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WDC Submission on Draft RSES for Southern Region

This week the WDC made a submission to the public consultation being held by the Southern Regional Assembly on their Draft Regional Spatial and Economic Strategy.  The submission is available here.

As we’ve provided substantial input previously (available here) to the preparation of the Draft RSES, in this submission we mainly comment on the specific text and content of the Draft RSES document.

County Clare is the only county within the Southern Assembly region that is also under the remit of the Western Development Commission, therefore this submission largely focuses on the questions as they pertain to County Clare.

Some of the general comments contained in our submission include:

Role of Ennis

Apart from Ennis being a key economic and residential centre, Ennis is the county capital and link to rural parts of County Clare. This role is clearly evident in the extent of the Ennis labour catchment which extends across much of the County, with the exception of the Kilrush labour catchment to the south west of the county and the Shannon labour catchment to the south, see Travel to Work and Labour Catchments in the Western Region (WDC 2018) here. This role should be maintained and harnessed to support the growth and development of Rural County Clare.

Our Region’s Economic Engines

Discussion of ‘achieving convergence between where people live and work’ needs to recognise the opportunity of remote working, either for people to work from home or a hub located close to their home.  It also needs to be recognised that job creation in smaller towns, villages and rural areas is another route to such convergence and pursing such convergence should not solely focus on building more houses in cities and other large urban centres.

Galway-Ennis-Shannon-Limerick (GESL) Economic Network

The Galway-Ennis-Shannon-Limerick Economic Network is actually a segment of the Atlantic Economic Corridor. It may currently be the most cohesive segment, given the proximity and strong ties between the centres, especially Limerick-Shannon and Ennis centres, with increasing economic activity between Galway, Ennis and Limerick supported by recent investments in improved transport connectivity especially the M18. This network can help support regional growth in both the Southern and Northern and Western Regions. In addition this segment of the network can point to how to improve and develop the cohesiveness of the broader Atlantic Economic Corridor.

Shannon Airport

The role of Shannon Airport needs to be further supported and enhanced. Though the National Aviation Policy (2015) does recognise the key role of Shannon Airport, the policy was developed well before the National Planning Framework which attempts to redirect growth away from ‘business as usual’.  However since then, there is ever greater concentration of international traffic at Dublin Airport. The RSES should advocate for a revised National Aviation Policy so as to fully support the regional population and employment targets. In the absence of a change in policy it is not clear how the Airports and Ports in the Southern Region can realise a stable or ideally a growing share of traffic.

 Limerick-Shannon MASP

The Limerick-Shannon MASP is different to others in that it is connecting two separate urban centres, albeit economically interdependent urban centres. As Limerick is the larger centre there is understandably much focus on it. The focus is also on connecting Limerick and Shannon Airport/Free Zone. The development and transport requirements of Shannon town itself should also be prioritised, to promote Shannon as an attractive place to live as well as work.

The full submission is available here.

Following the public consultation (which closed on 8 March) the SRA will prepare a report on issues raised in submissions/observations and recommend whether the RSES should be made with or without amendments. It may necessary to hold another phase of public consultation before the RSES can be finalised. You can check for updates on the process here.

 

Deirdre Frost

WDC Submission on Draft RSES for Northern & Western Region 

Last week the WDC made a submission to the public consultation being held by the Northern & Western Regional Assembly on their Draft Regional Spatial and Economic Strategy.  The submission is available here.

As we’ve provided substantial input previously to the preparation of the Draft RSES, in this submission we mainly comment on the specific text and content of the Draft RSES document and pay particular focus to the 211 Regional Policy Objectives set out.

Some of the general comments contained in our submission include:

A Rural Region

  • Adapting the ‘city-led development’ approach of the National Planning Framework (NPF) to a highly rural region presents a considerable challenge. The RSES for the NWRA Region needs to have flexibility to take an approach more suited to the rural nature of its settlement pattern.
  • Rural areas provide much of the urban workforce and urban demand. Rural-urban interlinkages, including travel to work patterns, need to be given greater consideration.
  • Job creation in smaller towns, villages and rural areas, as well as remote working, can bring closer alignment of housing and jobs. Building more houses in large urban centres is not the only route to greater alignment.

Implementation

  • Many of the Regional Policy Objectives do not include detail of how they will be implemented, who will be involved in leading or implementing them or the timeframe for implementation.
  • A mechanism is needed to achieve the required alignment of a large array of national, regional, local, sectoral, public and private organisations, policies, priorities and strategies to ensure implementation of the RSES. It needs to be clear what will happen if the priorities of a Government Department or sectoral agency conflict with the RSES.

