Chapter 5 Enterprise And Employment
5.1 Aim, Context and Strategy
5.2 Socio-economic Profile of the City
5.3 Enterprise and Employment Opportunities
5.4 Tourism
5.5 Retail
Aim
To facilitate and promote the balanced and sustainable economic development of the city as a national gateway and provide for a diverse range of employment needs in order to maximize employment opportunities.
Context
Galway has a regional economic role. The city provides for a diverse range of economic activities, services and employment opportunities. In recent years, economic activities in the city have diversified and changes have occurred within the different industrial and enterprise sectors. The 1999 City Development Plan highlighted a shift within the city from traditional manufacturing industries to more technology intensive and services industries, in particular bio-medical, information technology and engineering. This trend has continued as indicated by the population census results 2002 regarding occupations.
The National Spatial Strategy 2002-2020 (NSS) has designated the city as a gateway, a regional centre of economic growth. The strategy emphasises that the attributes of a gateway are such that they will create the critical mass that will help sustain job growth within the region. It indicates that the dynamism of gateways means that these are the areas where the clustering of economic activities occur. This is already in evidence in Galway particularly in the I.C.T. and bio-medical fields of industry. The city still has considerable potential for further development and capacity for new enterprises with the support of its third level institutions. Although the city has been the driving force in economic development in the region, it is likely that large-scale employment opportunities will be located outside of the city boundaries, in adjacent County Council lands. This will reflect historic patterns of location, accessibility and investment decisions by the IDA. However, the city as a gateway will continue to be the catalyst for this growth through the provision of vital services, the links with third level institutions, infrastructural investment and most importantly a highly motivated labour force. This will support potential for development.
Within the city it will still be necessary to support and enhance existing sustainable employment, in particular those in enterprise, retail and service sectors. In addition, it will be necessary to provide opportunities for the expansion of employment within the city. The development plan will support this through land use zoning, infrastructural investment and an integrated approach to transportation.
The GCDB Strategy Gaillimh Beo agus Bríomhar 2002 – 2012 recognises that there is a need to ensure that the city remains an attractive location for investment in order to further its future development as a gateway. Key elements in the achievement of this objective involves improved access and transportation systems, facilitation of infrastructure including telecommunications and energy networks which cater for economic needs, and sustainable development of the tourism sector. The GCDB strategy also endorses an integrated approach. In order to enable future sustainable tourism development of attractions and infrastructure within the city. The Galway City and County Tourism Committee’s Developing Sustainable Tourism in Galway A Framework for Action 2003-2012, seeks a more co-ordinated and integrated approach to sustainable tourism development and to maximise the benefits of existing resources, including natural amenities and cultural identity
Tourism is also a major economic activity within the local economy of the city and its continuing growth generates a range of associated economic activities and new employment opportunities. Fáilte Ireland indicate that in 2003 approximately 951,000 overseas tourists visited the county and city as a whole, accounting for 15% of total overseas visitors to the country in that year, generating approximately 344m in revenue. Although not recorded by Fáilte Ireland, a significant income is also generated by domestic tourism, this is notable by high attendances at festivals and cultural events.
There has been a significant expansion in retail floorspace particularly within the city centre in the last fifteen years. Much of this has been brought about through a strong planning policy to preserve the primacy of the city centre in conjunction with urban renewal and environmental improvement schemes. The city has a wide catchment area in particular in relation to comparison shopping. Almost 80% of the total floor space dedicated to comparison goods in Galway County is located in the city area. This reflects its role as a second tier shopping centre in the national shopping hierarchy. The retail policies formulated in the plan are based on the Retail Strategy for Galway City, adopted in November 2002.
Strategy
• Support and facilitate the sustainable economic development of Galway as a gateway for the west region.
• Ensure sufficient land is available within the city/environs to facilitate inward investment, local economic development and expansion of existing enterprises.
• Provide for a diverse range of employment needs in order to maximise employment
opportunities available for all sections of the community in the city.
• Promote the sustainable co-location of employment opportunities near and within residential areas.
• Ensure that there are sufficient lands zoned to deliver the demand for retail floor space in an efficient, equitable and sustainable manner.
• Preserve the role of the city centre as the prime retail area and provide for the extension of the city centre in a sequential manner.
