APPENDIX 2A

Our Plan for Growth

Mid Local Economic Development Report and Action Plan (2015-2020)

FINAL Draft Report (v1.0) – May 2015

Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) FINAL Draft Report (v1.0) – May 2015

RSM McClure Watters (Consulting) Ltd is a well-established provider of economic consultancy services with offices in Cambridge, London and . The company has a core multi-disciplinary team of over 20 professionals, comprised of economists, social policy advisers, planners and statisticians. The team specialises in advising policy makers across the UK and Ireland on local and regional economic development, enterprise support, innovation and technology transfer, inward investment, labour markets and training, social inclusion, housing and regeneration.

In association with:

Oxford Economics is one of the world’s foremost independent global advisory firms, providing reports, forecasts and analytical tools on 200 countries, 100 industrial sectors and over 3,000 cities. Headquartered in Oxford, England, we employ over 130 full-time people, including more than 90 professional economists, industry experts and business editors—one of the largest teams of macroeconomists and thought leadership specialists. Our global team is highly skilled in a full range of research techniques and thought leadership capabilities, from econometric modelling, scenario framing, and economic impact analysis to market surveys, case studies, expert panels, and web analytics. Underpinning our in-house expertise is a contributor network of over 500 economists, analysts and journalists around the world and our heritage with Oxford University and the academic community.

RSM McClure Watters (Consulting) Limited is a member of the RSM McClure Watters Group.

RSM McClure Watters (Consulting) Limited is an independent member firm of RSM International an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

RSM McClure Watters (Consulting) Limited (No NI607634) is registered in . Registered Office: Number One, Lanyon Quay, Belfast, BT1 3LG.

Table of Contents

Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) FINAL Draft Report (v1.0) – May 2015

Table of Contents

1 EXECUTIVE SUMMARY ...... 1 1.1 INTRODUCTION ...... 1 1.2 REPORT CONTEXT ...... 1 1.3 STUDY TERMS OF REFERENCE...... 2 1.4 KEY FINDINGS ...... 2 1.5 AMBITION STATEMENT AND KEY THEMES ...... 4 2 INTRODUCTION AND BACKGROUND ...... 11 2.1 NEW PEOPLE, NEW PLACES ...... 11 2.2 ECONOMIC CONTEXT ...... 12 2.3 STUDY TERMS OF REFERENCE AND APPROACH ...... 14 2.4 REPORT STRUCTURE ...... 15 3 SOCIO ECONOMIC REVIEW & FORECASTS ...... 16 3.1 INTRODUCTION ...... 16 3.2 KEY CONCLUSIONS ...... 25 4 POLICY, FUNDING AND OPERATIONAL CONTEXT ...... 26 4.1 INTRODUCTION ...... 26 4.2 NORTHERN IRELAND POLICY REVIEW ...... 26 4.3 REVIEW OF DELIVERY BY COUNCILS DURING THE PREVIOUS PROGRAMME PERIOD ...... 31 4.4 EMERGING EUROPEAN FUNDING OPPORTUNITIES ...... 33 4.5 CONCLUSION ...... 34 5 FINDINGS FROM STAKEHOLDER CONSULTATION ...... 35 5.1 INTRODUCTION ...... 35 5.2 STAKEHOLDER/PARTNER AND BUSINESS INTERVIEWS ...... 35 5.3 THEMATIC WORKSHOPS AND MEETINGS WITH TOWN FORA ...... 37 5.4 BUSINESS SURVEY RESULTS ...... 38 5.5 CONSULTATION ON DRAFT ECONOMIC DEVELOPMENT PLAN (APRIL 2015) ...... 38 6 SWOT ANALYSIS AND EMERGING PRIORITIES ...... 40 6.1 INTRODUCTION ...... 40 6.2 SWOT ANALYSIS ...... 40

RSM McClure Watters (Consulting) Limited is a member of the RSM McClure Watters Group.

RSM McClure Watters (Consulting) Limited is an independent member firm of RSM International an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

RSM McClure Watters (Consulting) Limited (No NI607634) is registered in Northern Ireland. Registered Office: Number One, Lanyon Quay, Belfast, BT1 3LG.

Table of Contents

Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) FINAL Draft Report (v1.0) – May 2015

6.3 IDENTIFICATION OF AMBITION STATEMENT AND THEMES ...... 42 6.4 DESCRIPTION OF THEMES ...... 54 7 ACTION PLAN ...... 61

Appendices

APPENDIX A: REVIEW OF EMERGING STRATEGIES APPENDIX B: REVIEW OF PREVIOUS PROGRAMME ACTIVITY APPENDIX C: SOCIO-ECONOMIC REVIEW APPENDIX D: CONSULTATION FINDINGS APPENDIX D1: INTERVIEWS AND CONSULTATIONS APPENDIX D2: MID ULSTER FOCUS GROUP FINDINGS: KEY QUOTES/THEMES APPENDIX D3: COMMUNITY PLANNING - SUMMARY FROM 12 EVENTS ACROSS MID ULSTER APPENDIX D4: SCRIBES RECORDING FORM APPENDIX D5: SCRIBES RECORDING FORM APPENDIX D6: SCRIBES RECORDING FORM - POMEROY - ECONOMIC DEVELOPMENT AND TOWN CENTRE - 10.11.14 APPENDIX D7: SCRIBES RECORDING FORM - BROUGHDERG - ECONOMIC DEVELOPMENT AND TOWN CENTRE APPENDIX D8 SCRIBES RECORDING FORM - - ECONOMIC DEVELOPMENT AND TOWN CENTRE APPENDIX E: BUSINESS SURVEY APPENDIX E1: BUSINESS SURVEY QUESTIONNAIRE APPENDIX E2: MID ULSTER LED SURVEY RESULTS BY SECTOR

RSM McClure Watters (Consulting) Limited is a member of the RSM McClure Watters Group.

RSM McClure Watters (Consulting) Limited is an independent member firm of RSM International an affiliation of independent accounting and consulting firms. RSM International is the name given to a network of independent accounting and consulting firms each of which practices in its own right. RSM International does not exist in any jurisdiction as a separate legal entity.

RSM McClure Watters (Consulting) Limited (No NI607634) is registered in Northern Ireland. Registered Office: Number One, Lanyon Quay, Belfast, BT1 3LG.

Table of Contents

Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) FINAL Draft Report (v1.0) – May 2015

1 EXECUTIVE SUMMARY

1.1 Introduction

RSM McClure Watters and Oxford Economics were appointed by Cookstown District Council, District Council and Dungannon and South Tyrone Borough Council to deliver a Local Economic Development Report and Action Plan in preparation for the merging of the three Councils to form the new Mid Ulster District Council.

The new Local Economic Development Report has been prepared to address the opportunities arising from representing new people/new places and delivering new administrative powers.

1.2 Report Context

New Local Government Structure/Powers

The 2014 Local Government Act will dramatically change the map of Local Government in Northern Ireland (NI). With effect from 1 April 2015 the number of Councils reduced from 26 to 11 and specifically, the three Councils of Cookstown, Magherafelt and Dungannon merged to form the new Mid Ulster District Council which will represent a population of more than 141,000 people across 1,714 km2, i.e. 14% of the NI land mass.

As part of the reform process, the new Councils will also assume new powers/ responsibilities in relation to:

 Planning including local development plan functions and enforcement;  Urban Regeneration (to transfer in 2016);  Housing; and  Economic Development including those functions currently delivered by Invest NI (Enterprise Awareness, Start a Business activity. Social Entrepreneurship, Youth Entrepreneurship and start-up activity for under-represented groups).

As well as the transfer of these formal powers and budgets, the Council will also have an enhanced facilitative role through the new Community Planning powers, providing a unique geographical perspective and thereby guiding local delivery in conjunction with a range of statutory bodies operating in the Mid Ulster area.

Historically, local authorities in the UK were permitted only to do things that they had specific statutory powers to do. An act which was carried out in the absence of statutory powers would be deemed ultra vires – illegal and hence void. However the 2014 Local Government Act also legislated for the Power of General Competence which provides Councils with the authority to do ‘anything that individuals generally may do unless specifically prohibited under the act’. In terms of economic development, it provides the potential for the Council to act in a more ‘commercial manner’ not only managing its assets but also in actively promoting innovative uses.

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Recent Economic Conditions

NI has probably suffered from the recession to a greater extent than any other UK region. Following the success of the previous decade, total employment in NI fell by approximately 23,000 net jobs or 2.7% in just one year – between 2008 and 2009.

Mid Ulster was particularly hard hit in the recent recession due to its heavy reliance on the construction (and associated mining and quarrying) and retail sector. The construction sector was one of the most severely impacted industries because of its close ties with the banking credit crisis and the subsequent fall in the property market.

The retail sector faced the challenge of weak consumer confidence resulting from increased debt burdens, falling real wages and higher levels of unemployment.

Although there are now clear signs of economic recovery, it is expected that there will be a slow labour market recovery in NI. Employment is projected to grow by an average of just 0.3% per annum over the next decade – meaning it will not recover to its pre- recession peak until well beyond 2023, whereas, the UK as a whole reached (and surpassed) its pre-recession level in 2013.

1.3 Study Terms of Reference

In response to emerging opportunities and challenges within the wider economic and political environment, the Mid Ulster Council identified that the Mid Ulster Local Economic Development Report and Action Plan (2015-2020) should provide:

 A comprehensive report including an economic baseline for the area which includes an analysis of the local economy and business needs and an economic forecast of future opportunities; and  An Action Plan (2015-2020) containing economic/business interventions and key target sectors which is in accordance with local, regional and EU funding directives.

1.4 Key Findings

After extensive consultations with the public, private, community and voluntary sectors, the Table 1.1 provides a high level summary of the strengths, weaknesses, opportunities and threats impacting on the new Mid Ulster Council area.

Table 1:1: SWOT Analysis

Strengths Weaknesses Central location- strategically positioned Overly dependent on three low value on M1 Corridor and providing easy add sectors (construction, North/South and East/West access; manufacturing and agri food); Population growth higher than regional Low levels of exporting and R&Di; average and relatively young age Lack of appropriate skills (trade and profile; professional) to meet needs of industry;

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Strong level of educational attainment in Below average productivity/low wage – local schools (57% of school leavers ranked 5th out of 11 Councils in terms with 2 or more A levels compared to NI of average GVA per head – 5th lowest average of 55%); weekly (residence based) wage – 5% Strong industry sectors (manufacturing, lower than NI average; construction, engineering, materials Long term unemployed / youth processing, retail and agri-food) with unemployment rising; significant international linkages; Access constraints to regional road Strong tradition of entrepreneurship; network (need for additional by passes); Strong business base (largest number Relatively low visitor numbers to the of VAT/PAYE Registered businesses area – 2nd least visited Council area in (7,915) of any new Council area (except 2011/2012; Belfast); Supply of Invest NI owned landbank Strong enterprise agency network and considered insufficient; award winning FE/HE institutions; No integrated retail strategy; Centre of Excellence for agri food: Poor broadband and mobile phone CAFRE; infrastructure (not spots); Excellent recreational facilities; Area dominated by micro, small and 3 Councils (and their partners) have medium sized businesses who have proven ability and expertise in the limited succession planning in place; delivery of business support and town Low percentage of businesses centre regeneration projects; engaging with business support Strong tourism spend per visit and agencies. 76% of survey respondents highest trip duration. hadn’t used business support in the last 5 years Opportunities Threats Northern Ireland Community Safety Reduced public sector funding/funding College at Desertcreat; from traditional EU sources; Growth expected in higher value added Regulation/Red tape/High Operating sectors (e.g. renewable energy, ICT and Costs; exportable service); Over-reliance on existing local supply Emergence of informal clusters (agri- chains; food, construction and manufacturing); Continuing loss of skilled workers and Potential for export growth principally in recent graduates; agri-food, manufacturing and Manufacturing: weak jobs outlook; construction; Town Centre proposition becomes Strong entrepreneurial culture; dated and unattractive; Significant potential from development Enhanced competition for Council’s of tourism offering; support towards retail/town centres Increased Council scale and powers: once new Mid Ulster Council is formed; Powers of General Competence; Lack of suitable workspace and Strong linkages developed by local imbalance in availability of zoned exporters and politicians with the Mid development land; Ulster people living in target markets; Low levels of inward investment; and Potential opportunities from change in Comparatively poor infrastructure corporation tax; (telecoms/broadband, energy and Local procurement activities to include roads) - leads to issues of connectivity social clauses related to childcare and perceptions of peripherality. and/or living wage; Increasing awareness of online marketing opportunities; and

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EU funding: transnational focus, development of collaborative partnerships.

