Archive for February, 2010

The Politics of Climate Change

February 28, 2010

The aftermath of the Copenhagen climate change negotiations in December – the Council of the Parties (COP 15) as it was called – is still exercising the body politic as well as environmental NGOs.

I attended several briefings over the past week including in my capacity as Chairman of the Climate Change Research Group of the Institute of International and European Affairs. In addition, Minister Eamon Ryan spoke to a briefing seminar at Dublin Chamber on the topic.

My sense of where we are at – a bit of post-match analysis – is as follows.

The COP 15 was the first truly geopolitical meeting of the 21st century; that in itself is an important conclusion. The leaders of countries like China, India, Brazil and South Africa met to negotiate on world issues for probably the first time. Brice Lalonde, President Sarkosy’s climate change negotiator, described the experience as a ‘re-shaping of the whole world economy’ with the BRICs now in a position to ‘co-manage the planet.’

The Heads of State and Government who arrived at the meeting were never as badly prepared. Undaunted by the failure of Ministers and officials to make progress in preparatory meetings, a group of 28 rolled up their collective sleeves and after a 48 hour period of almost non-stop discussions the Copenhagen Accord was the outcome.

Rather than be critical of the agreement, it is important to recognise that the vast majority of Heads and State have for the first time ever signed up to a package which commits them to keeping greenhouse gas emissions to such a level that global temperatures will not rise by more than 2°C, which is in line with the latest scientific evidence about climate change. In addition, there is a firm commitment by developed countries to inject some $100 billion per annum into the economies of countries in the developing world worst affected by climate change. There is still much speculation that many countries, including the UK, support a tax on financial transactions (a Tobin tax) as one way to raise the necessary finance. A panel of senior financiers is to meet to tease out how precisely a sum of $100 billion can be found in the current economic climate. Conclusions were also reached on the reporting, verifying and monitoring of GHG emissions. Finally, while all parties agreed to make GHG emission reductions pledges by a deadline of 31 January 2010, only 50 have so far done so. The G8 is on record as supporting an 80% reduction in GHG emissions by 2050.

There is widespread agreement that by virtue of having reached agreement on the main political issues, work on the more technical issues such a technology transfer and REDD will proceed more productively. There is also a view that work on securing a global agreement on climate change will extend for many more years and will not end at the next COP in Mexico. In fact, many EU Member States are moving to the view that the Copenhagen Accord will replace the Kyoto Protocol and as a consequence there will not be a second commitment period.

China – who played perhaps the most important role – had travelled to Copenhagen anticipating that a deal could not be reached. Only when persuaded by India’s Prime Minister did the Chinese delegation engage with US President Obama (who was kept waiting for almost seven hours). There is a suggestion that both leaders did not want to push for a legally binding deal and were quite happy to secure what some described as a ‘lowest common denominator’. It was obvious that despite bilateral contacts prior to Copenhagen the US and China had not reached a conclusion on the best outcome of the COP 15 talks. China’s role was described by Fiona Harvey, the environment correspondent with the Financial Times, as ‘destructive’ as their proxies (Sudan, Nicaragua etc.) tried everything to block a deal being done. After the event, senior Chinese negotiators described the Copenhagen Accord as ‘meaningless’ and disputed the scientific evidence on climate change. Many vulnerable countries, particularly Bangladesh, most African countries and the island nations, were very critical of China’s negative position.

Lord Anthony Giddens surmised that many countries such as Brazil and India are taking investment decisions not based on the politics of climate change but due to a heightened awareness about energy security. Giddens also believes that many countries are reverting to the ‘politics of long-term planning’.

Russia did not engage in the negotiations and played what amounted to a background role. Their negotiators were cagey; not unrelated to the current arrangement which allows them to sell ‘hot air’ credits. The Russian Government is, however, becoming more aware of the impacts of climate change as the Siberia permafrost  is melting with consequent emissions of methane (which is 21 times more harmful than carbon dioxide). The recent law on energy efficiency is seen as a step which aligns their policy on climate change to that of the EU.

