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

Galway Independent Column - 19 January 2011

We have written many times about Galway Airport and its importance to the economic well-being of this region. We consider it to be a vital piece of infrastructure for our region and that its future and the future of investment in this region are inextricably linked.

Galway Airport is a critical piece of transport infrastructure supporting both the indigenous and international business sectors by facilitating both outbound and inbound access to and from international markets. The industrial composition of the Galway economy is unique among Irish cities in terms of the concentration of high technology industries and its extremely heavy dependence on internationally traded sectors and markets and that because of the airport’s extensive access to international ‘hub’ airports the airport continues to be a key selling point in maintaining and attracting investment into the West region.

Carmel Brennan, President of the Galway Chamber said this week that: “Galway Airport is a business airport and its existence and survival is critical for the future of the region as it makes an important contribution to supporting and creating jobs in Galway”.

That’s why we were concerned at the announcement by Minister for Transport, Noel Dempsey TD, last week the discontinuation of the Public Service Obligation (PSO) air services between Dublin and Galway post the current PSO contract would end in July of this year.

This was coupled with the Department of Transport’s report on the “Value for Money Review of Exchequer Expenditure on Regional Airports Expenditure Programme” which effectively said that Galway Airport would close should its recommendation to cease the annual operation subvention be implemented.

As a result of both of these issues Galway Chamber, on behalf of our members, called a meeting with the Oireachtas members from Galway West and East and the Mayors of Galway City and County. The meeting was attended by Mayors Michael Crowe and Jimmy McClearn, Minister Eamon O’Cuiv, Deputies Frank Fahey, Noel Grealish, PadraicMcCormack, Cllr. Paul Connaughton and Senator Fidelma Healy-Eames.

The meeting discussed the Report, the PSO and the Operation Funding for Galway Airport. Each of the attendees gave their opinion on the situation and the outcome was clear and unambiguous support for the continuation of the Operational Funding for Galway Airport. The politicians present agreed to work together, cross party to ensure the continuation of this vital piece of western infrastructure.

We further urge all candidates in the upcoming election to include the support for Galway Airport as part of their election manifesto on behalf of the business community in Galway and the region.
As a result of the meeting the matter is now being raised at Government level on a cross party basis and we look forward to an announcement that Galway Airports Operational Funding will continue in order to ensure the future of this essential piece of infrastructure.

It is also well to remember that Galway Airport in itself provides direct employment associated with the Airport for 175 full time equivalent personnel, contributing in excess of €2 million in PAYE and PRSI to the Exchequer. Galway Airport has received written support from employers representing 15,000 employees as well as messages of support from the development agencies, IDA, EI and Udaras and the third level sector NUIG and GMIt. At a time like this when political and economic certainties are few and far between it is heartening to see this sort of cross party and inter agency support for Galway’s airport and for business in Galway.

Galway Independent Column - 12 January 2011

January is a time of resolution. It’s a time when we think about the year ahead, when we plan and regroup. It’s a time for focus. This resolution applies to both our personal life and our business life. It’s a time for getting fit in body, mind and business.

RTE’s Operation Transformation is back on our screens. We would like to wish local leader Ronan Scully, Goal’s western manager, every success on the programme and urge as many people as possible to follow Ronan on the RTE/OT website. The success of this programme, now in its third series has a lot to do with being able to choose a leader and be part of that leaders road to success.

It’s a good time of the year for joining…a gym, a club, a nightclass or a business organisation. Memberships of organisations are important in many ways. It’s always good to know that there is an organisation out there to support you in your particular area of need. Mostly its good to know that there are other like minded people out there who are looking for the same thing, who have similar needs, wants and ambitions. It’s good to know that a solitary voice can become one of many and therefore be stronger and more effective.

Membership organisations are even more important in difficult times. Being a member lessens the feeling of isolation that can result from stress and problems. Being able to talk to others in similar situations helps. As a membership organisation Galway Chambers networking events are popular for these very reasons. We begin this years series of Business After Hours networking events on Thursday January 27 when Iarnrod Eireann, www.irishrail.ie will be our hosts.

We also lobby on members behalf, we have a full time, professional executive team to help members, we host the Europe Enterprise Network to promote your business in Europe and we represent members on various boards ranging from business to education. Galway Chamber engages with the following organizations as part of its work in support of the continued economic development of the City and the West Region:Galway City Council, Galway County Council, IDA Ireland, Enterprise Ireland, Failite Ireland, Udaras na Gaeltachta, the County and City Enterprise Board, FAS, Galway City VEC, The Revenue Commissioners, NUI, Galway, GMIT, the GCBA, The Western Development Commission, the West Regional Authority, Westbic, ITAG, The Irish Hotels Federation, IBEC, The American Chamber of Commerce, Gaillimh le Gaeilge, The Galway Harbour Board and the Gardai.