1.5 Ambition Statement and Key Themes

Following the consultation stage, an ambition statement and four key themes were presented for discussion with Mid Ulster District Council.

The ambition statement will guide interventions and activities designed to address the economic priorities outlined in this document. The agreed economic development Ambition Statement for Mid Ulster is:

““To facilitate the development of a diversified, higher value added economy that provides the basis for sustainable growth, creating an environment that attracts and retains people and investment”.

The four themes designed to address the key priorities for the Mid Ulster District are:

 Theme 1: Enabling Economic Growth / Sectoral Diversification;  Theme 2: Enabling Employability and Skills;  Theme 3: Enabling Town and Village Regeneration; and  Theme 4: Enabling Infrastructure and Connectivity.

These four overarching Themes contain a number of actions which will seek to address the main constraints and opportunities impacting on the Mid Ulster economy over the next five years through the implementation of a range of initiatives and programmes.

As part of the delivery mechanism for these Themes, Mid Ulster District Council aims to further strengthen its collaborative networks and partnership working in addition to developing its enhanced role as a key enabler with the aim of becoming a leading strategic influencer of wider economic development policy.

For those objectives which are not within Mid Ulster District Council’s own remit to deliver, Council will pursue the development of these through increased partnership working with other key stakeholders and agencies and adopting a direct lobbying approach where appropriate.

The four Themes and their associated aims and outcomes are outlined overleaf.

A detailed Action Plan supporting each aim/objective is detailed in Section 7 of this report.

Table 1:2: Themes, Indicative Aims and Activities

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Theme 1: Enabling Economic Growth Aim Activities 1.1: Foster a Culture of Pre Start Programme: Enterprise Programme of support to develop employability skills and/or consideration of self-employment as a career option: target groups such as economically inactive, NEETS (Not in Education, Employment or Training), women, young people, migrant workers and those currently in employment with a new business idea. Pre Start Programme:

Enterprise Awareness: to raise awareness of entrepreneurship as a career option and deliver initiatives such as promoting greater linkages/engagement between education and industry, supporting events to raise the profile of entrepreneurship and recognising the contribution of businesses to the local economy. Start Up Programme:

Start Up Support (Regional Start Initiative and the Social Entrepreneurship programme); and Fast Growth Support Programme to accelerate growth potential. 1.2: Support to existing Support towards innovation and capacity building efforts of businesses to drive businesses in the District through a Suite of Business productivity Support interventions including: General Business Development Programme Procurement Programme; Cluster Development; Research, Development and Innovation (R&Di); Exporting /Internationalisation Support Interventions (Preliminary export training/support); Supply chain development and diversification; Access to Finance; Marketing; Succession Planning; Resource Efficiency; Enterprise Tourism; and Social Enterprise Sustainability Programme. Align initiatives with Rural Development Programme measures to maximise support provision.

Promote access to services for businesses: Signpost to available sources of funding; Lobby for retention of local banks and services; and Provide opportunities for business networking.

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Create a Business Directory for Mid Ulster

Aim 1.3: Maximise Support for businesses to exploit procurement opportunities emerging from opportunities emerging from capital investments (e.g. Ann infrastructure initiatives Street Development, High School, Gas into the West, NI Community Safety College):

Short / Medium term opportunities:

- Meet the Buyer Events - Signposting of procurement opportunities; - Identification of potential supplier base - Signposting of emerging skills needs; and - Development of potential supply chains.

Aim 1.4: Promote Promote the concept of sustainable development and Sustainable Development renewable energy; and

Consider potential of supporting local sustainable development initiatives.

Aim 1.5: Promote regional, Provision of a Cluster Development Programme: national and international Phase 1: Preliminary engagement work with companies; recognition of Mid Ulster’s Phase 2: Development of Collaborative Networks (Agri- sectoral strengths food and Construction Sector); and Phase 3: Consideration towards the establishment of Research Centre and/or Thematic Enterprise Zone. Liaison with Government Departments in NI and RoI , industry and University representatives to develop policy platform at European and UK levels.

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Theme 1: Enabling Economic Growth Aim Activities Aim 1.6: Maximise opportunities Facilitate greater opportunities and EU investment; for cross border, national and international investment Explore potential of employing an EU officer to research and exploit all EU and other funding opportunities across opportunities. Council;

Explore initiatives to support economic regeneration.

Aim 1.7: Promote Mid Ulster Develop opportunities to attract public/private sector investment into the region; as an investment location Attract Inward Investment to the region; Promote an ‘Agency Attraction’ Programme; Develop a land bank for inward investment/businesses Develop an online presence and high quality promotional materials to promote Mid Ulster as a key investment location; Identify constraints to Central Government investment in the Mid Ulster area; and Develop a database of Mid Ulster contacts abroad and explore potential networking opportunities.

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Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) Draft Report (v1.0) – May 2015

Theme 2: Enabling Employability and Skills Aims Indicative Activities Aim 2.1: Address emerging Examine the potential for a Mid Ulster wide Skills Forum; Explore the potential to develop a training academy (for sectoral labour market construction/manufacturing/engineering sectors); shortages Explore development of initiatives to increase uptake of training and employment opportunities in skilled trades/professions; and Promote opportunities to change negative perceptions of jobs in key sectors.

Aim 2.2: Address training Intermediate labour market solutions for NEETS, the long term unemployed, marginalised groups and families, young and employment needs of people and migrant workers and encourage long term unemployed and placement/apprenticeship opportunities; and economically inactive Targeted pre-start up support for unemployed or economically inactive.

Aim 2.3: To address Lobby government to further encourage and support in-job development (particularly government grant beneficiaries); productivity constraints and through in-job training Signposting training opportunities for management and skilled personnel. Aim 2.4: Promote the Assess barriers to training (childcare provision, etc) and implement actions (e.g. use of grants as an incentive) to development of a strong remove them to support a strong mobile labour force. educated skills base Support campaign to increase Early Years provision to enable young families to maximise training and employment opportunities; Advocate for a strong link between the education provision and skills and job requirements of growth areas e.g. STEM; Lobby for adequate Government spend on education and skills; and

Aim 2.5: To act as an Lobby for the provision of a living wage to increase economic and social well-being; advocate for and support integration and linkages to Lobby Government on the need for interventions on poverty other social factors that and social protection to maximise employability and spend in impact upon the economic Mid Ulster; and well-being of the Mid Ulster Lobby for inclusion of Social Clauses in Contracts (Council area. and other agencies).

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Theme 3: Enabling Town and Village Regeneration Aims Indicative Activities

Aim 3.1: To ensure the Baseline Study of the Council’s principal towns and villages and identify drivers for growth; continued physical vibrancy Shop Improvement Schemes (internal and external), of towns and villages as Derelict Property Improvement Schemes, Site places to shop and visit Enhancement Schemes; Deliver quality town centre environments with suitable access provision; Develop links between Town Centre Businesses and edge of town developments, ensuring suitable signage provision at key junctions; Independent Retailers’ Support/Promotion Initiative; Satellite Worker Initiative; Develop key opportunity sites; Promotion of the ‘Town Centre First’ Concept and work closely with Planning on development and area planning; Review existing Opportunity Sites (e.g. Maghera High School, Ann Street Development, NI Community Safety College, etc) and identify other potential sites across Mid Ulster; Development of an Evening Economy Strategy for principal towns; Revitalised and enhance markets; Align initiatives with Rural Development Programme measures to maximise support provision; and Explore the potential to create a Business Improvement District (BID)

Aim 3.2: To ensure the Build on existing marketing and promotional work to promote principal towns; active promotion of Mid Delivery and promotion of key signature events; Ulster’s towns and villages Marketing and targeting of potential retail/service as places to shop and visit. investors; Digital/e-commerce retail initiative; and Development of an integrated Mid Ulster Council Tourism Strategy.

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Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) Draft Report (v1.0) – May 2015

Theme 4: Enabling Infrastructure and Connectivity Aims Indicative Activities Aim 4.1: Develop Strategic Lobby for infrastructure improvements to roads (e.g. Routes Cookstown and Dungannon by passes) to improve links to main economic routes and export points.

Aim 4.2: Develop Strategic Development of key opportunity sites Sites Promote opportunities for property provision in rural areas to support micro and small business growth

Area Plan development, influence flexible zoning and identify market ready sites;

Address the deficit in accommodation and lands available to adequately develop the agri-food sector;

Support the future ‘Gas to the West’ project

Build on existing considerations towards the development of Strategic Enterprise Zones and/or a Public Sector Hub.

Aim 4.3: Improve Highlight broadband and mobile not-spot issues through Telecommunications Provision development of an enhanced lobby campaign; and

Explore opportunities for businesses to access funding to improve broadband access, coverage and speeds.

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2 INTRODUCTION AND BACKGROUND

This section provides an overview of the new Council area, the economic landscape in which future economic development activity will be progressed, the Terms of Reference (ToR) and our approach to this study, and the structure of the remainder of this report.

2.1 New People, New Places

The 2014 Local Government Act will dramatically change the map of Local Government in Northern Ireland (NI). With effect from 1 April 2015 the number of Councils reduced from 26 to 11 and specifically, the three Councils of Cookstown, Magherafelt and Dungannon merged to form the new Mid Ulster District Council.

The Mid Ulster Council will represent a population of more than 141,000 people across 1,714 km2 i.e. 14% of the NI land mass. It is strategically well positioned from being located on the M1 corridor (linking Dublin-Belfast) and by providing transport routes on an East-West axis.

The area is predominantly rural with the five main towns being Cookstown, Dungannon Magherafelt, Coalisland and Maghera, along with a number of smaller settlements such as Ballyronan, , , Pomeroy, Stewartstown, Coalisland, Moy, Fivemiletown, Castledawson, and .

Figure 2.1 illustrates the geographical extent of the Mid Ulster Council area.

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Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) Draft Report (v1.0) – May 2015

Figure 2:1: Geographical Coverage of New Council Area

Source: Shadow Mid Ulster Council 2014

2.2 Economic Context

The NI economy has suffered significantly in the period since Economic Development Strategies were previously carried out for the three respective Councils in the new Mid Ulster Council area.

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From the turn of the century to the onset of the recession, employment levels in NI increased every year – growing by close to 100,000 jobs between 2000 and 2008 alone, with the majority of sectors benefiting. Consumer and government spending provided major injections to the local economy, which in turn created more job opportunities and attracted migrants to the region.

However, the recent economic recession, the associated housing market correction, the subsequent rise in redundancies and general uncertainty has changed the economic landscape. Indeed, NI has probably suffered from the recession to a greater extent than any other (UK) region. Following the success of the previous decade, total employment in NI fell by approximately 23,000 net jobs or 2.7% in just one year – between 2008 and 2009.

Going forward, as illustrated in Figure 2.2, it is expected that there will be a slow labour market recovery in NI. Employment is projected to grow by an average of just 0.3% per annum over the next decade – meaning it will not recover to its pre-recession peak until well beyond 2023, whereas , the UK as a whole reached (and surpassed) its pre- recession level in 2013.

Figure 2:2: Projected employment growth for NI

Source: Oxford Economics

Similar to trends in the UK overall, growth in NI is likely to be concentrated in exportable sectors like professional and administration services, offsetting job losses in manufacturing and the public services (particularly public administration and education).

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Given NI’s current over-dependence on the Public sector, job losses resulting from austerity measures and the economic re-balancing in general, are likely to be more prevalent in NI than elsewhere.

Given this context, the emerging challenge for NI and Mid Ulster will be:

‘‘…to facilitate and support future growth in the private sector, whilst ensuring that the correct skills and infrastructure are in place for businesses to expand and grow. There are also new industries emerging that may ‘blur the lines’ between manufacturing and services as well as growth in other sub-sectors that present opportunities such as new technology, care industries and tourism sectors.’’