As the EU’s position was well known, it did not play a decisive role, although the efforts of France and the UK were central to securing the support of the African countries to the deal which eventually emerged. Commission President Barroso confirmed that at no point did the EU come under pressure to increase its GHG emissions reduction offer from 20% to 30%.

As the dust has now settled, one of the emerging points of contention is the proposition that the EU – or indeed the US and some other developed countries – will try to impose a WTO-compatible border tax adjustment. Essentially, for example, if Argentinean beef is exported to the EU but Argentina is not committed to reducing GHG emissions, their exporters will be forced to buy carbon allowances equivalent to the amount their EU counterparts would have to pay.

Copenhagen exposed the weakness and reputation of the UN system with many ‘middle income’ countries virtually excluded from the core group that did most of the wheeling and dealing. It is impossible to agree anything where a consensus of 180+ nations is required. Where significant global issues need to be addressed a new way will need to be found – water scarcity is next on the agenda. Thus the UNFCCC will need to consider most carefully how policy-makers from groups of affected countries can best be engaged in the COP 16 negotiations, i.e. in the period to the next meeting in Mexico.

Fiona Harvey criticised the majority of the environmental NGOs for fostering divisions among countries and playing what she described as a pernicious role in Copenhagen. Their constant negativism was misplaced given the outcome of the COP 15. She called on the mainstream climate advocates to ‘grow up’. Strong words indeed from a seasoned observer.

She also pointed out that significant businesses in the US, including BP and Conoco, seem to be disengaging from the process as political support for the Administration’s policy on climate change is unravelling.

Over the coming months, Ireland’s focus will be on passing a Climate Change Bill. The work on replacing the out-of date National Climate Change Strategy is being long-fingered.

In contrast, France is moving ahead with a ‘Do It’ approach. They are anticipating a positive outcome of the COP 16 and have decided to start implementing some actions, including a programme on forest carbon credits.

If you are interested in this topic then you may find the following books of interest:

The Politics of Climate Change, Anthony Giddens

Prosperity Without Growth, Tim Jackson

The Vanishing Face of Gaia: a Final Warning, James Lovelock

New tendering opportunities

February 26, 2010



I made a presentation this morning to the Forum on Public Procurement about using public procurement to generate new business opportunities.

David McWilliams chaired the day-long event attended by some 130 public servants and private suppliers.  Other speakers included Enda Kenny T.D., Colm McCarthy, UCD, Niall Bohan, European Commission, Vincent Campbell, NPPOU, and Stephen Hughes, Enterprise Ireland.

I titled the presentation Daft or Doable as some of the 15 ideas I outlined are, I admit, a bit radical.

In summary, and based on my work with Bid Management Services, I made the case that the Exchequer would get better value for money – and the private sector would secure new business – if the public sector adopted a new approach to seeking tenders in relation to the following:

-          Offshore Wind

-          Electric Vehicles

-          Water

-          School Building Programme

-          Debt Collection

-          Enterprise Ireland Grants

-          Single Phone Numbers for Public Services

-          Retrofitting

-          WEEE

-          Microgeneration

-          Cleantech R&D

-          Electronic Payments

-          Promotional Campaigns

-          Shared Services (Institutes of Technology)

-          Environment Fund

A €75 billion Business Opportunity!!!!!!!!!!!!!!!!

February 25, 2010

What would you do if someone told you there was a €75 billion investment opportunity in Ireland over the next ten years?

Laugh?

Be sceptical?

Or take this forecast at face value and start exploring what precisely is involved?

That was the gist of presentations which I made this week to the Dublin Chamber Green Economy Group and the ACCA Leinster Branch.

When one takes account of the investment programmes that have already been announced by some of our largest Semi-State companies, as well as the expected investments in energy efficiency, waste and water, the following tally emerges:

ESB €22 billion
BGE €5 billion
Eirgrid €4 billion
Wind €16 billion
Other RES €1 billion
EVs €0.5 billion
Retrofitting €9 billion
SMART Transport €2 billion
Forestry €0.7 billion
Water €12 billion
Waste €2 billion
R&D €1 billion
TOTAL €75.2 billion

My speech sets out in some detail the basis for all these forecasts.