• Strengthen the city’s position as a tourism destination by promoting and facilitating the further development of sustainable tourism infrastructure and attractions.
5.2 Socio-economic Profile of the City
Since the adoption of the 1999 City Development Plan, significant changes have occurred in the socio-economic profile of the city. The growth in the total number of persons participating in the labour force has increased reflecting increases in population, growth in employment opportunities and female participation. The total labour force in the city has increased from 25,231 in 1996 to 31,325 in 2002. Of these the population census indicates that approximately 3137, are unemployed or first time job seekers. This figure in conjunction with information on live register statistics indicates that there has been a sizeable decrease in unemployment figures since 1996.
The socio-economic classification of the population, shown in table 5.1, indicates the dramatic rate of change in upward social mobility. A point to note is that the figures include those employed and all their dependants in the classification of socio-economic groups. The city results tally national trends, between 1996 to 2002, showing increases in the professional groups by an overall average of 19%, which includes managers, engineers, scientists and medical practitioners. In addition, there have been significant decreases in manual skilled and unskilled workers in the city. Economists have indicated that these results are phenomenal and would be expected over decades rather than just six years. When age breakdown details, education and training qualifications are matched with occupation details the significant of education is apparent. This is particularly relevant to the labourforce in Galway City.
Table no. 5. 1 - National and Galway City Socio-economic Change 1996 to 2002
Source: CSO - Census 1996 and 2002, Principal Socio-economic Results.
The sectoral breakdown of employment in the various agency supported firms located within the city, (see Fig. 5.1), also indicates significant changes in employment in different industrial classes. Of these supported firms, engineering and internationally traded services, has grown in employment by 51% and 133% respectively from 1996 to 2002. The NSS predicts that future trends in enterprise development will show the majority of new employment opportunities continuing to be created in services rather than manufacturing. This reflects the pattern of technology intensive companies to co-locate. Within the city these are generally of bio-medical and information technology nature. These types of industries are highly desirable in that they tend to be of high value and are fundamental to the growth of the economy.
Fig no. 5. 1 Employment in Companies located in the City under the Remit of IDA Ireland, Enterprise Ireland, Shannon Development and Údaras na Gaeltachta 2002.
Source : Forfas 2002
Statistics published in 2003 as shown in Table 5.2 gives some details regarding occupational breakdown and the changes since 1991. The records for 1991 include details regarding work place which allowed for estimates of the total of job numbers in Galway City. Subsequent census details for 1996 and 2002 did not request such information so Table 5.2 gives the records of occupation of residents in the city. The details of those working outside of the city is not extracted.
However despite this a number of observations can be made. There has been an overall increase in the employment of residents of two-thirds since 1991. This rapid rise considerably underestimates the growth in the number of jobs in the city as it excludes those commuting into the city for employment purposes. There has been a doubling of employment in commerce, insurance, business and finance services. Also there has been a two –third increase in other professional services. Growth in manufacturing has been modest since 1996.
Table 5.2: Change in occupation of residents of Galway City, 1991 to 2002
Using available from the small area population (SAPS) statistics (CSO Jan 2004 ) for Galway City, Galway County with regard in particular to the GTPS area, certain estimates regarding the growth of jobs in the city can be made. The methodology used is based on commuting patterns both in and out of the city, established between the city and county in 1991 extrapolated forward to 2002 and also using distances travelled to work in the GTPS area (over 15 miles) available from the 2002 census results. Also of relevance is the growth in total employment in Galway City and County and the estimated share of the service sector element of this growth that is likely to have taken place in the city. Using this methodology it is estimated that there is a net inward flow of workers to the City from the GTPS area of 11,000, taking account of an estimated gross outward flow of approximately 5,000 persons. This would therefore give an estimate of approximately 40,000 jobs in the city. Without the benefit of specific employment surveys this is a best estimate. It does reflect the rapid economic growth in the city since 1991.
