Dáil Éireann debate -
Thursday, 13 Nov 1997

Vol. 482 No. 7

Adjournment Debate. - Urban Renewal Scheme.

Mr. Neville

I thank you, a Leas-Cheann Comhairle, for affording me the opportunity to raise this issue in the House this evening. I want to impress upon the Minister and the Government the unique position of Rathkeale in County Limerick. Rathkeale is a unique case because of the special circumstances which prevail there. Almost 45 per cent of the town's population are travellers, and the two cultures live in relative harmony in the town albeit with some tensions. The special circumstances make it important that the town should be considered for the urban renewal scheme. Many of the commercial premises and some of the residential premises in the centre of the town have been withdrawn from commercial or residential use. This is because the traders in the travelling community have purchased these premises and turned them into stores for furniture. Most of the traders are in the furniture business.

It is important to restore the centre of the town to commercial activity. The extension of the urban renewal scheme will provide an incentive to do this and will attract business back into the town. The decline in the physical fabric of the main street of Rathkeale is a serious problem. The inner core of the town is decaying with many of the buildings being derelict, dilapidated, unoccupied and disused. The blight of decay which has strangled the physical, social and economic life of the town must be stopped. People must be enticed to live in the town. The potential of the town to attract private investment and development is depressed because of its physical environment. There is little interest on the part of many owners of properties to undertake development of the buildings.

The designation of the main street in Rathkeale for the purposes of urban renewal will lead to a significant private sector investment in such properties and significantly contribute to the improvement of the town. The Rathkeale Enterprise Committee is unable to address the problem of dereliction alone. The increasing problem of dereliction and dilapidation on Rathkeale's main street was highlighted by a survey undertaken by the committee. Of every ten buildings on the main street, four are derelict, dilapidated, unoccupied or disused. Such buildings are often boarded up.

The population of Rathkeale has declined in recent years contributing to the spread of dereliction and decline. In 1991, there were 1,803 people living in Rathkeale and in 1996 the population was 1,546, yet the population of neighbouring towns has increased dramatically. Two-thirds of the people living in the main street are elderly and they do not have children who are likely to continue living there. The main street is an area which needs to be designated. The widespread dereliction, decline and disuse of the buildings must be addressed by tax designation.

For many years a market for second-hand property has not existed because of the number of neighbouring derelict buildings. No new residential development has taken place in Rathkeale. An alarming number of businesses in the town have closed. Such a loss of economic activity is directly related to the decline in population.

In compiling a strategic plan for the main street, the development committee consulted Limerick County Council for ideas to tackle the decline. The county council wholly endorsed the promotion of the urban renewal scheme in Rathkeale. The enactment of the Derelict Sites Act, 1990, to prevent property becoming derelict and detracting from the amenity, character or appearance of areas has proved difficult for Limerick County Council to implement.

In the case of Rathkeale's main street, buildings continue to be neglected and are unsightly. Urban improvement measures, whether promoted by the county council, initiated by community organisations or provided by private enterprise, were implemented in recent years and improved the physical appearance of the town. Such improvements are overshadowed by a number of derelict properties which, until removed, will make it impossible to achieve the objective of improving the physical environment of the town, attracting people to live in it and sustaining new enterprise.

The experience of other designated areas underlines the interest of many people, particularly young people, in buying town houses or apartments in urban areas and bringing life back into such centres. Elderly people also prefer to live in towns given their proximity to services. The activity generated by an urban renewal scheme would halt the worsening process of decay and dereliction and would change the face of the town. The result of such development would be to improve the amenities for the existing population and attract significant numbers of young people to live in the town.

The enterprise committee recognises the strong focus of the urban renewal scheme on residential development relying on measures to conserve and use existing infrastructure. Rathkeale needs social and economic rejuvenation. Tax designation will encourage people to move back into the town and revitalise the community. A successful town is associated with a growing population. Many people are ready and willing to make the necessary investment if tax designation is granted. Many locals have invested money elsewhere in recent years. The risk in investing in property elsewhere is significantly lower and the likelihood of appreciation in the value of properties is higher in other towns. The designation of the main street and, in particular, residential allowances will bring new life into the town.

The survey carried out by the group indicated there are 56 derelict, dilapidated, unoccupied or disused houses on the main street, more than 39 per cent of the total. Only 27 houses are residential, 13 are residential and business and 16 business alone. Twenty of the houses have only one occupant, 22 have two and three have two or more occupants. Occupants of 38 of the 42 residences consist of people living alone or two people living together who are more than 50 years of age.

