Deputy Griffin gave me notice of his intention to raise on the Adjournment the designation of Clonmel for urban renewal.
Adjournment Debate. - Clonmel (Tipperary) Urban Renewal Designation.
I should like to thank you, a Cheann Comhairle, for having given me this opportunity to bring this matter before the House this evening. Being a native of Clonmel I know it is a matter near and dear to your heart. Were our positions reversed I have no doubt that you would be eloquently imploring the Minister to grant designated status to Clonmel forthwith.
The reason I raise this issue is that, on 9 May, when I tabled a question to the Minister for the Environment, who is present, about the designation of Clonmel for urban renewal, in replying he indicated — at least my interpretation of his remarks was — that he had no intention whatsoever in the short, medium or long term of giving such status to the town of Clonmel. I want to give him an opportunity this evening to spell out clearly and unequivocally where he stands in that regard so that, in turn, members of Clonmel Corporation and their officials will know exactly where they stand.
Public perception of Clonmel is one of a very prosperous town situated in idyllic surroundings, as the Ceann Comhairle knows only too well, on the banks of the Suir between Slievenamon and the Comeragh mountains. Until quite recently the town had been quite impervious to the draughts of economic winds, the stresses and strains other towns had had to ensure. It appears that the town would be totally immune to the economic failings of the recent past. Unfortunately, that scene has changed. Clonmel had been the envy of many provincial towns and is reputed to be the largest inland town in the country. It was the envy of other towns with its high levels of employment and busy commercial life. But the winds of change have overcome Clonmel. That is why I am this evening beseeching the Minister to throw a lifeline to the commercial and industrial life of the town.
On inquiring today I was told that there are 1,735 people on the live register which, for Clonmel, consitutes an all time record. The numbers on the live register have risen significantly over the past nine months, an increase of some 500, representing an increase of approximately 30 per cent on the level of unemployment obtaining there. But for the safety valve of emigration — with so many of the young girls and boys of Clonmel and surrounding areas leaving to seek employment in England, America and Australia — that figure would be much higher. Therefore the figure of 1,735 gives a false impression of the real level of unemployment in Clonmel.
Over the past couple of years a number of industries have gone out of business or being wound down. For example, in 1984 Padmore and Barnes, shoe manufacturers, closed with a loss of 95 jobs. Last year Alamac Limited, an engineering firm, closed with a loss of 35 jobs. Earlier this year the old firm of Edmund Burke and Sons, bacon curers, was acquired by Avonmore. The promise of a new bacon industry to be built on the fringes of the town has not materialised which has meant there has been a subsequent loss of between 80 and 90 jobs. Likewise Currans, a firm in Clonmel that once gave significant employment, at peak of 50, is gradually winding down to single figures.
It was against the background that Clonmel Corporation, in their wisdom and foresight, decided to do something about the position. When the Urban Renewal Act was enacted they decided its provisions would be the lifeline to save Clonmel. They set about readying themselves, preparing their application for such a status. In that exercise they earmarked three areas — the Market Street/Emmet Street area, near the centre of the town with great commercial potential was the first. The second area was the Main Guard one, constituting the real heart of Clonmel the focal point of the town, an area of great historical and architectural beauty. The third area was that in the vicinity of Mary Street, an old historic area going back to the greatest traditions of the town. They pinpointed these three areas and set about acquiring them either voluntarily or compulsorily. I am informed that they spent in excess of £1 million and much time and energy in acquiring these properties so that they be ready for designation. They acquired all of these properties out of their resources without any funding from the Department of the Environment.
In October 1987 I understand they submitted their very detailed application, indicating the relevant areas, giving appropriate reasons, fulfilling all of the conditions of the requisite application. When that application was not being dealt with the urgency they felt it warranted they sought an interview with the Minister. The Minister kindly met a deputation on 2 February last when, once again, they put forward what I regard as their impeccable case for the designation of Clonmel for urban renewal. As a consequence of other major provincial towns, such as Limerick, Waterford, Kilkenny, indeed Athlone having been designated already, Clonmel Corporation felt their town was losing out, especially bearing in mind the designation of the towns of Kilkenny, Waterford and Limerick, towns located in the vicinity of Clonmel vying for the same type of commercial and industrial development. As a consequence of those other areas having been granted this designated status they feel they are losing out to developers who, naturally, will go where enticements and reliefs are greater. Be that as it may, I understand that contractors are inquiring daily from Clonmel Corporation when this designation status will be granted so that they can develop these areas for commercial and business activities.
