Millions lost in revenue to North Cork
In just four years 6,633 more people are 'signing on'
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Thursday March 11 2010
MILLIONS of euro in revenue has been lost to the north Cork economy over the past four years as a result of the massive increase in the number of people 'signing on'.
According to figures from the Central Statistics Office (CSO) a total of 6,633 people have signed onto the live register at social welfare offices in Mallow, Fermoy, Macroom and Newmarket between Febuary 2007 and February 2010.
The figure underlines just how badly the economic slump has affected the north Cork region, with the number of people signing on the live register at each of the four offices now standing at an all time high.
What is does not accurately convey however is the scale of the financial impact that the recession is having on the region due to the loss of wages. With the current average industrial wage now standing at just under €700 per week, the figure equates to a total loss of earnings to the local economy of just over €240 million over the four-year period.
Tadhg Curtis, chairman of the North Cork Enterprise Board, said the loss in revenue to the local economy has had a "devastating" effect on businesses across the entire region.
Mr Curtis said the reduction in what he described as "discretionary spending" has had obvious repercussions for local business.
"When people do not have the money, they can not spend it. It's as simple as that," said Mr Curtis.
"Taking that kind of money out of the local economy is bound to have an serious impact. Individual businesses will suffer, a fact that has been seen in towns and villages across the region," he added.
He cited Mallow as a point in case, saying that the food industry in particular has been badly hit through the loss of jobs at a number of key employers including the sugar factory, Nestle and Dairygold.
"We have been told that there are positive developments afoot within the sector in Mallow and indeed across the wider north Cork area. However we have yet to see any evidence of action from central government to develop any plans," said Mr Curtis.
"We also keep hearings positive messages regarding developments within the electronics and green sectors, yet there have been no real efforts to back these messages up in terms of new job creation," he added.
He pointed out that bodies such as the NCEB have been working to attract new business and jobs to the region, but they can only do so much without help from central government.
"The reality is that a national strategy is needed to address the jobs situation. In order to do this the government has to show leadership, something that seems to be sadly lacking at the moment," he said.
"The issue of securing credit for start up business needs to be urgently addressed if we are to stand any chance to creating news jobs," he added.
- BILL BROWNE bbrowne@corkman.ie
