The potential to build on existing local initiative
The recent launch of the 2012 Action Plan for Jobs came with a mixed response from national commentators. In some instances, the Government was accused of using existing ideas. In part, it was defensive about the use of solid ideas that should, when implemented, create an enterprise platform on which economic activity and, more importantly, entrepreneurism can grow. Nothing to be defensive about that!
More interestingly from the local economic perspective the Plan contains many strong ideas about improving the local environment for employment creation. The challenge will be to get into implementation quickly. Generally, international commentary on Ireland’s competitiveness seems to be moving in a positive direction. Certainly the on-going success of both the IDA and Enterprise Ireland, along with the efforts of Shannon Development and Udarás na Gaeltachta, in attracting international investment as well as a significant growth in indigenous industrial and service exports will play a key role in turning the economy around but what of the role for the local development sector and local government?
Certainly it is the case that both can and do play a critical role in framing the local conditions in which economic activity can take place. There is more than a suggestion that this may be appreciated in the Action Plan and this has to be acknowledged. National commentary on the local impact of the Plan has been limited. Such commentary has largely centred around the integration of local enterprise boards into local government along with a welcome move for greater cooperation between local authorities and Enterprise Ireland through the proposed local enterprise offices. The Plan, however, moves well beyond this initiative. It clearly recognises both the innovation that has been evident in local development and local government over the past number of years as well as raising the bar to encourage both sectors to take on a greater role in meeting the immediate economic development needs of local communities.
In the past local government, in particular, might have been regarded with a level of mistrust in economic issues. This, along with the need for the local authorities to apply their regulatory role, could have been seen as a barrier to sustained economic development. Wasteful public spending at local level along with concerns about issues as diverse as public procurement, displacement etc. have been raised in the past by both local and international commentary. Deficits in infrastructure have also been highlighted in much commentary. Now, fortunately, the Plan, along with other recent policy announcements, indicates a greater appreciation of the complexity of local government and that, central to a vibrant system of local democracy, is the need for enhanced responsibilities and accountability in local government when it comes to local economic development.
The innovation in the Plan
The Plan includes, for the first time, a substantial role for local government and local development, generally. It sets out clear expectations on what central and local agencies and Departments are responsible for, providing a clear time line for implementation. It does highlight some of the more usual expectations of central government on local government. The exercise of restraint in setting commercial rates, the acceleration across the country of business revaluation while seeking to re-organise the support regime for local enterprise start ups. Making existing local government management processes, including procurement, more efficient is identified with the objective of opening up the potential spend of local government to both local and national businesses. Many of these initiatives are already well established in local government so the challenge is not that it cannot be done but to ensure that such initiatives are more fully embedded across all local authorities. This will be a key responsibility for the Departments of the Environment, Community and Local Government and Jobs, Innovation and Enterprise.
The potential positive impact, however, does not rest there. Many local authorities have already demonstrated the capacity to work alongside the enterprise boards and national enterprise agencies to support a wide range of enterprise actions. The Government is seeking to underpin this experience by providing direct supports for overseas investor ready projects along with building on the diaspora, something which several local authorities had already advanced. There is a challenge for local government, generally, along with the local development sector, to learn from existing examples of such engagement. The benefits of having Agencies such as the IDA and Enterprise Ireland can be maximised, and full advantage can be taken, by delivering upon the diasporic networking which has been a feature of the local government system in the recent past.
In addition, the Plan provides for the preparation of a new sectoral strategy to promote employment and support local enterprise by Local Government.
This thinking reflects much of the work already undertaken by economic committees of the Development Boards. These strategies are likely to include measures in the area of business charges, local enterprise and business support arrangements, procurement support, local development and community based initiatives, the Green Economy and local government participation in employment support schemes.
The alignment of local government and local development remains a commitment in the Plan. This is with a view to improving local service delivery whilst achieving greater efficiency and effectiveness and enhancing the role of Local Authorities in the delivery of local and community development programmes and functions. The Government clearly want to continue to support job creation in rural communities through the Rural Development Programme. This reflects the considerable progress of recent years in creating a dynamic local food production sector across the State, one of the great successes of rural development policy in recent years.
Overall, there is much to approve in the Action Plan and an Taoiseach has clearly demonstrated his intention to oversee implementation. Such clear leadership was something missing over the past years and both local government and local development should recognise the clear opportunity to place their respective roles and responsibilities within the national response to the challenge of creating employment. There are still sceptics who question the validity of having local communities taking responsibility for their own economic development. Frankly, both local government and local development do need to seize the opportunity the Plan provides to demonstrate that they do play a central role, not just in local development alone but in also creating the ideas and enterprise pipelines which can become a cornerstone of the national development agencies. Clear leadership needs to be demonstrated by the elected members, Development Company Board members and their respective officials in the newly aligned institutional framework at local level.
Progress, at last, in enhancing the role of local government and local development. Perhaps it points to some optimism that the forthcoming local government policy paper will underpin local leadership and positive reform based on a vibrant local environment?
