Marine and Ocean Potential Peter Heffernan Marine and Ocean Potential NATURAL & MARINE REGION

(A Northern & Western Regional Context) One Region One Vision (A Northern & Western Regional Context) Peter Heffernan December 8th 2016 Acknowledgements Thanks to organisers

What we are seeing now in Ireland is a real renaissance of Ireland’s blue economy, a rediscovery and new appreciation of our ocean wealth and its social, economic and societal value, and a series of actions around this that is shaping the future of our nation. It is a period of time that is being characterised by new ways, new approaches new thinking and a real thirst and drive to achieve more from our ocean wealth. We are now operating in an era where the technological expertise exists to enable us to explore our marine in previously unimaginable ways. Taking our seabed area into account, Ireland is one of the largest EU states; with sovereign or exclusive rights over one of the largest sea to land ratios (10:1) of any EU State.   220,000,000 acres of ocean area, 880,000,000 km2. strategically situated on the western edge of Europe at the European Atlantic Seaboard. Our coastline of 7,500km is longer than that of many European countries. Yet we see the land as the primary provider of our food and fuel, and often overlook our ocean wealth. What do we mean by Our Ocean Wealth? Ireland’s coastline, inshore and offshore waters: Contain some of the largest and most valuable sea fisheries resources in Europe Are an idea location for finfish, shellfish and seaweed aquaculture Are the western gateway for shipping to Europe’s busiest ports Contain significant oil and gas resource potential as evidenced by recent discoveries and ongoing research Offer spectacular tourism and leisure opportunities and a rich maritime culture and heritage Support a rich and diverse range of ecosystems, habitats and species and unique land and seascapes; and Are amongst the richest and most accessible renewable energy (wind, wave and tidal) resources in the world; Provide opportunities to develop new products and services Contribute to our citizen’s wellbeing, health and quality of life Ireland’s Ocean Wealth also includes: Irish flagged ships, including fishing vessels, trading globally; Irish qualified seafarers, fishers and recreational creaft users working globally; and Irish maritime companies and organisations providing global products and services

Teelin Knoll, Carrigan Hd., Donegal Bay

HMS Vanguard

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

Whole of Government Approach

Provision in this policy document made ocean wealth a central part of our economic recovery and a basis of our sustainable future growth using this marine resource. It focused on 3 goals Build the marine economy from 2 billion today to greater than 6 billion by 2020. It’s second goal is to develop a healthy ecosystem that would conserve our biodiversity and ecosystems, protect our environment, and allow development to be in harmony with the protection of the ecosystem. The third goal is to refocus our economy on the sea, to build on our maritime heritage, increase societies awareness of the opportunities and value that exist with marine and ensure that all engaged positively in its development. Harnessing Our Ocean Wealth – an IMP for Ireland sets out a shared vision -> Our ocean wealth will be a ley element for our economic recovery and sustainable growth, generating benefits for all our citizens, supported by coherent policy, Planning and regulation, and managed in an integrated manner. Three high level goals, of equal importance, based on the concept of sustainable development have been developed –> Goal 1 focuses on a thriving maritime economy, whereby Ireland harnesses the market opportunities to achieve economic recovery and Socially inclusive, sustainable growth. Goal 2 sets out to achieve healthy ecosystems that provide monetary and non-monetary goods and services (e.g. food, climate, health, and well-being). Goal 3 aims to increase our engagement with the sea. Building on our rich maritime heritage, the goal is to strengthen our maritime identity and increase our awareness of the value (market and non market) opportunities and social benefits of engaging with the sea. The vision and goals have been framed within the context of what is happening at the broader global EU levels, particularly the Integrated Maritime Policy For the European union, recognising the contribution the “blue economy” can make to global economic growth and the need for appropriate policies, strategies And funding mechanisms to enable this. Harnessing our Ocean 2020 targets: Double the values of our ocean wealth to 2.4% of GDP by 2030 Increase the turnover from our ocean economy to exceed 6.4 billion by 2020.