We believe that strength in membership increases our lobbying power on behalf of our members. For more information on becoming a member of Galway Chamber please contact us on 091 563536 or log onto www.galwaychamber.com

Galway Independent Column - 5 January 2011

The news that 85 jobs are lost in the hospitality sector in one go here in Galway this New Year does not bode well for an industry that has tried everything in its power to stave off this type of situation.
Job losses at any time of year are catastrophic for those involved but particularly in these difficult early January days when festive bills have to be paid. It’s all the more extraordinary then to read of a hotelier in Cork who cites last year as being his best ever and is quoted as saying that he doesn’t believe that the hotel sector is as bad as the media is making it out to be.

I’m not sure that the hospitality industry here in Galway ie hotels, restaurants, pubs, nightclubs would agree with him. This industry in particular depends very heavily on consumer spending and as such has been seriously compromised over the last couple of years. This combined with weather and water crises in the last trading period (Christmas being the peak trading period for the majority of the sector) has minimised any ‘cushion’ for the bleak early months of 2011.

Galway Chamber has consistently called for supports for SMEs and has urged support particularly for our smaller indigenous businesses. These are the backbone of our economy and are what makes us different. It is time that Government realised that this sector is not the ‘poor relation’ of multi national and other sectors, rather it is a crucial bedrock of our economy. More than ever now they need support to grow and prosper and to ensure job retention. We hear all the time about the economic recovery being tied into exports and that’s great, but we cannot forget the SME sector. It should also be remembered that this sector is the foundation of our tourism industry and as the world economy improves tourism will provide us with a serious sector to be serviced.

In the complete absence of reductions (or minimal reductions) in government controlled costs for small businesses ie Commercial Rates being one, these businesses will have to continue to cut the costs that are within their control and make no mistake, this will mean job losses. What we need now is Government action, task forces, incentives, basically Government attention to this situation. Small business needs access to credit…now…not promises or talk. The traditional retail, hospitality SME sector needs priority and above all, action. This may well include specifics like a special Commercial Rates incentive for start ups, straight employment grants, tax incentives or combinations of those and others.

On a different but related matter, it has also been reported that Minister for Housing Michael Finneran said in a recent interview that he ‘questions the need for 88 different housing authorities to support the delivery of housing services’. It appears that senior figures in his department are currently looking at this and will report in the coming weeks. This is as a result of the report of the Local Government Efficiency Review Group which said that certain departments in city and county councils should be merged to make cost savings. Galway Chamber has been urging local City and County Council to investigate the recommendations of this group to make cost savings across back office functions (not necessarily or just housing) which could then be used to alleviate the burden of Commercial Rates on business. One small step for Minister Finneran could be a major leap for local authorities as we know them.

Ath bhliain faoi shean is faoi mhaise do gach ball de Chumann Tráchtála na Gaillimhe

Galway Independent Column - 22 December 2010

It was the culmination of a year in which Supermacs opened six new outlets with a job total of 250 full time and part time staff. This is no mean feat in the current climate and shows that true entrepreneurship will always win through. At the time Pat McDonagh was quoted as saying: ‘We’re very happy to be in a position of growth. The market is challenging and looks that it will be even more challenging next year. We kept our business tight during the good times and it is now paying dividends. We have kept costs and overheads tight and are working smarter and harder.’

In many ways this should be a blueprint for the year ahead for all of us. Supermacs hope to open a further four to five outlets in 2011. This success story is even more admirable considering that the company’s profits were adversely affected for years due to its US investments. It is in the nature of the entrepreneur to keep going, to get on with it and if things go wrong to dust himself off and start again.

Another fitting quote as we head into Christmas and the New Year and cognisant of the difficulties which will continue to face business in 2011 is the following extract from John F. Kennedy’ inaugural address:

‘"All this will not be finished in the first one hundred days.
Nor will it be finished in the first one thousand days,
nor in the life of this administration,
nor even perhaps in our lifetime on this planet.
But let us begin."

And on another positive note the announcement by Minister O’Cuiv that Galway Airport is to receive funding totalling €1.7m for 2010 is a great boost for everybody associated with Galway Airport. In particular the Board and the management team at the Airport are to be congratulated for their enormous efforts in generating support for the Airport.

Led by Chairman, Michael Corless and supported by Joe Walsh, Managing Director and the Board Members, they met with local business, local politicians, national business agencies including IDA and Enterprise Ireland, TDs and Ministers and then took the fight to Europe. The cornerstone of their campaign is that the local business community continually say in response to surveys, in meetings, in letters and emails and publicly on the airwaves that Galway Airport is crucial to the continued economic development of Galway and the Region.

