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Minutes
Minutes of Economic Development Committee
16th February 2004
Minutes of Economic Development Committee Meeting held on Monday 16th February 2004 at 7.30 pm in the Council Chamber, Strabane District Council Offices, 47 Derry Road, Strabane.
Present:In the Chair: Councillor E McMenamin Other Members: Councillors: I Barr, A Bell, A Bresland, D Breslin, J Donnell, D Hussey, T Kerrigan, T McBride, E McGarvey, C McGill, C McHugh, B McNamee, J McNulty Total = 14 In Attendance: Clerk & Chief Executive, Economic Development Officer, Administrative Assistant, Mr Seamus Devine – Airport Manager, City of Derry Airport Apologies: Councillors: J Emery, B McMahon
The Chairman welcomed Members and Mr Seamus Devine Airport Manager from City of Derry Airport to the meeting. He invited Mr Devine to make his presentation.
Presentation on the Development of the City of Derry Airport
Mr Devine gave a brief report on the history of the City of Derry Airport from 1942 to date. He informed Members that Derry City Council had acquired the airport in 1978-79. He stated that the airport underwent a redevelopment programme and the new City of Derry Airport was launched in 1994 with the opening of a new terminal.
Mr Devine informed Members of the increase in passenger numbers, which began in 1989 with the introduction of flights to Manchester and Dublin, and a further increase in 1995 with the introduction of Jersey European Services.
Mr Devine stated in the mid 1980’s Europe’s first low cost airline was launched. In 1999 Ryanair and Falcon both commenced operations. He said that to date both Ryanair and Falcon are in their fifth year of operation at the City of Derry Airport.
Mr Devine outlined the four factors which influenced Derry City Council to initiate the Strategic Development Plan. He stated that three reports were required for the production of the Development Plan: 1) Passenger Survey by MORI, 2) Technical Review by Donald Robertson, 3) Traffic Forecasting & Funding Models by Cranfield University.
Mr Devine informed Members that the three reports were included in a Strategic Development plan prepared by Price Waterhouse Coopers from which a Business Plan was compiled consisting of four scenarios: 1) The closure of the airport in April 2004. 2) To continue until Ryanair’s withdrawal in April 2005 and then close. 3) To continue until Ryanair’s withdrawal in April 2005 and then continue with reduced operations. 4) To undertake developments proposed in the Strategic Development Plan. He advised that it was decided to proceed with a phased strategic development of the airport, subject to funding. He hoped a decision would be made from both Governments in February 2004.
Mr Devine stated that three funding models were identified by Cranfield University. He said that it was unreasonable to expect the City’s ratepayers to continue to fund the costs. He said that if the airport was to develop and reach its full potential, similar central or devolved government funding must be secured. He reported that Derry City Council had committed to establishing a Public Airport Company to focus on a more commercial approach to airport business.
Mr Devine informed Members of the gross cost, income and net operating figures for the City of Derry airport.
Mr Devine stated that in 2001 a Strategic Review of the airport was published and the review concluded that the airport was operationally efficient and in terms of cost per passenger the airport had the lowest of any airport of similar size in the UK.
Mr Devine advised Members of the cost per passenger. He stated that the City of Derry was producing low cost flights with low operating costs compared to other airports.
He informed Members on the Regional Economics and Tourism aspect, Social & Environmental Contribution and Employment Contribution.
Mr Devine concluded that: the MORI report indicated that inbound passengers contributed up to £12.5 million to the regional economy. The total contribution to the North West economy was in excess of £24 million per annum. With airport development complete it was forecasted that passenger throughput would increase to over 800,000 passengers per annum within the next 5 years.
The Chairman thanked Mr Devine for his comprehensive presentation and enquired how Strabane District Council could assist the Committee. Mr Devine replied that the Committee felt Derry City and neighbouring Councils should not be expected to fund the airport. They felt this funding should be made available through Central Government and requested Council to forward a letter of support to the Secretary of State and to Central Government on the development of the City of Derry airport.
Councillor Barr welcomed Mr Devine and said his presentation was a real insight into the airport. He referred to the residents issue and asked if there had been any progress made. Mr Devine stated that 14 out of the 17 families living in the area were willing to sell their properties. He explained that a compulsory purchase order was evident but hoped this would not be required.
Councillor McGill welcomed Mr Devine to the meeting. She stated that all political parties support the Derry City Council report. She said that she was concerned to hear that residents would lose their homes but was unaware that 14 were willing to sell their properties. She asked if the airport’s future was dependent on Ryanair continuing as a carrier. Mr Devine stated that the airport was dependent on Ryanair as they were a low cost airline. He said that due to the runway issue, Ryanair may not stay at the City of Derry and advised that another carrier would be required. He stated that the Government carried out a survey on Ryanair’s travel route, which found the City of Derry airport in the top three.
