I join the Vice-Chairman in sending my personal regards to the Chairman, Deputy Cassidy. I hope he has a full and rapid recovery.
I thank members for the invitation to attend this meeting in order that I might outline, for the information of the committee, the changes I recently announced in respect of the planning regime which applies to retail warehousing. On 5 January I announced that I had decided to amend the retail planning guidelines to provide that the floorspace cap on retail warehouses would no longer apply within the functional areas of the four Dublin local authorities and in the other national spatial strategy gateways. The gateway towns and cities are Athlone-Tullamore-Mullingar, Cork, Dublin, Dundalk, Galway, Letterkenny, Limerick-Shannon, Sligo and Waterford. The relaxation will only apply in areas subject to integrated area plans under the Urban Renewal Act 1998 and to durable goods. I emphasise both of these points because they have been ignored in much of the debate.
The existing cap on retail warehouses of 6,000 sq. m. gross retail floorspace will continue to apply in all other areas. The overall policy objective of the retail planning guidelines, including normal planning requirements, will continue to apply to any proposals for the development of retail warehouses in excess of 6,000 sq. m. other than in areas specified.
The changes follows a review of the floorspace cap on retail warehouses set in the retail planning guidelines, which came into effect on 1 January 2001. The guidelines prescribe a maximum floor area of 6,000 sq. m. gross retail floorspace for large-scale single retail warehouse development. The cap has been reviewed, taking account of the need to promote effective competition in this sector of retailing and of ongoing developments in retail formats — while underpinning proper planning and sustainable development.
The amendment to the guidelines will facilitate the entry of new retail operators into the Irish market. It will widen consumer choice and bring about greater competition. It will also allow Irish consumers to have access to the same choice currently enjoyed by their counterparts in every other part of Europe. It will further ensure that any such development entering the Irish market will do so on a basis which contributes to the economic and social objectives of the Government's urban renewal programme and national spatial strategy. These are objectives to which everyone subscribes.
The changes are closely focused. They are directly related to the national spatial strategy and are limited in their import. Moreover, by focusing on areas subject to integrated area plans, the change made will give planning authorities greater influence over the manner in which large-scale retail warehouses are developed, while linking their developments with the promotion of good local employment opportunities. It will also assist in ensuring an optimum planning solution which fits in with the broader regeneration objectives set out in the Urban Renewal Act. It is particularly important to emphasise the inter-relatedness contained within these changes.
I am aware of concerns expressed by various interest groups and representative organisations as regards their apprehensions over the possible impact of the revised planning guidelines. I am also aware of the strong support for the change made by the Competition Authority, for example. The retail planning guidelines were introduced to ensure that the principle of sustainable development would apply to the development of the retail sector in Ireland, while facilitating competitiveness to the benefit of the consumer. They were never intended at any stage to hinder or restrict competition.
While the retail planning guidelines overall had been operating satisfactorily, a number of concerns were expressed about the impact of the cap on retail warehouses. These included the fact that the cap did not allow for the development of some retail formats in the Irish market, thus restricting competition and the potential choice available to Irish consumers. As we know from television and other media reports, Irish consumers are very mobile, and if restricted as to their choices in this jurisdiction, will go elsewhere.
The change applies only to the sale of bulky durable goods. I do not have plans to review the existing caps which apply to supermarkets or grocery outlets. I emphasise this because to my amazement, notwithstanding that I have made the point time and time again, I still receive correspondence suggesting that this is the next step. I emphasise that I have no interest in taking that next step.
I am confident that the approach now adopted will deliver major benefits to Irish consumers in the years to come. The controlled manner in which the cap is being relaxed will ensure that retail warehouses are subject to appropriate guidelines and will avoid the potential downsides of providing such market development. The revised retail guidelines, which came into effect last week, will help ensure the ongoing sustainable development of the retail sector in Ireland over the coming years.
I have read with interest press commentary made in this city over the last 20 or so years on each and every occasion a new initiative was being taken in development. Members of the committee who care to check the records will find there were learned articles from many of the same critics in some of the national newspapers when the Tallaght town centre was opening, for example. The thrust of such coverage was that if it was allowed to occur it would be Armageddon for shopping in central Dublin. It did occur and it was not. The argument was made when Blanchardstown and Liffey Valley shopping centres were opening that central Dublin would be devastated and there would be no retail shopping left there. Both of those welcome developments took place, gave good employment and excellent consumer choice. At the same time shopping in central Dublin has not declined. Change inevitably produces reaction. The change introduced in these guidelines, specific to durable goods, is well-focused in terms of its relationships with the good planning objectives set out in the national spatial strategy.