Source: Oxford Economics Socio-Economic Review of Mid Ulster.

2.3 Study Terms of Reference and Approach

In response to emerging opportunities afforded not only by the Review of Local Government and the challenges of the wider economic cycle, the ToR for this report highlights the requirement for:

 A comprehensive report including an economic baseline for the area which includes an analysis of the local economy and business needs and an economic forecast of future opportunities; and  A prioritised Action Plan (2015-2020) containing economic/business interventions and key target sectors which is in accordance with local, regional and EU funding directives.

Our approach to the study is reflected in Figure 2.3, which highlights that it incorporated:

 A review of national, regional and local policies/strategies relevant to economic and social development;  Development of a socio-economic profile and economic forecast for the Mid Ulster sub-region. This profile benchmarked performance data for the Mid Ulster against data for Northern Ireland and each of the other 10 new Council areas, as well as the UK and national averages;  Mapping of existing economic development support programmes/activity;  Identification of potential local and European funding sources; and  A comprehensive stakeholder consultation process incorporating:

- Consultations with a range of statutory, industry, educational/training and community-based organisations - refer to Appendix D for a complete list of consultees; - Implementation of a Business Needs Survey, which received 387 survey responses – refer to Appendix E for a copy of the survey questionnaire and our analysis of responses;

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- Workshops with local businesses. Three workshops were held across each of the Council areas, with representation from key sectors such as: engineering, construction, manufacturing, food, business services, retail, agriculture, tourism, arts/creative industries - refer to Appendix D for a list of consultees; and - In-depth business interviews with 24 local companies across the Mid Ulster area - refer to Appendix D for a list of interviewees.

Figure 2:3: Study Methodology

2.4 Report Structure

In response to the terms of reference, the remainder of this report has the following structure:

 Section 3: Socio-Economic Review and Forecasts;  Section 4: Policy, Funding and Operational Context;  Section 5: Findings from Stakeholder Consultation;  Section 6: SWOT Analysis; and  Section 7: Emerging Priorities and Action Plan.

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3 SOCIO ECONOMIC REVIEW & FORECASTS

3.1 Introduction

The following section provides a summary of key socio-economic data on the Mid Ulster Council area, including:

 Population;  Sectoral composition (including Tourism);  Review of employment levels/trends;  Socio-economic deprivation; and  Economic productivity.

A more detailed analysis is provided in Appendix C for further information.

Population

The new Mid Ulster Council will be the seventh largest local government district as of 2013, with just over 141,000 residents. Population growth in the district has outpaced the regional average, growing by 18.7% compared to the NI average of 8.3% (2002-13).

An analysis of the area’s age profile illustrates that the Mid Ulster district has a slightly higher proportion of 0-15 than the NI average and a lower proportion of those aged 65 and over. The working age population, reflects the NI average, however the area has a high proportion that commute to other districts.

Figure 3:1: Comparison of annual population growth between NI and Mid Ulster

Source: Oxford Economics

Figure 3,1 charts comparative population growth between NI and Mid Ulster.

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Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) Draft Report (v1.0) – May 2015

Population growth is set to continue in the 2014-2020 period, increasing by 3.5% to reach almost 150,000 people by 2020. It will continue to grow faster than the projected regional average of 2.5%.

In contrast to the positive net migration over the last decade, it is forecast that there will be net out-migration, particularly amongst the young and university educated. This will be in response to the subdued labour market and lack of net job creation over the forecast period. Figure 3.2 illustrates forecast population growth for NI and Mid Ulster.

Figure 3:2: Forecast Population Growth for NI and Mid Ulster

Source: Oxford Economics

Sectoral Composition

Unlike NI as a whole, the Mid Ulster economy is orientated towards the private sector and if anything has an under-representation of (high-paying) jobs in the public sector. Figure 3.3 compares the location quotient of employment in key sectors between Mid Ulster and the NI average.

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Figure 3:3: Location quotient of employment for leading sectors in Mid Ulster

Source: Oxford Economics

The Mid Ulster economy is significantly more dependent on the manufacturing sector for employment than the NI average. Manufacturing in NI accounts for approximately 10% of total employment, however the proportion employed in this sector is 2.5 times greater (24.7%).

In addition, the Mid Ulster area also has a significantly higher concentration in the mining/quarrying, retail and construction sectors, all of which were disproportionately hit by the recent recession. Such a sectoral concentration can bring significant risks due to cyclical or structural changes in the economy and there is a need to maintain the core competencies of these key sectors, whilst diversifying the rest of the economy, either through Foreign Direct Investment or growth of indigenous SMEs.

Mid Ulster has on balance smaller sized firms than the regional average, with a significantly higher proportion of micro companies than NI. This holds true for both employment and turnover.

There are 7,915 active VAT/PAYE registered businesses in Mid Ulster (11.7% of NI total and the highest concentration outside of Belfast). Since 2009, this number has reduced by approximately 5% or almost 415 businesses. However, the number of active businesses per 1,000 is higher than the NI average (88 and 56 businesses respectively.

Tourism

Mid Ulster was the second least visited council area based on tourist visits in 2011/2012, accounting for 3% of all visits in NI. Expenditure amounted to £32 million or 5% of the

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NI total. Mid Ulster did however have the highest average trip duration (5 days) and spend by visitors (£234).

58% of all visitors to Mid Ulster (similar to NI as a whole) were from outside of NI and these visitors contributed to over 80% of total tourism expenditure in the area. Average trip duration (7.4 days) to Mid Ulster by this grouping was longer than any other council area and average spend was also the highest (£341).

Employment Levels/Trends

Between 2000 and 2008, job growth in the Mid Ulster area was driven by the construction, manufacturing and retail sectors, accounting for nearly 60% of total net job creation. The Mid Ulster area’s employment levels fell by 6% in 2009, following the onset of the recession. However, the region has been able to recover pre-recession levels of employment by 2013.

The table below compares the mean average wage for the three Councils forming the New Mid Ulster Council compared to the NI average. In terms of mean salary, the new Mid Ulster Council area has a lower salary level than the rest of NI (12% less), ranging from 11% less among full-time positions and 22% less among part-time positions.

The former Cookstown Council area has a higher proportion of the working population in part-time employment compared to NI generally (i.e. 44% compared to 32%). Both Dungannon and Magherafelt have lower proportions of part-time workers within the workforce than NI generally (i.e. 26% and 25%, respectively).

Table 3.1: Mean Wage Level and Frequency by Population Level

Area Wage Level per Week Population

Cookstown (All) £311 9,000

Dungannon (All) £360 27,000

Magherafelt (All) £370 12,000

Mid Ulster (All) £353 48,000

NI (All) £395 720,000

Cookstown (Full time) £437 5,000

Dungannon (Full time) £435 20,000

Magherafelt (Full time) £459 9,000

Mid Ulster (Full time) £441 34,000

NI (Full time) £498 489,000

Cookstown (Part time) £137 4,000

Dungannon (Part time) £163 7,000

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Area Wage Level per Week Population

Magherafelt (Part time) £112 3,000

Mid Ulster (Part time) £144 14,000

NI (Part time) £176 231,000 Source: NISRA ASHE (2014)

As highlighted in Figure 3.4, employment levels are forecast to be relatively static up to 2020, increasing by just over half a per cent. As noted above, the area has recovered all jobs lost during the recession, but will underperform relative to the NI average rate of employment growth (1.5%).

Figure 3:4: Comparative employment in NI and Mid Ulster

Source: Oxford Economics

Resident employment as a proportion of working population is predicted to fall, with increasing numbers having to go out with the district to work. Highly qualified people live in the Mid Ulster area, but an increasing proportion chooses to work elsewhere.

Figure 3.5 illustrates the comparative resident employment rates between NI and Mid Ulster.

Figure 3:5: Comparative resident employment rates between NI and Mid Ulster

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Source: Oxford Economics

NI as a region currently has a higher proportion of people in long term unemployment (33.9%) than the national UK figure (30.5%). Figure 3.6 compares NI and Mid Ulster long term unemployment.

Figure 3:6: Long term unemployment as a % of total unemployment

Source: Oxford Economics

Mid Ulster historically has enjoyed low rates of long term unemployment relative to the Northern Ireland and UK average. In 2010 however, long term unemployment converged sharply towards the NI average. Between 2008 and 2010, the number of people classified as long term unemployed increased by over 600% in Mid Ulster. Shortly after however, the long term unemployment ratio temporary fell as a consequence of fresh job losses and higher numbers of short term unemployed. The long term unemployed figure has remained stubbornly high and as of 2014, nearly 800 people find themselves out of work for over a year and claiming unemployment benefit.

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As identified previously, the majority of job losses resulting from the recession originated from the agricultural and construction sector between 2008 and 2013. As such it is unsurprising that claimants are largely, male and from the elementary process, plant and machinery and skilled trade occupational backgrounds. However sales and customer service roles (which are predominantly female and part time) have become more exposed to unemployment pressure, possibly resulting from weakened consumer spending following the recession.

As is commonly observed, there is a natural desire for the unemployed to use the transitional period as an opportunity to move into a more lucrative occupation. However the most sought after occupations by the claimants in Mid Ulster continue to be the ones associated with the construction, manufacturing and agriculture sectors. On balance the occupational aspirations of the unemployed are unlikely to match job creation in the economy.

High levels of youth unemployment is well documented nationally and is very much present in Mid Ulster. Of all new claimant on flows recorded from 2008 to 2014, those aged 24 and under accounted for 40%. In total 14.1%1 (587 in Cookstown, 1.032 in Dungannon and 725 in Magherafelt) of 16-24 years in the Mid Ulster area were not in employment, education or training (NEETS) compared to an NI average of 14.7%. In an environment of limited job growth and low business confidence generally, employers have been hiring experienced staff when the opportunity arises to the detriment of young people in the labour force.

Figure 3.7 illustrates the claimant count by age in Mid Ulster (Jan 2008-Jan 2014).

Figure 3:7: Claimant count by age, Mid Ulster Jan 2008-Jan 2014

Source: DETI: Northern Ireland Labour Market Report 2014

1 Source DEL Analytical Services: Young People Not in Education, Employment or Training, Stakeholder Briefing Paper, November 2014.

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Socio-Economic Deprivation

The Mid Ulster area exhibits varying degrees of deprivation. The Magherafelt area ranked as the least deprived council area (26th) in NI according to the overall extent score. Cookstown and Dungannon ranked 15th and 12th respectively. None of the three (previous) local government districts have significant concentrations of wards in the most or least deprived ranking extremes.

Table 3:2: Multiple deprivation measure ranking (1 being the most deprived), NI Local Government Districts

NI Local Extent Score Rank Income Scale Rank Employment Scale Government Rank District Cookstown 15 18 22

Dungannon 12 11 12

Magherafelt 26 21 21

Source: NISRA: Multiple Deprivation Measure Report 2010

Economic Productivity

Although Mid Ulster has a number of key sectors, these tend to have the following characteristics: comparatively low wages, perceived low requirement for skilled personnel and low level of Business Expenditure on Research and Development BERD, this consequently has a cumulative effect on the Gross Value Added (GVA) per head (i.e. productivity) for each of the sectors, as well as the Mid Ulster area.

Although there are no sub regional figures assessing BERD at the Mid Ulster level, it is noted that the local economy is dominated by family owned micro companies, which recent Department of Enterprise Trade and Investment (DETI) research2 identified as having both lower levels of BERD and capacity for research and development than the NI average. DETI research also states that agri-food, material processing and construction sectors also underperform in terms of BERD, all of which are prevalent in Mid Ulster.

As highlighted in Figure 3.8, Mid Ulster at present is in 6th place in NI in terms of GVA per head, consequently, not only is there a need to diversify the overall sectoral composition of the Mid Ulster economy (i.e. to attract more productive/higher paying industries, such as public services, professional and research and also ICT/digital

2 Economic Strategy for Northern Ireland, identifies the characteristics of Business Expenditure on Research and Development by sector and by scale of company.

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media), but also to encourage investment in research and staff to further enhance the construction/engineering, agri-food and retails sectors.