Councillor McBride apologised for his late attendance. He welcomed the presentation and made reference to the Sligo/Newry line. He said that the airport was vital to the North West.
Councillor Hussey apologised for his late arrival. He said he had been kept informed of the airport developments by the North West Region Cross Border Group (NWRCBG). He made reference to the residents issue and had concerns in relation to the anchor tenants. He raised an issue with regard to Donegal County Council and said that they felt excluded from the committee meetings. He referred to the privatisation scheme and requested Mr Devine to expand on this suggestion. Mr Devine stated that public funds should not be used for Private Sector investment. He said he was anxious to avoid privatisation. He referred to Donegal County Council and stated that they benefited greatly from the airport but it would be difficult to include them in a committee as they were outside of Council ratepayers and the facility did not belong to their Council.
In response to a question from Councillor McNulty with regard to increased tourism, Mr Devine stated that 15,000 tourists were identified from the survey, which had no connections to the area.
The Chairman requested approval from Members for a letter of support to be sent to the two Governments on the development of the City of Derry Airport.
The Committee agreed that Council would forward a letter of support in principle on the development of the City of Derry Airport.
The Chairman thanked Mr Devine for the presentation and wished the airport every success for the future.
Tenders – Synthetic Turf Pitch at Melvin
The Chairperson requested approval to open tenders for the synthetic turf pitch at Melvin.
The Committee granted approval for the tenders to be opened.
Economic Development Officer’s Report
Sister Cities International
The Economic Development Officer (EDO) advised she had attended a meeting in the American Consulate on 27th January to meet with the President Elect of the Sister Cities International, Mr. Sherman Banks, other councils and agencies.
She informed Members that Councillor Alan Chambers, North Down Borough Council, had been elected to represent Northern Ireland on the Sister Cities International Board. She advised that this was a change in the rules in that NI could now take a place apart from the UK representation. She stated that Councillor Chambers was keen for Northern Ireland to become involved in the Sister Cities International Conference in Fort Worth, Texas, July 14 – 18 and was trying to encourage Councils to sponsor 1-2 youths to participate in a youth element of the conference. She said that he would like Northern Ireland to take a stand at the conference to promote tourism and economic investment.
Councillor Hussey enquired who had elected Councillor Chambers as the NI representative. The CE stated that he was not aware of the full details.
Councillor Kerrigan informed Members that Councillor Chambers appeared to be the only representative from North Down Borough Council who had visited Sister Cities and would possibly have been nominated at that time.
Councillor Hussey referred to the meeting the EDO had attended on 27th January and asked if anything had been discussed in relation to Councillor Chamber’s appointment. He made reference to the change in rules and felt that all relevant Councillors should have been invited.
Councillor Barr referred to the costings envisaged and was concerned of the Auditor’s perception on this matter. He felt the representation on the Board of Sister City’s should be clarified.
The EDO informed Members that Councillor Chambers had not been elected at the meeting she had attended on the 27th January 2004. She stated that various presentations were made on proposed actions for Sister Cities Northern Ireland. She advised that she had no further update at this time.
Councillor Hussey proposed that Council contact Councillor Chambers and invite him to attend a meeting with Councillors to discuss this issue. This was seconded by Councillor Kerrigan.
Councillor McBride felt that Council should investigate Councillor Chambers’s credentials on Sister cities as a representative of Northern Ireland.
The CE advised that Council would initially write to Councillor Chambers with a view to organising a meeting.
Gas to the West
The EDO informed Members that Strabane District Council, in co-operation with the other four Councils of Tyrone/Fermanagh, would be launching the Scoping Study Report on 9th of March followed by the Gas to the West Seminar on 20th April, 2004.
She advised that the partner Councils had contributed £2,000 each and the entire budget of £10,000 had now been used to deliver the report for the campaign.
She stated that it was now proposed that the study would be printed at a cost of approximately £1500 and launched on the 9th March and the resulting seminar would be hosted on the 20th April. She advised that the Policy Officer had recommended that Council use a firm of media consultants to coordinate the event. She requested the Committee to authorise a budget of approximately £5,000 for design, printing and media costs. She said that Strabane District Council would derive the predominant amount of publicity from the launch although other Councils would be invited. Therefore the EDO recommended that Council would not approach other Councils for further funding until stage two of the lobby activities were planned.
On the proposal of Councillor Barr, seconded by the Chairman it was agreed to authorise a budget of £5000 for design, printing and media costs.