The material on renewables was based on a report prepared by my colleague Joe O’Doherty.

In addition, the UK has very recently announced investments of €85 billion in offshore wind projects and some €25 billion in water and waste water. One could well ask what is Ireland’s strategy to secure a share of this huge export opportunity?

There are many barriers and bottlenecks preventing the rapid deployment of these new and emerging technologies; these were identified by the (November 2009) report Developing the Green Economy of the High-Level Group on Green Enterprise.

Investment in the green economy in Ireland, and exporting goods and services, could create tens of thousands of jobs.

Who is in charge and driving this jobs and technology agenda?

The short answer is too many Departments and State Agencies. Nobody has overall responsibility at operational level.

The High-Level Group recommended three months ago that a Minister be put in charge of implementing what is the largest investment programme ever contemplated in the State and that the Cabinet Committee on Economic Renewal, chaired by the Taoiseach, should oversee the work. As far as I am aware nothing has happened since.

If a business was chasing a €75 billion prospect, the most senior and experienced managers would be put full time on the job and all available resources marshalled until every opportunity was assessed and addressed.

Ireland needs a group of senior public servants to work full-time and as a team (as happened when the IFSC was first set up) to make sure that every possible encouragement is given to investors and green economy project promoters.

If the implementation of the current green economy strategy is left to a committee that meets infrequently then this is a lost opportunity which will only benefit our competitors.

Do you agree?

Dublin Mayor Act 1 Scene 2

February 24, 2010

Overview

As was anticipated in an earlier blog, the legislation to give effect to the Dublin Mayor is now to hand.

The publication of Minister Gormley’s proposed legislation (Heads of Bill as it is called) is to be welcomed, as is the decision to allow a period of time to give stakeholders such as Dublin Chamber and the Dublin business community an opportunity to consider and respond to the 126 sections which comprise the Local Government (Dublin Mayor and Regional Authority) Bill 2010.

A critical issue is whether the Mayor has substantial executive powers, including control over the budget of the four local authorities; on that test the Bill fails.

On the other hand, there are many positive features in the Minister’s proposals.

Let’s look at the Bill’s provisions from a business perspective.

Pros

The very fact that we will have a Mayor with over-arching political responsibility for setting and driving a coherent, integrated and co-ordinated socio-economic strategy and agenda for the Dublin City Region is positive. Government has clearly recognised that a re-vamped Regional Authority under the direct control of the Mayor and the new Regional Development Board (replacing the four County Enterprise Boards) will have a critical role to play in making the Dublin City Region more competitive and a hub of national economic activity. The Board’s co-ordination function, which extends to educational and cultural areas, has significant potential given the manner in which some public services are currently delivered.

Taking account of the mandate of the National Transport Authority, the Mayor will have a role in setting strategic policy in areas such as spatial planning, land use and transport, traffic management, housing, the drawing up of a waste management plan and a water services strategic plan for the Dublin City Region. In practical terms this means the Mayor’s Office will be responsible for drawing up the Regional Planning Guidelines (RGP) for the Dublin City Region. There is an expectation that the Mayor will chair the Dublin Transportation Authority and will have strong executive powers in relation to transport, land use and traffic management.

The Mayor can issue policy directions to the City and County Managers (but primarily in relation to theRPGs) with a view to ensuring consistency with the Regional Authority’s plans and strategies as prescribed by the legislation. However, the Bill does not make it obligatory for the City and County Managers to implement such instructions, nor does it state the consequences if the Mayor’s wishes are ignored.

Importantly, the Mayor will have a mandate to integrate the activities of the four Dublin city and county councils. For example, the Dublin Regional Authority will become responsible for the provision of water services for Dublin. Over time, driving such efficiencies will reduce costs and hopefully business rates too.