Figure 3:8: Comparison of productivity levels across new Council areas

Source: Oxford Economics

Data published by DETI shows that the Mid Ulster council area has the highest average proportion of its working age population with no qualifications (31.6%) compared to any other council area within NI. In order to reduce the proportion of the working population with no qualifications to that of the NI average, Mid Ulster would be required to up-skill 11% of the working population (10,300 people), or to match the best performing council area (17.5%), just over 12,700 of the working age population would need to undertake training or study.

Figure 3.9 identifies the percentage of working age population with no qualifications in NI council areas, 2010-2012 average. When compared to the NI average, Mid Ulster has higher proportion of the workforce with no qualifications.

Figure 3:9: % of working age population with no qualifications by Council area

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Source: Oxford Economics

(Note: Table based on 2010-2012 data concerning predecessor councils. Data is unavailable for certain local government districts and is therefore omitted).

Without a focus on developing jobs in sectors with a higher GVA per head, the region will continue to trail the NI average and lose highly skilled workers and recent graduate to faster growing regions.

3.2 Key Conclusions

Our analysis of socio-economic data for the Mid Ulster councils highlights that:

 It is the fastest growing new Council area in terms of population;  Deprivation is still prevalent in a number of wards/Super Output Areas;  There is significant sectoral strengths and linkages between manufacturing, construction and agri-food;  Businesses in the area are typically smaller in size and therefore may require more guidance and support to grow and open new markets;  Businesses in the area have lower than average levels of GVA, exacerbated by absence of high productivity sectors; and  NEETS account for 14.1% of the population of the new Council area, whilst long term unemployment continues to be above the historical trend for Mid Ulster.

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4 POLICY, FUNDING AND OPERATIONAL CONTEXT

4.1 Introduction

This Economic Development Report aims to complement and reinforce relevant European, national and regional economic and regeneration strategies.

This section sets out the policy and operating context by providing an analysis of the following:

 Relevant Government policy/strategy;  Previous economic development activities delivered by the former councils/council partners; and  Emerging European Union (EU) funding opportunities.

4.2 Northern Ireland Policy Review

Spatial Priorities

In NI, there is a two tier approach to planning for growth, comprising the Regional Development Strategy (RDS) and Local Development Plan.

The RDS 2035 spatial framework, identifies that the area contains the three main hubs of Cookstown, Magherafelt and Dungannon and borders two Strategic Nature Reserves which have significant tourism potential: the Sperrins and .

The RDS, in line with the respective Local Development Plans3 confirms the following key roles for each of the 3 principal towns in the Mid Ulster area, including:

 Cookstown with a growing population of around 12,000 is centrally located in Mid Ulster within an hour’s drive to Belfast and Londonderry. With an emphasis on manufacturing, construction and retail sectors this traditional market town provides services to a wider rural hinterland. In addition to a range of cultural and leisure amenities, Cookstown has an agricultural college and will be home to the new NI Community Safety College;  Dungannon has a population of over 14,000 and is well situated on the South Western Transport Corridor. Its position close to both Lough Neagh and the Sperrins offers opportunities for tourism investment. It also provides specialist retail provision with the Linen Green complex at Moygashel which draws some 30% of its customer base from across the Border. Dungannon offers specialist health and social care services for the surrounding area and there is a commitment to town centre public realm investment;  Magherafelt has a population of around 9,000 and is strategically located mid-way between Belfast and Londonderry close to the North West Key Transport Corridor. It has a compact town centre which boasts and excellent independent retail offer and strong entrepreneurial culture. Magherafelt has the potential to continue to grow a strong and commercial centre and to build upon its existing leisure and entertainment sector; and

3 Dungannon and South Tyrone Area Plan 2010, Magherafelt Area Plan 2010 and Cookstown Area Plan 2010.

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 Cookstown, Dungannon and Magherafelt have the potential to form a cluster. Each of the towns act as important centres of retailing, commerce and business and serves a number of dispersed smaller settlements.

Economic Development

The table overleaf provides a summary of the key economic development and skills strategies as they relate to the Mid Ulster area.

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Table 4.1: Review of key economic development strategies

Policy Strategy Description DETI: Economic Development The Economic Development Strategy stresses the need to rebalance the economy by growing the private sector; Strategy for Northern Ireland (2012) in order to achieve this, the plan is to: Stimulate Innovation, R&D and Creativity, to widen and deepen Northern Ireland’s export base; Improve the Skills and employability of the entire workforce so that people can progress up the skills ladder, thereby delivering higher productivity and increased social inclusion; Compete effectively within the global economy and be internationally regarded as a good place to live and do business; Encourage business growth and increase the potential of our local companies, including within the social and rural economies; and Develop a modern and sustainable economic infrastructure that supports economic growth.

Additionally, the strategy acknowledges that the global downturn has had a significant impact on the local labour market. Therefore the plan is to:

Promote accessible employment opportunities particularly in areas of economic disadvantage; Provide training and re-skilling to those who are unemployed or inactive because of the downturn; and Address wider barriers to employment so that people do not become detached from the labour market. DETI: Draft Innovation The draft Strategy identifies actions under four themes. These are: Strategy for Northern Ireland (2013-2025) Knowledge Generation; Knowledge Exchange; Knowledge Exploitation; and Cultural Change. DETI is also developing the Smart Specialisation approach to funding projects which concentrates on funding regionally strong sectors in order to provide growth and innovation in a given region, which has already been adopted by the EU commission. The sectors of high economic importance for Northern Ireland are: Agri-food;

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Policy Strategy Description Advanced Engineering (Transport); Advanced Materials; Information & Communication Technologies (ICT); Life & Health Sciences.

DEL: ‘Skills Strategy, Success The Strategy aims to enable people to access and progress up the skills ladder in order to: through Skills – Transforming Futures’ (2011) Raise the skills level of the whole workforce; Raise productivity; Increase levels of social inclusion by enhancing the employability of those currently excluded from the labour market; and Help to secure Northern Ireland’s future in a global marketplace.

The Skills Strategy examines the current skills base, considers the skills we will need in the future to grow the local economy and highlights a number of challenges which must be addressed if we are to have a workforce equipped with the skills needed by employers to rebalance and rebuild the economy. In particular, there will be an increased need:

For people with higher level skills; For people with skills in STEM; For people with better management and leadership skills; To up-skill those people already in work; and To attract certain skills into the workforce, as the economy grows. DSD: Urban Regeneration and The Framework sets out four policy objectives that will form the basis of any future policy or programme, including: Community Development Framework (2013) To tackle area-based deprivation; To strengthen the competitiveness of our towns and cities; To improve linkages between areas of need and areas of opportunity; and To develop more cohesive and engaged communities. Tourism is a key driver of the Northern Ireland economy. It supports over 40,000 jobs, brings new facilities to our DETI: A Draft Tourism Strategy towns and cities, creates opportunities in rural areas. Key targets are: for Northern Ireland to 2020

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Policy Strategy Description increasing visitors from 3.2 million to 4.5 million by 2020; increasing earnings from tourism from £536 million to £1 billion by 2020; progressively accelerating spend by visitors; targeting specific markets and market segments; supporting indigenous high quality businesses; to grow; and being visitor inspired in all our actions. DARD - Rural Development Beneath the overall ‘EU 2020’ objectives, there are six EU priorities for rural development: Programme (2014-20) knowledge transfer and innovation in agriculture, forestry and rural areas, which is described as a cross-cutting or horizontal priority; farm competitiveness and risk management; food chain organisation; restoring and enhancing ecosystems; promoting resource efficiency; and social inclusion, poverty reduction and rural economic development. The main differences from the 2007 – 2013 rural development regulation are:

the removal of the axis structure to improve the flexibility of the programme; a consolidation of existing measures into fewer broader measures; and an increased focus on knowledge transfer and innovation, co-operation, climate change mitigation and the environment. Summary: In common with the economic development strategies at both the European and National levels, there is recognition of the importance of enhancing productivity, innovation and exporting within the NI economy through the utilisation of a smart specialization approach i.e. focusing on key clusters/sectors in which the region has a unique strength. Mid Ulster has a number of such clusters including, agri-food, manufacturing and construction which can be further enhanced through the drivers of innovation, R&D and improving skills.

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4.3 Review of Delivery by Councils during the Previous Programme Period

As we have identified earlier in the report, the past five years have seen an unprecedented change in the local economy as a result of the global recession and the resulting squeeze on public spending. This has necessitated the development of regional/Council specific interventions to address economic constraints. With the consolidation of three Councils to form Mid Ulster and the potential transfer of responsibilities from Invest NI and the Department of Social Development, there is an opportunity to consolidate existing best practice and to create potential critical mass in delivery which could result in a step change to the Council area.

Appendix B provides a brief description of all existing Projects delivered in the former Council areas highlighting that:

 Cookstown District Council focused on developing interventions aimed at supporting early stage/inexperienced companies for all sectors in procurement, export and innovation support. In addition, the Council also undertook investment in town centre promotion and shop front renewal;  Dungannon and South Tyrone Borough Council focused on developing interventions aimed at supporting early stage/inexperienced companies of all sectors in procurement, export and innovation support. In addition, the Council also developed a number of sector specific interventions to assist the tourism and digital media sector and invested in public realm, town centre promotion and shop front renewal; and  Magherafelt District Council also focused on developing interventions aimed at supporting early stage/inexperienced companies of all sectors in procurement, export and innovation support and invested in town centre promotion and shop front renewal. In addition, Magherafelt District Council has also developed a number of sector specific interventions to assist the construction and manufacturing sectors and develop them into workable clusters.

Figure 4.1 overleaf maps the nature of the projects carried out by the former councils, highlighting that, when combined, they provide a high degree of expertise and critical mass to support the delivery of future support interventions.

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Figure 4.1: Matching Exercise of existing projects: Consolidating and creating critical mass

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4.4 Emerging European Funding Opportunities

In seeking to identify emerging EU funding opportunities the following key Programme documents were reviewed:

 Europe 2020;  NI ERDF Investment for Growth and Jobs Programme (2014-20);  INTERREG VC (2014-2020);  INTERREG VB Atlantic Area Transnational Programme (2014-2020);  INTERREG VB North West Europe (NWE) Programme (2014-2020);  INTERREG VB Northern Periphery and Arctic Programme (2014-2020); and  INTERREG VA Programme for Cross-Border Cooperation (2014-2020).

The following key issues were noted:

 The quantum of EU funding available to NI as a former Objective 1 region is set to decline significantly;  The Jobs and Growth Programme will target support on tested projects which encourage job creation and/or enhanced productivity;  Increased scale and visibility of the Mid Ulster area brings with it opportunities to utilise transnational/cross border funds; and  The power of General Competence and a more commercial approach by the Council could provide opportunities to utilise significant financial support from the European Investment Bank (JESSICAs) and break the cycle of grant dependency.

Table 4.2 below identifies indicative activities the Council may pursue and notes potential funding sources and their potential applicability:

Table 4.2: Potential Funding Sources

Theme Funding Source Applicability

Tourism/ Nature Trails INTERREG V Ring fenced funding Urban Regeneration/ DSD: Urban Ring fenced funding Community Regeneration Emerging opportunities Development Funding Minimum budget £50m NI Investment Ring fenced funding Funds European Fund for Strategic Investments PEACE IV Business Start Up and Transferring Ring fenced funding Growth Functions Budget Need for international Jobs and Growth partners Fund (ERDF) International partners/£30m+

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Theme Funding Source Applicability

Northern Periphery Programme North West Europe Programme Atlantic Arc COSME Cluster Development/ Innovate UK: Euro- Council role would be to Commercialisation of stars Programme sign post SMEs to existing knowledge Horizon 2020 programmes, rather than Creative Europe direct programme provision Skills and Employability Jobs and Growth Ring fenced funding (ESF) See Appendix A for detailed description of each fund.

4.5 Conclusion

In terms of emerging economic policy there is a clear strategic direction for:

 Diversification the economy and to address local productivity constraints by encouraging exporting and investment in innovation and increased uptake of public sector/large scale procurement exercises;  Higher value/strategic economic development functions to be delivered by Invest NI;  Local Government to focus on expanding the number of companies engaging for the first time in exporting, innovation and public procurement and signposting companies to higher value interventions delivered by Invest NI; and  Further development of key growth sectors for the NI economy, namely: Advanced Manufacturing, Agri-food, Life and Health Sciences, ICT and Sustainable Energy.

