Wednesday, September 15, 2010

Galway Independent Column - 15th September 2010

Each year Galway Chamber, in consultation with our members, makes a Pre-Budget Submission to the Minister for Finance and an Taoiseach. This submission expresses the views and opinions of our members, real business people operating in the real world.

These real opinions from real people focus on issues such as Public Sector Costs, Infrastructure, Commercial Rates, Jobs, Education, Taxation, Stimuli for SME’s and Maintaining Ireland as an Attractive Area for Investment. This is a core group of headings for the Submission but where there is a particular issue in a particular year, it will be highlighted. Clearly this year Jobs is a priority and will be addressed.

Galway Chamber will call on Government to put measures in place to allow Ireland Inc. to compete, innovate and grow while sustaining employment, supporting Irish companies and continuing to attract foreign direct investment. While our message is national, it’s main focus is local and our submission will reflect the particular issues of importance to Galway businesses, our members.

We have long been lobbyists on Commercial Rates and this ties in with our views on public sector finance in general. In our submission we will urge a freeze on Government controlled cost increases, a reduction in the public service pay bill, reduction in non-pay costs in the public service like overtime and other work related costs, the elimination of duplication of support services/agencies and the rationalisation of ‘back office’ services across the public sector. This last item is something we have been vocal on for some time and the message seems to be hitting home. Only last week the Minister for Health suggested that consultants could possibly share office services…

Government needs to reform its system of funding for Local Government to help compensate for the decline in construction activity and its effect on revenues derived by local authorities from development contributions. Specific measures to redress this inequity include: a 3-year phasing out of Commercial Rates by introducing a more broadly based sectorally inclusive system of funding for Local Government. During the phasing out period the level of Rates increases must be reduced. There must be value for taxes paid at a local level, for example, a direct tax credit against actual rates paid. Inequity in location must be addressed in terms of Commercial Rates where centres of critical mass are being penalized i.e. Rateable Valuations. The Local Authority paybill must be reduced through a ‘back office’ rationalisation plan for activities such as HR, IT and Finance Administration

Galway needs to consolidate its position as our countrys third city by encouraging iconic, relevant and important developments. Our city is in serious danger of losing out to Cork, Limerick and Dublin in relation to vital infrastructure and investment projects.

We continue to urge both national and local government to support the work of the business community and to ensure that where possible job creating projects be secured for Galway in the short term to allow Galway to maintains its attractiveness as a location to live, work and do business in the longer term.,

That’s why this week’s comments by Minister for Finance Brian Lenihan at his party’s ‘think-in’ here in Galway were so alarming. Speaking to reporters on his arrival in Galway the Minister who controls our purse strings said that the figure of €3 billion in ‘adjustments’ already promised in the upcoming December budget was ‘a minimum’. This word ‘minimum’ is a relatively small word with big implications. Bottom line is that any larger tax increases coupled with service cuts in the next Budget will have a profound impact on business here. There are currently 80 vacant premises in Galway city centre. That’s too many.

Tuesday, September 14, 2010

Galway Independent Column - 8th September 2010

At a time when unemployment levels continue to be too high, it’s often easier to try to find a quick fix solution than what really matters, which is putting in place the foundation for future growth and investment that will ensure employment and a good quality of life for all.

We’ve often spoken of ‘smarter cities’, ‘smarter travel’ et al and now more than ever we need to concentrate on the ‘smarter’ part. A recent report by IBM’s Institute for Business Value by, among others TCD’s Dr. Constantin Gurdgiev, outlines how, in the 21st century ‘growth, economic value and competitive differentiation of cities will increasingly be derived from people and their skills, creativity and knowledge, as well as the capacity of the economy to create and absorb innovation. To compete in this new economic environment, cities will need to better apply advanced information technology, analytics and systems thinking to develop a more citizen-centric approach to services. By doing so, they can better attract, create, enable and retain their citizens’ skills, knowledge and creativity.

Galway Chamber has long advocated this approach that business will come when the basis or foundation is here and that it is incumbent on us to create the optimum environment and to make that environment ‘citizen-centric’. When Galway Chamber last revisited our Mission Statement ‘To make Galway the Leading Location for Business, Investment and People’ we felt that it was very important to include the word ‘people’. A ‘smarter economy’ is all about people. Gurdgiev calls it the ‘brains and creativity’ as opposed to the ‘bricks and mortar’ drivers of economic growth and activity.

To attract the highly skilled, innovative citizens for Galway, part of this ‘optimum creation’ is, however, about the ‘bricks and mortar’ of the systems here. To explain: we haven’t heard yet whether Galway City Council’s ‘Galway Metropolitan Smarter Travel Area Bid’ has been successful. It’s necessary as is the Galway City Outer Bypass…an optimum ‘smart city’ isn’t gridlocked. Our health services are currently ‘gridlocked’, that’s not ‘smart city’, our school class sizes are too big, that’s not ‘smart’ and there are many other examples.