Growth Ambitions

The Draft RSES is based on a Growth Framework composed of 5 Growth Ambitions: 1) Vibrant Region; 2) Natural Region; 3) Connected Region; 4) Inclusive Region; 5) Enabling our Region.  Some of our key points on these included:

  • The Atlantic Economic Corridor (AEC), as an agreed place-based platform for economic growth, should be designated as an Economic Zone in the RSES.
  • Adopting a ‘sector’ approach to economic and enterprise development misses out on many ‘cross-cutting’ themes e.g. digitalisation, AI, finance.
  • There is an urgent need to review national Ports and Aviation policy to move away from the ‘business as usual’ approach which reinforces the dominance of Dublin Port and Airport.
  • Delivering Atlantic Corridor road projects (on the N17/15) should be prioritised to take place earlier (no commitment in current NDP to begin construction before 2027).
  • Some care is needed in focusing on ‘infrastructure corridors’ – this approach will not work in all circumstances and areas distant from such ‘corridors’ risk further disadvantage.
  • RSES should contain a stronger commitment to the extension of the natural gas grid.
  • RSES needs to focus on improving living standards for residents of the Region as a key objective in its own right, rather than simply as a way to attract companies and support business.
  • More reference is needed to the potential impact of Brexit.

The full submission is available here

Following the public consultation (which closed on 8 February) the NWRA will prepare a report on issues raised in submissions/observations and recommend whether the RSES should be made with or without amendments. It may necessary to hold another phase of public consultation before the RSES can be finalised. You can check for updates on the process here.

The Draft Regional Spatial and Economic Strategy for the Southern Regional Assembly  is still open for consultation, with a deadline of 8 March 2019, and a future post will discuss the WDC’s submission to that consultation.

Pauline White

Measuring Rural Poverty – It’s Complicated!

 

At Risk of Poverty

Within the same CSO release, the data show that the at risk of poverty rate decreased from 16.2% in 2016 to 15.7% in 2017. Examining the at risk of poverty rate spatially, the rate is higher in rural areas[1], compared to urban areas; the at risk of poverty rate in rural areas is 17.2% in 2017, compared to 15.1% in urban areas. Moreover the trend over the last two years shows a divergence, with the urban rate declining – from 15.9% to 15.1%, while the rural rate increased from 16.9% to 17.2%.

The CSO release also provides a breakdown by region. The data indicates that the at risk of poverty rate is higher in the more rural regions (Northern and Western) with 21.8% or over a fifth of the population there at risk of poverty. This is in contrast to the rate within the Southern region (16.8%) and it is lower again in the more urban Eastern and Midland region (12.8%).

Deprivation Rate

The CSO also measure the deprivation rate, which is a broader measure than poverty and is defined as follows: Households that are excluded and marginalised from consuming goods and services which are considered the norm for other people in society, due to an inability to afford them, are considered to be deprived. This measure of the marginalised or deprived is currently achieved on the basis of a set of eleven basic deprivation indicators as follows.

  1. Two pairs of strong shoes
  2. A warm waterproof overcoat
  3. Buy new (not second-hand) clothes
  4. Eat meal with meat, chicken, fish (or vegetarian equivalent) every second day
  5. Have a roast joint or its equivalent once a week
  6. Had to go without heating during the last year through lack of money
  7. Keep the home adequately warm
  8. Buy presents for family or friends at least once a year
  9. Replace any worn out furniture
  10. Have family or friends for a drink or meal once a month
  11. Have a morning, afternoon or evening out in the last fortnight for entertainment

Individuals who experience two or more of the eleven listed items are considered to be experiencing enforced deprivation and this is the basis for calculating the deprivation rate.

The deprivation rate nationally has shown a decrease between 2016 and 2017, from 21% to 18.8%. At a spatial level it appears that there is a higher rate of deprivation in urban areas than in rural, in 2017 the urban deprivation rate was 20.2%, while in rural areas it was 15.9%. Similarly the more rural Northern and Western Region has a lower deprivation rate in 2017 (17.3%), compared to 18.7% for the Southern Region and 19.5% for the Eastern and Midland region.

Consistent Poverty

Finally, the other commonly used measure of poverty, is the consistent poverty rate. An individual is defined as being in ‘consistent poverty’ if they are

  • Identified as being at risk of poverty and
  • Living in a household deprived of two or more of the eleven basic deprivation items listed above

Nationally the rate went from 8.2% in 2016 to 6.7% in 2017. At a spatial level, like the deprivation rate, the consistent poverty rate is slightly higher in urban areas than in rural areas. In rural areas the rate was 5.3%, compared to 7.4% in urban areas.

Measuring Deprivation: Access to Services?

The measurement of poverty in its various ways has become a lot more sophisticated than a simple examination of income. The at risk of poverty rate and the deprivation measurement places poverty in the context of the society and environment in which it occurs and this is welcome.

It is often said that rural poverty, is more hidden or less visible than urban poverty. Overall the CSO recent data show that rural areas have a higher at risk of poverty rate, compared to their urban cousins, but have lower deprivation and consistent poverty rates.

However the definition of deprivation is based on enforced deprivation where there is an inability to afford goods and services. But what of the inability to access goods and services because they are not available in the locality. Is the inability to access broadband a deprivation? Many rural residents think so. It impacts on their ability to access goods and services on-line and often impacts on their ability to generate their incomes, for small businesses and the self-employed.

