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Limerick City could be Clare’s saviour

This article is from page 34 of the 2008-07-22 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 34 JPG

else terday Jim Power, Chief Economist with the Friends First Organisation said that while the situation is criti- cal in the county, the regeneration of Limerick may offer some light on the keleyZeyee

“The situation in Clare and right across the mid-west is perilous at the moment. One possible source of light is Limerick city and the regen- eration work that is due to take place there over the next months and years. GMA dereTmp tour DU lO (cre mmKO mee rlBNTLUComBatssO BLE could be a real help. But it’s going to get worse before it gets better,’ he Sr nLGe

In a bleak overall assessment, Mr Power noted that key employers such as manufacturing, construction and tourism face a tough time over the next 18 to 24 months.

According to the 2006 census, these sectors employ more than 15,000 people in Clare, or 27.9 per cent of the total employed. One major sec- tor which could grow in the county Thsere Faw (UN LAUD Kee

“Competition internationally has increased while at the same time we are losing ground in terms of manu- facturing competitiveness. I can’t see how manufacturing or construc- tion can lead us out of this current trough,” he continued.

“T would be more upbeat about the prospects for Clare farming. The issue of food safety and food secu-

rity is one that I think will become of greater importance over the next while. So the outlook for quality out- puts in farming should be good. “Clare suffers from a high depend- ency on US tourists and with the de- pression in America, the weakness of the dollar and prices in Ireland, we just don’t represent good value for money for American tourists at the

moment.

“There can be a positive outcome but we need to survive through the next 18 months. I would see the glo- bal subprime crisis working its way through the system next year which should return credit to a more work- able place. We have about 18 months of excess stock in the housing mar- ket to work through so I think it will

be 2010 before we see any kind of meaningful recovery.’

Mr Power’s bleak outlook on the immediate future was echoed by Ae) cTOMM ORC E-TIMES ONO NenmE(cenlbio in LIT’s School of Built Environ- ment.

“IT think the recession could poten- tially hit Clare quite severely due to the adverse trade effects upon a re- gion with a high dependence upon high value added trade via Shannon,” he said.

“The decision to permit the aban- donment of the ‘hub’ status of Shan- non may well exacerbate a reduction in regional competitiveness. Wor- ryingly tourism jobs, especially de- pendent on the USA will also take a vie

“These largely external threats make it imperative that infrastruc- ture spend from central government is maintained on roads, projects such as the tunnel, and higher education. Irish agriculture will also need ro- bust support at the WTO talks, since this staple of the local economy will take on even greater relative signifi- cance in a downturn.”

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