The Dublin Regional Authority will also have a role in relation to the drawing up of the Development Plans and local area plans within the jurisdiction of the four City and County Councils.

The Mayor will be able to give advice to the City and County Managers about the efficient use of resources in the delivery of local services and as regards the setting of local rates or other charges. The Managers ‘shall have regard to that advice’. In practical terms, the Mayor could make a recommendation about rates for a given year. But the Managers could disregard the advice.

The Mayor will have a mandate to promote enterprise and innovation in the Dublin City Region; obviously in co-operation with the relevant State development agencies.

The net cost of setting up the Office of Dublin Mayor will be modest as the 30 staff who will be re-assigned to work in the Mayor’s Executive Office are already on the city and local authority’s payroll.

It is envisaged that the role of the Mayor will grow over time and that changes may be made in the light of experience after two years.

Cons

Because only strategic functions are envisaged, the Mayor will not have strong executive powers other than in relation to the policy which the Dublin Regional Authority lays down. Operational responsibility for all local services remains with the city and county councils. For example, once a strategic planning framework is set, it appears the Mayor’s Office will have oversight functions only.

A word of caution: by the time the Mayor is elected the Regional Planning Guidelines to 2016 may have been adopted thus depriving the Mayor of one the most important roles envisaged in the Bill.

The Mayor must be consulted in relation to the preparation of draft local authority budgets. However, the City and County Managers will not be obliged to adopt the views of the Mayor in relation to the setting of annual budgets, expenditure priorities and the charges to be paid for services, including rates.

The Mayor has no direct powers in relation to the raising of local finance.

The Bill has been cast without any regard to the pending reform of the local authority system nationwide. Thus office of Lord Mayor of Dublin continues as to those of the other three Dublin local authorities and indeed the proposed legislation provides for a Deputy Mayor (appointed by the Mayor from among the members of the Regional Authority). While there are grounds for maintaining the Office of Lord Mayor of Dublin, do we really need six Mayors, or equivalents?

The 133 elected counsellors will remain in office; far too many for a city the size of Dublin. The option of having fewer, better paid and full-time representatives will have to await Minister Gormley’s reform proposals that are due many months hence.

Minister Gormley will continue to have a veto over planning applications (under the Planning and Development (Amendment) Bill 2010 currently before the Oireachtas and is not required to give a reason for any decision taken.

Unlike its London counterpart, the Mayor’s Office will not have any responsibility for crisis management and the coordination of the emergency services in Dublin.

The Dublin business community does not have nomination rights as ratepayers to membership of the Regional Authority; the Authority will comprise politicians and public servants only. So much for the principle of ‘no representation without taxation’.

Practicalities

An election date has not been set. Realistically, it will be October before the legislation is enacted. In such a scenario an election in early 2011 is in prospect. Thereafter, the election will be held on the same day as the local elections. A delay does not matter. What is far more important is that the legislation is ‘fit for purpose’ for the Dublin City Region. A curious side-effect of what is proposed is that the successful Mayor will have to re-stand for election in June 2014.

Provided 60 assents are secured, anyone – and not just citizens of Dublin – may stand for election.

A CEO will be appointed to the Dublin Regional Authority given the increased powers to be vested in that body. The Mayor has discretion to appoint up to five personal advisors.

The Mayor will at least once a year report to the four Dublin local authorities.

Provided a three quarters majority is secured, the members of the Regional Authority will have powers to remove the Mayor from office in certain circumstances.

Within six months of taking office, the Mayor will publish a strategy statement setting out key objectives, and outputs.

Get Involved in the the Debate

This is a perfect opportunity to contribute to the Debate About Dublin.

Inform yourself by studying the draft Heads of Bill, the press release and background briefing note about the Dublin Mayor and Dublin Chamber’s press release about the Government’s proposals.

All comments welcome…………………………….

