I welcome the Minister to the House.
Adjournment Matter. - County Wicklow Urban Renewal.
I wish to share my time with Senator Roche.
Is that agreed? Agreed.
This is the second time I have raised this matter on the Adjournment in the last year. It is appropriate because of the recent extension of this scheme by the Minister that I ask that the urban renewal scheme be extended to Bray and Wicklow town. In 1990, Bray was designated one of seven areas outside Dublin eligible for the tax breaks under the urban renewal scheme. Many people outside the capital resented the fact that Dublin appeared to get all the benefits of this scheme, particularly the Temple Bar area. While no one would like to see the depressed areas of Dublin deprived of these benefits, areas in Bray and Wicklow town are crying out for the incentive and lift this scheme could provide.
I know figures for this scheme are hard to obtain because I have sought them. Nonetheless, could the Minister say what this scheme has cost the Exchequer? What have these incentives cost the Exchequer? It may not be possible to give an accurate estimate but I wish to know how much it would cost to extend the scheme and what it has cost. The argument against giving this benefit to a specific area is that it costs the Exchequer. That is fair defence and obviously such funding cannot be given to every town but it would be useful to know where the scheme has cost a lot of money and what the possible and estimated benefits are.
I seek this scheme for Bray and Wicklow town because Bray is a depressed area with more than 4,000 people unemployed; businesses have been closing — many since I raised this matter last June — and crime is rife. The area needs more industry and employment. It is a classic case where this urban renewal scheme could be applied.
When the scheme was extended to Bray in 1990 the Minister and Government of the day granted it in 12 acres divided between the malting site, the town hall and the international bowling alley and leisure centre. It is to the credit of the town to see how the scheme has benefited the town hall. It is to Senator Roche's credit that he played a great part in having the scheme extended to Bray. The town hall has been refurbished for the urban district council; it has restaurants and shops; it is a centre of activity and is a great visual improvement for the town. Bray certainly needs this incentive.
I wish to briefly deal with Wicklow town before giving way to Senator Roche. Wicklow town has not benefited from the urban renewal scheme since its introduction in 1986 nor was it part of the extension in 1990. Wicklow town also suffers from chronic unemployment. It contains many small industries which makes it ideal for urban renewal. The scheme would be appropriate for tourism and for the South Quay of the town. Wicklow town has a large number of derelict sites, one of the purposes for which this scheme was introduced. The Department in the past has rejected applications from Wicklow UDC for the extension of the scheme. There are at least 70 derelict sites in Wicklow town and I ask the Minister to consider extending this scheme to Wicklow town.
I ask the Minister to consider the case for these two towns in County Wicklow.
I thank Senator Ross for sharing his time.
The Minister is familiar with the extraordinary impact the designation for urban renewal has had on Bray. The town hall site is a gem. It is one of the best examples of urban renewal following designation; the Minister graciously opened the town hall officially last week. The other two sites in Bray have been completed. The argument I put forward for a further extension of the scheme in Bray is that the designated funds have been fully used. Parts of the town urgently require further attention. For instance, in Little Bray there is a mix of small dwellings and industry. These are poorly juxtapositioned. If that area was designated, a remarkable improvement could be made to that part of the town and much could be achieved. The Minister has been impressed by what has been done in Bray and I ask him to look favourably at the idea. Over a number of years proposals have been put forward for the designation of the Little Bray area.
Everything Senator Ross has said about Wicklow town is accurate. That town has phenomenal potential. It is beautifully situated along the curve of the river. However, dereliction exists on the quays, particularly the South Quay. I was always surprised this area was not included in the original designation because a lot of positive work could have been done there. I suggested some years ago the Viking exhibition in Dublin sponsored by Irish Life be given a permanent home in Wicklow but that was not possible because no tax breaks were available to put together an attractive financial proposition for Irish Life.
The town has an especially attractive visual character. Senator Henry mentioned the skylines of certain towns. Over the years Wicklow town has been treated badly economically. It may be argued that economic disputes in the past self-inflicted damage. However, the town has unrealised potential. It is off the beaten track and will be in further difficulties when the N11 is upgraded. We need to attract tourists to Wicklow. Much work has been done by the county council in putting a heritage centre in the gaol, but there is still tremendous potential along the quays and at the Black Castle. We will only realise that potential if we are given tax incentives to attract development.
I ask the Minister if it is possible at this stage to consider extending the designation further in Bray, because Bray has benefited greatly from the existing urban designation, and I compliment the Minister and his predecessors in that regard; and to consider, even at this late stage in the designation process, giving Wicklow town the kind of designation mentioned by Senator Ross. This would reap tremendous economic benefits.
I thank Senator Ross and Senator Roche for raising this very important matter. Without doubt the urban renewal schemes breathed new life into areas of urban decay and derelict sites. The schemes sponsored development which would otherwise not have taken place or would have occurred without the same spirit and finesse which were characteristic of the scheme. Expenditure of around £622 million, excluding spending on the docks development has either been completed or is in the process of completion and there are plans for further expenditure of £320 million which hopefully will be started before the end of this year.
There are a number of of views as to what should happen in future. Strong representations have been made by Senator Roche and Senator Ross for parts of Wicklow, by other public representatives for their areas and by individual councils for approximately 63 centres. Clearly, if designation status were to be spread so widely the impact would be very different from what has been our experience so far.
Senator Ross wanted to know what the Exchequer had lost as a result of this scheme, I was not sure at that time whether an actual loss had been incurred but I now understand this is not so. It is very difficult to assemble facts in relation to tax foregone because of incentives and rate remissions on developments which many people would say might never have taken place. It is similar to the proposed tax amnesty in that the Exchequer has 100 per cent of unpaid taxes now but it does not know what the yield from the amnesty will be.
The urban renewal scheme has had the detrimental effect of discouraging development in areas adjacent to designated areas. Further extensions of the scheme should involve targeting areas for residential development and moving from the more commercial type development which was part and parcel of the existing scheme. It is too early to make any definite decisions. There are no proposals to extend the scheme to any areas. I am grateful to the Senators for raising the matter, and there will be considerable dialogue between now and the end of this scheme as to the best course of action to be taken. Needless to say, in the context of any future scheme if one were to be introduced, I would bear in mind the points that have been made here this evening.
I was very happy to visit Bray to see at first hand the fantastic work on the town hall site, the investment of almost £5 million on the international hotel site and the prospects of substantial development at the maltings. There is no doubt that the scheme has been a spectacular success in Bray. Similar developments throughout the country would be very desirable.
I hope both Senators appreciate that it was not possible for a part of every constituency to be included in the 24 designated areas. As Senator Ross frequently writes articles on national issues, I expected him to make a case for Kildare, Meath or some of the surrounding areas so that I could put in context some of the wider economic perspectives he presents to the country from time to time.
Both Senators know that we should look not only at Wicklow but at the whole country to see how we can achieve the best results nationally. Blanket designation will not provide the benefits desired by many people. I will, however, bear in mind the points that have been made in the event of any future decisions in this regard.
Although I am not completely satisfied with his response, I thank the Minister for his reply. I am pleased he did not follow the usual practice of reading from a script. This is refreshing and his colleagues should take a leaf out of his book.
The Seanad adjourned at 4.20 p.m. until 2.30 p.m. on Wednesday, 2 June 1993.