I thank the Minister, Deputy Stagg, for waiting until we were ready to begin.
Adjournment Matter. - Urban Renewal Scheme.
Acting Chairman
I apologise to the Minister for being late. I understood the Committee Stage of the Defence Bill was taking place.
I thank the Minister sincerely for coming to the House to take this motion to extend the urban renewal scheme to Rathkeale, County Limerick. This town is a special case because of the unique circumstances which prevail there. Many of the commercial premises, and some of the residential premises, in the centre of the town have been withdrawn from commercial use. This is because of the presence in the town of travellers, who would be more correctly called traders, who have purchased these premises and turned them into stores for furniture — most of them 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 would provide an incentive to do this and would attract business back into the town.
As the Minister is probably aware, a relief road was opened recently by the Minister for the Environment, Deputy Smith, and this is very welcome. While it creates some difficulties for the town, it also creates opportunity. We want to grasp the opportunity rather than talk about the difficulties.
Rathkeale was a congested town but that congestion no longer exists and there is now an opportunity to make it a vibrant town and an urban renewal scheme in the area would be the catalyst to do this. I recently learned that the Government was considering extending the urban renewal scheme to smaller towns such as the one I to which I am referring. Rathkeale has been neglected over the years and has lost many of its activities. The local ESB office and yard closed three or four years ago, the major creamery closed as a result of rationalisation and other facilities, such as the cinema, have also been closed.
There is an active chamber of commerce and an active community council in the town, both of which have done a lot of work towards the development of the town and its commercial life. We believe that an urban renewal programme would provide an incentive for the business sector to open new bars, shops and offices which would attract more people to live in the area. The rates relief for ten years, no change in poor law evaluation for rates purposes when work is done and the rent allowances under the urban renewal scheme would also be attractive to people in the residential sector because the cost of building and refurbishing houses would be tax deductible over ten years.
I was pleased when I read — and perhaps the Minister of State will confirm this — that the Government is considering extending the urban renewal scheme to small towns. It is important that these towns are assisted in every way possible and that development should not only be concentrated on our major cities and larger towns such as Ballina, Ennis, Drogheda, Longford or Bray where there are urban renewal schemes.
I ask the Minister of State to give special consideration to this request because of the unique circumstances of Rathkeale, where 30 per cent of the town's population are members of the travelling community. We have two cultures living side by side in the town. There are many tensions but there is also tolerance between the two communities. Difficulties may arise at Christmas and at other events but overall there is a high level of tolerance. I would like to express sincerely my gratitude for the Minister of State's presence here.
It is an honour and a privilege for me to be in a position to address the Seanad at any time. I give a high priority to being in the Seanad when I am required but it would assist me as a Minister of State in carrying out my other duties which are also important, if I could be given a more definite time about when I am required — and I am not talking about the few minutes delay at the beginning of this session. I am talking about the fact that I was first told today that I would be required at 5 p.m. Arising from that I accepted another important engagement and I was then told as I entered that place that I was required here at 2.30 p.m. I was then told it was 3 p.m. I was then told it was at the end of Committee Stage, and at the end of Committee Stage I was still not required. I would ask that more definite arrangements be made for the more efficient use of my time and that of the House.
One of the most visible achievements of the Government over the last few years has been the outstanding success of its urban renewal scheme. It is a pleasure for me to be able to speak here this afternoon about this very successful scheme.
The scheme was introduced in 1986 with the primary aim of promoting the development of areas previously considered devoid of development potential. There is no doubt that the scheme would not have been nearly as effective without the backing of the local authorities involved. The part played by local authorities in facilitating developments and in promoting the scheme has been a major contributory factor to its success. Under the present scheme a range of taxation incentives and rates remission is available to promote private sector investment in the redevelopment of specially targeted designated areas in 24 centres throughout the country.
In order to maximise the impact of the scheme, the number and size of areas designated must be limited. In a scheme such as this it is inevitable that choices have to be made and limits drawn, with a result that not every centre which may have a case for designation can be accommodated. Doubtless, many other centres including Rathkeale could put forward a good case for designation. However, to designate on a widespread basis would be counter-productive since this would turn the special rating and tax reliefs into standard ones.
In addition to the areas already designated, requests and representations for inclusion in the urban renewal scheme have been received in respect of numerous urban areas. Obviously the scheme could not be extended to all these areas, not only because of the potential loss to the Exchequer in terms of revenue foregone but more importantly because the effectiveness of the scheme would become completely dissipated and investment would be directed into more favourable locations at the expense of areas most in need.
Nationally, the most recent estimates available show that in existing designated areas projects with a value of £622 million are either completed or are in progress with further development valued at £344 million in planning. Under the scheme as it now applies the foundations for new development must be laid by 30 November 1993 and the scheme itself is due to expire on 31 July 1994. The Government's intention at this stage is to ensure that those projects still in the pipeline in the existing designated areas are delivered. In the circumstances, I have no proposal to extend the present scheme to additional towns.
The Senator referred to the great work carried out on the Rathkeale by-pass. Finance for the scheme was provided by my Department with assistance from the European Regional Development Fund. The overall cost of the project, including land acquisition and landscaping, was £8.3 million. This road in its own way contributed to the promotion of urban renewal in the town.
The old Rathkeale station house lay on the route of the road. Concern for the conservation of the built environment resulted in the building being rebuilt through joint action by Limerick County Council and the Irish Palatine Association. In its new location the building, now the Irish Palatine Heritage Centre, houses an attractive exhibition portraying the story of several hundred families of German origin who settled in the area in 1709. Obviously, Rathkeale is a place where people from outside have settled in large numbers at various times. The example mentioned by the Senator is an obvious one.
Although the present urban renewal scheme is drawing to a close this does not mean that the Government is turning its back on urban renewal. My Department is currently examining all aspects of urban renewal to see what the best options for the future are. I believe that in this context, small is beautiful. I will bear the views of the Senator in relation to Rathkeale in mind in the context of any new proposals which may emerge.
I thank the Minister of State and will wait for the proposals which emanate from his Department.
The Seanad adjourned at 3.30 p.m. until 2.30 on Wednesday, 7 July 1993.