That Galway Airport continues to survive irrespective of the economic conditions is a testament to the brave decision makers in Galway Chamber of Commerce who nearly 40 years ago decided that Galway needed its own Airport. Galway Chamber continues to be the 90% owner of the Airport and continues to be central to the Airports ongoing development. There will be other difficult junctures ahead but for now well done Minister, well done Government for listening to reasoned argument and well done Michael Corless and Joe Walsh for your leadership, this success is well deserved.

The offices of Galway Chamber will be closed from 5.30 pm on Thursday December 23rd and will reopen at 9 am on Tuesday January 4th.

We would like to take this opportunity to wish all our members a Happy and Peaceful Christmas and New Year.

Galway Independent Column 2010 - 15 December 2010

After many months of speculation and foreboding the Budget was finally unveiled last Tuesday by the Minister for Finance, Brian Lenihan. Although by the time it was delivered many of the key elements had been either leaked or telegraphed in advance. The Budget speech itself was short and fairly bland, to the point where one tended to think, ’what was all the fuss about’, however, as is often the case the ‘devil was in the detail’. In fact, the Minister referred a number of times to supplementary documents as sources of further details and, needless to say, the National Recovery Plan 2011-2014 was never very far away from his remarks.

When the Budget document, the subsequent Government motions on Budget provisions and the Recovery Plan are all taken together the picture that emerges is not an uplifting one - the macro message ‘€6billion spending power taken out of the economy through spending cuts and increased taxation’. At the micro level this means households having €100, €200, €300 less to spend every month which means less money being spent in shops, on holidays, on entertainment, on the occasional treat, not changing the car, delaying the renovation i.e. a collective tightening of belts across society, which in turns means businesses having less turnover and having to cut costs, and inevitably having to reduce employee numbers which means job losses.

There were a couple of rays of light, however – the surprise announcement that Stamp Duty is being greatly reduced, the rejuvenation of the BES funding scheme for high potential businesses and the extension of the car scrappage scheme. It remains to be seen whether these initiatives will generate much needed confidence but for anyone about to purchase property there is an immediate much welcome benefit. The allocation of additional places on State Training schemes is to be welcomed as it will allow those seeking new employment or employment for the first time to gain valuable experience and new skills to compete for work.

Overall, though, Galway Chamber’s concern is for businesses and for jobs, and last week’s Budget is not good for jobs. Neither was last week’s decision by Galway City Council to vote against a proposal to reduce the €33million rates burden on Galway’s business community by 2.2%, instead opting for a token 1% reduction. The reported reaction of two prominent City Councillors to criticism of this token decision by Galway Chamber and its lobbying partners the Irish Hotels Federation, The Irish Vintners federation and IBEC is not unexpected. What is unexpected is that these Councillors represent political parties that traditionally are pro-enterprise and yet on this occasion when faced with the opportunity to support the owners of businesses who take risks, create jobs, sponsor sports and culture events and help make Galway the tourist attraction that it is, these Councillors and their Party colleagues vote against a meaningful reduction in Rates that could have saved jobs in our community.
Galway Chamber and its lobbying partners make no apology for asking Councillors to help save jobs in Galway.
Note: At the Public Meeting on Rates convened by Galway Chamber and our lobbying Partners and held on Monday December 3rd we were challenged by a number of Councillors to find savings in the Galway City Council’s Draft Budget. A number of costs in the draft document were discussed with Councillors and a number of potential savings were identified. The Councillors were also provided with the output of the Government’s Local Authority Efficiency Review Group which contains five pages of recommendations where savings totalling €544m could be achieved across all Local Authorities, if implemented.
Good News
Galway Chamber welcomes the very good news, released yesterday, that 105 new jobs are to be created in HP at its plant in Ballybrit. It was great to hear the urgency in the voice of Martin Murphy, HP Ireland Managing Director, on the news last evening when he indicated that the jobs were available ‘now’ and anybody interested in applying should send in their CV immediately online – access by googling ‘Jobs at HP’. There is no doubt that this positive job announcement, and the two other announcements in recent weeks which brings to over 300 the total of new jobs in Galway over the last six weeks, was influenced by our 12.5% Corporate Tax Rate – thankfully, it remained unchanged in last week’s Budget and when/if it is challenged by some of our EU partners, Galway Chamber will lobby/lecture and do whatever is necessary to retain this most important weapon in securing future jobs in this country.