Gurdgiev focuses on four high-impact areas of improvement for any city wishing to aspire to ‘smart city’ status:
 Reduce congestion in transport systems
 Improve public safety by reducing crime and emergency response time
 Streamline and tailor services for the citizen, including a heavy emphasis on education and training
 Enable appropriate access to healthcare data for better quality of care, early disease detection and prevention.
(In addition to these he also mentions energy, water and environmental sustainability, urban planning and architecture). All of these feed into making Galway a leading location for business, investment and people. We’re not the only city privy to this information. We need to act now.

Wednesday, September 1, 2010

Galway Independent Column 1st September 2010

A number of years ago a former President of Galway Chamber when asked to describe the spirit and work of the Chamber in one word said ‘access’. It’s still a good word to describe in an overall way what we do.

Access means a lot of things, it includes access to representation on both local and national issues from commercial rates to Governments Budgets. It means access to Networking where every Chamber event has a networking element as well as our monthly Business After Hours networking opportunities.

Access to business information and knowledge is available through our newsletter, ezines, website and our programme of events including seminars, business lunches and conferences. Access to innovation includes the incubation and other facilities that our subsidiary the Galway Technology Centre offers.

And finally access to and from Galway road, rail and of course air, offered by our subsidiary company Galway Airport. Access is the ability to "easily reach" and there’s no easier way to reach Galway than by flying into Galway Airport. It’s still the quickest, most efficient way to get to Dublin, London Luton, Lorient, Edinburgh, Manchester and Waterford and onto a myriad of destinations from these hubs. The codeshare agreements in place mean that luggage can be checked through from Galway Airport to facilitate travel ease.

This facility has always been important to Galway and in particular to the business community in Galway. This is why Galway Chamber has been the majority shareholder in Galway Airport from its inception as a commercial airport. It exists to provide access to and from Galway. It’s not the only means of access. Galway Chamber has lobbied for and welcomed the N6 and continues to lobby for the N6 Galway City Outer Bypass as well as West on Track. Business needs choice.

That’s why the news that an Interim Examiner has been appointed to Aer Arann, main carrier at Galway Airport is of concern to the business community in Galway. However, having had discussions with the Board and the Management of Galway Airport it is important to stress that during the period of examinership flight services will continue to operate as normal to and from Galway Airport. This has been confirmed by Aer Arann. Galway Airport will continue to serve the business and leisure traveller the same as always during this time. Access to air routes in and out of Galway needs to be supported by Government and by us, the travelling public.

As a Gateway city, Galway must provide access which must in itself be timely, always available, of high quality and cost effective. If this doesn’t happen then Galway's continued success and growth could be seriously jeopardised.

Congratulations and Good Wishes
Just a note of congratulations and good wishes to someone who has over the years been involved in the transition of Galway from a town to a city and everything that entails. Bernard O’Hara retires today as Registrar of GMIT having worked there since the college opened as the RTC Galway in 1972.

Bernard began his academic career as a lecturer in Business Studies, was promoted to Head of Department, followed by Head of School of Business and Humanities for nineteen years, latterly served as Registrar of the college for the last eleven years.

Among his many achievements in a working life full of achievement Bernard was a Board Member of Galway Chamber for over ten years and was President during the bicentennial year of 1991/92 when he said at his inauguration that he believed that the Chamber’s mission was to act as a catalyst for the economic and commercial development of Galway and its hinterland. We wish him a happy and healthy retirement.