And, in the absence of broadband, what of access to services such as banks and post offices?  Is it enforced deprivation, when these services were once available within the community and are no longer there?  Is it enforced deprivation when access is not available online and there are limited if any transport services to travel to the next available centre to access the closest banking or post office facilities? Most would consider Yes, that this is enforced deprivation.

Those communities that are not being served by the commercial broadband providers now and are awaiting a decision to start the National Broadband Pan (following its original announcement seven years ago) are and will continue to remain deprived for years to come.

On 4th February this year, Social Justice Ireland, issued a press release entitled Time for Government to commit to eradicating poverty, see here. In it they point to the importance of being able to access high quality public services. On the same day, Social Justice Ireland published their Social Economic Review 2019, which highlights in detail the importance of access to broadband, financial services and other public services in helping to deliver a fairer Ireland. The publication has a specific chapter on the issues and challenges for all those living in for rural and regional Ireland see here.

Deirdre Frost

 

[1] Since 2014 areas are now classified as Urban or Rural based on the following population densities derived from Census of Population 2011: Urban – population density greater than 1,000,  and Rural: Population density <199 – 999 and Rural areas in counties.

Give your view on the development of the Northern and Western Region- make a submission on the Draft Regional Spatial and Economic Strategy

Just a reminder that the Draft Regional Spatial and Economic Strategy for the Northern and Western Regional Assembly (NWRA) is currently out for consultation, with a closing date of 8th February 2019.

The National Planning Framework (NPF) published last year, provides a framework for development and investment over the coming years. Under the umbrella of Project Ireland 2040, it was published with its companion, the National Development Plan (NDP), a 10 year strategy for public investment.

The NPF is a framework for the development needed to underpin population growth in Ireland of up to 1 million people (by 2040) with approximately 50% of this growth to be in the five main cities.  The Framework is underpinned by 10 National Strategic Outcomes and, central to it, is the concept of Compact Growth identifying where new growth can take place within the existing envelope of our Cities, Towns and villages.

The primary vehicle for delivering the NPF is through the implementation of Regional Spatial and Economic Strategies (RSES) for each of the three NUTS 2 Regions shown on the map below.  The Assembly in each of these Regions (the Northern and Western Region, the Southern Region  and the Eastern and Midlands Region) has a draft RSES currently under consultation.

The NWRA, through the RSES, aims to provide regional level strategic planning and economic policy in support of the implementation of the National Planning Framework and provide a greater level of focus around the National Policy Objectives and National Strategic Outcomes in the Region.  The challenge for the NWRA was to take the high-level framework and principles of the NPF and work out more detail at regional and local authority levels.  This NWRA RSES introduces the concept of a Growth Framework with ‘Five Growth Ambitions’ defining the priorities for the Region and how they are mutually intertwined. The five are:

  • Growth Ambition 1: Economy & Employment – Vibrant Region
  • Growth Ambition 2: Environment – Natural Heritage
  • Growth Ambition 3: Connectivity – Connected Region
  • Growth Ambition 4: Quality of Life
  • Growth Ambition 5: Infrastructure – Enabling Our Region

The draft NWRA Strategy can be viewed or downloaded here.

Written submissions or observations with respect to the Draft Regional Spatial and Economic Strategy for the Northern and Western Regional Assembly and the accompanying reports may be made between 19th November 2018 and 5pm on 8th February 2019 (both dates inclusive) through one of the following media:

On Line: Completing the RSES Web Submission Form available here.

Email: rses@nwra.ie

Mail: ‘RSES Submissions’, NWRA, The Square, Ballaghaderreen, Co. Roscommon. F45 W674

The focus of this post has been on the NWRA RSES.  In a future post we will outline key elements of the Draft Regional Spatial and Economic Strategy for the Southern Regional Assembly  (consultation closing date is 8th March 2019).  The Eastern and Midland Regional Assembly Draft RSES is also currently out for consultation, with a closing date of 23rd January 2019.

 

Helen McHenry

WDC Brexit Study and Document Repository

Given current discussion of Brexit and the form it may take, today is probably a good day to let you know about the WDC Brexit Repository.

As I noted last year there has been much discussion of Brexit and what it will mean for Ireland, for businesses here, for different sectors, and for social and cultural interactions.  The discussion was then (October 2017), and is now, of course, taking place in the context of multiple unknowns.  Nothing can be said definitively about Brexit and how it will impact on the region and communities most affected by the border.  Some of the issues were considered in this post and in this presentation (PDF 1.2MB).

Despite the lack of information and lack of certainty, it is still important to consider possible implications and to look at data that could give us a better understanding of what might occur and what policy might be needed to mitigate or address the issues that could arise from Brexit.

The WDC has, therefore, put together a ‘Brexit repository’ which is a PDF document (1MB) containing brief summaries and links to selected Brexit studies and documents on Brexit and its potential impacts which are relevant to businesses, large and small, and to communities and organisations which may be impacted by Brexit.

The PDF will be updated quarterly as new studies are published or as we become aware of older, relevant studies.  It is not an exhaustive list but a collection of documents which may be useful.  If you have any documents or studies which you think should be added please get in touch.

