Munster Express Online

This week, Waterford Chamber will focus on two measures in which the Government could support local economic development in Budget 2016.
There is scope to develop local microfinance and crowd-funding programmes to fund social investments in local areas. US Local Authorities already utilise crowd-funding to regenerate local areas and promote the take-up of underused or vacant properties.
In San Francisco, for example, the Mayor’s Office of Civic Innovation used a crowd-funding platform to seek inspiration from the public for ideas to put free spaces into use. Businesses or groups were invited to bid to use designated public areas on a temporary basis to showcase innovative projects. Potential partners included non-profits, entrepreneurs, local businesses and community groups.
British councils have utilised crowd-funding platforms to rejuvenate high streets and realise much-needed regeneration projects.
Using crowd-funding platforms, Councils can pitch ideas to the local community so that the cost of the project is shared among those who benefit. Councils use this approach to top up available funding from Exchequer funded grants, while others may look for the full cost associated with a project. Successfully funded projects include a new community centre, public art installations, the roll-out of free WiFi, and the conversion of an empty property into an entrepreneur hub.
In order to trigger and enhance locally focused crowd-funding programmes, some seed capital could be provided from central funds with guidelines as to what types of projects it should support. As an added benefit to local economic development, crowd-funding also facilitates and encourages citizen engagement in local planning and development.
Waterford Chamber believes that there is a particular opportunity to facilitate and support local economic development through the strategic application of public procurement processes.
While we recognise that there remains an imperative amongst contracting authorities to reduce costs, there are strong arguments for developing more nuanced procurement processes in order to stimulate economic activity and ensure better long term returns for the tax payer. Tenders should be reviewed by their overall benefit to the economy rather than just the upfront price.
Local economic development also has the potential to be supported by the inclusion of social clauses in tenders for public contracts. For example, weight could be given to use of local suppliers or providing employment to the long term unemployed.
However, while social clauses have the potential to support the local economy and provide social value, Government must make sure it is applied in a way that doesn’t become onerous or disadvantage SMEs. Although this measure possibly would have a small short-term effect on costs, the impact on local job creation and retention would be greater than any upfront additional expenditure.
Next week: Waterford Chamber will detail its recommendations for Government investment in physical and social infrastructure.