Invest NI
Business Development Solutions Launch
The EDO informed Members that Invest NI had launched their ‘Business Development Solutions’ programme in Omagh on 4th February 2004. The ethos of the strategy was to provide a more tailored approach and deliver a solution to their clients. She advised that a booklet would be available at the next meeting. North West Action Plan
The EDO reported that Invest NI had launched their North West Action Plan in January 2004, which was developed in consultation with the Councils and all pertinent agencies in the North West.
She advised that Chief Executives and Economic Development Officers of the North West would be meeting on 17th February 2004, under the auspices of the North West Region Cross Border Group (NWRCBG), to discuss job losses in the North West. She advised that the agenda would include the INI Action Plan and an appropriate response to Invest NI would be made.
In response to a question from Councillor McNulty, the EDO reported that Invest NI had drawn up the North West Action Plan. Councillor McNulty felt however, that the initiative was Derry City orientated with very little mention of Strabane. The EDO stated that Invest NI had agreed to make a presentation to Council.
The CE advised that he would be attending the meeting on 17th February 2004 with other CE’s. With regard to Councillor Barr’s request to set up a lobbying group for Desmonds Factory he advised that this would be discussed at the meeting. He also felt the issue was linked to the NWRCBG. He informed Members that he had contacted all Councils seeking their support to set up a lobbying group.
Members Library
Federation of Small Businesses – Insurance Survey Northern Ireland –Insurance Nightmare ‘One Year On’
The EDO informed Members that this report contained the results of FSB research which was carried out in October 2003 to analyse the impact of insurance premiums on businesses ‘one year on’. In October 2002 a similar survey was produced on the effects of the Insurance crisis for Northern Ireland Small Businesses.
She indicated that the results showed an increase of 72% since 2001. She stated that the research concluded that there was no real reason for the increases apart from the lack of competition in the market. She said that the FSB were in no doubt that the market was failing and 99.98% of respondents believed government were not doing enough to tackle the problem.
Advertising
Strabane Trade Directory 2004
The EDO informed Members that Local Directories were producing their annual Strabane Trade Directory for 2004.
The EDO had therefore agreed to take the back page, as before, however at a much reduced cost of £200. The EDO requested retrospective approval for this advertisement.
On the proposal of Councillor Barr, seconded by Councillor Bell retrospective approval was granted for the EDO to place an advertisement in the directory at a reduced cost of £200. Derry Journal – The Promotion of Enterprise in the Northwest
The EDO stated that the Derry Journal was publishing a review entitled ‘The promotion of Enterprise in the Northwest’ on Friday 13th February 2004.
The EDO had negotiated a reduced cost advert for this publication at a cost of £250. She sought retrospective approval for this advertisement.
Retrospective approval was granted for the advertisement at a reduced cost of £250.
The Herald – Industrial and Commercial Review
The EDO stated that The Herald, a local free paper was bringing out its annual Industrial and Commercial Review and requested Members approval for this advertisement at a cost of £350.
Councillor Hussey referred to the advertisement and asked what the economic advantage would be for Council. The EDO reported that the advertisement had internal marketing advantages.
Councillor Hussey stated that he would be abstaining from approval.
Following a vote it was found that 8 Councillors were in favour of the advertisement with 3 abstentions noted.
Strabane 2000
The EDO informed Members that the Project Officer, Heather Torrens had prepared a brief report on Strabane 2000. Development of Cattle Market Site
The Project Officer (PO) advised that Heron Bros were in the process of finalising their drawings for the commercial development. She stated that a meeting had been arranged to discuss Heron Bros’ proposals in relation to the Arts Centre and the development of the SCORE site and Dock Street.
John Wesley Street/Castle Street Linkage
The PO stated that tenants of Carefree Estates had concerns regarding access to their property and the loss of a portion of their land. She informed that this was holding up an agreement being reached. She advised that she would meet with the Chief Executive and representatives from Roads Service and Lands to move the project forward.
Waterwall Planting and Lighting
The PO said that she had received a letter from the Department for Social Development (DSD) confirming that the revised costs of £15,827.40 were acceptable to the department and authorising MWA Partnership to commence the pilot scheme.
Town Centre Re-Invigoration
The PO stated representatives from all the taxi firms operating in Strabane met with Strabane 2000 to discuss the location of the taxis and the temporary disruption. The taxi representatives agreed to try out a call out system with the taxis parking along the waterwall.
Shop Front Improvement Scheme
Phase 1
The PO indicated that one letter of offer had been issued, under phase 1, for the maximum grant of £10,000 linked to actual costs of at least £20,000, subject to planning permission and any relevant consents being obtained. Another applicant had revised his plans and the panel had assessed these. She stated that she would be meeting with representatives from DSD to discuss the level of grant aid eligible for this project.