Galway Independent Column - 8 December 2010

Over 100 business people from Galway city and surrounding areas attended a Public Meeting on December 1 to
articulate their views on Commercial Rates. Organised by the combined lobbying group of Galway Chamber, IBEC, IHF and VFI, the meeting was chaired by Chamber President Carmel Brennan and Q and A directed by Chamber CEO Michael Coyle.
Each of the lobbying partners told the meeting of the position taken by their particular organisation and the common view was that Commercial Rates must be substantially reduced this year or jobs will be lost in the coming year.
The meeting was told by all speakers that jobs are currently at risk, that businesses have cut their costs to the bone and that an extra tax that isn’t related to ability to pay, is just not on.
When the meeting was opened to the floor each business contributor reiterated the need for cuts in Commercial Rates this year.
City Councillors who attended the meeting included Cllrs McNeilis, Connolly, Conneely, Nolan, Keane, Naughton while attendees from Galway County Council included Cllrs Cuddy, McClearn, Hoade and Broderick.
At the meeting the floor questioned what exactly we pay rates for, what do we get for our payments, what will happen in January when businesses will be forced to lay off staff. Galway Chamber and the lobbying partners had proposed a 10% reduction in rates, the floor questioned whether or not this was enough with some calling for 50%. Case studies were told from the floor with the common theme that enough was enough and businesses were now in such straits that they just couldn’t pay.
On the process of commercial rates a question was put to Councillors re their power in the matter. The general answer given was very little, ie ultimately if the councillors don’t manage to pass the budget and strike a rate the decision is then taken out of their hands and passed over to the Dept. of Environment.
The Councillors asked the meeting to put their suggestions for finding ways to reduce commercial rates without cutting frontline services. Michael Coyle finished the meeting by saying that the lobbying group had already sent to each City and County Councillor as well as the Acting City Manager and the County Manager five A4 pages of recommendations for cost cutting in Local Authorities suggested by the Local Government Efficiency Review, a body tasked with finding ways of cost cutting in Local Authorities. If implemented these recommendations would ensure savings that could then be passed on to the business communities in substantial rates reductions.
Other issues from the floor included the difficulty of dealing with the Council re payment plans or options regarding rates payments. Contrary to what the Council’s say it was the attendees views that it is not easy to negotiate with the Council regarding rates difficulties. The meeting believed that there was a distinct lack of flexibility.
Following the Public Meeting on commercial rates the lobbying partners invited each of the political groupings in Galway City Council to meet with them on the subject of rates prior to Monday’s Budget meeting. The partners met with Cllrs Keane, Crowe and Mayor Crowe from Fianna Fail; with Cllrs Conneely and Walshe from Fine Gael; Cllrs McNeilis, Cameron and Nolan from Labour and Cllr O’Flaherty from the Independents.
Again, on behalf of the members of Galway Chamber, the IHF, the VFI and IBEC we made a very strong case for a substantial reduction in commercial rates for the coming year. Again we pointed out to Councillors that we were not in favour of cutting frontline operations rather we felt that there are efficiencies and cost cutting that Local Authorities could put in place in order to make savings that could be passed onto ratepayers.
We pointed out that it is the entrepreneurs, the business people, the job creators who will lead our economy into profitability. These are the commercial ratepayers and they must be given breathing space to lead us out of this period of darkness.
What happened then….
However, on Monday night in City Hall Councillors voted to reduce Commerical Rates by a token 1%. We believe that jobs across Galway City have been put at risk following this decision. Ignoring the impending Government Budget which will be announced today and ignoring the need to reduce its cost base, Galway City Council decided to maintain a €33 million Rates burden on Galway’s business community.
Galway City Councillors decided to ignore the call for a 10% reduction in Rates. In doing so they also ignored yesterday’s Government Budget which at the time of writing was set to take €6billion out of the economy through Tax increases and spending cuts, they ignored the Government’s 4-year National Recovery Plan which calls for cost savings to be achieved by Local Authorities, they ignored the recommendations of the


Government’s Local Authority Efficiency Review Group which urges Local Authorities to integrate administrative functions with neighbouring Local Authorities and move to pooling resources and sharing services and they ignored the pleas from their own business community in Galway for support in order to keep business open and to maintain employment locally.
‘Despite significant levels of unpaid rates and many business closures and empty buildings Galway City Council voted to maintain a €33million Rates Burden on Galway Businesses, the vast majority of which are small businesses operating in vulnerable sectors such as Retail and Hospitality – jobs will be lost in these businesses’, according to Galway Chamber President, Carmel Brennan.
‘Galway City Council’s failure to recognize the difficulties faced by the Irish Economy and the need for change is a serious error of judgement’, added Terry Tyson, Chairman of the Vintners Federation of Ireland Galway.
‘Last night’s City Council meeting was an opportunity for the elected representatives and officials in City Hall to show leadership at this most difficult time for our economy – it was an opportunity not taken and the consequences for jobs in Galway could be very serious indeed’ said Michael Coyle, Galway Chamber CEO.
View the recommendations of the Local Government Efficiency Review Group on our website www.galwaychamber.com

Galway Independent Column - 1st December 2010

A Galway City councillor was quoted in the local media recently as saying that a plea by city businesses for a 10% rates reduction ‘would carry a lot more weight’ if the Chamber of Commerce encouraged members to pay up the outstanding rates bill of between €18 million and €22 million.