And perhaps by Friday 29th March 2019 the form of Brexit and its implications will finally have become clear.

 

Helen McHenry

Payments and income from farming in the Western Region

As discussed in the last blog post on farmers in the Western Region, agriculture is an important sector of Irish economy and particularly important to the rural economy and society.  In this post different measures of payments and income are examined using three different sources.  Data on CAP beneficiaries is available at county level, showing how much is received in each county, while the recently published Revenue data for 2016 provides information on average Farming Income and Gross Income for the ‘farming cases’.  Finally, the National Farm Survey, conducted by Teagasc, provides detailed information on farming income.

Each of these sources is measuring different things for different purposes so it is useful to compare them to add to our understanding of farming in the Western Region.

 

Payments from the CAP.

The Common Agricultural Policy (CAP) contributes a significant amount to the local economy.  In 2016 more than €525m was received from the CAP by the 54,215 beneficiaries in the Western Region (Table 1) with an average of €9,689 per recipient in the Western Region.

Table 1: CAP beneficiaries in the Western Region in 2016

Source: DAFM CAP Beneficiaries Database

Galway (€ 135m) and Mayo (€105m) had the highest receipts and also had the highest numbers of recipients, while Leitrim (€35m) and Sligo (€37m) had the lowest total receipts.  However, when the average receipt is considered (Figure 1) the pattern is different.

Figure 1: Average received by CAP beneficiaries in the Western Region

Source: DAFM CAP Beneficiaries Database 2016

Average receipts in 2016 were highest in Clare (€10,945), Galway (€10,292), and Roscommon (€10,050), but these were still among the lowest in the country (Clare has the 17th highest average receipt, and average receipts in Galway and Roscommon were 20th and 21st of the 26 counties). The four lowest average payments in the country were in the Western Region with Sligo the lowest in the country.  In contrast, the highest average receipts were in Dublin (€19,062 and which has a very small number of beneficiaries (867)) and in the South East with €17,806 the average in Waterford, €17,205 the average in Kilkenny and €16,194 the average in Carlow.

The very significant different in receipts between the Western Region and the South East reflect both farm size, and the enterprise type.

 

Farm Incomes- Revenue Data

In addition to information about numbers of farming cases, data is available from Revenue for both average Gross income and average Farming Income.   The data for Revenue cases from farming is from the Revenue Statistics and Economic Research Branch publication ‘The Farming Sector in Ireland: A Profile of Revenue Data’ available here.

In 2016 nationally there were 137,109 ‘farmer’ cases with an average Farming Income of €21,952.  There were 40,709 ‘farmer’ cases in the Western Region with an average Farming Income of €13,338.  Data for each of the Western Region counties is shown in Figure 2 below.

Figure 2: Average Farm Income by county- Revenue data

Source: The farming sector in Ireland: A profile from Revenue data, 2016 data, published 2018

The lowest average Farm Income is in Leitrim (€10,679), while the highest was in Clare (€16,701), but the seven Western Region counties are the seven counties with the lowest average Farm Income nationally.  Waterford has the highest average Farm Income (€35,026), followed by Kilkenny (€32,408) and Kildare (€32,292)

Interestingly, for farmer cases the Revenue also provides information about the average Gross income.  This includes income from other sources (the two most significant of these are PAYE income from employment and income from other business sources). It therefore includes income from off farm work.  It should be remembered that where couples are jointly assessed this includes the earnings of both.

Figure 3: Average Gross Income and average Farm Income in Western Region counties –revenue data

Source: The farming sector in Ireland: A profile from Revenue data, 2016 data, published 2018

Non farm income is very significant in the Western Region, accounting for most of the income in the farming cases in the Western Region indicating the importance of off farm employment in farming households.

The National Farm Survey

The final source of data on farm income is the National Farm Survey (NFS) which has been conducted by Teagasc on an annual basis since 1972.  The survey is operated as part of the Farm Accountancy Data Network of the EU and fulfils Ireland’s statutory obligation to provide data on farm output, costs and income to the European Commission. A random, nationally representative sample is selected annually in conjunction with the Central Statistics Office (CSO).  In 2016 the sample of 861 farms which represented 84,736 farms nationally.  Pig and Poultry farms are not included in the survey.

Data from the NFS is not available at county level, but Figure 4 below shows the Family Farm Income[1] for 2016 for each of the NUTS 3 regions.

Figure 4: National Farm Survey Family Farm Income by Region, 2016

Source: Teagasc, 2017, National Farm Survey 2016

The Border and the West regions, which account for six of the seven Western Region counties have the lowest Family Farm Income in 2016.  Clare is part of the Mid West region.

Comparing the data.

As Family Farm Income from the National Farm Survey is not available at county level, it is useful to compare the data on CAP beneficiaries and from Revenue tax cases at regional level.  Figure 5 shows the three different payment and income measures for the NUTS 3 regions.

In most regions, except the Border (and it should be noted the NFS does not include pigs and poultry which are concentrated in the Region) the Family Farm Income is the highest figure, while the average Farm Income for Revenue is lower.  As expected, given that it is only one of the elements of farm income, CAP receipts are lower than either income figure.