First Executive Committee meeting of the year

February 23, 2010

2010 Executive Committee. Left to right: John McGrane (Ulster Bank), Dermot Breen (Tesco), Imelda Reynolds, Vice-President, (Beauchamps Solicitors), Patrick Coveney, Deputy Vice-President (Greencore), Peter Brennan, President (EPS Consulting), PJ Timmins (Clearys), and Niall Feely, Treasurer (Eircom).

Dublin Chamber has an elected Council of some 40 members, which will meet eleven times over the coming year. The Council is like a Board of Directors and is therefore responsible for ensuring that the affairs of the Chamber are conducted in accordance with appropriate principles of corporate governance. The Council also provides leadership and strategic direction to the Chamber.

The Chamber’s Executive Committee, also chaired by the President, prepares the Council meetings, oversees implementation of the work programme; and provides support to Gina Quin, the Chamber’s CEO, and her management team.

My first Executive Committee meeting took place today.

We had a long agenda but got through it fairly smartly.

Apart from discussing the Chamber’s accounts for the first quarter, we also spent a lot of time discussing the allocation of responsibility to Council members who will lead the implementation of the 22 work streams that comprise this year’s work programme.

Some significant issues are on our radar, including the Dublin Mayoral election, reform of the Dublin local authorities, implementation of the Commission on Taxation’s recommendations on local financing and rates, and a new economic strategy for the Dublin City Region.

We also reviewed the Chamber’s visit programme to Dublin’s twin city of San Jose (3rd to 8th March) and a proposed visit to Brussels (on 26th to 27th April).

Business After Hours @ Aviva Insurance

February 19, 2010

Providing networking opportunities for members is one of Dublin Chamber’s most important roles. The most popular is the Business After Hours programme. Following the usual introductions, companies meet and greet each other – buying and selling throughout the process; business speed dating at its best. A bell rings every few minutes to encourage everyone to move on to their next prospect.

Last Wednesday, over 200 members turned up for the BAH sponsored by Aviva Insurances. Eoin O’Neill, Sales Director, welcomed everyone to the company’s splendid offices.

One indicator of the success of the night is the number of business cards exchanged. I joined in the fray and met many entrepreneurs who almost uniformly were positive about business prospects.

I promised I would mention them in my blog so my thanks to the following:

-          Padraic Brennan, Commercial Branch Manager, Bank of Ireland

-          Mark O’Farrell, COO, QuestZones

-          Lewis Evans, Leftbraintrading

-          John Martin, Managing Director, JPM Innovations Ltd (Asian Outsourcing Services)

-          Jeanne Kelly, Partner, Mason, Hayes+Curran

-          Lorraine Griffin, Partner, Taxation Department, Deloitte

-          Wayne Cronin, Fuzion Communications

After the frenetic exchanging of pitches and business cards, five members have their names picked out of the hat and are given the opportunity to make a one-minute ‘sell’ to the audience.

Undaunted by the short notice, we heard excellent pitches from:

-          Jim Rogers, Director, Varming Consulting Engineers, who was not at all hesitant in pointing out that his company designed the air conditioning system for the Aviva Building, which won a design excellence award.

-          Sean Weafer, R’evolutionary Business, told us about his business, which is all about evolving individuals and business through the power of ‘R’ – relating and relationships.

-          Glenn Gillard, Partner, Audit Services, Deloitte, marketed the practice as a business that provides a wide range of services to companies of all sizes.

-          Sarah Finlay, Sales & Marketing Executive, RehabEnterprises, told us about their Able Business Excellence Awards.

-          Tony O’Reilly, Business Development Strategist, Dublin Business Partner, has 30 years experience in sales and business development and provides executive mentoring services and advises on sales process evaluation and improvement.

To date, over 1,500 people have attended Dublin Chamber events this year.

Wow!

Tender Bid Opportunities: Beware Europe !

February 16, 2010

Last week Enterprise Ireland (EI) brought eighty of the country’s top consultancies together for a session to explore how to secure more business overseas, in particular in relation to JV tendering opportunities. EI sought views about possible initiatives to up everyone’s collective game.