I should like to praise the members of Clonmel Corporation, their officials and indeed those of the county council on their foresight in having had everything in readiness, in having foreseen an opportunity to improve their town.
The Minister indicated in his reply to my question that there were 15 centres designated under the Urban Renewal Act, 1986. In May 1988 nine provincial centres were designated, some of which I have mentioned. Some of these centres have progressed well and have made a success of their designation status while others have not. For the Minister to indicate that he is awaiting the outcome of the designation of these areas before he makes a decision in favour of Clonmel is totally unfair to Clonmel. The Clonmel case should be judged on its own merits. A town must go forward, it has to develop, expand, progress and make itself commercially attractive to developers. That is what I feel Clonmel Corporation have done; they have given the lead. Everything is ready for take up. The areas are specified.
I understand there are no legal barriers whatsoever, that there are no financial hindrances, that everything is ready and that all it needs is the go ahead from the Minister and his Department. That is why I am asking the Minister this evening to match forward thinking enterprising Clonmel Corporation and its officials by responding to the efforts they have made. Indeed, It would also encourage other areas to seek this status. If other areas were given that status further development, both commercial and industrial, would take place with consequent downstream employment. It would invigorate and generate employment and activity in many towns. It would prove the success of the Urban Renewal Act, 1986. If the Minister was looking for areas to prove how we can be successful, then this would be one area to which the Minister could point. Everything is ready. All we are asking is that the Minister cast off bureaucracy and the chains that are holding down Clonmel at this moment. With a stroke of his pen the Minister can give the go ahead this evening. Perhaps he wants to get some kudos out of it, I do not. We will allow the Minister to announce it, and we will give him whatever facility he needs in Clonmel or in South Tipperary to make the announcement if he so wishes.
The business people of Clonmel are awaiting his decision. The commercial life of Clonmel are awaiting his decision. They want him to react to this forward thinking activity and enterprise by their corporation. I ask the Minister not to impede the progress of Clonmel or the development of central Clonmel especially, but to give them this designated status which they so eagerly await and which they are ready to avail of.
I have no doubt the Minister will not be disappointed because I understand, if he gives the go ahead, the developers can virtually start in the morning to transfrom the centre of Clonmel.
I await the Minister's decision and hope it will be a positive one for the benefit of the people of Clonmel who, in the past, have indicated by their local enterprise, initiative and drive that, given a helping hand, they can withstand the winds of change and prepare themselves for the Single European Act and the challenges of the nineties. They can do all this if they are given this shot in the arm which they so eagerly expect.
I am pleased to get the opportunity to discuss the important question of urban renewal. In common with most developed countries, we are experiencing some physical degeneration in many of our inner cities and towns. These areas are often characterised by derelict sites, unused and run down buildings, defective and outdated infrastructural facilities and exceptionally high rates of unemployment and welfare dependency among the resident population. The poor physical environment and urban fabric reinforces the perception of the areas as undesirable locations for private investment.
A programme of urban renewal is being implemented to deal with this extensive decay. The State cannot at this stage invest substantial amounts of public moneys in urban renewal because of budgetary constraints. Accordingly, the programme is based principally on the stimulation of redevelopment by the private sector in targeted urban areas. This is being achieved by means of a scheme of incentives designed around tax and rates reliefs for developers and end-users of completed developments.
Under the Urban Renewal Acts, 1986 and 1987, two broad new strategies have been conceived to promote urban renewal. In the Custom House Docks area of Dublin, a special development authority has been created with flexible financial and physical planning powers to secure the redevelopment of part of the North Docks area of Dublin.