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5 FINDINGS FROM STAKEHOLDER CONSULTATION

5.1 Introduction

This section of the report highlights the key findings of our stakeholder consultation. The consultation process included the following key activities:

 Stakeholder/partner and business interviews;  3 thematic workshops with local businesses and the community/voluntary sectors; and  A business survey.

Detailed stakeholder responses are contained in Appendix D.

5.2 Stakeholder/Partner and Business Interviews

As part of the consultation exercise the following indicative themes informed one to one interviews, including:

 The emerging challenges and opportunities facing the area over the next five years;  The impact of Community Planning and other new Council powers; and  Identification of key priorities for the new Mid Ulster Council over the next five years.

In total 25 Stakeholder/Partner interviews and 14 business interviews were conducted.

Findings:

 Emerging challenges and opportunities:

- 22 respondents highlighted a strong culture of entrepreneurship in Mid Ulster; - 20 respondents noted that Mid Ulster is a central location in NI with nearby airport links and easy access to other areas of NI via car for business or leisure purposes; - 15 respondents noted the strong industry sectors existing in the Mid Ulster are including manufacturing, construction, engineering, retail, food, ICT and professional services; - All business respondents noted the poor IT and mobile infrastructure/coverage in rural areas (not spots); - 22 respondents noted the lack of appropriate skills to meet industry needs across key sectors which limits business development; - 20 respondents noted the lack of suitable workspace/development land in the Mid Ulster area; - 14 of the respondents stated that the procurement/tender process was not business friendly; - 10 of the respondents stated that there was a lack of business growth support for family run companies (e.g. they don’t have the growth projections necessary to become Invest NI Client Companies); - 9 respondents noted the lack of awareness of support available to businesses locally; - 4 of the respondents noted the demographic implications of a high number of founding entrepreneurs nearing retirement/wanting to sell their business; and

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- 3 respondents were concerned about assessing the credit worthiness of customers in key export markets (particularly the Republic of Ireland).

 Impact of Community Planning and other new Council powers:

- Amongst the business interviewees, there was a general understanding that the Council was increasing in size (both in jurisdiction and budget) but there was a lack of awareness of the specific powers the Council would have; - 4 (stakeholders) respondents noted that they were concerned that there was a potential for a void of activity in terms of community regeneration, unless the Council took the lead; - 10 respondents noted the importance of the Council to ‘hit the ground running’ deliver achievable goals/projects in the short to medium term to demonstrate to partners and local businesses their key role in economic development; and - of the respondents noted that there was a clear role for the Council in terms of export, innovation and business start-up, Specifically working with companies who had never previously engaged in economic development and sign posting experienced companies to higher value add support delivered by Invest NI/InterTradeIreland.

 Identification of key priorities:

- 20 respondents stated that the key priority for the Council should be ensuring the provision of sufficient development (across the Council area) to meet the needs of business; - 10 of the respondents stated that the Council should be working with local delivery partners to ensure that there is a sufficient supply of skilled staff for local businesses; - 10 of the respondents noted the importance of 3 emerging clusters (agri-food, construction and manufacturing) and that the Council should encourage enhanced collaboration in support of exporting and knowledge exchange; and - 5 of the respondents stated that the Council should facilitate the provision of the following support to first time users of economic development: export support, innovation and business start-up support.

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5.3 Thematic Workshops and Meetings with Town Fora

The following table provides a distillation of key findings from the thematic workshops and meetings with town centre fora.

Table 5.1: Key Findings from Thematic Workshops and Meetings with Town Fora

Target Sector Emerging Issues Manufacturing Over-reliance of micro and small companies on local supply chains; (including Engineering): Issues of succession planning; ‘‘Significant Presently little appetite for collaboration; Imbalance of supply of industrial zoned land; exporter and Potential to create a Centre of Excellence for Engineering; potential cluster’’ and Opportunities arising from key infrastructure investment (e.g. Desertcreat, Magherafelt by-pass). Agri-food Limited awareness of business support available to the sector; ‘‘Highly diversified Growth constrained by lack of appropriate sector with a accommodation/need to develop roll out space for post number of large incubation support; exporters, strong Need to develop bespoke business growth schemes for the sector to augment CAFRE’s existing provision; local R&Di’’ Provide networking opportunities for micro food businesses to meet or be mentored by larger/growing companies; and Provide mechanisms for sharing of facilities amongst early stage companies. Construction High levels of collaboration and a desire for coordinated approach to research; ‘‘Impacted by the Development of integrated supply chains interventions; recession but key Emerging skills gaps, need to attract young and long term companies unemployed; and diversified to GB Potential to create a Centre of Excellence for Training in Construction. market’’ Wholesale and Retail Need to ensure the vibrancy of town centres through active marketing and direct investment in public realm and shop ‘‘Impacted by the fronts; recession’’ Need to actively promote the Town Centre First approach and ensure that there is a clear identification of the roles of respective town centres/settlements; Need to actively support independent retailers and promote unique local retail offerings; Affordable car parking is viewed as essential to attracting/retaining day visitors to the Mid Ulster area; and Utilise the opportunities for e-commerce. Enabling Sectors Opportunity to attract backroom functions Need to address the not spots and flexible working space (Professional Services essential to attraction and retention of these key sectors and digital media)

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Target Sector Emerging Issues “Only Services local need”

5.4 Business Survey Results

RSM McClure Watters undertook the first business survey to be conducted across the new Mid Ulster Council area. The survey was sent to every business across the Mid Ulster area and there were 384 completed responses. The following are the key findings from the survey:

 97% of respondents were from SMEs which reflects the composition of local business;  Only 24% of respondents had used any business support programmes (including Invest NI support) in the last 5 years. Of these:

- 47% had used pre-start support; - 40% had used business start-up support - Only 20% had used export support (open to all SMEs); and - Only 8% had used R&Di support (open to companies of all sizes).

 Respondents were asked what the principle barriers to using business support programmes were in the last 5 years, responses included:

- 52% reported a lack of awareness of the programmes offered; - 40% reported that their organisation was not eligible; - 24% perceived there to be too much red tape in applying for the programmes; and - 23% reported that the benefits were not apparent.

 Respondents were asked what the emerging challenges would be for their companies over the next 3 years, responses included:

- 49% identified increasing operating costs; - 41% identified increasing barriers due to red tape - 39% identified access to finance; and - 36% identified challenges to gaining new work/access to public procurement.

A more detailed analysis of the findings of the survey is contained in Appendix E.

5.5 Consultation on Draft Economic Development Plan (April 2015)

Following the presentation of the draft Plan to Council’s Development Committee in March 2015, further Workshops were convened in Cookstown, Magherafelt and Dungannon over three evenings on 28, 29 and 30 April 2015. Local businesses, key stakeholders and business support agencies were invited to attend to hear about the proposed priorities and themes identified in the draft Plan and to have the opportunity to give their views on these.

During each evening there were four ‘Thematic’ Tables provided, where delegates discussed the Theme most pertinent to their interests in detail and the feedback received

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demonstrated that the content of draft Plan was an accurate reflection of the priorities identified by businesses and key stakeholders over the course of the comprehensive consultation process.

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6 SWOT ANALYSIS AND EMERGING PRIORITIES

6.1 Introduction

The following section outlines the processes used to distil key findings of our research and to develop the main components of an Economic Development Plan for the new Mid Ulster Council.

6.2 SWOT Analysis

Arising from the analysis of stakeholder feedback, coupled with our review of relevant policy and socio-economic data, we have produced the following Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis to highlight key factors impacting on the future economic development of the Mid Ulster Council area.

Table 6.1: SWOT Analysis

Strengths Weaknesses Central location- strategically positioned Overly dependent on three low value on M1 Corridor and providing easy add sectors (construction, North/South and East/West access; manufacturing and agri food); Population growth higher than regional Low levels of exporting and R&Di; average and relatively young age Lack of appropriate skills (trade and profile; professional) to meet needs of industry; Strong level of educational attainment in Below average productivity/low wage – local schools (57% of school leavers ranked 5th out of 11 Councils in terms with 2 or more A levels compared to NI of average GVA per head – 5th lowest average of 55%); weekly (residence based) wage – 5% Strong industry sectors (manufacturing, lower than NI average; construction, engineering, materials Long term unemployed / youth processing, retail and agri-food) with unemployment rising; significant international linkages; Access constraints to regional road Strong tradition of entrepreneurship; network (need for additional by passes); Strong business base (largest number Relatively low visitor numbers to the of VAT/PAYE Registered businesses area – 2nd least visited Council area in (7,915) of any new Council area (except 2011/2012; Belfast); Supply of Invest NI owned landbank Strong enterprise agency network and considered insufficient; award winning FE/HE institutions; No integrated retail strategy; Centre of Excellence for agri food: Poor broadband and mobile phone CAFRE; infrastructure (not spots); Excellent recreational facilities; SME/Micro business dominated and 3 Councils (and their partners) have limited succession plan in place for proven ability and expertise in the local businesses; delivery of business support and town Low percentage of businesses centre regeneration projects; engaging with business support Strong tourism spend per visit and agencies. 76% of survey respondents highest trip duration. hadn’t used business support in the last 5 years Opportunities Threats

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Northern Ireland Community Safety Reduced public sector funding/funding College at Desertcreat; from traditional EU sources; Growth expected in higher value added Regulation/Red tape/High Operating sectors (e.g. renewable energy, ICT and Costs; exportable service); Over-reliance on existing local supply Emergence of informal clusters (agri- chains; food, construction and manufacturing); Continuing loss of skilled workers and Potential for export growth principally in recent graduates; agri-food, manufacturing and Manufacturing: weak jobs outlook; construction; Town Centre proposition becomes Strong entrepreneurial culture; dated and unattractive; Significant potential from development Enhanced competition for Council’s of tourism offering; support towards retail/town centres Increased Council scale and powers: once new Mid Ulster Council is formed; Powers of General Competence; Lack of suitable workspace and Strong linkages developed by local imbalance in availability of zoned exporters and politicians with the Mid development land; Ulster people living in target markets; Low levels of inward investment; and Potential opportunities from change in Comparatively poor infrastructure corporation tax; (telecoms/broadband, energy and Local procurement activities to include roads)- leads to issues of connectivity social clauses related to childcare and perceptions of peripherality. and/or living wage; Increasing awareness of online marketing opportunities; and EU funding: transnational focus, development of collaborative partnerships.

The SWOT analysis has helped to inform the identification of the objectives and actions outlined in the table below:

Table 6.2: Process of turning SWOT into Objectives

How can strengths be used to take How can strengths be used to avoid real advantage of opportunities? and potential threats? Enhancing the productivity of key Sustaining town centre vitality by directly local sectors through provision of supporting the retail proposition through business support (particularly to investment in physical revitalisation and locally owned low growth SMEs) marketing and promotion; and under the Council’s new economic Utilising sector strengths/emerging clusters development powers (transfer of and their linkages with local knowledge regional starts); providers to grow the local economy and create high value adding employment

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How can strengths be used to take How can strengths be used to avoid real advantage of opportunities? and potential threats? Increasing tourism revenues through the development of an enhanced tourism product; and Utilising the tradition of entrepreneurship to provide local mentors and develop the potential of recent start-ups or those companies needing to get to the next phase of growth. How can opportunities be used How can weaknesses be minimized to overcome weaknesses? and threats avoided? In order to engage with an enlarged Address the skills constraints (at trade and area, with a number of separate professional level) of key (engineering, communities, Council can utilise new construction, retail and hospitality) sectors in powers in relation to Community the region, by overcoming negative Planning and powers of general perceptions, signposting training opportunities competence to provide local and developing a new training centre of leadership and align services to excellence and thereby enhance productivity support the economy; and retain more skilled individuals within the Development of Desertcreat and region; and (potentially) a wider public sector Address the absorptive incapacity and current offering at Desertcreat, providing under investment in BERD of local opportunities to diversify the local companies, by demonstrating the advantages economy; and such investment can bring to productivity and Utilise the Mid Ulster ‘diaspora’ to the sustainability of firms. enhance the profile of the new region and its component sectors.