5.3 Enterprise and Employment Opportunities
Enterprise and Industrial Development: Galway City is the driving force for economic development in the region, however, the Council acknowledges that the majority of large-scale employment opportunities, in particular state assisted, will occur outside but immediately adjacent to the city boundary. The Council will support and work in conjunction with Galway County Council and other agencies in the creation of employment opportunities. This includes the provision of infrastructure, in particular, the co-ordination of transportation policies for the area, including strategic public transportation measures and projects, such as strategic transport corridors, bus priority and park and ride. The city, as a designated national gateway, will remain an important location for services, high technology based industries and offices. Thus reflects the growing trend nationally in those sectors, (as seen in Fig. no. 5. 1). The city will act as the engine for these employment opportunities attracting investment, by providing necessary services, supporting housing supply attracting provision of infrastructure and innovation with the existing third level.
The city centre, Headford Road and Tuam Road areas will continue to provide a variety of employment opportunities in different sectors, in particular retail, commercial/office and services sector. The hospitals and third level institutions as substantial employers along with other city based services will continue to be of great importance the local economy. The policy of the Council in these areas is to continue to support these enterprises and enable expansion. This will be done by assisting enterprise development within the city, supporting and facilitating the initiatives of other agencies, ensuring that sufficient lands are zoned for industrial and commercial/industrial purposes and through effective infrastructure provision. The facilitation by the Council of further infrastructure development, for example, broadband and natural gas networks, will contribute to the expansion of enterprise activities within the city. The Council will also continue to directly facilitate the development of start-up enterprises.
Although it is acknowledged that large-scale employment opportunities will be located outside the Council boundaries, the plan provides, through the zoning of lands, opportunities for other types of enterprises in the city. The city centre zoned lands near Ceannt Station will provide a diverse range of commercial opportunities. In the western suburbs of Knocknacarra, substantial lands are dedicated for district centre uses and uses compatible with a technology park. This is a sustainable measure which co-locates employment and residential areas. The development of Arduan as a self-sustaining residential community means that employment opportunities can be supported along with a dedicated public transportation network.The existing zoning at Parkmore, the Docks and the new zoning at Murroogh will have potential for expansion of employment opportunities in the city.
It is also Council policy to facilitate the development of employment opportunities near or within residential areas, while having regard to traffic safety and residential amenity, in order to enable sustainable transport patterns. Local employment opportunities within residential areas will be allowed, where the enterprise or service is of a scale that is appropriate to serve the local community and has a localised catchment with little associated traffic implications.
Offices: Significant expansion in office space has occurred in the city since 1999. Supply rates have been incrementally outstripping demand in the last two years, however this trend appears to be in reverse. It is the policy of the Council to continue to protect the role of the city centre by limiting office development outside of the city centre area. It is accepted that specialist office development, which is generally of a high processing nature, is more appropriately located on industrial zoned lands. In this regard, the Council will encourage office development to be located in city centre and edge of centre, in compliance with a sequential approach to the location of new office development in the city.
The expansion of a new range of specialist office-based industries has occurred in recent years in the city. This office type requires a low-density environment and includes research and development organisations and internationally traded services. Specialist office developments are similar to light industry, as both activities are likely to have large numbers of employees and have significant traffic implications. Specialist office developments because of their scale, traffic implications and nature, are permitted on lands zoned for industrial I and commercial/industry CI uses.
The existing and proposed district and neighbourhood centres are also locations where offices are acceptable but only of a nature and scale that does not detract from the primacy of the city center and serves a local catchment area. The presence of offices at these locations enables a sustainable mix of uses, provides services to surrounding residential areas and facilitates sustainable multi-purpose traffic movements.
Small-scale offices, which provide a local service, for example, dentist and doctor surgeries are allowed in residential areas. These office types have small localised catchment areas with limited traffic implications.
Policy no. 5.3 Enterprise and Employment Opportunities
• Promote and facilitate sustainable employment creation and opportunities in the city by ensuring the availability of an adequate supply of serviced land at appropriate locations for industrial development.
• Co-operate with the IDA, Enterprise Ireland, Galway County Council and other agencies in meeting the needs of industry, where appropriate.
• Co-operate with Galway County Council in the servicing of industrial lands outside of and to the north-east of the city boundary in particular transportation service needs.
• Allow the co-location of compatible employment opportunities adjacent to residential areas, having regard to traffic safety, residential amenity and environmental considerations.
• Allow local employment opportunities of a scale appropriate to serve the local community within residential areas.
• Promote the continued development of a business/technology park at Rahoon.
• Continue to support and facilitate the development of start up (incubator) enterprise units for local indigenous enterprises.
