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Peter Heffernan
Marine and Ocean Potential
NATURAL & MARINE REGION
WWW.MARINE.IE
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One Region One Vision
(A Northern & Western Regional Context)
Peter Heffernan
December 8th 2016
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Teelin Knoll, Carrigan Hd., Donegal Bay
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HMS Vanguard
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Renaissance in Irish Marine Industry
Metaphor for growth
•
•
•
•
•
•
Emergence form the dark ages
Desire and need for progress
Political support and patronage
Advances in science
Exceptional, talented people
An alignment of the stars
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Whole of Government Approach
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Sectors of Marine Industry
Diversity and opportunity across 13 different sectors
Established Marine Sectors
1.
2.
3.
4.
5.
6.
7.
8.
9.
Shipping & Transport
Tourism & Leisure
International cruise tourism
Marine retail services
Marine fisheries
Marine aquaculture
Seafood processing
Oil & Gas
Manufacturing & construction
Emerging Marine Sectors
10. High tech marine products &
services
11. Maritime commerce
12. Renewable energy
13. Bio-technology and bioproducts
(Source: SEMRU – Ocean Economy Report - 2015)
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Key economic trends
•
•
•
Ireland’s ocean economy is
performing on average better than
the general economy.
Growth in Irish GDP = up to 5% (2010
to 2014)
Growth in Ireland’s ocean economy =
up to 9% (2010 to 2014)
•
Over the period 2010-2012 the sector
experienced:
– an increase of 33% in turnover;
– 9.2% increase in GVA; and
– 5% increase in employment
•
Multiplier effects:
– For every €100 turnover from
Ireland’s Ocean Economy, a further
€78 is created in other sectors as a
knock-on effect
– For every 100 marine jobs, a further
75 jobs are created indirectly in other
parts of the economy
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Structure of MDT
IDA
Bord
Bia
Relationship with agencies
EI
BIM
SFI
MDT
GSI
ÚnG
FI
MI
SEAI
IMDO
Note: List not exhaustive
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Operation of MDT
Business development pipeline
ACTIVITIES
Enquiries,
Surfacing,
Scanning,
Vetting
MDT
moves
projects
through
project
pipeline
Marketing,
Researching,
Assisting
Evaluating,
Funding
Developing
Maturing,
Implementing
P3
P1
P2
P4
LEAD
MDT
MDT
AGENCIES
AGENCIES
AGENCIES
SUPPORT
AGENCIES
AGENCIES
MDT
MDT
MDT
Jobs and
economic
growth
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Development Agencies & Organisations
Widespread support
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Other supports
Participants in the work of the Development Task Force
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Support Within the Education System
Across the education system
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Ireland’s Reach Across the World
Importance of collaboration
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Recognised in the Government’s Harnessing Our Ocean Wealth Strategy
Underperformance
Only 0.8% of Ireland’s GDP comes from
maritime activities compared to 2.4%
internationally and up to 9% in highperforming maritime economies
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Unprecedented Opportunities in Irish Maritime Industry
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OECD (2016)- The Ocean Economy Report 2030
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•
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Globel ocean value – USD 1.5 trillion = 2.5% GVA
Offshore Oil & Gas = 1/3 of total value
Followed by Maritime tourism and equipment and ports
•
•
Direct FTE Employment 31 million
Largest employers = fisheries (1/3 ) and tourism ¼
•
•
Scenarios 2030
Business as usual
–
–
•
More than double ie USD 3 trillion – growth in aquaculture, offshore wind, processing, and
shipbuilding and repair
40 million FTEs – fastest growing offshore wind, aquaculture, processing and port
Innovation and S&T key role to play in the future
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OECD (2016)- The Ocean Economy Report 2030
Challenges:
• In rapid changing pace – regulation and governance will struggle
• Growing pressures on the resource and ocean space
Recommendations:
• Greater international cooperation in S&T – stimulate innovation
• Strengthen integrated ocean management
• Improve economic statistics
• Increased Ocean Industry Foresight
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Building blocks of success
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Joined-up thinking
Political
Support
Economic
Analysis
Collaboration
Industry
Engagement
Opportunity
Research
and
Education
Policy
Framework
Tax
Treatment
Competitive
Advantages
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Real Competitive Advantages
What makes Ireland better as a hub for maritime commerce
Business Friendly
Ireland’s advantages as a hub for
FDI are well understood and
apply to the maritime industry in
the same way as they apply to
other sectors
Demographics
Young, talented, motivated, and
well-educated workforce
Maritime Nation
Ireland is a maritime nation, with
an amazing natural resource, on
which we are heavily dependent.
It makes sense to build
competencies in this sector
Track Record
Ireland has a track record in
related areas (IFSC and aviation
leasing, on which we can build.
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More than 60,000
visitors
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Thank You
Peter Heffernan
December 8th 2016
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Trends in Ireland’s Ocean
Economy 2007-2014
5000
4000
HOOW Baseline €3.4bn
3000
Turnover
2000
GVA
1000
0
2007
2010
2012
2014
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2014 ESTIMATED
2012
2010
0.8
%
0.7%
0.7%
Employmen
t
17,425 FTEs
%GD
P
0.7%
Employmen
t
16,614 FTEs
Turnover
€3.1bn
%CHANG
ES
20102012:
Employmen
t
18,480 FTEs
%GD
P
0.7%
GVA
€1.2bn
+4.9
%
Turnover
€4.2bn
+9.2
%
+33.1
%
%GD
P
0.7%
€4.5
b
€4.2
b
€3.1b
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Trends in Ireland’s Ocean
Economy
GVA
€1.3bn
%CHANG
ES
20122014:
Turnover
€4.5bn
+6.1
%
+8.2
%
GVA
€1.4bn
+7.6
%
Performing on average better than the general economy
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Ireland’s Ocean Economy
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0.8%
€4.5b
Employment
18,480 FTEs
Turnov
er
€4.5bn
GVA
€1.4bn
%GDP
0.7%
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