Making A Difference

Is there a link between littering and anti-social behaviour or between anti-social behaviour and littering? If an individual litters is he or she more likely to engage in what we call anti-social behaviour? What is anti-social behaviour and is its definition different from person to person?
These questions are prompted by the most recent litter survey from IBAL, the Irish Business Against Litter organisation who carry out surveys each year with the help of An Taisce to find which towns and cities in this country (with a population of over 6,000) are considered ‘Clean to European Norms’, ‘Moderately Littered’, ‘Littered’, ‘Seriously Littered’, or ‘Litter Blackspot’. Galway fitted into the ‘Moderately Littered’ category along with fellow cities Dublin and Cork. Limerick, the fourth city surveyed ended up in the ‘Littered’ category.
In fairness the survey is not just based on litter thrown on the ground by wanton litter louts, approach roads etc also come into play and cleaning of same comes under the remit of city and county councils. But, the keeping clean of visible areas outside a business premises is the responsibility of the business owner. IBAL say that to keep on the right side of the law as well as to show corporate citizenship and community spirit, businesses should look to clean up outside their premises, including their car parks twice daily. This would have an enormous impact on our streetscapes, they say, in one fell swoop and reduce local authority cleaning costs. This might not sit well with businesses who wonder what exactly they get for their Commercial Rates Bill paid to the council…street cleaning?
The majority of businesses do keep their street area tidy, they have pride in what they do and their premises and its environs reflect this. Which leads to the first question involving anti-social behaviour… Anti-social behaviour is any aggressive, intimidating or destructive activity that damages or destroys another person's quality of life, it’s all about the effect that one’s behaviour has on others. What might seem like harmless fun to one person may seem like something entirely different to someone else.
The person who ends up having drunken fisticuffs with his ‘mates’ at three am doesn’t realise or doesn’t care that he’s keeping local residents awake, the person who urinates on someone’s front door doesn’t care that the householder will have to clean it off the next day and he certainly doesn’t care that he’s frightening people. This scenario can equally take place at three o’clock in the afternoon when tourists and children are the recipients. If this sort of thing happens once outside your door, you can get over it. But if it happens on a very regular basis like it does at the Spanish Arch, it is a serious problem for residents and businesses in the area. This has been highlighted time and time again. We haven’t seen any major riots there this summer but anti-social behaviour is like litter, it’s always there. The street cleaners do a particularly good job at the Spanish Arch each morning but like the anti-social behaviour, its there again the next day. Dropping a piece of litter might not seem like anti-social behaviour but it’s all about just not caring.

Galway Independent Column - August 11th 2010

The news this week that the Government intends to increase electricity by 5% in October comes as yet another unwelcome cost base hike to business.
The increase, according to the Government, is due to the public service obligation levy, a charge designed to improve the country’s security of energy supply and to develop renewable energy….scant comfort to businesses already buckling under a raft of charges including commercial rates, water and waste charges.
In the real world any extra charges to business at this time will be at best detrimental and at worst catastrophic. Sure, we appreciate that securing supply and developing renewable energy are good things and must happen but the timing of this proposed increase couldn’t be worse. The Commissioner for Energy Regulation says that if the levy is postponed consumers will have to pay more later…
But it’s the here and now that concerns businesses at the moment. It’s keeping afloat and providing jobs. The possibility of lower bills in the longer term doesn’t cut any ice with businesses trying to pay today’s bills.
The increases will also hit the bottom line of our larger businesses and particularly those in the manufacturing sector. For a country whose cost base is perceived already as being high (in fact Ireland has the fourth highest electricity charges in the EU), this will not help in attracting future foreign direct investment to locate here. The IDA have already expressed their concerns regarding the increase which will of course make their job of attracting foreign direct investment significantly more difficult.

On a more positive note, it’s good to be able to offer something for nothing to businesses… a reminder that those SMEs who wish to provide a work placement to a participant on the WebActivate programme this autumn, Galway Chamber as the Galway business link along with Galway provider GTI invites SMEs to apply to take a work placement. Chamber Members will receive a brochure with an application form attached in this week’s mailout and details are also available on www.webactivate.ie Remember participant WebActivators do not need to be accommodated in the place of business. Rather they are empowered to work independently, equipped with a notebook computer and software, 3G broadband and mobile and technical support. Thus equipped they will create a web presence that will enable the host SME to grow its business through the web, using the internet to reach and drive customers to the business.

Congratulations to the Salthill Village Festival which was launched in the Galway Business School at the weekend. The Festival itself will take place this year on the weekend of August 21 and 22 and will host among other events, a giant tea dance, a vintage car rally, DJ’s in the marquee, a ghost run, fire juggling, ice sculpting, giant jenga, poetry, literature, art, windsurfing, diving, salsa, capoeira and lots more. This is a great family festival and as the organisers say: ‘It’s Free by the Sea’. We wish all our members in Salthill every success with this initiative. www.salthillvillage.com

Galway Independent Column - August 4th 2010

We’ve come a long way from the first racing festival held in Ballybrit on Tuesday, 17th August 1869 when the two-day event heralded what would become the modern phenomenon that is The Galway Racing Festival.
Last week saw a city alive with people, with fun, with colour, with good humour and was truly an advertisement for what Galway does really well. Yet again, congratulations to John Maloney, to his team in Ballybrit and to the Race Committee.

But congratulations also to the Galway business community, to the hospitality industry, to the shopkeepers, to each and every employee who made it such a good week for the visitors and Galwegians alike. Each smile, each courtesy made the week better for someone. We’re now into the final month of voting for ‘Galway’s Best Awards’ winners, the new customer service excellence awards supported by Failte Ireland and Galway Chamber, sponsored by the Central Park Group and in association with Heineken. The aim of the awards is to find the best Hotel, CafĂ©, Restaurant, Pub, Fashion Retailer, and Festival/Event as voted by the public. Last week was a great opportunity for businesses to make their mark with the public.