• Improve access, in particular sustainable modes of transport to major areas of employment.
• Promote and support the sustainable development of different office types at appropriate locations within the city.
• Allow the development of childcare facilities near/within developments, which provide employment opportunities on I, CI and CC zones throughout the city.
• Promote further sustainable development of the harbour enterprise park and related harbour activities subject to acceptability from the appropriate authorities.
Galway with its distinctive cultural heritage, vibrancy, intimate urban fabric and associated seaside resort of Salthill is a significant tourist destination in the west region. Tourism makes a major contribution to the economy and the prosperity of Galway. The city is also an important destination for domestic tourism highlighted by the number of annual festivals and cultural events. The substantial income generated by tourism is critical to the economy of the city.
The Bord Failte Tourism Development Strategy 2000-2006 identifies Galway as an ‘established tourism area’, a major tourism city with a surrounding area, with the intensity of tourism activities increasing towards the city. Galway offers a high standard of urban type tourism and acts as an important commercial accommodation base for the ‘established tourism area’. The strategy states that the city has the ability to achieve continued sustainable growth. It is the policy of the Council to support this approach and encourage and facilitate sustainable tourism development, in particular, developments and activities that reflect the city’s unique culture and heritage. The Council can directly and indirectly promote the development of tourism within the city. It can facilitate the commercial residential developments such as hotels, B&Bs and self-catering accommodation, in addition, to other tourism infrastructure such as the city museum.
The Council can contribute to the tourism potential of the city through a variety of different synergistic measures including improved accessibility, environmental regeneration of specific areas, the provision of recreation and amenity areas, facilitation of the development of visitor attractions and protection of the natural and built heritage. Tourism covers a wide variety of different activities within the city. Many of the policies and objectives set out in this plan will facilitate the development of tourism benefiting both visitor and citizen alike.
Policy no. 5.4 - Tourism
• Facilitate and encourage sustainable tourism development, which is based on and reflects the city’s distinctive history, culture and environment.
• Support the aims of the Galway City and County Tourism Committee’s Developing Sustainable Tourism in Galway - A Framework for Action 2003 –2012, and GCDB strategy Gaillimh Beo agus Bríomhar, where appropriate.
The retail policy in the development plan has had regard to the requirements of the Retail Planning Guidelines for Planning Authorities (RPG) 2002 DOEHLG. The RPG identifies a number of issues, which should be included in all development plans. These issues include:
• Confirmation of a retail hierarchy, the role of centres and the size of the main town centres,
• Definition in the development of the boundaries of the core shopping areas of town centres,
• A broad assessment of the requirements for additional retail floor space,
• Strategic guidance on the location and scale of retail development,
• Preparation of policies and action initiatives to encourage the improvement of town centres,
• Identification of criteria for assessment of retail development.
The RPG recognised that because retail planning required the consideration of catchment areas, jointly prepared retail strategies were appropriate for some local authorities. This was the case for Galway City Council and Galway County Council. In response a joint retail study/strategy was prepared and Galway City Council adopted variations to the 1999 City Development Plan in light of this in November 2002. The Retail Strategy (2002) has been reviewed and modified for the purposes of this development plan, particularly in light of the publication of the Census of Population (2002) details and the publication of the NSS.
The overall objective of the retail planning strategy is to provide strategic guidance on the location and scale of new retail developments in a way, which is in accordance with the RPG, that is,“efficient, equitable and sustainable”. In this regard a number of factors and circumstances set down by the RPG required examination and evaluation. These included the confirmation of the retail hierarchy, estimation of need for additional floor space, guidance on location and scale and the establishment of criteria for the assessment of retail developments.
The Retail Hierarchy
A key requirement under the RPG is the need to confirm the retail hierarchy, which in turn informs the retail policy. The classification of the retail hierarchy reflects the retail functions of each centre.
Table 5.3 - Galway City & County Retail Hierarchy
Major Town Centre - Galway City is the only centre in this category, it has a substantial catchment area within the county and region. This reflects the city’s role as a national gateway. A strong tourist market also supports the retail industry in the city. The area defined as city centre, under the 1999 City Development Plan, when surveyed in 2002, there was 47,525 m_ of retail floorspace, 80% was for comparison goods, with a significant amount dedicated to high order goods. The city also has strong representation of both national and international multiples which further validates it’s role in the hierarchy.