Sectors of Marine Industry Diversity and opportunity across 13 different sectors Established Marine Sectors Emerging Marine Sectors Shipping & Transport Tourism & Leisure International cruise tourism Marine retail services Marine fisheries Marine aquaculture Seafood processing Oil & Gas Manufacturing & construction High tech marine products & services Maritime commerce Renewable energy Bio-technology and bio-products (Source: SEMRU – Ocean Economy Report - 2015)

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

Structure of MDT Note: List not exhaustive MDT IDA EI SFI ÚnG MI IMDO SEAI FI GSI BIM Bord Bia Relationship with agencies Note: List not exhaustive

Operation of MDT P3 P2 Jobs and economic growth P1 P4 ACTIVITIES Business development pipeline ACTIVITIES Enquiries, Surfacing, Scanning, Vetting Marketing, Researching, Assisting Evaluating, Funding Developing Maturing, Implementing LEAD MDT AGENCIES SUPPORT MDT moves projects through project pipeline P3 P2 P4 P1 Jobs and economic growth

Development Agencies & Organisations Widespread support

Other supports Participants in the work of the Development Task Force

Support Within the Education System Across the education system

Ireland’s Reach Across the World Importance of collaboration

Unprecedented Opportunities in Irish Maritime Industry Recognised in the Government’s Harnessing Our Ocean Wealth Strategy Renew Underperformance Only 0.8% of Ireland’s GDP comes from maritime activities compared to 2.4% internationally and up to 9% in high-performing maritime economies Having spoken about what we do, now let’s talk about the exciting things that we will be doing in the future The maritime industry is a broad church that encompasses shipping, fishing, seafood, aquaculture, renewable energy, oil & gas, ship repair and maintenance, marine tourism, ports, and of course maritime commerce.

OECD (2016)- The Ocean Economy Report 2030 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

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

Joined-up thinking Industry Engagement Opportunity Building blocks of success Political Support Economic Analysis Policy Framework Competitive Advantages Tax Treatment Research and Education Collaboration Industry Engagement Opportunity Political support – a desire to grow the Irish Economy Economic Analysis – SEMRU – Ireland’s Ocean Economy Reports Policy – Integrated plan contained in the Harnessing Our Ocean Wealth Report Advantages – Our plans are not built on naïve ambition, but on real competitive advantages Tax – The Government has expressed a willingness to support the development of the sector with appropriate tax measures and has left the door open for industry to make its case Research and development – 3rd level, research bodies, SEMRU, Marine Institute etc. Collaboration – MCG / Development Task Force / the Marine Development Team Combining to deliver the much vaunted joined-up thinking that many such plans are criticised for overlooking This approach creates a great opportunity for Ireland

Real Competitive Advantages What makes Ireland better as a hub for maritime commerce Renew Business Friendly Maritime Nation 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 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 Demographics Track Record Young, talented, motivated, and well-educated workforce Ireland has a track record in related areas (IFSC and aviation leasing, on which we can build.

More than 60,000 visitors

Thank You Peter Heffernan December 8th 2016 Acknowledgements Thanks to organisers

Trends in Ireland’s Ocean Economy 2007-2014 HOOW Baseline €3.4bn

Trends in Ireland’s Ocean Economy 2014 - ESTIMATED 2012 2010 0.8% 0.7% 0.7% Employment 18,480 FTEs %GDP 0.7% Employment 17,425 FTEs %GDP 0.7% Employment 16,614 FTEs %GDP 0.7% €4.5b €3.1b €4.2b Turnover €3.1bn GVA €1.2bn Turnover €4.2bn GVA €1.3bn Turnover €4.5bn GVA €1.4bn %CHANGES 2010-2012: %CHANGES 2012-2014: +4.9% +9.2% +33.1% +6.1% +8.2% +7.6% Performing on average better than the general economy

Ireland’s Ocean Economy Employment 18,480 FTEs %GDP 0.7% 0.8% Turnover €4.5bn €4.5b GVA €1.4bn 16% 48% 21% 15%