I have given my web designer FTP access, but he has advised me that he also needs to be able to have a MySQL login (or some other method of creating a database and permissions).

MySQL can be connected via the control panel. Your designer should be able to configure everything using the control panel.

If you log in and click on your account, you will see the heading Site Management and Tools. Under there, you will find phpMyAdmin, click on it and you can manage databases from there. Here is where you setup MySQL db.
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