More public investment needed for Cork to thrive
Every company has to produce a year-end balance sheet which provides a picture in time of the assets and liabilities within the business. This gives shareholders a good helicopter view of the state of play inside the company.
With year-end rapidly approaching, it might be no harm to weigh up a balance sheet for the state of Cork.
The ‘company’ of Cork is in much better shape that it has been for years. The asset side of the ledger, in particular, has been bolstered by a set of investments which have improved the physical and economic landscape of the city. After the completion of a modern office block on Albert Quay, near City Hall, another commercial office development is underway at nearby Navigation House. These offices will replace an empty space and bring hundreds of more income-generating employees towards the heart of the city.
Further east, the completed Páirc Uí Chaoimh adds a sports and events centre that helps the city economy through conferences, games and concerts that should add further stimulus to the city.
Back on South Mall, not only is another office complex being built, but also a hotel. Both of these will add tourists and workers to the city centre and underpin the expansion of restaurants and coffee shops in the area.
In the transport system the asset quality has also improved. Airport services have developed further and the breakthrough transatlantic service in 2017 adds to more European destinations being offered. Alongside that, the main Kent railway station has been redesigned to face the quayside and better show off its Victorian grandeur. At a more granular level, the pace of house construction is picking up.
Aside from new houses, money is being spent on various repair and maintenance projects that combined help explain why it is so hard to find a tradesperson who is not busy at present.
Construction is one of those sectors that offer great multiplier effects in an economy. They tend to be employment-rich, local spenders that help support many other economic activities including retail and services.
Tourism is another positive from 2017. Record cruise line visits to the Port of Cork and high international rankings for sites including Spike Island are testament to the benefits from years of planning and investment.
The liability side is also important to evaluate. These are things that can restrain a business from advancing and act as brakes on economic progress. The key liability I can identify is the quiet Beamish and Crawford site. It offers a major potential injection of activity for the west end of the city centre and can provide a further bridge between the city and the all-important UCC campus.
Fixing the hurdles that stand in the way of developing that project must surely be a big priority for 2018.
The growing sense of congestion around the city, and particularly on the southern bypass is a key liability.
Cork is a relatively small city so efficient transport ought to be one of its strongest points. Removing the Dunkettle roundabout problem is important.
Turning Cork into a bigger and better city requires a combination of private and public investment which helps attract and retain economic activity.
If the private sector can bring jobs and business to the urban environment then the public sector must augment that by ensuring the city has the ability to handle increased activity levels.
The flood-planning scheme is one example of how the public sector can help. Roads, schools and health facilities are others.
All of these need to be accelerated as Cork is set for an extended period of growth and expansion.
- Joe Gill is director of corporate broking at Goodbody Stockbrokers. His views are personal.