District Centre - Knocknacarra complies with the characteristics of an area deserving of a district centre that is an area where there… “will be major growth in population or a clear proven level of under-provision….” Both descriptions apply to Knocknacarra. This suburb is located on the western side of the city, it has an estimated population of 12,000 with a zoned capacity to reach a population of 18,000. It is currently served by a small number of corner shops and a one supermarket with a number of small units attached. As Knocknacarra constitutes a sizeable proportion of the population of the city it is reasonable that adequate provision is made to accommodate a range of goods and services within the area. This would accord with the principles of the RPG regarding “efficient, equitable, and sustainable provision”. Having a district centre in Knocknacarra will reduce the need to travel into the inner suburbs/city centre for retailing purposes, for goods that can be located in the suburbs without having a negative impact on the functioning of the city centre, which will still be the reserve of high order shopping.
Neighbourhood Centre - Typically the provision is primarily of a convenience goods type and serves a very immediate population. The neighbourhood centres designated in the city correspond with lands where there is likely to be large increases in population, again at Knocknacarra and Doughiska. It is important that opportune sites within these areas are safeguarded for these purposes. There are also a number of developed pockets of commercial activity in the city that function as neighbourhood centres.
Corner/Local shops - These are small retail units located usually near residential developments. They normally provide day-to-day food needs and provide a very important service to local communities. It is important to encourage these types of developments and retain existing ones in view of their contribution to sustainable neighbourhood development.
There are some retail formats, which do not fit into this hierarchy. In the interests of encouraging competition, innovation and choice these should be accommodated where they comply with the requirements of the general policies in this and the RPG. Bulky goods are an example, which by definition require access by car and when located in a grouped fashion with communal car parking these are termed retail parks. In Galway City there are a number of areas, where bulky good retailing is accommodated, on the Headford Road, some areas on the Tuam Road, some areas on the Seamus Quirke Road and at Wellpark.
There is substantial provision of bulky goods already accommodated within the city. Where the deficit lies is in west of the city where there is a largest suburban population. It is anticipated that the District Centre at Knocknacarra will provide for some opportunities for bulky goods retailing. It is not considered necessary to specifically designate any other lands for retail park type uses. Where bulky goods are being accommodated they should comply with the requirements of the RPG.
Other formats such as forecourt retailing in petrol stations, factory outlets, warehouse clubs are all the subject of guidance in the RPG to which this plan has regard.
Need for Additional Floorspace
The population of the city is estimated to grow to 71,224 by 2011. The increase in population combined with the growth in consumer expenditure will result in a significant increase of potential retail spend which can support additional retail floorspace development in both the city and county. What will be significant for Galway City is that development of the Ardaun corridor, which includes part of the county area, but which will functionally relate to the city as a whole and therefore generate a demand for floorspace within the city too. The need for additional comparison floorspace is indicated in Table 5.4.
The Council will not use these figures as the sole basis for making decisions on retail developments. The nature of the city as a gateway will also be a major factor as will other spatial factors, in particular with regard to city centre opportunities. In addition, equitable distribution of retailing opportunities and good and sustainable accessibility are also important factors to consider. As these figures are broad guidelines they will be required to be monitored and adjusted over the period up to 2011 in order to reflect changes in the retail market.
Table 5.4 - Comparison Floorspace (m2) requirements up to 2011
It is estimated that the majority of this floorspace will be of the high to middle order type and these should be located in the city centre or as near to the centre as is possible. There is already a limited amount of city centre type retailing on the southern section of the Headford Road. An additional quantum of floorspace will be allowed in this area but only if it cannot be delivered in a reasonable time within the CC zoned lands, and if there is a clearly demonstrated need for it and the scale of increase is not likely to adversely effect the prime retail role of the city centre.
The sale of bulky goods or trade related goods are not appropriate to the city centre in view of the high demand for space generated by these goods and the requirement by customers to be car borne. These uses will be accommodated within the appropriate CI zones including that of the district centre in Knocknacarra, where bulky goods floorspace is desirable in conjunction with a limited amount and type of comparison shopping. This is allocated to the designated district center with a capping on the floorspace which will include a restriction on comparison goods considered to be more appropriately located in the city centre.