The initial focus of what is called the Forum for Irish Consulting Companies should be International Financial Institutions (IFI) as they are generally considered to be ‘recession proof’.  Among the external aid programmes co-financed by the European Commission is the €12 billion IPA programme for the Balkans, Turkey and Iceland. Significant funding is also available from the structural fund budgets of the new EU Member States from Eastern and Central Europe. Other potential sources of funding are the World Bank, the EBRD, the European Investment Bank and the Asian Development Bank, primarily through their technical assistance budgets.

The reality is that the competitors were not in the room, but are in the target markets. Other learning points are that it can take upwards of a year to get paid; finding the right experts can also be a problem; forming the right consortium is critical as is the choice of partners; the cost of tendering can be high due the requirements of the contracting authorities; and currency exchange rate exposure is also a risk.

Despite the opportunities, Irish consultancy companies face a number of problems: Irish fees are much higher; reference sites need to be no more than three years old; consultancy companies do not track tendering opportunities on a systematic basis; Irish firms also are reluctant to co-operate with other Irish companies; the lack of Irish Oversees Development Aid (ODA) to support consultancy opportunities is also a problem; and Irish companies are not in a sufficient number of framework agreements (only eleven Irish companies are in 635 EU frameworks).

EI has a new mandate to drive new export opportunities through public procurement opportunities, with Stephen Hughes in charge of EI’s public sector team. The priority sectors include software services, cleantech and construction and life sciences and ICT for health. EI’s targets will be IFIs and international organisations such as the United Nations (which has a $13 billion plus procurement budget). EI’s Brussels office is also active in identifying opportunities within the European Institutions. However, very few Irish consultancies are bidding for EU work and fewer are successful.

Some practical ideas were proposed. A web-based competency directory will be prepared to facilitate consultancy companies to form consortiums and pitch for work. EI should also focus on the UK market which is a less daunting target than IFIs. EI was asked to provide training to consultants and to meet bid costs where strategic and high value contracts were identified. Participants also wanted to get better know how, including sharing information on fees and intelligence about potential tenders. EI could produce research on the major opportunities from, for example, the largest contracting authorities in the UK where clusters of Irish firms had the best prospects. EI was encouraged to relax its rules about providing financial assistance and support to smaller companies who declare a strong interest in tendering in export markets.

One of the main challenges is the move to what is called ‘green procurement’. The Government guidelines which are being drafted need to reflect what Irish companies are capable of delivering; there is a danger that new rules such as a pre-requirement to have carbon footprints could, despite best intentions, make it more difficult for Irish companies to secure public contracts.

This was a good event for the Irish consulting industry.

It remains to be seen how Enterprise Ireland takes on board the many ideas put forward.

Companies who wish to get involved in preparing tender bid responses should check out www.bidmanagement.ie

Dublin’s Mayor – Act 1, Scene 1

February 15, 2010

Why Does Dublin Need a Mayor?

Nobody has overall responsible at political level for the Dublin City Region, which has an annual  budget of €2.5 billion and 10,000 employees.

This has become a significant issue as the National Competitiveness Council has concluded that ‘…cities are increasingly seen as the drivers of national competitiveness and of economic and social development.’ The NCC also concluded that ’without proper management, cities can lower national economic growth rates.’

Therefore, as Dublin is the only city of international scale in the country, investments should be prioritised to enhance the City Region’s competitiveness and therefore its attraction as a hub of investment.

Dublin’s Lord Mayor will be ideally placed to drive a new dynamic which will put the competitiveness of the City Region as an over-arching political priority.

The second reason why we need a directly elected Lord Mayor is that reform of the local authority system in Ireland is on the cards and in the words of the former Lord Mayor of Dublin, Eibhlin Byrne, a ‘transformational agenda of change’ is now required.

Finally, as the business community in Dublin every year pays in excess of €650 million in rates and charges, there is a growing sense that there should be more stakeholder involvement in relation to the setting of budgets and spending priorities across the Dublin City Region. This will not happen if the current practice whereby the four city and county managers continue to guard their respective budgets.