Galway Chamber has never encouraged any member to default on commercial rates payment even when such measures were proposed as a reaction to rates increases in the past. The payment of Commercial Rates is a statutory obligation on business regardless of ability to pay or the fact that it is an extra tax on business.

It is a fact that there are businesses in Galway that cannot pay rates…they have been encouraged to engage with City Hall to put payment plans in place. Non-collection of Commercial Rates to the value of €18 million from ‘trading businesses’ must ask some questions of City Hall.

Traditionally Commercial Rates plug the gap in the local authority coffers, they balance the books between the national exchequer funding, other income streams and what’s left. Over the last two years Businesses (Rate Payers) have implemented Cost Saving measures that have included
 Pay Freezes
 Wage Reductions
 Staff Reductions
 Operational measures aimed at improving efficiency
 Product Price Reductions
 Customer Service improvements
 Line by line reductions in spending

All of the above have been put in place in order to remain in business and survive these difficult economic times. It would be reassuring if City Councillors could provide details of similar measures that have been introduced by the City Council and identify clearly to the people of Galway the scale of Budget reductions that have been achieved so that the burden of Commercial Rates can be eased and jobs can be made secure?

Along with our lobbying partner organisations IBEC West, the Irish Hotels Federation West, Vintners Federation of Ireland, Galway, Galway Chamber will hold a public meeting on Commercial Rates this evening Wednesday December 1 at 6 pm. All business people are invited to attend. All City and County Councillors have also been invited to attend.

We recently welcomed the publication of the report of the Local Government Efficiency Review Group, and its recommendations, many of which if implemented, could deliver much needed savings to local authorities.

The Review group said that reforms outlined by it would result in savings of in the region of €511 million. Business has been the funder of ‘last resort’ for many local authorities. Therefore cost savings achieved must be passed back to businesses in the form of reduced rates and other charges.

The Local Government Efficiency Review Group’s recommendations include the areas of Administration (7 recommendations); Staffing (8 recommendations); Housing (7 recommendations); Roads (3 recommendations); Water (9 recommendations); Planning (4 recommendations); Waste (3 recommendations); Motor Tax (6 recommendations); Local Government and the Wider Public Service (4 recommendations); Audit/Value for Money (13 recommendations); Financial Reporting/Management (9 recommendations); Cost Recovery and Revenue Issues (8 recommendations); Procurement (10 recommendations); Information and Communication Technology (5 recommendations); Shared Services (4 recommendations); Local Government and the Wider Public Service (5 recommendations); Other Cross-Cutting Recommendations (4 recommendations). These recommendations are flagged variously as short, medium or long term and while it would be a major ask to try to implement such a vast range of recommendations it would be incumbent of the Minister to seriously attempt the implementation of the majority.


The Local Government Efficiency Review Group was established in 2009 to review the cost base, expenditure of and numbers employed in local authorities, the members of the group were: Pat McLoughlin, Chief Executive, Irish Payment Services Organisation and former Deputy Chief Executive of the HSE (Chairperson); Donal McNally, Second Secretary General, Department of Finance; John O’Hagan, Professor of Economics, Trinity College; John Quinlivan, former County Manager; Ian Talbot, Chief Executive, Chambers Ireland; and Geraldine Tallon, Secretary General, Department of the Environment, Heritage and Local Government.

All business people are welcome to the Public Meeting on Commercial Rates this evening in Hotel Meyrick, Eyre Square at 6 p.m.