6.3 Identification of Ambition Statement and Themes

Following the consultation stage, an ambition statement supported by four themes were presented for discussion with Mid Ulster Council. The agreed economic development ambition statement for Mid Ulster area is as follows:

Table 6.3: Ambition Statement

Ambition Statement To facilitate the development of a diversified, higher value added economy that provides the basis for sustainable growth, creating an environment that attracts and retains people and investment.

These four overarching Themes propose a number of actions which will seek to address the main constraints and opportunities impacting on the Mid Ulster economy over the next five years through the implementation of a range of initiatives and programmes.

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As part of the delivery mechanism for these Themes, Mid Ulster District Council aims to further strengthen its collaborative networks and partnership working in addition to developing its enhanced role as a key enabler with the aim of becoming a leading strategic influencer of wider economic development policy.

For those objectives which are not within Mid Ulster District Council’s own remit to deliver, Council will pursue the development of these through increased partnership working with other key stakeholders and agencies and adopting a direct lobbying approach where appropriate.

Table 6.4: Themes, Indicative Activities and Associated Outcomes/Impact

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Theme 1: Enabling Economic Growth Aim Activities

1.1: Foster a Pre Start Programme: Culture of Programme of support to develop employability skills and/or Enterprise consideration of self-employment as a career option: target groups such as economically inactive, NEETS (Not in Education, Employment or Training), women, young people, migrant workers and those currently in employment with a new business idea.

Enterprise Awareness: to raise awareness of entrepreneurship as a career option and deliver initiatives such as promoting greater linkages/engagement between education and industry, supporting events to raise the profile of entrepreneurship and recognising the contribution of businesses to the local economy.

Start Up Programme:

Start Up Support (Regional Start Initiative and the Social Entrepreneurship programme); and Fast Growth Support Programme to accelerate growth potential. 1.2: Support to Support towards innovation and capacity building efforts of businesses in the District through a Suite of Business Support interventions existing including: businesses to General Business Development Programme drive Procurement Programme; productivity Cluster Development; Research, Development and Innovation (R&Di); Exporting /Internationalisation Support Interventions (Preliminary export training/support); Supply chain development and diversification; Access to Finance; Marketing; Succession Planning; Resource Efficiency; Enterprise Tourism; and Social Enterprise Sustainability Programme. Align initiatives with Rural Development Programme measures to maximise support provision.

Promote access to services for businesses: Signpost to available sources of funding; Lobby for retention of local banks and services; and Provide opportunities for business networking. Create a Business Directory for Mid Ulster

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Aim 1.3: Support for businesses to exploit procurement opportunities emerging Maximise from capital investments (e.g. Ann Street Development, Maghera High opportunities School, Gas into the West, NI Community Safety College): emerging from Short / medium term opportunities: infrastructure initiatives Meet the Buyer’ Events Signposting of procurement opportunities; Identification of potential supplier base Signposting of emerging skills needs; and Development of potential supply chains.

Aim 1.4: Promote the concept of sustainable development and renewable energy; and Promote Consider potential of supporting local sustainable development Sustainable initiatives. Development

Aim 1.5: Provision of a Cluster Development Programme: Promote Phase 1: Preliminary engagement work with companies; regional, Phase 2: Development of Collaborative Networks (Agri-food and national and Construction Sector); and international Phase 3: Consideration towards the establishment of Research recognition of Centre and/or Thematic Enterprise Zone. Mid Ulster’s sectoral Liaison with Government Departments in NI and RoI, industry and strengths University representatives to develop policy platform at European and UK levels.

Aim 1.6: Facilitate greater opportunities and EU investment;

Maximise Explore potential of employing an EU Officer to research and exploit opportunities for all EU and other funding opportunities across Council; cross border, national and Explore initiatives to support economic regeneration. international investment opportunities.

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Aim 1.7: Develop opportunities to attract public/private sector investment into the region; Promote Mid

Ulster as an Attract Inward Investment to the region; investment location Promote an ‘Agency Attraction’ Programme;

Develop a land bank for inward investment/businesses

Develop an online presence and high quality promotional materials to promote Mid Ulster as a key investment location;

Identify constraints to Central Government investment in the Mid Ulster area; and

Develop a database of Mid Ulster contacts abroad and explore potential networking opportunities.

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Theme 1: Enabling Economic Growth

Outcomes / Impact 1. Pre-start – to provide support to 1,000 participants within the target groups to enable them to access employment or training opportunities or consider self-employment 2. Raising awareness - to support 15 engagements to promote better linkages between education, industry sectors involving a minimum of 3,000 participants 3. 1,500 new Business Plans approved through the Regional Start Initiative 4. 1,000 new jobs promoted through the delivery of a range of business support interventions 5. 2,000 existing jobs sustained through the delivery of a range of business support interventions 6. To support the growth and competitiveness of 800 businesses through a range of business support interventions 7. Integrated approach implemented in the delivery of economic development initiatives 8. Issue a minimum of 6 e-shots per annum to Mid Ulster businesses to promote new opportunities for support and funding 9. Engage with businesses to maximise the opportunities emerging from infrastructure initiatives 10. To make businesses aware of sustainable development / renewable energy opportunities; explore funding to support such initiatives. 11. Liaise with potential partners to investigate opportunities to develop one or more collaborative networks 12. Review potential measures to consider the viability of establishing a Research Centre and/or Thematic Enterprise Zone. 13. Engage with government, industry and education providers to promote Mid Ulster’s sectoral strengths 14. To maximise opportunities to exploit cross-border, EU and other funding opportunities to support economic development in Mid Ulster 15. To develop a range of materials to promote Mid Ulster as an investment location

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Theme 2: Enabling Employability and Skills Aims Indicative Aim 2.1: Address Examine the potential for a Mid Ulster wide Skills Forum; Explore the potential to develop a training academy (for emerging sectoral construction/manufacturing/engineering sectors); labour market Explore development of initiatives to increase uptake of training shortages and employment opportunities in skilled trades/professions; and Promote opportunities to change negative perceptions of jobs in key sectors. Aim 2.2: Address Intermediate labour market solutions for NEETS, the long term unemployed, marginalised groups and families, young people training and and migrant workers and encourage placement/apprenticeship employment needs of opportunities; and long term unemployed Targeted pre-start up support for unemployed or economically and economically inactive. inactive

Aim 2.3: To address Lobby government to further encourage and support in-job development (particularly government grant beneficiaries); and productivity constraints Signposting training opportunities for management and skilled through in-job training personnel.

Aim 2.4: Promote the Assess barriers to training (childcare provision, etc) and implement actions (e.g. use of grants as an incentive) to development of a remove them to support a strong mobile labour force; strong educated skills Support campaign to increase Early Years provision to enable base young families to maximise training and employment opportunities; Advocate for a strong link between the education provision and skills and job requirements of growth areas e.g. STEM (Science, Technology, Engineering and Maths); Lobby for adequate Government spend on education and skills;

Aim 2.5: To act as an Lobby for the provision of a living wage, to increase economic and social well-being; advocate for and Lobby Government on the need for interventions on poverty support integration and and social protection to maximise employability and spend in linkages to other social Mid Ulster; and factors that impact Lobby for inclusion of Social Clauses in Contracts (Council and upon the economic other agencies). well-being of the Mid Ulster area.

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Theme 2: Enabling Employability and Skills

Outcomes / Impact 1. To address sectoral labour market shortages through: - the potential development of a Mid Ulster wide Skills Forum, - the potential development of a Training Academy (for construction / manufacturing /engineering sectors) - initiatives to increase uptake of training and employment opportunities in skilled trades/professions; and - initiatives to change negative perceptions of jobs in key sectors. 2. To provide support to 1,000 participants within the target groups to enable them to access employment or training opportunities or consider self-employment 3. To lobby government and other organisations to provide increased opportunities to build the capacity of the existing workforce 4. To liaise with businesses and business sectoral organisations to determine reasons for productivity constraints 5. Ensure Mid Ulster businesses are made aware of all available training opportunities for management and skilled personnel 6. Develop a strong and mobile workforce by: - Identifying the barriers to training and employment and considering measures to reduce these - Supporting the campaign to increase training and employment opportunities for young families - Lobbying government for adequate spend on education and skills - Fostering strong links between education and industry

7. To act as an advocate to government and other agencies to promote the need to address social and economic well-being issues including the provision of a living wage, interventions on poverty and social protection and the inclusion of Social Clauses in Contracts.

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Theme 3: Enabling Town and Village Regeneration

Aims Indicative Activities Baseline Study of the Council’s principal towns and villages and Aim 3.1: To ensure identify drivers for growth; the continued Shop Improvement Schemes (internal and external), Derelict physical vibrancy of Property Improvement Schemes, Site Enhancement Schemes; towns and villages as Deliver quality town centre environments with suitable access provision; places to shop and Develop links between Town Centre Businesses and edge of visit town developments, ensuring suitable signage provision at key junctions; Independent Retailers’ Support / Promotion Initiatives; Satellite Worker Initiative; Promotion of the ‘Town Centre First’ Concept and work closely with Planning on development and area planning; To review existing Opportunity Sites (e.g. Maghera High School, Ann Street Development, NI Community Safety College, etc) and identify other potential sites across Mid Ulster; Development of an Evening Economy Strategy for principal towns; Revitalised and enhance markets; Align initiatives with Rural Development Programme measures to maximise support provision; and Explore the potential to create a Business Improvement District (BID)

Aim 3.2: To ensure the Build on existing marketing and promotional work to promote principal towns; active promotion of Mid Delivery and promotion of key signature events; Ulster’s towns and Marketing and targeting of potential retail/service investors; villages as places to Digital/e-commerce retail initiative; and shop and visit. Development of an integrated Mid Ulster Council Tourism Strategy.

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Theme 3: Enabling Town and Village Regeneration

Outcomes / Impact: 1. Preparation of 5 Town Centre Baseline Studies for Cookstown, Dungannon, Magherafelt, Coalisland and Maghera 2. Minimum of 300 town centre businesses supported through the delivery of a range of initiatives such as Shop Improvement Schemes, Dereliction Schemes, Site Enhancement Schemes, Independent Retailers’ Support / Promotion and Digital / E-commerce initiatives. 3. Completion of up to 4 Public Realm Schemes 4. Improvement of signage between town centres and edge of town developments 5. Minimum of 30 Satellite Workers re-locating to Mid Ulster 6. Minimum of 20 Opportunity Sites reviewed; act as a catalyst to prepare 3 Site Development Plans; 10.97 hectares of development space created 7. An Evening Economy Strategy delivered for principal towns 8. 15 initiatives undertaken to increase vibrancy and sustainability of local markets 9. Feasibility Study conducted to determine potential viability to develop one or more Business Improvement District(s) in Mid Ulster 10. Promotion of Mid Ulster’s principal towns through delivery of a minimum of 50 campaigns 11. Delivery of 30 key signature events in Mid Ulster’s principal towns 12. Promotion of the Town Centre First Approach when considering future opportunities 13. Development of an up to date Investment Brochure highlighting opportunities for principal towns and actively target retail / service investors 14. Development of an Integrated Tourism Strategy for Mid Ulster 15. Progress a minimum of 2 signature projects.

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Theme 4: Enabling Infrastructure and Connectivity

Aims Indicative Activities Aim 4.1: Develop Lobby for infrastructure improvements to roads (e.g. Cookstown and Dungannon by passes) to improve links to main economic Strategic Routes routes and export points. Aim 4.2: Develop Development of key opportunity sites

Strategic Sites Promote opportunities for property provision in rural areas to support micro and small business growth

Area Plan development, influence flexible zoning and identify market ready sites;

Address the deficit in accommodation and lands available to adequately develop the agri-food sector;

Support the future ‘Gas to the West’ project

Build on existing considerations towards the development of Strategic Enterprise Zones and/or a Public Sector Hub.

Aim 4.3: Improve Highlight broadband and mobile not-spot issues through development of an enhanced lobby campaign; and Telecommunications

Provision Explore opportunities for businesses to access funding to improve broadband access, coverage and speeds.