Figure 5: DAFM receipts, Revenue average Farm Income and NFS Family Farm Income 2016 by Region

Source: Teagasc National Farm Survey, 2016; The farming sector in Ireland: A profile from Revenue data, 2016 data, published 2018; DAFM CAP Beneficiaries Database2016

 

In the Border, Midland and the West Region in particular, the CAP receipts are a higher proportion of income figures, indicating the greater contribution of the subsidies to income in these regions.

Conclusions

While these three different measures are derived from different sources they are all consistent.  The West and Border have lowest income and lowest average CAP benefit as well as lower taxable income from farming.  The pattern of farming is different in these regions, with different enterprise types, smaller farm sizes and greater reliance on off farm income.  Yet farming in these regions is integral to their rural economy, the rural landscape and CAP payments and their multipliers make a significant contribution the local economy.  These are all important considerations when negotiating the next CAP.

 

 

Helen McHenry

[1] Family Farm Income represents the return from farming for the farm family to their labour, land and capital. It does not include non-farm income.  See here for more information.

How many farmers are in the Western Region?

Agriculture has traditionally been a very important sector of Irish economy and this, along with the subsidies from the Common Agricultural Policy (CAP), has meant that it is also one of the most measured sectors in the economy.

We would therefore expect to have a very good idea how many farmers are in the Western Region and it can be argued that we do.  However, because there are a variety of ways in which a person farming or receiving income from farming may be defined, there is no single definitive answer.  Instead the numbers depend on what is being measured.

In this post I look at three different measures of ‘farmer’ in the Western Region (the seven counties under the WDC remit), and discuss why there is so much variation among them.  The Census of Population was held in 2016, and this provides one measures of those involved in farming, data on CAP beneficiaries for 2016 provides another measure and recently released Revenue data for 2016 provides the third statistic.

In 2016 in the Western Region there were 20,880 people whose occupation was ‘farmer’ according the Census of Population (see Fig. 1), while there were 40,709 Revenue ‘farmer’ cases (see discussion below) and 54,215 CAP Beneficiaries.

Figure 1: Three measures of ‘farmer’ numbers in the Western Region 

 

Source: CSO Census of Population, 2016, Profile 11  Employment Occupations and Industry, Table EB049; Revenue Statistics and Economic Research: The Farming Sector in Ireland: A Profile from Revenue Data Statistics Update2018, Table 5; DAFM CAP Beneficiaries 2016 database. Western Region totals are own calculations

 

There are clearly very significant differences among these three measures, so what do they mean in terms of numbers in farming?

 

The Census of Population 2016

The smallest measure of farmer numbers in the Western Region is from the Census of Population in 2016.  The number of famers in this Census is based on detailed occupational data for those who have described their main occupation as ‘farmer’.  This is one of 328 categories and nationally ‘farmer’ is the second largest occupation group accounting for 3.5% of the work force.  As noted the numbers here refer to farmers rather than those working in agriculture or in other areas who are part of the broader category of Farmers fisheries and forestry workers (22,733 people in the Western Region).

The most important thing to note for this measure of ‘farmer’ is that those categorised here are only those who consider their main occupation to be farmer.  Those with other work who farm on a part time basis or for other reasons do not consider farming to be their main occupation are not included here.  The decision as to what is their main occupation is made by the person filling in the census form.

Figure 2: Excerpt from 2016 Census of Population form

Source: CSO https://www.cso.ie/en/census/2016censusforms/

Revenue Cases: Farming

The data for Revenue cases from farming is from the Revenue Statistics and Economic Research Branch publication ‘The Farming Sector in Ireland: A Profile of Revenue Data’.  The first report was prepared in 2015 to add to the evidence available on the agricultural sector in Ireland from both an economic and taxation perspective.  Data tables in this report are updated annually with the most recent available for 2016 published in August 2018.  Both are available here.

The 2015 report provides the detailed explanation of the ‘farmer cases’ included.  There were three methods of identifying farmers on Revenue records:

  • Form 11 tax returns, filed annually by self-assessed Income Tax payers which include a check box for farmers.
  • Revenue codes its taxpayer register by NACE code and the agricultural related sectors (0-190) can be identified.
  • Through a data exchange with the Department of Agriculture, Food & the Marine (DAFM), Revenue receives information on the recipients of agricultural payments (such as the single farm payment). This information is linked to Revenue records.

Farmer cases are any of those which meet one of the three criteria noted above (a case may meet all three but is counted once).  The majority of farmers are self-assessed income tax payers and as such are required to file a Form 11 return of income for each tax year.  The file covers the vast majority of farmers in receipt of DAFM payments. Most are registered with Revenue as self-assessed individuals. Some cases hold PAYE registrations only, effectively employees within the farming sector. There are also a small number of incorporated farmers, registered for Corporation Tax.