Galway Independent Column - 24 November 2010

They say that a week is a long time in politics…well it certainly has seemed like a long time since this day last week. A lot has happened on the Ireland Inc front and it’s still happening. At the time of writing we are not clear on all the detail of the so called ‘bailout’ and what exactly the multibillion euro rescue package from the European Union and the International Monetary Fund will involve. Questions remain but the one question that’s answered is ‘Is it happening?’ ‘Yes, it is’.
Bank of Ireland Group Chief Economist Dan McLaughlin writing on issues affecting the retail sector recently said that fears about the economy has resulted in consumer confidence falling and spending easing back. He said: ‘People tend to save more and spend less when unemployment is rising and there is a consensus at the moment that unemployment is peaking. The number of people being made redundant each month has fallen quite a lot. If the labour market has bottomed out we may see growth in the economy of 2 to 2.5% next year and the outlook will be a lot better for the retail sector than it has been. Of course, the current uncertainty adds to the down side risk.
‘Curiously’, he added ‘consumer confidence rose after last year’s budget probably because it gave them some certainty; they need that same certainty again’.
We could all do with some of this certainty. If consumers are afraid to spend because they don’t know what’s around the corner, then the ripple effect permeates business at every level. The upcoming Budget has seemed to be coming forever and is fixed in peoples minds as a harbinger of doom. If the general public is confused and fearful then certainty or a measure of certainty is needed. We now have an unprecedented situation where the Government proposing the budget has committed itself to dissolution in the early part of next year. This does not engender certainty in our nation: in our people or our funders. So, certainty allied to courage is what we desperately need. Isn’t it time that the much used phrase ‘the national interest’ meant something…
Yesterday morning in the final ‘8 Tuesdays @ 8’ morning event at Galway Chamber our three council members from AIB, Bank of Ireland and Ulster Bank held an interactive session on the topic of ‘Banks…Open for Business’ where they outlined the position of the banks on credit for SMEs. Each bank is emphatically open to lend and stress that where criteria are met, SMEs will be funded.
This is good news and is reiterated in the Quarterly Report from John Trethowan, Credit Reviewer, published this week. In the December 2009 budget, the Minister for Finance announced the setting-up of the Credit Review Office to help ensure that small and medium-sized enterprises, sole traders and farm enterprises have access to credit from the banks who are participating in the NAMA scheme. The office was established to provide a process to review decisions by the participating banks to refuse, reduce or withdraw credit facilities.
In this second Quarterly Report from the credit reviewer, John Trethowan says:
‘Work is ongoing to identify any barriers to SME lending, and I have added a generic loan application form onto the Credit Review Office website to assist borrowers in making an initial written approach to any bank for lending, to overcome the ‘casual refusal’ sometimes experienced by verbal enquiries at bank branch and business centre counters.’
The office of the Credit Reviewer is there to help SMEs. It should be used. www.creditreview.ie

Galway Independent Column - 17 November 2010

Nurturing the entrepreneurs among us is vital to our economic recovery. The truth of this statement is borne out by the Government’s Innovation Taskforce Report, by events such as the Farmleigh forum over a year ago, by the gathering of technology giants founders a couple of weeks ago in Dublin and also by an upcoming Enterprise Week.
Speaking at the launch of the Taskforce Report the Tánaiste, Mary Coughlan T.D., said: "Our success to date in turning investments in research and development, in entrepreneurs, in innovative companies into world beating competitive advantage for jobs and growth must be redoubled. Critical to this is the removal of barriers to success and seizing the opportunities that the Taskforce has identified."
Removing these ‘barriers to success’ is key and interestingly something that has been written about extensively in the media recently is our attitude in this country to failure. This was addressed by some of the participants in the ‘Founders’ conference in Dublin at the end of October.
Jack Dorsey, creator, founder and chairman of Twitter spoke about ‘failure’ in California being almost a badge of honour or a rite of passage…a springboard to success. He told a packed audience that there was no better time than a recession to create something.
Risk is part of being an entrepreneur and the courage to take that risk should be seen as a positive rather than a negative attribute. We need our entrepreneurs and we must create a culture in this country that has less of the ‘begrudger’ attitude and more of the ‘empowerment’ attitude.
Bank of Ireland will hold another National Enterprise Week starting this Friday November 19th to November 26th. This follows the success of the National Enterprise Week held in May to encourage and nurture the entrepreneurial spirit of small and medium sized business sector.
With the primary objective of supporting and aiding business recovery, Bank of Ireland customers and non-customers have been invited to avail of the opportunity to showcase their products and sell their goods and services in the branch premises in the 'Show Your Business' event. This will provide a platform to network with other businesses and discuss challenges in the current economic climate. Last May over 1,400 businesses availed of this opportunity and many of them generated new sales as a result.
Opportunity still exists to take part in the 'Show Your Business' event over the week in branches in Eyre Square, Galway Industrial Estate and Oranmore. To avail of this opportunity contact Galway Industrial Estate - John McGrath @ 091-705747; Eyre Square - Gemma Costello @ 091 537013;
Oranmore - contact John Harkin @ 091-794529
Bank of Ireland is also supporting entrepreneurial spirit by continuing their sponsorship of RTE’s Dragons’ Den this year. As the blurb for the show says: ‘One idea, one pitch, one deal away from the dream’. The Irish Dragons are successful entrepreneurs and business leaders who have been there, done that. This year will see the introduction of brand new Dragon Norah Casey, who will join Gavin Duffy, Bobby Kerr, Sean Gallagher and Niall O’Farrell in the Den.
The deadline for applications for the show is November 28 2010. Check out the details on www.rte.ie/dragonsden.