Dublin Versus the Rest is the Wrong Approach

We need to understand better why cities matter to the Irish economy.

Thankfully, the NCC in citing many sources including academics, the OECD and the European Commission, has provided all the evidence to demonstrate that a more competitive Dublin can serve to strengthen the performance and attractiveness of other Irish cities and provide them with opportunities that may not be accessible otherwise.

Again to quote the NCC ‘……the challenge is not the redistribution of resources between Dublin and the rest of the country, but rather of enhancing the competitive advantages of Dublin as a driver of overall national prosperity.’

Hence investments in Dublin’s port and airport and in the National Convention Centre for example, will benefit the entire economy.

Minister Gormley’s Proposals

Details of a 125 section Heads of Bill will be published later in the week. While no details have yet been announced, it is understood that the Government does not envisage the Mayor having extensive powers.

There is a suggestion that the Mayor will chair a 15-person Regional Assembly for Dublin but will not have executive authority to instruct the city and county managers about raising local finance, nor in terms of setting budgets.

The Mayor, with his office serviced by Dublin City Council, will chair the Dublin Transportation Authority (a subset of the National Transportation Authority) but may not have operational responsibility for public transport in the city.

It does not appear that the Mayor will have executive powers with regard to decisions on spatial planning and land use.

The office of Lord Mayor of Dublin will remain and the structure, responsibilities and boundaries of the four city and county councils will not be changed according to informed sources.

Local Authority Reform

Press reports suggest that several months hence, Minister Gormley will publish his long overdue proposals for a radical overhaul of Ireland’s local authorities – there are 130 such bodies believe it or not – in the form of a White Paper. Legislative change to give effect to these proposals will then have to follow.

The issue of the Dublin Mayor and local authority reform are closely interwoven. There is no point in having a directly elected Mayor if his constituency is not defined, if four mayoralty positions continue, and if the structures of the city and four county councils are in limbo.

This delay may be politically convenient, as the findings of the Bord Snip Nua efficiency review of local authorities will be available after the summer. This report will deal with such issues as the number of elected counsellors. In Dublin there are some 130 representing a population of one million. In New York, with a population of over 8 million, 52 local counsellors provide democratic representation to the citizens of the city.

The drive to make local authorities more efficient and local authority reform are two sides of the same coin.

Timing – June but Which Year?

A debate about the Office of Dublin Mayor needs to take place once Minister Gormley’s final proposals are published by way of a Bill.

A best case scenario would see the legislation enacted before the summer recess (2010). Realistically, however, the Dublin Mayor Act 2010 cannot be enacted unless and until the Government takes decisions on wider reforms al local level.

Therefore it is far more important that the legislation setting out the Mayor’s roles and responsibilities is debated at length in the first instance.

If the Office is not given substantial executive powers with control over the City Region’s budget then one would have to ask the blunt question: why bother?

In the circumstances, putting back the holding of an election until the end of the year makes a lot of sense.

How Other Cities Do It

If there were any lingering doubts about the positive impact of what a Lord Mayor can do for a City Region, all one needs to do is to check out what the cities of London, Vancouver, Seattle, Washington, New York, Copenhagen and Sydney have achieved.

In the words of Ken Livingston, the former Lord Mayor of London: ‘the performance of London was dramatically improved as a result of the appointment of the directly elected Mayor.’

Possible Candidates

If the Mayor has strong executive powers and a wide portfolio of responsibilities, he/she will be on par with a Cabinet Minister.

Proportionate to the powers ceded to the Mayor will be the absolute requirement that the office-holder is someone with leadership skills, political experience and a sense of business acumen.

This is not a job for amateurs.

What Next

Dublin Chamber has pressed for the best part of six years for a directly elected Mayor, one with strong executive powers over a reformed local authority structure that is in charge of the Dublin City Region.

 We are on the cusp of achieving this ambition.

However, as one senior political source put it: ‘beware of what you wish for.’