We would like to commend those establishments that stuck to their normal prices…we still purchased our takeout coffee at €2, we enjoyed a great lunch with enormous choice, for €10 including excellent coffee and there was lots more. Yes, we were asked to comment on ‘rip-off Galway’, as we are every year and we replied by talking about ‘Choice’. The Oxford Dictionary definition of the word ‘Choice’ is …an act of choosing between two or more possibilities. We all have choice. When we go to a new place as a visitor we have choice. We check out the various possibilities and then we make our (informed) choice. We choose what we do, we choose where to eat, sleep, drink, socialise, shop etc.

There was value to be had in Galway last week in terms of accommodation. There were also some very expensive options available…we have choice. Some chose the expensive options, some didn’t but there was a choice. There is a ‘supply and demand’ situation going on here. If people will pay the higher rates and are happy to do so, then why wouldn’t the provider charge them? There is a competitive element, prices must compete at the lower and the higher ends of the scale. There are also many extra overheads in the hospitality sector that feed into the racegoer’s overall experience, extra staff, late bars, entertainment etc.

Eating out offered many possibilities last week, from takeout ‘on the hoof’ to pub grub, to a gourmet experience (which is not to say that a gourmet experience can’t happen in a pub, because it can!), the choice was there. The race course roast beef sandwich has made many a punter very happy over the years and long may it continue.

Essentially the Galway Racing Festival is a festival for everyone. That’s what has made it unique. You never know who you’re going to meet at the racecourse or around the town. There’s room for everybody and a welcome for everybody. There’s loads of entertainment, most of it free and an atmosphere that you just couldn’t buy. The Galway Racing Festival gets it right. It was a great idea back in 1869 and it was great last week. Well done to everyone involved.

Galway Independent Column - July 28th 2010

It is becoming ever more apparent that to establish trading in the Digital Economy all Irish SMEs (Small to Medium Enterprises), from sole-trader to micro to medium sized, need to have an online digital presence. This means using at least the minimum digital channel of a ‘Google friendly’ website to reach and drive customers to a particular business.

Galway Chamber has long been an advocate of the internet as a marketing tool for business and we set up our website www.shopgalway.com in 2005 to allow business to promote their special offers in a free and user friendly way.

A report on Information Society and Telecommunications (ICT) released by the CSO in December 2009 shows that while 95% of enterprises had a computer connected to the internet only 66% had a website or homepage.

Businesses will need increasingly high levels of skills and greater technical capability to respond effectively to the opportunities and threats posed by globalisation and advances in digital technology.

With this in mind, WebActivate is an innovative programme designed by Digital Skills Academy and delivered in partnership with the Digital Hub, the Chambers of Commerce and leading Further Education Colleges in the participating cities. In Galway the partners are Galway Technical Institute and Galway Chamber.

The programme is funded by the government Labour Market Activation Fund and the courses are free of charge to participants. There are no fees or charges for the SMEs providing work placements in the programme.

Digital Skills Academy: is based in the Digital Hub in the heart of Dublin. Building on many decades of accumulated experience in Internet & Digital Media, the Academy offers the highest standard of multidisciplinary training in digital skills.

Galway Chamber invites SME members to express an interest in providing work placements for course participants.

The WebActivate programme will provide participants with specific skills in digital media, and allied sectors, along with broader e-skills increasingly in demand across all industry sectors. WebActivate is a high-quality training programme delivered by an expert group of quality assured trainers. The aim is to equip participants with the necessary skills to effectively design and publish websites for businesses with no previous online presence.

This will be achieved through completion of a suite of FETAC modules which ensure proficiency in internet publishing and on-line marketing. Among other, these modules include: Internet publishing, iMarketing, Social media marketing, Publishing Google Maps, Digital photography & web publishing
Participants will also be trained as trainers so that they will be in a position to transfer their newly acquired skills and learning into the businesses with which they are placed.

Work placements will commence at the end of September 2010.
Following their 6 weeks ‘In-Centre’ training, each participant will spend 12 weeks with 3 different SMEs. In this time they will create websites and coach employees on how to maximise business via their newly achieved web presence at no cost to the employer.

During work placement the course participants will attend their designated training centres one day a week for classes, ongoing mentoring and coaching from their expert trainers. Each participant will be equipped with a Notebook computer, software and 3G broadband, all of which are provided through the WebActivate programme. Anyone interested in hosting trainee placements and “Web-Activating” their business should contact Maeve Joyce at Galway Chamber on 091 563536