Elsewhere in Dublin and in the rest of the country, specific urban renewal objectives are being pursued through the designation of selected areas within cities and towns for an intensive campaign of redevelopment. The local authorities concerned are principally responsible for co-ordinating and advancing urban renewal programmes in these designated areas. Originally, parts of the five county boroughs were designated in 1986. Since then, however, I have taken the initiative of extending the scheme to nine provincial centres: in May 1988 I made an order designating parts of the following towns for urban renewal purposes — Athlone, Sligo, Castlebar, Tralee, Kilkenny, Wexford, Tullamore, Letterkenny and Dundalk. In November last year, I also designated an area in Tallaght.
Common to the urban renewal programmes in the Custom House Docks area and elsewhere are tax incentives, subject to some variation according to the type of area, involving rates, corporate tax and income tax. I would like to point out that conferring designated area status on an area does not automatically or immediately confer tax and rating incentives on the area concerned. The incentives to apply to any given area involve a separate policy decision by the Minister for Finance in consultation with myself, for the tax incentives, and by the Minister for the Environment for the rating incentives. In general, however, these allowances are applied to all designated areas.
Overall, the urban renewal scheme has enjoyed considerable success to date. Since its inception, some £111 million worth of investment has been definitely generated — between schemes completed, in progress or in planning. Furthermore, an estimated £63 million worth of extra investment is expected to reach planning application stage shortly, bringing total investment to a figure of about £173 million.
This must be regarded as a considerable success; most of this development is genuinely additional and would not have occurred without the active promotion of urban renewal measures.
The example of Dublin is worth quoting. Between 1976 and 1986, no new developments took place along the quays. Since the introduction of the urban renewal scheme, 17 projects have been completed, six are in progress and at least 15 more are at planning stage, with a total value in the region of £40 million.
I readily admit that there are extensive problems of urban decay in many of our towns and cities. Although we have only formally designated some 160 acres in Dublin for urban renewal, much of the larger inner city area between the two canals could readily be classified as being in need of urban renewal. For a variety of reasons, however, the designated areas scheme must be selective. It would be wholly impracticable to suggest that designation should be extended immediately and in blanket fashion to each and every run down area of our cities and towns.
In the first place, the cost of such a widespread scheme would be prohibitive in terms of the amount of taxes and rates foregone. The Exchequer and local authorities could not contemplate such a loss in the immediate term. Secondly, it should be borne in mind that the more widespread designation becomes, the less it is seen as something special and the more it is seen as the norm. The various special incentives under the scheme would soon be regarded as standard ones and the scheme would lose its desired stimulus and effect. Thirdly, the more widespread the scheme, the more dissipated the results. It is likely that some redevelopment would take place, but not to the extent that it would have a noticeable impact on the level of dereliction. It is only by targeting specific areas that we can hope to see results.
Deputy Griffin is, understandably, pressing the case for the Borough of Clonmel which he represents. I have no difficulty in acknowledging that there are some parts of Clonmel in need of renewal which could, in principle, benefit from the urban renewal scheme. However, I must also point out that there are many other towns and cities throughout Ireland which could make equally strong claims for designation. For the reasons already given I am faced with the difficult and sometimes unenviable task of deciding which areas must be given priority under the scheme. I can assure the House that all representations and submissions by interested parties are borne in mind when and if I am considering proposals for designation at another time.
Indeed, I received a deputation from the members and officials of Clonmel Urban District Council and Tipperary (South Riding) County Council last year. As I indicated at that time and to Deputy Griffin in my reply to Parliamentary Question No. 11 of 9 May 1989, I cannot give any guarantee about future designations, or if any future designations are going to take place.
I am monitoring the progress in the nine provincial centres that were designated in May 1988. While progress in some of these areas is somewhat disappointing, it is perhaps too early to judge the overall level of success of the scheme in these areas given that they were designated only one year ago. I would wish to evaluate fully the progress of the scheme in these provincial centres and then make some decisions about further designations if such is warranted.
I would like to point out that the economic recovery achieved under this Government has created conditions which are now much more favourable to property redevelopment than when the scheme was introduced in 1986. This is another matter which I will have to consider in the context of the need for further designations.
The Deputy may rest assured that the case for Clonmel made by him and his colleagues has been noted and that it will receive my consideration in any future proposals to extend the designated areas scheme.
Could the Minister tell us when?
The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 23 May 1989.