1 | Page “Introduction to the Border Development Zone “ by Padraic White at Annual CCBS/ICLRD Conference Cavan Crystal Hotel, Thursday January 30 , 2014 SECURING THE ECONOMIC FUTURE OF THE BORDER DEVELOPMENT ZONE – NORTH AND SOUTH The origin of our focus to‐day on the economic prospects of the Border Zone , north and south , can be traced back to a workshop in the Inter Trade offices in Newry in September 2011. We gathered there to discuss the policy implications of a paper by John Bradley and Michael Best entitled “ Reviving the Border Regional Economy in a new era of peace and devolved Government “. Their research and consultations resulted in a most thorough analysis of the economy and industrial sectors in the cross border region. The end result was published in 2012 by the Centre for Cross Border studies and remains the definitive economic and industrial assessment of the area. [ “Cross Border Economic Renewal – Rethinking Regional Policy in Ireland “ by Dr John Bradley and Professor Michael Best .] It prompted me to set out my views on a way forward for the border economy at a Conference just over two years ago in this very town and also organised by the Centre for Cross Border Studies and the ICLRD. My analysis was that the cross border region and its one million citizens risked being further “economically stranded” for a number of reasons . One reason was that Foreign Direct Investment in the south , which under previous IDA regional approaches established a good base of foreign industries in border counties , was now increasingly concentrated in the large cities . The trends of the past two years since those remarks confirm my analysis . The current base of FDI in the six southern counties along the border has some 2 | Page 9,000 direct employees and deserve every support from their communities , local authorities and State agencies . However , when you look at the destination of incoming IDA sponsored site visits by potential investors in the past two years, Dublin , Cork and Limerick accounted for 70% of these site visits . Our six border counties managed an average of only 23 such visits a year out of a national average in these years of 350 IDA site visits . The central border counties of Leitrim , Cavan and Monaghan have received between zero and 3 site visits a year in the same period . The overconcentration of foreign investment is now recognised as major political issue which Minister Richard Bruton TD has stated is being addressed . In my judgement ,as a former Managing Director of IDA Ireland , I do not believe that such a concentration of incoming visits to Dublin is inevitable . I suspect that a similar pattern of concentration of FDI in Belfast and its hinterland may prevail in Northern Ireland . My analysis also suggested that as central governments in both jurisdictions , grapple with the recession , regional priorities and especially border regions which are “ peripheral “ to the capital cities will fall down the pecking order . I believe the evidence is that this decline in interest in the border economies is occurring. I would cite as an example the fate of the national road from Dublin to Derry/Londonderry , namely, the combined N2 and A5 . This was the last of the arterial routes to be upgraded to motorway or dual carriage way standard , linking Dublin to major regional centres . Its upgrade was seen as core to the economic progress of the intervening counties particularly Cavan , Monaghan and Donegal Derry/Londonderry and Tyrone . What has happened ? After the quashing of planning permission on the northern side in April 2013, the money was re‐allocated and the new planning process appears to be proceeding at a leisurely pace . The communiqué of the North South Transport Ministers meeting on 28 November last ,which was attended by Minister Leo Varadkar, Minister Mark 3 | Page Durkan and Minister Danny Kennedy, contains the following updates in relation to the A5: “ Para 5 : The Council noted that following the Court ruling on 8 April 2013, work is progressing on an Appropriate Assessment process , which upon completion , may lead to publication of an updated Environmental Statement which will be the subject of a public consultation exercise that is expected to take place in Spring 2014. Para 8 : The Ministers noted that once the environmental reviews are completed and the position in relation to project programme has been clarified , updated programme/project milestones will need to be prepared for agreement by both the Irish Government and the Northern Ireland Executive , taking account of financial commitments in place “. So based on this update , when do you think work might start on the A5 upgrade ? On the southern side , Monaghan County Council have been seeking in vain so far the princely sum of €1.5 m to narrow the chosen route corridor between Clontibret NS Aughnacloy from 400 metres to 100 metres as one of the key preliminary steps in preparing for the upgrade . What does that say about Government attitudes , north and south , to the border economy ? Where is the coherent voice of the border regions ? I advocated at the Conference two years ago that given the concentration of FDI in the cities, the border regions would have to base their economic future on developing a series of other potentials , namely : 1.SME enterprise in goods and services with an export potential: 2. tourism and recreation ; 3. agriculture , food and fish processing ; 4. low carbon initiatives, energy saving and renewable energy . I wish to compliment the Centre for Cross Border Studies ,its recent Director Andy Pollak and his successor Ruth Taillon , for taking forward the concept of the 4 | Page Border Development Zone . They successfully won funding from SEUPB for a series of actions including the commissioning of the 5 scoping studies being unveiled to‐day by the authors : Philip Mc Donagh; Maureen O’Reilly; Dr Eileen Mc Gloin; Tom Moriarty ; Dr Karen Keaveney . You will hear many innovative and exciting ideas to drive economic development in the cross border areas and involving cross border co‐operation between firms , agencies and Governments. The Border Development Zone project is being overseen by a Steering Group which I am honoured to chair and which hopes to carry forward the conclusions emerging from this Conference . Conclusion The Bradley‐Best study outlined three dimensions to the establishment of a Border Development Zone , namely, Spatial , Sectoral and Institutional . By the “ Institutional “ dimension, they meant the kinds of co‐operative policy frameworks and actions that will be needed if such a zone is to have a greater prospect of participating in all‐island prosperity . This is most pertinent now as the recession recedes and the economies on the island return to a path of economic growth . There is considerable change in the structures of local authorities on both sides of the border . There is , I believe , a recognition that local authorities have to become more involved in securing the economic development of their areas in conjunction with their neighbouring counties . The cross border partnerships are evolving along the border . Any new institutional arrangement must “ add value “ to these existing structures and be able to exercise an influence and voice in both jurisdictions in support of common and strategic economic challenges along the border zone . I would look to the participants in this Conference to put forward your recommendations on any adjustment or addition to the current institutional arrangements so as to secure the economic future of the Border Development Zone . ENDS .