In addition to information about numbers of farming cases, data is available from Revenue for both average Gross income and average Farming Income.  In 2016 nationally there were 137,109 ‘farmer’ cases with an average faming income of €21,952.  There were 40,709 ‘farmer’ cases in the Western Region with an average farming income of €13,338

 

CAP Beneficiaries

Data on CAP beneficiaries is drawn from the Department of Agriculture, Food and the Marine (DAFM) database.  This provides information on all farmers or companies who received money under CAP in 2016.  This is a broad definition, including all kinds of CAP payments and the database provides the names and municipality of those who received more than €1,500 in that year.   This includes a number of companies but these must fall within the definition of active farmers (see here for a more detailed discussion of active farmer definitions).

Nationally, 133,182 received CAP payments in 2016, with a total of €1,614m received, an average payment of €12,121.  In the Western Region in the same year €525m was paid to 54,215 beneficiaries, an average payment of €9,689.

 

What do the categories tell us about farmers in the Western Region?

Clearly the three categories of ‘farmers’ discussed above are all defined differently.  The census definition is the strictest, these are people whose main occupation is farming and if they do have another occupation it is of lesser importance.  The second category includes all of those making Revenue returns in relation to farming income, but this may not be their main income source.  They may have other earnings but they are in some way involved in farming in the Region.  The final category of ‘farmer’ is the CAP beneficiaries.  In the Western Region this is the largest group, taking in all those who have received a CAP payment.  Some of these may not be making Revenue returns and may only be receiving very small payments (a significant number of CAP beneficiaries receive less than €1,500 annually).  This final, largest, group is likely to include all of those with some connection to farming and may be categorised as ‘active farmers’

In contrast, nationally there were more Revenue farming cases than there were CAP beneficiaries, in other words, more had farming income for the purposes of taxation than were in receipt of CAP payments.  The Revenue farming cases includes a variety of income sources associated with farming and so this may be part of the explanation for this.

Nationally, 52% of those claiming CAP payments declared their principal occupation as ‘farmer’ on the Census, compared to 39% in the Western Region indicating that, as we know, more farmers in the Western Region have main occupations other than farming and are farming part time.  Revenue farming cases are 103% of CAP beneficiaries nationally while they are 75% in the Western Region.  For both of these, it should be noted that Revenue cases may not be a complete subset of the CAP beneficiaries, in other words not all Revenue cases for farming will be CAP beneficiaries, and vice versa.  Both nationally and in the Western Region about the number of those who consider farming to be their main occupation is about half the number of Revenue cases (51%).

Farmers in Western Region Counties

The three measures of ‘farmer’ numbers discussed above are available at county level (Figure 2).  Again the highest measure in each county is CAP beneficiaries, followed by Revenue cases and as would be expected the lowest number is those who declared their principal occupation as farmers on the Census of Population in 2016.

Figure 3: Farmer numbers in Western Region counties

Source: CSO Census of Population, 2016, Profile 11  Employment Occupations and Industry, Table EB049; Revenue Statistics and Economic Research: The Farming Sector in Ireland: A Profile from Revenue Data Statistics Update2018, Table 5; DAFM CAP Beneficiaries 2016 database.

The disparity among these three measures varies among counties, as it did between figures for the State and the Western Region as discussed above.  In the Western Region those with a main occupation as ‘farmer’ (Census of Population)  as a proportion of CAP Beneficiaries was lowest in Leitrim (26%) and Mayo (35%) counties (in all Western Region counties the number of CAP beneficiaries was higher than the number of Revenue cases). Clare, has the highest number with the main occupation ‘farmer’ at half the number of CAP beneficiaries and Sligo (43%) was the next highest.

 

So, how many farmers?

So in measuring how many farmers there are in the Western Region, we need to decide what we mean by a farmer.  Is it someone who considers being a famer their main occupation? Or someone who has some farming income which is declared to the Revenue, or someone who receives a CAP payment?

In this post different farmer definitions and numbers have been discussed giving us insight into different measures and some of the sector characteristics.  In the next post on this topic different measures of income will be considered.

 

Helen McHenry

City Led Regional Development and Peripheral Regions- Conference Report

The Regional Studies Association Irish Branch Annual Conference was held in the Institute of Technology Sligo on Friday 7th September.  Appropriate for the location, it had the theme “City Led Regional Development and Peripheral Regions”.  The presentations are available here.

Figure 1: Dr Chris O’Malley from Sligo IT

The conference covered a range of themes relating to regional development and how urban areas interact with their rural regions.  It was opened by Dr Chris O’Malley from Sligo IT who discussed the role of Sligo IT in the development of industry and manufacturing in the region and the IT’s role as an integrator of national policy at regional level.  Dr Deirdre Garvey, chairperson of the Western Development Commission, welcomed delegates to the conference noting how pleased the WDC was to be sponsoring the Annual Conference.  She also welcomed the fact that the conference was taking place in the North West, given the recognition in the National Planning Framework of the specific challenges for the region and how the National Planning Framework (NPF) and Regional Spatial and Economic Strategy (RSES) process highlight the distinct challenges and opportunities for our predominantly rural region.