Phase 2
The PO informed that revised drawings and detailed costs would be received in relation to six applications.
Arts and Cultural Centre
The PO stated that work was continuing through the Culture, Arts and Leisure Department to ensure sufficient funding is achieved for the Arts Centre. Library
The PO advised that a design for Environmental Improvements around the Library had been received by DSD from Clifford Spence, Architect for the Library. However, DSD was still awaiting the following:-
· Costings · Confirmation of adoption of the scheme · Confirmation of the contractor being able to commence works when all was agreed.
The amount of £40,000 set aside by DSD was required to be spent by 31 March 2004.
Visit to Kiltimagh, Co Mayo
The PO indicated that the Strabane 2000 Board had expressed an interest in visiting Kiltimagh, which was one of Ireland’s most famous small towns. On the recommendation of the Board the PO sought approval from Council to attend this trip.
She felt that Council might like to consider opening this visit opportunity to all Councillors as this town and the work carried out was impressive.
She stated that it was proposed the visit would take place at the end of March 2004 or April/May 2004.
She informed that Mr Brian Mooney, Chairperson of Integrated Resource Development Kiltimagh Ltd, would provide a slide show and tour of the area.
Councillor Hussey proposed to adopt the report. He felt that S2000 was setting the template for expansion in the area. He said that all Councillors should be afforded the opportunity to attend the trip.
Councillor McNulty was of the opinion a representative from each party would be sufficient to attend. He said that he had seen the presentation and felt it was very worth while.
Councillor Barr made reference to the cost that would be incurred by Council depending on numbers and felt the majority attending would not be Councillors.
Councillor Hussey proposed that this should only be made available for Councillors.
The Chairman referred to the S2000 Board Meeting and stated that Board Members would also have the opportunity to attend including Councillors. He felt this would be a good opportunity for networking.
The CE stated that the town had active regeneration and felt Councillors should see the area and work carried out. He stated that funding may be sought for Board Members.
Councillor McNulty felt that Council needed to justify the costs.
Councillor Hussey felt that Council should determine how many wished to attend and obtain dates for suitability.
Councillor McBride made reference to travel expenses and felt that the hire of a coach would be more economical.
Councillor McNamee stated that the presentation was inspirational. She had suggested a video be brought back and shown to community groups to let them see what can be accomplished in this area.
The Chairman felt this was an excellent opportunity and that other towns needed to be looked at if the area was to progress.
Councillor McNulty felt that Mr Mooney should be invited to Strabane District to show the presentation to community groups.
The Chairman said that Mr Hunter was also interested in the trip and had been very supportive towards this.
Councillor Kerrigan stated that he had seen the presentation. He felt it would be beneficial for Members to visit the town and look at areas where possibly Strabane District Council could improve on.
The CE felt that suitable dates should be obtained before a decision was reached.
On the proposal of the Chairman seconded by Councillor Bell it was agreed to go ‘into committee’.
On the proposal of Councillor McBride, seconded by Councillor McGill the Committee agreed to go ‘out of committee’.
Council Crest for Chamber
The CE requested Members approval to purchase a plaque containing the Council crest, which would be erected in the Council Chamber.
The Committee agreed that a plaque could be purchased containing the Council crest.
Environment & Heritage Service workshop on 1st March 2004
The CE advised Members that an invitation had been received from the Environment & Heritage Service to attend a workshop on 1st March 04 in the Everglades Hotel, L’Derry in relation to the Review of the Northern Ireland Waste Management Strategy.
It was agreed that any Councillor wishing to attend the workshop would contact the Business Manager.
North West Waste Management Group
The CE informed Members that the Chief Technical Officer requested Council approval for the NWWMG to use the Council Chamber on 11th March 2004 and for the provision of any catering if required.
A recommendation for the NWWMG to make use of the Council Chamber was agreed.
Refuse
Councillor Barr informed Members that he had been approached by the members of the press regarding an issue at the Strabane refuse site.
The CE advised Council that he was aware of this and would await further developments.
Wave Trauma Group
Councillor Hussey sought clarification on the Wave Trauma Group. The Chairperson advised that any Council could attend.
This was agreed.
People First Volunteer Awards
Councillor Bell made reference to the invitation to Floyds Restaurant for the People First Volunteer Awards. She queried the location of the event and asked if this could be held at Strabane District Council. She was under the impression if any catering was required for an event this would be awarded in house.
The CE advised Members that he would liaise with the relevant Officer.
Strabane District Council Official Guide
Councillor Hussey referred to the Official Guide and felt it was an excellent publication. He stated that one third of the area had an interest in Ulster Scots and felt they were not represented in the publication.
The meeting concluded at 9.25 pm
