway Independent Column - 2 February 2011

In this column last week we urged all members of the business community in Galway to question each candidate in the forthcoming election as to their views on matters pertaining to business in Galway ie Galway Airport; Commercial Rates; Supports for SMEs; Access to Credit; the Galway City Outer Bypass; Access to the Region; The Dockland Development; Traffic; Rent Reviews and Corporation Tax. It is in the spirit of Galway Chamber’s mission statement ‘to make Galway the leading location for business, investment and people’ that we initiate this process and to encourage members to make their voices heard and to make their vote count.

As part of our ongoing lobbying efforts on behalf of our members we have been consistent in what we have said over the years regarding the issues which affect our members. For example we have never wavered in our belief that Galway needs the Galway City Outer Bypass as part of the solution to our traffic problems. We have never said that the Bypass on its own is a solution, we have said that it is part of the solution. That’s why we are very pleased that election candidate Labour’s Councillor Derek Nolan has clarified (his words) the Labour Party’s position as regards the Galway region’s transport and traffic problems, particularly in relation to the outer bypass…’the outer bypass therefore has become central and will form part of Labour’s transport plan for Galway.’ This is great news albeit unfortunately somewhat tardy.

Likewise Galway Chamber has lobbied each year for a significant reduction in Commercial Rates because it is a stealth tax that impacts severely on business. As part of this campaign we have pointed to efficiencies that can be brought into Local Government as part of local government reform. These efficiencies will cut costs which can then positively impact on commercial rates. One of these efficiencies is the amalgamation of much of the back office functions of city and county councils. We have long said that two local authorities within a stone’s throw of each other could share some functions. Election candidate Senator Niall O’Brolcháin agrees. He has said that there are many services provided by Galway City Council that are also provided by the County Council based in an office only a few hundred metres away. He says that we cannot afford this luxury any more…and he is right.

The following is quoted from the Galway Chamber Commercial Rates lobby document sent to Mayor Niall O’Brolcháin and all city councillors in 2006
‘If Govt. believe that the country does not need 13 Health Boards to deliver services to 4.5m people is there not merit in considering generating efficiencies by rationalising the ‘back-office’ ( IT, HR, Finance) functions of the 30+ Local Authorities. At Galway level does it make sense to have two Finance Depts, two HR Depts and two IT Depts of Local Authorities less than 1kilometre apart in Galway City?

These are the sort of things that impact on business. It is our right to ask all candidates their views on what’s important to business.

Galway Independent Column - 26 January 2011

Election Manifesto
Elections are hugely important to all aspects of life in Galway. TDs, when elected, whether in Government or Opposition are integral to the significant decisions made affecting the business life of the city and county. Galway Chamber believes that the view of business should be put to the candidates and their political parties prior to the election. This is more important now than ever before. The voice of business must be heard loud and clear in this election.

We are calling for each candidate’s commitment to the matters raised by the business community and their commitment will determine our vote. In the coming days we will issue our own Manifesto to our members and to all candidate for the upcoming election. The items in the Manifesto will reflect the issues of importance to Galway Chamber members whose views have been harvested through survey and through their representatives, the elected members of Galway Chamber Council.

We further urge all members of the business community in Galway to question each candidate with whom they come in contact as to their views on matters pertaining to business ie Galway Airport; Commercial Rates; Supports for SMEs; Access to Credit; the Galway City Outer Bypass; Access to the Region; The Dockland Development; Traffic; Rent Reviews and Corporation Tax. It is in the spirit of Galway Chamber’s mission statement ‘to make Galway the leading location for business, investment and people’ that we initiate this process and to encourage members to make their voices heard and to make their vote count.

Funding Opportunities for Businesses
As a member of the Enterprise Europe Network, Galway Chamber regularly keeps track of upcoming funding opportunities for all types of businesses. A number of funds/grants are currently open to small and medium sized businesses. While the prospect of approaching the EU for funding for your business or project may be daunting for some, Galway Chamber provides practical assistance to businesses to help you understand how the grants are administered and how to apply for funding.
LIFE+
The LIFE programme is the EU’s funding instrument for the environment. The objective of the programme is to provide funding via co-financing to the projects which are either a) best practice or demonstration projects that contribute to the implementation of the Birds and Habitats Directive, b) innovative or pilot projects for the development of innovative policy ideas, technologies, methods and instruments or c) projects relating to communication and awareness raising campaigns on environmental issues. The Call for Proposals will be launched in mid-February 2011.
Social Entrepreneurs
Social Entrepreneurs Ireland is now accepting applications for the Social Impact Programme, including tailored practical assistance and funding of up to €130,000 to develop innovative approaches for addressing social problems or issues in Ireland.
Intelligent Energy Europe
There are many untapped opportunities to save energy and encourage the use of renewable energy sources in Europe, but market conditions do not always help. The Intelligent Energy-Europe programme is the EU’s tool for funding actions to improve these conditions and move towards a more energy efficient Europe. This programme may suit businesses who wish to link up with energy agencies or local authorities to undertake specific energy efficiency related research, awareness raising campaigns etc.
Acumen
This is a sales and marketing programme, which can help your business grow on the island of Ireland by targeting new cross-border markets. The programme which is run by InterTradeIreland offers your business various supports and funding options such as employing a sales person, part-time sales person, market research or employing a graduate.
For more information on any of these funding opportunities or to discuss other possibilities, please contact Carol Brady, Project Manager, Galway Chamber at carol@galwaychamber.com Tel. 091-563536.
Galway Chamber is a member of the Enterprise Europe Network www.een-ireland.ie

‘Your Business, Your Bank’
‘Your Business, Your Bank’, is a 17-page guide prepared by the Credit Supply Clearing Group that offers important advice for small businesses on dealing with their respective banks. Chambers Ireland helped to draft this guide as part of its efforts to help viable small businesses develop better relationships with banks and access credit to grow and create jobs. It is available on our website www.galwaychamber.com