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Theme 4: Enabling Infrastructure and Connectivity

Outcomes / Impact

1. Lobby for continued investment on Mid Ulster’s roads infrastructure; lobby for by- passes for Cookstown and Dungannon to be contained with the future ‘Programme for Government’ 2. Develop a landbank for inward investment 3. Prepare development proposals for key opportunity sites (e.g. Ann Street Development, Maghera High School etc) as well as other urban and rural areas; 4. Maximise and profile opportunities arising from these sites and other large scale initiatives to attract investors/investment; 5. Maximise and profile opportunities arising from the NI Community Safety College to local businesses and investors 6. Ensure businesses are informed of all support opportunities 7. Work with Planning to create a new Area Plan for Mid Ulster which provides for flexible zoning and identifying market ready sites. 8. Work with Planning and Invest NI to identify opportunities for the provision of incubation space and larger scale workspace for growing agri-food businesses 9. Provide information and support to Mid Ulster businesses to avail of the opportunities from ‘Gas to the West’ project 10. Review and investigate potential measures to create a Strategic Enterprise Zone and/or Public Service Hub in Mid Ulster. 11. Maximise funding opportunities for improvements to telecoms through DETI, Rural Development Programme, ICBAN/INTERREG V, Superconnected Cities etc 12. Map and identify gaps in current telecoms provision throughout Mid Ulster and prepare an enhanced campaign to lobby for improvements to service provision

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6.4 Description of Themes

Theme One: Enabling Economic Growth

The purpose of this Theme is to encourage and sustain local companies from the pre start-up stage and through to commercialisation, by signposting opportunities which can lead to a step change in company growth by investing time and resources in Research, Development and innovation (R&Di) and exporting.

The Mid Ulster economy stands out in NI, by having a strong private sector. The local economy has particular strengths in manufacturing, construction and retail, all of which are based on a strong and independent entrepreneurial spirit. However, the recent recession exposed a number of weaknesses within the local market which need to be addressed, including:

 A surplus of business deaths over business start-ups;  An exposure to cyclical downturns in key sectors; and  A reticence by the local business base to engage with the public sector.

6.4.1.1 A surplus of business deaths over business starts ups

It is natural, but unfortunate, that over the course of a recession, there is a decline in the business base, with more businesses closing than opening up. The business start-up rate continues to be comparable to the NI average and with the transfer of the start-up function from Invest NI, the Council has the opportunity to augment this existing offering and make it more responsive to local needs through achieving local solutions pertinent to the business base of the Mid Ulster area.

What is of concern is the comparatively high business death rate. This can in part be explained by the impact of the recession, but our consultation exercise noted that often owner managers do not have in place robust succession plans for when they choose to retire. Not only does this lack of succession planning affect the number of businesses operating in the area, but can condemn once viable businesses to extended periods of low growth, as the owner winds down to retirement. Good succession planning can be the catalyst for ensuring that these viable businesses continue to thrive under new management and that founding entrepreneurs are able to move onto other challenges.

6.4.1.2 An exposure to cyclical downturns in key sectors

As noted in the economic commentary, the Mid Ulster Council area has significant strengths in three sectors, construction, manufacturing and retail. Such a reliance proved to be a boon in the early part of the new millennium, with rapid jobs growth, which significantly reduced the unemployment rate within the Mid Ulster area. However, the recent recession, had a significant negative impact on both the construction and retail sectors, with the Council area experiencing the fastest growing unemployment rate in NI, a position which has been reversed by the revitalisation of construction sector and

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its subsequent orientation towards the Great Britain market. In addition, both the construction and retail sectors are perceived to have low wages and low productivity, which has an impact on the overall competitiveness of the region and of these key sectors.

In response, the Council aims to diversify the local economy by supporting business growth in sectors which are currently under-represented such as the digital media, agri food and life sciences, while at the same time, continuing to support the construction, retail and manufacturing sectors.

6.4.1.3 Promoting local business base engagement with the public sector

The RSM McClure Watters survey identified that only 25% of respondents had engaged with the public sector to seek economic development support. Although there are a sizeable number of medium and large companies across the Council area, who do invest in R&Di and are world class exporters, the vast majority of locally owned companies do not export or undertake R&Di activities. There is a clear need to encourage take up of these activities designed to enhance the competitiveness of indigenous business. Existing national programmes lack the reach to get to these locally owned companies, rather local initiatives should be devised which reflect the specific sectoral needs of the Mid Ulster area.

6.4.1.4 Maximising Opportunities for Mid Ulster’s Businesses

While a priority under Theme 1 is to drive economic growth by supporting new business start-ups and accelerate the productivity of existing businesses, a number of other measures are also proposed to build a dynamic and diverse local economic base in Mid Ulster by 2020.

A number of private and public large scale capital projects are scheduled for delivery in Mid Ulster over the course of the next few years. Council will lead a number of actions aimed at ensuring Mid Ulster’s businesses are supported to access and pursue all emerging supply chain opportunities.

6.4.1.5 Promoting Sustainable Development

Economic development must reflect the Government’s Sustainable Development Strategy to ensure that Mid Ulster achieves economic success without compromising on environmental awareness and quality of life. Actions under this objective therefore seek to promote economic development within the context of sustainable development.

6.4.1.6 Promoting Mid Ulster’s Sectoral Strengths

This will involve promoting the sectoral strengths of leading industries to key funders/supply chains outwith of NI. In addition, the theme also seeks to diversify the

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local economy by attracting foreign direct investment into the Council area which in line with the EU Policy of Smart Specialisation, will build on local expertise and clusters.

The local consultation exercise confirmed the dominance of three sectors, construction, manufacturing and retail and the growing importance of agri-food. However, for these sectors to continue to grow there is a need for greater public sector assistance, particularly in relation to investment in R&Di and diversification into a wider range of export markets. This is not something the Council or the sectors can do by themselves, but relies on working in conjunction with regional policy actors: such as Invest NI and local knowledge providers (Universities and Regional Colleges) and national/European organisations, such as the Technology Strategy Board, DG Regio and DG Research. To be eligible for support from such organisations requires a coordinated response in order to get the necessary critical mass. The Council must therefore develop existing ad hoc working relationships within key sectors into more permanent structured collaborations which have the capability to draw down money and expertise from bodies at the national and European levels.

6.4.1.7 Cross Border, National and International Investment Opportunities

Going forward within the current challenging funding environment it is also important that Council explores and maximises all opportunities for accessing assistance from other cross border, national and international sources and consideration is being given to the employment of an EU Officer to research and pursue potential sources of funding and source opportunities to form collaborative partnerships with other regions.

6.4.1.8 Promotion of Mid Ulster as an investment location

Unlike organisations which operate at the regional or national level, the Council has the responsibility to actively promote the Mid Ulster area to potential overseas investors.

With re-shoring of manufacturing from the Far East back to Europe and North America, as well as a recognition of the importance of co-locating near to comparable clusters of industries, many Councils across the UK and Ireland are setting aside development land to attract FDI. Mid Ulster has recognised sectoral strengths and linkages to established knowledge providers (local universities), however there is an increasing demand for development land, not only by indigenous companies, but also for foreign direct investment. Successful FDI can and should augment existing sectoral strengths such as in the agri-food and manufacturing sectors.

It was noted in the consultation exercise, that the Mid Ulster area continues to be a net exporter of people. Although this has negatively impacted the local skills base of the Mid Ulster area, it does bring with it opportunities to have local linkages in target markets amongst former Mid Ulster residents who have settled in these areas and who can be persuaded to become informal advocates for local companies and potentially in the

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longer term, return home to Mid Ulster and potentially work and/or invest in the local business base.

In addition, a key aspect of the promotion of Mid Ulster as a strategic investment location will be the development of high quality materials to promote the sub-region via a range of media. This will include the development of an FDI ‘Invest in Mid Ulster’ App as well as the creation of an online presence and investment profile.

Theme Two: Enabling Employability and Skills

The purpose of this theme is to address emerging skills shortages in key sectors, whilst at the same time ensuring that those not in employment or training have the opportunity to find a job or training scheme which meets their needs.

As is typical of an economy emerging from recession, the Mid Ulster labour market is seeing a reduction in the numbers of unemployed. This has either been through residents finding jobs locally or choosing to relocate/access jobs outside of the Council area. However, the local labour market still exhibits three constraints to growth:

. An emerging skills shortage in leading sectors such as agri-food, construction and manufacturing; . A high proportion of those in employment in key sectors who have low or no qualifications; and . A continuing high proportion of local residents who are either long term unemployed or are young people who are not in education, employment or training (NEETS).

During the consultation exercise it was noted that there was a perception of a lack of job opportunities within leading sectors as well as a negative perception of jobs in key sectors within Mid Ulster.

In addition, because of the nature of the work, many of the key sectors employ people with low levels of educational attainment and although Mid Ulster has some of the top performing schools in NI, large numbers of qualified people had to find work outside of the Council area.

Consultation with key local employers identified an emerging skills gap for those in trades and also the professions which could only be addressed through the following range of interventions:

 Sign-posting of local opportunities;  Providing training to those in work to upgrade skills;  Providing opportunities for apprenticeships for new employees and also in-job training; and  Addressing the negative perceptions of key sectors.

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In addressing the needs of the long term unemployed and NEETS, any local intervention must be reflective of the emerging opportunities afforded by key sectors and therefore provide training opportunities and job matching between residents and key employers.

This Theme also recognises the need to addresses the significant broader social and economic factors which impact on the area’s economic well-being, such as the need to support the provision of a living wage and looking at how to reduce barriers to accessing training and employment opportunities. These issues tend to impact most on those already experiencing disadvantage including marginalised groups/families, long term unemployed, those not in employment, education or training, and migrant workers. A strong mobile labour force will be an essential element in determining Mid Ulster’s economic future, and ensuring people have the support to access training or up-skilling opportunities and / or return to work is a priority for Council.

Although not having a statutory responsibility for education and training, the consultation exercise noted that the Council should identify and promote to relevant agencies the emerging needs of the long term unemployed and NEETS. Again in line with the Community Planning ethos, this may include lobbying government departments / agencies, working in partnership with number of bodies charged with such delivery and the development of an integrated approach to local delivery which meets the specific demands of the long term unemployed and NEETS in Mid Ulster.

Theme Three: Enabling Town and Village Regeneration

The purpose of this theme is to promote the towns and villages of Mid Ulster as a good place to shop, visit, invest and live in.

The five principal settlements of Mid Ulster: Cookstown, Dungannon, Magherafelt, Coalisland and Maghera are recognised as vibrant shopping towns which attract visitors from out of the region. However, it was recognised that such shopping towns need to be routinely promoted and physically upgraded in order to stay ahead of the competition.

With the expansion of the Council to cover the five towns there was a concern amongst consultees that the unique identity of each of these settlements could potentially be diluted and it was also noted that there opportunities existed to create a wider Mid Ulster brand. The consultation exercise identified the need for both updated retail strategies for each of the principal settlements and how they relate to one another and the development of an Evening Economy Strategy, aimed at adding enhancing vibrancy and extending the daily economic life of each town.

It was also recognised that the continued vitality of the region’s shopping streets is not just challenged by other towns and villages across NI and the border counties of the Republic of Ireland, but by the increasing impact of the internet. Any retail strategy must also address the challenges of online shopping and equip local retail owners with relevant online skills.

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Theme 4: Enabling Infrastructure and Connectivity

The purpose of this theme is to ensure that Mid Ulster has the physical infrastructure and connectivity to facilitate growth amongst indigenous companies, support exporting activity and potentially attract foreign direct investment.

As was noted under Theme 4 the consultation exercise identified that at present demand for development land presently outstrips supply and that existing Invest NI owned land, assuming the present rate of uptake, will be exhausted before the end of the Action Plan period. The Consultation exercise recommended that the Council both directly provide development land through its existing portfolio augmented by its new land assembly powers and also liaise with regional development agencies such as Invest NI to encourage them to expand their supply. The need for development land was viewed as being the single most important development constraint for medium/large sized companies in the Mid Ulster area.