These addresses were followed by a very interesting session on the history of Irish planning over the last 50 years.  Dr Proinnsias Breathnach (Maynooth University) presented on regional development policy following the 1968 Buchanan report and its impact on industry locations and spatial development.  Dr Breathnach also presented the paper by Prof. Jim Walsh (Maynooth University) who was unable to attend the conference.  He examined the influence of both the Buchanan report and the 2002 National Spatial Strategy, considered the learnings from these and the factors which will influence the success of the National Planning Framework process.  Finally in this session, Prof. Des McCafferty (University of Limerick) presented on the structural and spatial evolution of the Irish urban hierarchy since Buchanan, and examined urban population data over time and the distribution of population across the settlement hierarchy.  He noted that it was important to understand changes projected by the NPF in the context of historic trends

Figure 2: Dr Proinnsias Breathnach (Maynooth University), Prof. Des McCafferty (University of Limerick) and Deirdre Frost (WDC)

After coffee the session on Regional Strategy and Planning covered a broad range of topics.  Louis Nuachi (DIT) presented on the importance of social and cultural objectives in town planning using a case study of planning in Abuja, the capital of Nigeria.  David Minton, the CEO of the Northern and Western Regional Assembly (NWRA) discussed issues for the development of the North and West in the RSES, some of the historic development of the region and a number of the challenges in developing a region wide approach.  Finally in that session, John Nugent (IDA) discussed the IDA role in attracting Foreign Direct Investment to the region and some of the important factors which influence the location of FDI, including the importance of having a strong indigenous sector already in place and the ways the indigenous and foreign sectors are mutually beneficial.

After lunch international perspectives were provided by Dr Andrew Copus from the James Hutton Institute in Aberdeen and Professor Mark Partridge, the C. William Swank Chair of Rural-Urban Policy at The Ohio State University.

Dr Copus paper  The Scottish City Region Deals – A rural development perspective noted that optimistic assumptions about how a wider functional region benefits from city investments, are commonplace and generally unquestioned, despite meagre evidence of such impacts.   He discussed the two strands of ideas on policy for urban rural development that of polycentricity and rural urban co-operation (theories which are stronger in EU countries and in OECD work), and City Regions (which have tended to have more focus in the UK).  He highlighted the importance of defining what is meant by rural when considering the impact of such regional policies and  he discussed the development and implementation of regional policy by the Scottish and UK governments in Scotland.

He noted that in general in these deals the dominant rationale relates more to “Smart Specialisation” than to any kind of urban rural cooperation, interaction or spread effect concept, but the way growth deals developing for rural areas of Scotland will fit into the Post Brexit rural development landscape remains to be seen.

Figure 3: Audience at the conference

Prof. Mark Partridge’s paper Is there a future for Rural in an Urbanizing World and Should We Care? noted how rural areas have received increased attention with the rise of right-wing populist parties in Western countries, in which a strong part of their support is rural based. Thus, bridging this rural-urban economic divide takes on added importance in not only improving the individual livelihoods of rural residents but in increasing social cohesion.

He discussed the background of rural and peripheral economic growth, noting the United States is a good place to examine these due its spatial heterogeneity.   He showed that, contrary to public perceptions, in the US urban areas do not entirely dominate rural areas in terms of growth.  Rural US counties with greater shares of knowledge workers grow faster than metro areas (even metros with knowledge workers).

He had some clear suggestions for regional policy, noting that governance should shift from separate farm/rural/urban policies to a regional policy though a key issue is to get all actors to participate and believe their input is valued. In rural development it is important to leverage local social capital and networks to promote good governance and to treat all businesses alike and avoid “picking winners.  Rural communities should be attractive to knowledge workers and commuters, while quality of life, pleasant environment, sustainable development; good public services such as schools are important to attract return migrants.  Building local entrepreneurship is key too and business retention and expansion is better than tax incentives for outside investment.

Figure 4: Dr Chris Van Egeraat (Maynooth University)

In the final session ‘Understanding Regional and Urban Dynamics’ I gave a presentation on what regional accounts can tell up about our regional economies and discussed some of the issues associated with the regional data and the widening of disparities among regions.  Dr Chris Van Egeraat (Maynooth University) presented a paper, written with Dr Justin Doran (UCC) which used a similar method to Prof. Partridge to estimate trickle down effects of Irish Urban centres and how they influence the population in their wider regions.  Finally Prof. Edgar Morgenroth (DCU) presented on the impacts of improvements in transport accessibility across Ireland highlighting some of the changes in accessibility over time and noted that despite these changes human capital is the most important factor influencing an area’s development.

While the conference had smaller attendance than previous years there was good audience participation and discussion of the themes.  The conference papers are now available on the WDC website here and will shortly be available on the RSA website.

 

Helen McHenry

Issues for the Western Region’s SMEs

The WDC recently made a submission to the Seanad Public Consultation Committee on the important topic of Small and Medium Sized Businesses in Ireland.