We must bring down the barriers to development. Fifty-six properties in the main street are derelict. Property values in the town are plummeting and there is genuine economic decline. In the past 20 years, 64 businesses have disappeared from the main street and have not been replaced. There is a decreasing population and increasing employment and we must break this vicious circle of decline. I ask the Minister and the Government to acknowledge the urgency in designating the centre of Rathkeale for urban renewal.

Mr. Fahey

Before I turn to the specific case of Rathkeale, it would be helpful if the general issue of urban renewal was put in context. In 1986, the tax incentive approach to urban renewal was first introduced. Under this approach, a range of special incentives was introduced for new construction and refurbishment works in designated areas. When that scheme came to an end in 1994 a new scheme was introduced. Under the second scheme, areas were designated in 35 cities and towns throughout the country. This scheme expired at the end of July this year except for certain projects then in progress. Subject to certain criteria, such projects were given a further year up to the end of July 1998 for completion. In these circumstances, the Deputy will appreciate that the issue of extending the current scheme to additional areas does not arise.

It is widely accepted that the two schemes which have operated since 1986 have produced some very useful results. We can all point to examples of areas where a striking visible transformation has taken place; areas where dereliction and decay have been replaced by vigour and vitality. However, in 1995, after almost ten years' experience of the urban renewal schemes, it was felt that we needed to look beyond these visible signs and carry out a more detailed review of how the schemes had worked. As part of that review, a team of consultants was appointed to carry out a study of the impacts of the schemes in fiscal/economic, social and architectural-urban design terms. They were also asked to make recommendations in relation to the future direction of urban renewal policy.

The study was completed last December. It concluded that the schemes have been highly successful as a mechanism for leveraging private sector investment into areas of dereliction and decline. In terms of architectural-urban design, the schemes were considered to have had mixed success. In social terms, while some local employment was found in urban renewal developments, in other areas the benefits to local people were considered to be low. In addition, the level of integration between residents of new apartments and the indigenous communities was considered to be poor.

For the future, the study suggested the need for a more strategic approach. In particular, the consultants recommended that designation should not take place in isolation but should emerge from an integrated action plan for the area. The plan would not only deal with issues of physical renewal but would also address issues central to the wider social and economic regeneration of the area. The preparation of plans in this way would provide an opportunity for the needs of areas to be fully assessed. It would also ensure that the role of urban renewal in meeting those needs could be clearly identified.

After its publication, the study's conclusions and recommendations became the subject of a process of public consultation. This consultative process culminated in a conference in which all the relevant interests participated. The consultations and conference together proved to be a very useful exercise in bringing together the various strands of opinion in regard to urban renewal.

With all stages of the consultation process completed, the Government has approved a framework for a new urban renewal scheme. The framework generally incorporates the recommendations made by the consultants and also takes on board some of the comments made during the consultative process. The new scheme will come into effect on 1 August 1998 when the qualified extension of the current scheme terminates.

In general, the new scheme will be more targeted and will focus on the areas most in need of renewal. Decisions on the areas to be designated under the scheme will be based on integrated area plans prepared for areas selected by local authorities. Plans will have to identify targeted focused sub-areas for designation, justify the designation of those sub-areas by reference to the objectives of the plan and indicate the basis on which incentives are sought.

Draft guidelines for the new urban renewal scheme were issued to local authorities earlier this year. Those guidelines, a copy of which is available in the Oireachtas Library, set out the criteria which local authorities should use to select the areas for which integrated area plans are to be prepared. The document also provides guidance on the types of issues which those plans should address.

The draft guidelines, which will be finalised very shortly, deal with the important issue of the size of areas likely to be suitable for consideration under the new scheme. The point made in the guidelines is that very few towns of less than 6,000 population received designation under the schemes up to now and that such towns would be likely to have greater difficulty qualifying under the criteria for the current scheme. While this does not equate to setting a strict 6,000 population threshold, it does reflect the view that the successful implementation of the urban renewal scheme in an area requires a certain level of scale. Generally, centres would need to have a population of at least 6,000 to provide that scale. What must be remembered is that the scheme is an urban renewal scheme. It is not intended as, nor should it be expected to provide, a solution to the problems of towns irrespective of size.

In regard to the specific case of Rathkeale raised by the Deputy, the position is that the designation of that town under the new scheme could only be considered if Limerick County Council was to decide, on the basis of the criteria, that an integrated area plan should be prepared for the town. In that context, the council would clearly have to consider the extent to which the town meets the criteria for the new scheme, given that it has a population of only just in excess of 1,500 people.