The estimated floorspace required for convenience goods is 10,500 m_ (see Table 5.5). Within the city it is desirable that a large proportion of this would be accommodated within the designated district centres and the designated neighbourhood centres at Knocknacarra and Doughiska where there is currently under-provision and large increases in population anticipated. Convenience goods trading is not a critical use for the city centre and is more suitably located near the immediate market it serves. In the city this is in the residential suburbs. However it is anticipated that there will be some floorspace for convenience trading in the city more likely combined with comparison goods outlets. This is acknowledging that retail visits to the city area usually a multi-purpose trip and that there is a sizeable residential community in the city.
Table 5.5 - Estimated Retail Floorspace requirements in Galway up to 2011
Core Shopping Area: The RPG recommends that the “core shopping areas” be defined in development plans. This definition allows for the endorsement of “edge of centre sites” that is a site that is within 300m-400m from the edge of the prime shopping area for retail purposes. This development plan has a specific zoning objective for the city centre (CC zoning). It is considered that the existing CC zoning objectives in the development plan are of sufficient definition to achieve definition and a core shopping area. These lands, as discussed above, include the existing built up area of the city centre and a substantial brownfield site which can accommodate the expansion of the retail and other land use requirements of the city. In addition specific provision is recommended on lands zoned CI on the Headford Road to accommodate such uses. Other CI lands can accommodate retailing but generally of a bulky goods type or to satisfy local need.
Joint Strategy Aspect: The City and County Councils support the proposals in the GTPS. When the recommendations are implemented, the settlements in the County area will be enhanced and will consequently need an expansion in their retail areas. It is proposed therefore that a proportion of the estimated floorspace requirements for the city up until 2011 be repatriated to the county settlements. This is unlikely to have any significant negative effect on the city. The proposed repatriation is 5000m2 for comparison goods floorspace and 1,500m2 for convenience goods. This would modify the estimated floorspace requirements for the city from 35,000m2 to 30,000m2 for comparison goods space and from 10,500m2 to 9,000 m2 for convenience goods space.
Criteria for Assessing Future Retail Proposals: Developments of significance should be assessed in accordance with specific criteria. In Galway City the existing scale and context of retailing outlet would suggest that the following scale of developments is significant: (net retail sales area); developments of convenience outlets above 1500m2; developments of comparison (pure) outlets above 2500m2; development of comparison (bulky goods) outlets above 4,500 m2.
The criteria to be considered in the assessment of such development proposals will include the following (if relevant):
• The extent of compliance of the proposed development with existing policies and objectives in the development plan. Identification of the catchment area of the development including the demonstrated need for the development,
• Estimation of the expenditure capacity within the defined catchment area,
• Estimation of the turnover of the existing centres within the catchment area which are likely to be affected by a new development,
• Estimation of the turnover of the proposed development,
• Estimation of the likely quantum of expenditure, which will be diverted from the existing, centres to the new retail developments to provide an estimate of trade diversion,
• The impact on the designated town centre, district centre, neighbourhood centres where relevant,
• The level of accessibility of the site by all modes of transport including by foot and bicycle,
• All significant development should satisfy the sequential test as defined in this strategy.
Policy No. 5.5 - Retail
• Take into consideration the Retail Planning Guidelines for Planning Authorities and the retail strategy for the city in conjunction with other policies in the plan when assessing applications for retail proposals.
• Promote and protect the city centre as the prime retail area in the city and the western region.
• Adopt the retail hierarchy for the city as identified in the retail strategy and allow for retail development that is of a scale and nature with prescribed functions and roles.
• Allow for expansion of the city centre in accordance with the sequential test approach in particular onto the Ceannt Station area and in a more limited manner on to the Headford Road where appropriate.
• Protect existing neighbourhood centres where appropriate and make provision for new district centre at Knocknacarrra and new neighbourhood centres at Doughiska and Knocknacarra.
• Encourage the provision of local shopping facilities in accordance with the neighbourhood concept and in compliance with policies for residential areas.
• Assess new major development in accordance with prescribed criteria and in the context of the retail strategy for the city.
• Have regard to the guidance in the Retail Planning Guidelines for Planning Authorities for specific retail formats.