Thus the Heads of Bill will need to be carefully scrutinised once they are published.

Dublin Chamber, like other interested parties, will communicate its views to Minister Gormley and indeed to the citizens of Dublin and their public representatives.

Ireland Hong Kong Business Forum Chinese New Year Lunch; Are you a Tiger?

February 14, 2010

The Chinese New Year was celebrated in the Westin Hotel last Friday lunch time by the Ireland Hong Kong Business Forum.

I was a guest of the Forum’s Chairman, Ronan King, as were Liu Biwei, the Chinese Ambassador to Ireland, David Marsden, Director of the London-based Hong Kong Trade Development Council, and Hinny Lam, Deputy Representative, Government of the Hong Kong Special Administrative Region.

We were told that Ireland has a four to one balance of trade advantage over Hong Kong, with combined trade valued at some €1.5 billion and export volumes are holding up quite well.

The Ireland Hong Kong Business Forum is hosted by Dublin Chamber and judging by the fact that  there was a waiting list of over 100 for the event, it is widely supported by the Dublin business community.

The main talking point was the Year of the Tiger, in fact the Golden Tiger, a distant first cousin of the Celtic Tiger; on the mother’s side.

So if you were born like other Tigers in 1950, 1962 or 1974 you are dynamic, attractive, lively, sociable, enthusiastic, intelligent, alert ,’incorrigibly competitive’, a fast learner  and optimistic by nature.

So much for the good news. Tigers are also impatient and stubborn. They get bored easily. They can be difficult though stimulating bosses. They tackle almost everything in their lives in brief bursts of energy, collapsing afterwards in a heap of exhaustion.

The Year of the Tiger is forecast to be one of fast pace, personally and professionally. Forget about last year’s slow plodding, Tigers will set events in motion at speed and with high drama. Intense change is to be expected. Tension and unpredictability will follow so we are told.

Tigers should beware of those born in the Year of the Snake (1953, 1965 and 1978) as both personalities are ‘on completely different paths that are not worth crossing’.

There were many Tigers and Snakes to be found in the Dohenys afterwards judging by the flow of conversation on all matters political.

Tesco

February 11, 2010

 

Tony Keohane, a native of Cork, and CEO of Tesco Ireland, spoke this morning to a packed house of over 200 members and guests about his insights into managing one of the country’s largest retail operations.

He gave the following facts about the company:

  1. Globally, Tesco is present in 13 markets (and market leader in seven); with 4,500 stores and 464,000 staff. Some 30 million customers shop at Tesco.
  2. In Ireland, Tesco is the country’s leading food retailer (26% market share) with 119 stores (and 15 filling stations). The company employs 13,000 and has invested €1.5 billion into the economy.
  3. Tesco buys some €2 billion worth of Irish food products each year and exports €655m to Tesco stores across the world.

Tesco has recalibrated its business to take account of changing market circumstances.

Several interesting trends have been noted: almost military style, customers are now planning their shopping trips; shopping lists are back in vogue with a more ‘promiscuous’ customer, as Tony described them emerging; there has been a growing and accelerating switch to own label brands; late night shopping is much reduced; and shoppers are spending more time in Tesco stores.

To address these changes, Tesco introduced what it calls its ‘Change for Good’ programme, a structural change in the way it does its business.  With an average reduction of 22%, prices have been cut on 12,500 goods bringing the price differential between Northern Ireland and Ireland to the lowest level since the break with sterling in 1979. Customers were also given a wide choice of goods and new layouts with a particular emphasis on fresh food. The programme is working as the footfall in Tesco shops is growing; by 30% in the border region.

Tony concluded on a very positive note.

He believes that consumer confidence is lifting, but from a low level. Tony believes that businesses should ‘listen-heed-react’ to what their customers are saying. He said Tesco would now be reviewing investment projects which had been put on hold as economic growth will only come from business investment.

Chamber members will have returned to the day job buoyed with such an up-beat presentation from one of the country’s largest employers in one of the sectors worst affected by the recession.


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