Agenda item

            The Committee considered the undernoted report and adopted the recommendations contained therein:

“Relevant Background Information

      LaganCanal Navigation Project

      Members will be aware of the renewed interest in Belfast’s marine and river heritage generated from The Tall Ships Atlantic Challenge 2009.  The Lagan Boat Rally held over the same weekend, organised by the Lagan Branch of the IWAI and Belfast City Council, also animated the river and raised both the potential of the river and canal as a tourist and recreation attraction and as a potential economic generator for the City.

      Members are reminded that funding of £1million has been made available by Ulster Garden Villages Limited towards the reopening of the Lagan Gateway Project Lock 1 at Stranmillis.  An action plan which outlined the proposed activities to be developed in relation to the project was approved at the Development Committee meeting held on 12 September 2007 and, as a result of the action plan, the Lagan Gateway Project Scoping Study and Economic Appraisals were undertaken.

      The Scoping Report, noted at the Development meeting on 13 August 2008, identified a number of restoration and development works that would facilitate the re-opening of the first phase of 9 km of the Lagan River and Canal from Belfast Harbour upstream to Lock 3 at Shaw’s Bridge.  These key development sites included Queens Quay (site of the Lagan Weir), Stranmillis (the ‘Lagan Gateway’), site of Lock 2 at Moreland’s Meadow, river channel works, weir and canoe slalom upstream from Lock 3. 

Key Issues

      Economic Appraisal

      The Economic Appraisal has been completed by FGS McClure Watters Consultants.

      The Report states that the project is congruent with key national, regional and local government strategies relating to economic, social and environmental development and has identified the benefits of opening the Lagan Navigation in terms of;

-     Tourism – it will enhance the reputation of BelfastCity as a tourism destination.

-     Economic Development - arising from the creation and development of a unique tourism and recreational product offering and the investment and spending that this will generate.  It is envisaged that the common links between the Lagan and Belfast City’s other tourist amenities and, in particular, the Titanic Signature Project, will represent the development of a significant maritime and industrial heritage themed tourism product for Belfast.

-     Economic and Social - the restoration of inland waterways can potentially generate many economic and social benefits such as an increase in direct visitor spend and the creation of full time jobs.

-     Heritage – the restored Lagan will provide the community with a connection with the past and will bring a sense of identity and belonging to the area.

-     Recreation - the proposed infrastructural development will encourage a higher rate of participation in local water sports activities.

-     Public Realm -the works will greatly enhance the public realm of this lower section of the Lagan and will see increased pressure for the improvement of the water quality due to an increased interest in the river and canal for recreation.

-     Complementarities with other waterway developments - a fully restored Lagan and the restoration of the Ulster Canal would see the significant creation of an integrated east-west waterway system, create an all island waterway network and the development of a key source of economic activity for the island.

-     Local Investment –the project would serve to increase the attractiveness of the recent and current developments in Belfast City as well as existing properties in the lower Lagan Corridor and will help encourage investment upstream, particularly in recreation/leisure related infrastructure and service.

      The report states that the restoration of the Lagan will represent an investment which will drive the City’s tourism, recreational and hospitality industries. It will result in increased visitor numbers to Belfast, increased visitor spend and the creation of jobs.  It will stimulate further development of water-side properties, particularly in the tourism, recreation, hospitality and leisure sectors. The real economic impact of proposals to restore the Lagan navigation will be realised by Belfast’s wider tourism, health and wellbeing activities and its recreational and hospitality industries in terms of increased visitor spend, job creation, increased tourism expenditure and the associated multiplier effects.  An example of similar investment is the HuddersfieldNarrow Canal which brings in £2.5m from visitors annually and in turn has led to £100m worth of investment and the creation of 800 jobs.

      The Economic Appraisal recommended that in terms of the combined risk analysis, a  phased full delivery of all proposed restoration works including those at Queens Quay, Lock 1, Lock 2, and river channel works up stream of Lock 3 (Shaw’s Bridge) is the ‘preferred option’ with an estimated total cost of £8,660,949.  As a ‘next best’ option and in the event that Belfast City Council fails to secure (or at least provisionally secure) funding for the phased delivery option, they should proceed with Option 4, which are the works to Lock 1 Stranmillis Gateway with an estimated cost of £3,261,860.

      Consultation

      Members are reminded that discussions and meetings have been held with a number of Lagan corridor stakeholders including the DCAL, IWAI, DSD, DETI, TQL, local developers, Northern Ireland Planning Service, UWG, WI, NITB, LVRP and SBPB.  Further consultation is required with the potential new key stakeholders to gain support and funding for the proposed project.

Resource Implications

      The estimated total cost for the proposed Lagan Canal Navigation Project from the Lagan Weir to upstream from Lock 3 (Shaw’s Bridge) is £8,660,949. 

Recommendations

      It is recommended that Members:

-     Note the content of the Economic Appraisal of the proposed Lagan Navigation Project, a copy of the full report is available in the Members Library.

-     Agree the development of further work including the assembly of a funding package from a range of sources.

Decision Tracking

      An update report on potential financing options will be brought to Committee at a later point.

Timeframe: April 2010          Reporting Officer:    Shirley McCay

Key to Abbreviations

      IWAI - Inland Waterways Association of Ireland

      DCAL - Department of Culture Arts and Leisure

      DSD - Department of Social Development

      UWG - Ulster Waterways Group

      WI - Waterways Ireland

      NITB - Northern Ireland Tourist Board

      LVRP - LaganValley Regional Park

      SBPB - South Belfast Partnership Board

      DETI – Department of Enterprise Trade and Industry

      TQ – Titanic Quarter Ltd”