Galway Independent Column - 10 November 2010

It was great news for Galway last week with the launch of 50 new jobs by Industrial Info Resources (IIR). The Texan market research company acquired the former Global Marketing Technologies in Ballybrit and will recruit in the areas of research, sales and administration. As Minister Batt O’Keefe said at the announcement, it is indeed, a vote of confidence in Galway.

Confidence is in pretty short supply at the moment. It’s defined as ‘belief in the powers, trustworthiness, or reliability of a person or thing’ as in ‘We have every confidence in their ability to succeed’ and also ‘belief in oneself and one's powers or abilities; self-confidence; self-reliance; assurance’ as in ‘His lack of confidence defeated him’.

It’s a powerful thing, confidence. It can be the difference between success and failure. The holding pattern in which we find ourselves as businesses and as a country, is largely dependent on our confidence in the upcoming Budget and the Government’s ability to get it right. Not only must we have confidence in Government but the rest of the world must have it too. Our credibility on the world stage is a matter of the confidence that international bond markets and all potential investors have in us. That in turn impacts on our spending patterns as businesses and individually. Spending decisions and the timing of those decisions is affected by this confidence.

Deloitte have just published a report on consumer spending which shows that overall spending will fall by 10% this Christmas but despite this cutback we are still topping the spending ladder among our European neighbours. Only Luxembourg spends more. The respondents to the survey here said that their prudent spend will be a result of a fear that the economic downturn will get worse. There is no doubt that there is a new economic reality but our confidence as consumers directly affects our business confidence and ultimately Ireland Inc’s confidence.

At a press conference post 9/11 Rudy Giuliani, encouraging the people of New York to resume their normal lives said: ‘Show your confidence. Show you're not afraid. Go to restaurants. Go shopping’. While there is no comparison between the atrocity that was 9/11 and an economic downturn, the belief in confidence as an enabler is obvious. Our pre-Budget to Government is entitled: ‘Keep Jobs, Create Confidence, Cut Costs’ and will be submitted this week. Should any Chamber Members have submissions for inclusion please email michael@galwaychamber.com

Galway Independent Column - 3 November 2010

Love Irish Food celebrated its first birthday recently. The organisation, a marketing group for Irish food and drink brands, has grown its membership from 29 to 77 brands in its first year. The premise behind the organisation is very simple, buying more Irish made products helps Irish businesses survive and protects Irish jobs. That's something that we can all be proud of and get involved with.

The ultimate goal of Love Irish Food is to protect Irish jobs with simple choices. The people involved in the organisation believe that behind every Irish product on the shelves is a real home-grown story about people working from farm to factory to supermarket floor to bring you your great quality Irish product. This makes sense on many levels. It is not a prescriptive organisation…ultimately they are asking people to consider buying just one more Irish brand in their grocery shop, one more can make all the difference.

The Love Irish Food people reckon that if just one third of households in Ireland (that’s 400,000) spent an average of €1.67 more on an Irish item each week for a year €35 million would be generated for the Irish economy. That’s a lot of money.

A new report from the Drinks Industry Group of Ireland published on Monday showed that a quarter of jobs were lost in the industry between 2008 and 2010. The report also showed that the Government’s plan to tackle cross border shopping in last year’s Budget has not stopped shoppers going north. It had been hoped that the decision in the UK to increase VAT from 15% to 17.5% coupled with the reduction of the Irish rate of VAT from 21.5% to 21% would stabilise the market, which it did for the first six months after the excise cuts were announced, there was even an increase in sales of 6.4%. However cross border shopping is beginning to pick up again and will, as before, hit sales here.

Another alarming statistic recently came from Retail Excellence Ireland who said that 35,000 retail industry employees have lost their jobs since the start of 2009.

All of this ties in with Galway Chamber’s annual Sp€nd Christmas in Galway campaign. Simply put, and mentioned in this column last week, for the last number of years we have been urging visitors and Galwegians alike to spend as much of their time and their money as they possibly can, here in Galway. It’s a ‘shop local’ campaign based around the run up to the festive season when we urge everyone, on behalf of our members, to buy their Christmas gifts locally, to shop for food and drink locally, to party locally and to encourage others to visit Galway.

Right now there are a lot of things in this country over which we have no control. However, we have control over what we spend and where we spend it. If one person, Sp€nding Christmas in Galway, keeps another person in a job, then it’s worthwhile. To get involved in the Sp€nd Christmas in Galway Campaign simply contact Galway Chamber on 091563536 or email info@galwaychamber.com

Galway Independent Column - 27 October 2010

When Galway Chamber Council members discussed the matter of Commercial Rates at the recent Chamber AGM there was a unanimous view in the room that not only could business not support any increase in Commercial Rates this year, it couldn’t support a freeze either. The only way that Commercial Rates could go this year…is down.