The Mid Ulster Council area is easily accessible to the main East/West and North/South motorway routes and has a potential catchment of approximately 700,000 people within a 1 hour drive. However, the consultation exercise identified that there are a number of on-going issues related to connectivity, in particular the need for a by-pass for Cookstown and Magherafelt and linkages between the principal settlements and their respective outlying areas. In addition, the area continues to have a significant number of not spots, in which there is no or limited broadband connections. These not spots are not curtailed to rural areas, but also affect the three principal settlements and a number of business parks across the Council.

The table below was informed through consultation with key stakeholders regarding their emerging priorities and roles under the next Programme for Government period, including:

Table 6.5: Emerging Roles for Council Partners

Organisation Proposed Role

Council Identify strategic direction; Lead on Community Planning Coordinate local delivery Deliver specific actions and monitor progress; Promote vision within Council and Partners; Lobby central Government; Economic strategy must contribute to Community Planning

Cookstown, Dungannon Provide business incubation facilities; and and Magherafelt Business development and support opportunities Enterprise Companies

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Organisation Proposed Role

Town Centre Forums/ Support the development of key sectors and/or provide Regeneration geographical perspective; and Partnerships in 4 main Inform policy development. towns and representation from leading sectors

South West and Northern Provision of higher and further education; Regional Connect Local Talent; Colleges/Centre for Expand R&Di; Analyse Findings Competiveness/ CAFRE Development of key clusters (InnoTech Centre, SWC)

Rural Development Invest NI transferring responsibilities in relation to: Programme (RDP) Local Regional Start Initiative and Social Entrepreneurship Action Group (LAG) Programmes Invest NI will still be responsible for high value add Invest NI and EIB functions in relation to exporting and innovation support RDP continued to focus on rural diversification (particularly farms)

Private Sector Stimulate the private sector economy and finance local develop; and Partner Council in providing input into delivery of specific objectives. In Section 7, the results of the consultation are translated into a deliverable Action Plan.

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7 ACTION PLAN

The table below provides a detailed breakdown of the proposed Action Plan, illustrating the following information for each aim/objective:

 Aim  Indicative Activity and  Responsibility/Delivery Organisation.

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Table 7.1: Theme 1: Enabling Economic Growth/Sectoral Diversification

Theme 1: Enabling Economic Growth Aim Activities Delivery Organisations 1.1: Foster a Pre Start Programme: Council in conjunction with delivery partners / agencies Culture of Programme of support to develop employability skills and/or Enterprise consideration of self-employment as a career option: target groups such as economically inactive, NEETS (Not in Education, Employment or Training), women, young people, migrant workers and those currently in employment with a new business idea. Pre Start Programme: Council in conjunction with delivery partners/agencies Enterprise Awareness: to raise awareness of entrepreneurship as a career option and deliver initiatives such as promoting greater linkages/engagement between education and industry, supporting events to raise the profile of entrepreneurship and recognising the contribution of businesses to the local economy. Start Up Programme: Council in conjunction with delivery partners/agencies. Start Up Support (Regional Start Initiative and the Social Entrepreneurship programme); and Fast Growth Support Programme to accelerate growth potential.

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Theme 1: Enabling Economic Growth (cont’d) Aim Activities Delivery Organisations 1.2: Support to Support towards innovation and capacity building efforts of Council in conjunction with existing businesses in the District through a Suite of Business Support delivery partners / agencies businesses to interventions including: drive productivity General Business Development Programme Procurement Programme; Cluster Development; Research, Development and Innovation (R&Di); Exporting /Internationalisation Support Interventions (Preliminary export training/support); Supply chain development and diversification; Access to Finance; Marketing; Succession Planning; Resource Efficiency; Enterprise Tourism; and Social Enterprise Sustainability Programme.

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Theme 1: Enabling Economic Growth/Sectoral Diversification (cont’d) Aim Activities Delivery Organisations 1.2: Support to Align initiatives with Rural Development Programme measures to Council in conjunction with LAGs. existing maximise support provision. businesses to drive productivity

Promote access to services for businesses: Council in conjunction with LEAs/ FE and HE Sectors. Signpost to available sources of funding; Lobby for retention of local banks; and Provide opportunities for business networking. Create a Business Directory for Mid Ulster Council in conjunction with LEAs/ FE and HE Sectors. Aim 1.3: Maximise Support for businesses to exploit procurement opportunities Council in conjunction with LEAs/ FE and HE Sectors. opportunities emerging from capital investments (e.g. Ann Street emerging from Development, Maghera High School, Gas into the West, NI infrastructure Community Safety College): initiatives Short / medium term opportunities: - Meet the Buyer Events; - Signposting of procurement opportunities; - Identification of potential supplier base - Signposting of emerging skills needs; and - Development of potential supply chains.

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Aim Activities Delivery Organisations Aim 1.4: Promote Promote the concept of sustainable development and renewable Council in conjunction with key energy; and sustainable development agencies Sustainable Consider potential of supporting local sustainable development Development initiatives.

Aim 1.5: Promote Provision of a Cluster Development Programme: Council in conjunction with Invest NI and HM Treasury. regional, national Phase 1: Preliminary engagement work with companies; and international Phase 2: Development of Collaborative Networks (Agri-food and recognition of Mid Construction Sector); and Ulster’s sectoral Phase 3: Consideration towards the establishment of Research strengths Centre and/or Thematic Enterprise Zone.

Liaison with Government Departments in NI and RoI, industry Council in conjunction with and University representatives to develop policy platform at Universities/DG Research/DG Regio European and UK levels. and MEPs/Committee of the Regions. Aim 1.6: Maximise Facilitate greater opportunities and EU investment; Council in conjunction with Universities/DG Research/DG Regio opportunities for Explore potential of employing an EU officer to research and and MEPs/Committee of the Regions. cross border, exploit all EU and other funding opportunities across Council; national and and international investment Explore initiatives to support economic regeneration. opportunities.

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Theme 1: Enabling Economic Growth/Sectoral Diversification (cont’d) Aim Activities Delivery Organisations Aim 1.7: Promote Develop opportunities to attract public/private sector investment Council in conjunction with Invest NI and into the region; HM Treasury. Mid Ulster as an Attract Inward Investment to the region; investment Promote an ‘Agency Attraction’ Programme; location Develop a land bank for inward investment/businesses Develop an online presence and high quality promotional materials to promote Mid Ulster as a key investment location; Identify constraints to Central Government investment in the Mid Ulster area; and Develop a database of Mid Ulster contacts abroad and explore potential networking opportunities.

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Table 7.2: Theme 2: Enabling Employability and Skills Theme 2: Enabling Employability and Skills Aim Activities Delivery Organisations Aim 2.1: Address Examine the potential for a Mid Ulster wider Skills Forum; Council in conjunction with DEL/ HE and Explore the potential to develop a training academy (for FE sectors and construction/engineering emerging sectoral labour construction/manufacturing/engineering sectors); sectors. market shortages Explore development of initiatives to increase uptake of training and employment opportunities in skilled trades/professions; and Promote opportunities to change negative perceptions of jobs in key sectors.

Aim 2.2: Address training Intermediate labour market solutions for NEETS, the long Council in conjunction with DEL/ HE and term unemployed, marginalised groups and families, FE sectors. and employment needs of young people and migrant workers and encourage long term unemployed placement/apprenticeship opportunities; and and economically inactive Targeted pre-start up support for unemployed or economically inactive.

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Theme 2: Enabling Employability and Skills Aim Activities Delivery Organisations Aim 2.3: To address Lobby government to further encourage and support in- Council in conjunction with DEL/ HE and FE job development (particularly government grant sectors. productivity constraints beneficiaries); and through in-job training Signposting training opportunities for management and skilled personnel. Aim 2.4: Promote the Assess barriers to training (childcare provision, etc) and Council in conjunction with DSD/ DEL/ HE implement actions (e.g. use of grants as an incentive) to and FE sectors. development of a strong remove them to support a strong mobile labour force. educated skills base Support campaign to increase Early Years provision to enable young families to maximise training and employment opportunities;

Advocate for a strong link between the education provision and skills and job requirements of growth areas e.g. STEM;

Lobby for adequate Government spend on education and skills;

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Theme 2: Enabling Employability and Skills Aim Activities Delivery Organisations Aim 2.5: To act as an Lobby for the provision of a minimum wage to increase Council in conjunction with DSD/ DEL/ HE economic and social well-being; and FE sectors/ Strategic Investment advocate for and support Board. integration and linkages Lobby Government on the need for interventions on to other social factors that poverty and social protection to maximise employability impact upon the and spend in Mid Ulster; and economic well-being of Lobby for inclusion of Social Clauses in Contracts the Mid Ulster area. (Council and other agencies).

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Theme 3: Enabling Town and Village Regeneration Aim Activities Delivery Organisations Aim 3.1: To ensure the Baseline Study of the Council’s principal towns and Council/Chamber of Commerce. villages and identify drivers for growth; continued physical Shop Improvement Schemes (internal and external) vibrancy of towns and Derelict Property Improvement Schemes, Site villages as places to Enhancement Schemes; shop and visit Deliver quality town centre environments with suitable access provision; Develop links between Town Centre Businesses and edge of town developments, ensuring suitable signage provision at key junctions; Independent Retailers’ Support / Promotion Initiative; Satellite Worker Initiative; Promotion of the ‘Town Centre First’ Concept and work closely with Planning on development and area planning;

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Theme 3: Enabling Town and Village Regeneration Aim Activities Delivery Organisations Aim 3.1: To ensure the Council/ Chamber of Commerce/ Strategic To review existing Opportunity Sites (e.g. Maghera High Investment Board/DARD/ British Retail continued physical School, Ann Street Development, NI Community Safety Consortium/Northern Ireland Independent vibrancy of towns and College, etc) and identify other potential sites across Retail Association. villages as places to Mid Ulster; shop and visit Development of an Evening Economy Strategy for principal towns; Revitalised and enhance markets; Align initiatives with Rural Development Programme measures to maximise support provision; and Explore the potential to create a Business Improvement District (BID) Aim 3.2: To ensure the Build on existing marketing and promotional work to Council/ Chamber of Commerce/ Strategic promote principal towns; Investment Board/ DARD/ Northern Ireland active promotion of Mid Delivery and promotion of key signature events; Independent Retail Association. Ulster’s towns and Marketing and targeting of potential retail/service villages a places to shop investors; and visit. Digital/e-commerce retail initiative; and Development of an integrated Mid Ulster Council Tourism Strategy.

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Table 7.4: Theme 4: Enabling Infrastructure and Connectivity

Theme 4: Enabling Infrastructure and Connectivity Aim Activities Delivery Organisations Aim 4.1: Develop Lobby for infrastructure improvements to roads (e.g. Council/Key Government Departments. Cookstown and Dungannon by passes) to improve Strategic Routes links to main economic routes and export points. Aim 4.2: Develop Development of a landbank for inward investment Council/Invest NI/HM Treasury. Strategic Sites

Aim 4.2: Develop Development of key opportunity sites Council in conjunction with Invest NI/HM Treasury. Strategic Sites Promote opportunities for rural property provision in rural areas to support micro and small business growth

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Theme 4: Enabling Infrastructure and Connectivity Aim Activities Delivery Organisations Aim 4.2: Develop Area Plan development, influence flexible zoning and Council in conjunction with Invest NI/ HM identify market ready sites; Treasury/ DARD/ DETI. Strategic Sites

Address the deficit in accommodation and lands available to adequately develop the agri-food sector

Support the future ‘Gas to the West’ project

Build on existing considerations towards the development of Strategic Enterprise Zones and/or a Public Sector Hub.

Aim 4.3: Improve Highlight broadband and mobile not-spot issues Council in conjunction with Invest NI/ HM through development of an enhanced lobby campaign; Treasury/ DETI Telecoms Branch. Telecommunications and Provision Explore opportunities for businesses to access funding to improve broadband access, coverage and speeds.

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APPENDIX A: REVIEW OF EMERGING STRATEGIES

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APPENDIX B: REVIEW OF PREVIOUS PROGRAMME ACTIVITY

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APPENDIX C: SOCIO-ECONOMIC REVIEW

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APPENDIX D: CONSULTATION FINDINGS

Mid Ulster District Council Mid Ulster Local Economic Development Report and Action Plan (2015-2020) Draft Report (v1.0) – May 2015

APPENDIX E: BUSINESS SURVEY