In our submission we highlighted that the Western Region is a predominantly rural region with 65% of the population living in rural areas (outside centres of 1,500).  Trends in the location of FDI investments, especially in the period of the recovery, have shown increasing concentration in Ireland’s cities and their hinterlands, although this year has seen greater distribution (e.g. to Sligo) as Dublin’s cost of living and housing shortages drive multinationals to seek other locations. Regardless of this however, FDI is only one element of job and enterprise growth and is not the solution for the vast majority of the Western Region.  Therefore supporting the start-up, expansion and viability of Irish indigenous SMEs is at the core of both the region and Ireland’s future growth.

Indeed the important role of SMEs in regional development will be among the topics discussed at this Friday’s Regional Studies Association Annual Conference at IT Sligo, on the theme City-Led Development & Peripheral Regions.  International keynote speakers Professor Mark Partridge (US) and Dr Andrew Copus (Scotland) will be joined by academics and policymakers from Ireland to consider how (or indeed if) a ‘city-region’ regional policy approach can really bring benefits for peripheral regions and rural areas. Register now

SMEs in the Western Region

In 2016 there were 54,410 enterprises registered in the seven-county Western Region, and only 50 of these were large (250+) enterprises.[1]  Next week the WDC will publish a new WDC Insights publication examining enterprise data for the Western Region.

In our submission, we noted that SMEs located in the Western Region, including those in small and medium-sized towns, villages and rural areas, face some specific challenges:

  • Small local markets and distance from larger markets;
  • Poor transport connectivity (for staff and freight) with no motorway in the Western Region north of Tuam and often poor quality local and regional roads linking to primary and secondary routes;
  • Weaker broadband infrastructure (access and speed) constraining online operations;
  • Poor mobile phone coverage for voice calls and data;
  • Difficulties in identifying and recruiting suitably qualified staff, especially at senior managerial and technical levels;
  • Lack of regional seed and early stage venture capital funders;
  • Declining populations in some areas, especially in the economically active (and higher spending) age categories;
  • Reduced activity and footfall in smaller town centres with the growth of online retail and improved transport access to larger urban centres offering greater retail and service choice;
  • Isolation and lack of networking opportunities;
  • For SMEs based around Galway city, traffic congestion can be a major constraint;
  • SMEs in Border counties and throughout the Western Region currently face uncertainty regarding the implications of BREXIT. After March 2019 there may be very significant impacts on their businesses.  These smaller businesses are most vulnerable, lacking staff and resources to change and develop in response to changes in their commercial relationships with the UK.

The submission then goes on to set out some specific policy recommendations on access to finance, recruitment and retention of suitably qualified staff and infrastructure.

Read the full submission here.

Pauline White

 

[1] CSO (2018), Business Demography 2016

City Led Regional Development and Peripheral Regions- join the debate!

The theme of this year’s Regional Studies Association Irish Branch Annual Conference, to be held in the Institute of Technology Sligo on Friday 7th September, is “City Led Regional Development and Peripheral Regions”.

The conference will examine how urban areas interact with their rural regions and whether the development of the city or urban area leads to wider development.

Two international experts, Dr Andrew Copus from the James Hutton Institute in Aberdeen and Professor Mark Partridge, the C. William Swank Chair of Rural-Urban Policy at The Ohio State University, have been invited to present other countries’ experience on this theme and to stimulate debate about the reality of city led development.

Andrew’s paper  The Scottish City Region Deals – A rural development perspective. considers how urban-rural interaction is a long-established element of the “theory of change” associated with regional development policy. Optimistic assumptions about wider functional region benefits of city investments, are commonplace and generally unquestioned, despite meagre evidence of such impacts. A summary history of urban-rural concepts in the European policy discourse, will be followed by a brief account of rural/regional policy in Scotland. Against this background the origin and evolution of Scotland’s City Region Deals, and Regional Partnerships, will be described. The presentation will conclude with some reflections on the how these evolving arrangements fit into an already cluttered policy landscape, their compatibility with rural policy “mainstreaming”, and the likely benefits for rural Scotland.

Mark’s paper Is there a future for Rural in an Urbanizing World and Should We Care? examines how rural areas have received increased attention with the rise of right-wing populist parties in Western countries, in which a strong part of their support is rural based. While the underlying reasons are complex and unique to each country, one common feature is that rural areas have typically faced recent economic decline, creating anxiety, and in some cases, anger of rural residents directed at their urban counterparts. Thus, bridging this rural-urban economic divide takes on added importance in not only improving the individual livelihoods of rural residents but in increasing social cohesion. One way to bridge this economic gap is to improve rural-urban economic linkages through an urban-led economic strategy. For example, urban growth can create commuting and market opportunities for rural residents and firms if there is sufficient connectivity. While such a process has strong theoretical advantages it also requires rural areas to more carefully think about quality of life to attract and retain residents who would otherwise relocate to urban areas.

The issues in Ireland are examined in other presentations and it is to be hoped that the conference will provide useful input to the discussion about regional development in Ireland as the Regional Spatial and Economic Strategies of Project Ireland 2040 are drafted. The draft conference programme is below.

Detailed Conference Information can be accessed here (including speaker bios, directions, and accommodation). 

Register here for the conference (€70 including lunch) and come along and join in the debate.

 

Helen McHenry