Outgoing President Paul Shelly reflected the view of the large attendance after the meeting when he said that Galway Chamber must lobby for a reduction of at least 10% in Commercial Rates this year. He said that business could no longer afford to pay Commercial Rates at their current level and this was evident in the amount of uncollected rates.

‘We are lobbying with other business organisations on this issue of concern to our members. There needs to be at least a reduction of 10%, the rates base needs to be widened, duplication of functions in the local authorities needs to be rationalised to reduce costs of services and local government funding by central government must change’, he said.

The bleak message from our members is that Galway businesses will not survive if our local authorities, city and county, don’t cut Commercial Rates. On behalf of our members we are calling for a 10% cut so that business can continue to trade and can continue to retain jobs.

We are well aware that the local authorities depend on Commercial Rates to fund approximately a third of their costs (€33m out of a total of €87m) and while the private sector has had to tighten up and reduce costs in order to survive, the public sector must do the same.

For example, the rates base must widen: only 8% of the buildings here are eligible to pay rates…there are no rates levied on public buildings, domestic buildings or businesses such as B&Bs.

The introduction of broad-based charges will reduce local authority budgetary pressures and thus the dependency on business to make up the short fall in funding. Minister Gormley must make sure that recommendations for Local Government reform are implemented by national government. The situation as it exists cannot continue. Already the contribution by business is down because of closures and the collapse in forecasted development contributions income. This underlines the fragile nature of local authority budgets and must be moved to a more sustainable funding model.

In order to restore competitiveness Government must move to reduce the amount of rates and charges that businesses are forced to pay. Costs savings and economies of scale are necessary, amalgamation of back office functions between the city and county councils would be one such route, much like the VEC proposals.

Businesses in Galway city and county have been through and are still going through very difficult times. These businesses cannot support what is essentially an extra tax on business. Our members have always paid their share and have no objection to paying a fair share but in the current economy this extra tax on business is insupportable and will cost jobs.

And speaking of jobs and keeping our spend local….it’s coming to that time of year again when we urge members and the wider public to shop local and to Sp€nd Christmas in Galway. Good news then that the proposed Christmas Market has been saved at the 11th hour.

In a recent press statement issued by Galway Chamber and following a briefing to our Council on the proposed market, we said that we would be working to ensure that local businesses gain maximum advantage from the expected influx of visitors to the City in the pre-Christmas period.

We will be working this year as every other year to attract people to ‘Sp€nd Christmas in Galway, both visitors and locals alike and we will continue to promote Galway as a fantastic place to visit and to shop over the Christmas holiday season with the Christmas Market further supporting this campaign.

Galway Independent Column - 20 October 2010

Only if you’ve been on another planet will you not have heard of ‘social media’…this brave new world of facebook, twitter, blogging et al is not really that new but for us ordinary mortals it’s time has come. The computer whizzes among us have been involved in this phenomenon for years and predict that the next wave is not far away. Now, in case you are one of the intergalactical travellers there’s the movie..The Social Network.

On a fall night in 2003, Harvard undergrad and computer programming genius Mark Zuckerberg sits down at his computer and heatedly begins working on a new idea. In a fury of blogging and programming, what begins in his dorm room soon becomes a global social network and a revolution in communication.

A mere six years and 500 million friends later, Mark Zuckerberg is the youngest billionaire in history… but for this entrepreneur, success leads to both personal and legal complications. From director David Fincher and screenwriter Aaron Sorkin comes The Social Network, a film that proves you don’t get to 500 million friends without making a few enemies.

So says the blurb, the film is based on the book “The Accidental Billionaires” by Ben Mezrich. For business the most interesting aspect of this ‘social media’ scenario is that it’s free. Essentially its free marketing for your business. It’s time intensive but otherwise free. Here in Galway Chamber we are firmly in favour of any initiative that will benefit our members and the wider business community. That’s why we have hosted three interactive sessions over the last three Tuesday mornings on Social Media, blogging, twitter and facebook. Led by Ina O’Murchu who’s company Social Bits is based in the new Webworks building these sessions have been both informative and interactive.

Before the advent of social media and the technology to make it possible, our reach in terms of marketing was finite. Sure, by means of traditional advertising we could reach a wide audience but at a cost that would be beyond the budget of most small businesses. Now, with some training and an application of time and the right tools we can reach an audience of millions.

This is the future and business has to prepare for it. It’s a brave new world out there and business has to be courageous and take the first step. Galway Chamber held its 219th AGM yesterday. We currently have a facebook page. We blog and we twitter. We have evolved for our members over the years. We will continue to do so.

Finally the news this week that a US company is targeting the city for a possible 800 new jobs in the call centre arena is very positive. Let’s do everything we can to make sure that Galway ticks the right boxes on their list.