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Seanad Éireann debate -
Tuesday, 22 Apr 1997

Vol. 151 No. 2

Adjournment Matters. - Urban Renewal Scheme.

I thank the Minister for Education for her presence on behalf of the Minister for the Environment to take this motion to extend the urban renewal scheme to Rathkeale, County Limerick. It is a unique case because of the special circumstances which prevail there. Almost 45 per cent of the town's population are travellers and two cultures live in relative harmony in the town, although there are some tensions. The special circumstances make it important that the town would 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 Many of the commercial premises and some of the residential premises in the centre of the town have been withdrawn from commercial or residential use.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 would provide an incentive to do this and would attract business back to 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 need to be enticed to live in the town. The potential of the town to attract private investment and development is depressed because of the physical environment of decay. 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 would 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 is highlighted by the 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 on the main street are elderly and they do not have children who are likely to continue living there.

The main street is an area that 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 there. An alarming number of businesses in the town have closed and such a loss of economic activity is directly related to the decline in the population. In compiling a strategic plan for the main street, the development committee consulted Limerick County Council for its ideas on tackling the decline. The county council wholly endorsed the promotion of an urban renewal scheme in Rathkeale.

The enactment of the Derelict Sites Act, 1990, to prevent property being or becoming derelict and which would then detract 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 become neglected and unsightly. Urban improvement measures, whether promoted by the county council, initiated by the community organisations or provided by private enterprise, have taken place during recent years which have improved the physical appearance of the town. Such improvements are overshadowed by the number of derelict properties which, until removed, will make it impossible to achieve the objective of improving the physical environment of the town, to attract people to live in it and sustain new enterprise.

Experience of other designated areas underlines the interest of many people, especially young people, in buying town houses or apartments in urban areas bringing life back into such centres. Elderly people also prefer to live in towns given the proximity to services. The activity which would be generated by an urban renewal scheme would halt the worsening process of decay and dereliction. It 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 would encourage people to move back to the town and re-establish and revitalise the community. A successful town is associated with a growing population. Many people are ready and willing to make the necessary investments 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, would bring new life to the town. Derelict and dilapidated buildings would be replaced by new and refurbished residential buildings with an increased population. Such enhancement would contribute to growth in economic and tourist activity and, importantly, to the atmosphere and confidence in the town. It would change the perception of people living there.

The survey indicated that there were 56 derelict, dilapidated, unoccupied or disused houses on the main street, that is, over 39 per cent of the total. Only 27 houses are residential. Residential and business accounts for 13 houses and business alone only 16. Twenty of the houses have one occupant, 22 have two, and three have two or more occupants. Occupants of 38 of the 42 residences consisted of people living alone, or two people living together, who were more than 50 years old.

We want to bring down the barriers to development. Fifty six properties on Main Street are derelict, dilapidated or misused. Property values in the town are plummeting and there is genuine economic decline. In the last 20 years 64 businesses have disappeared from the Main Street and have not been replaced. There is a decreasing population and increasing unemployment. We must break the vicious circle of decline. I ask the Minister for Education to convey to the Minister for the Environment the urgency in designating this area for urban renewal.

I endorse everything Senator Neville has said. The County Enterprise Board in Limerick has identified the outflow of capital from the county, because no area is designated for urban renewal, as a serious problem for investment in small and medium sized enterprises.

The Minister of State at the Department of the Environment, with responsibility for housing and urban renewal, Deputy McManus, regrets that she is unable to be in the Seanad this morning to reply to Senator Neville's motion. I am glad to stand in for her and to report to the House on the current position in relation to urban renewal.

I think it would probably help to put the issue in context if I was first of all to look very briefly at the history of urban renewal. The tax incentive approach to urban renewal schemes was first introduced more than a decade ago in 1986. It provides for a range of special incentives as well as relief from rates for new construction and refurbishment works in designated areas. When first introduced, the scheme was confined to the five main cities. However, it was such a success it was extended. At present, areas in 35 cities and towns are designated. The current scheme will expire at the end of July this year except for certain projects then in progress which will have a further one year period in which to be completed.

In 1995, after almost ten years' experience of urban renewal schemes, it was considered timely to carry out a detailed review. As part of that, a team of consultants was appointed. In preparing the study, the consultants were asked to consider the impact of the schemes in fiscal, economic, social and architectural and urban design terms. They were also asked to make recommendations. The study was completed and published 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.

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.

After its publication, submissions were invited in relation to the study's conclusions and recommendations, and the consultative process culminated in a conference in Dublin Castle on 25 March last. Minister McManus chaired that conference, which proved to be a very useful exercise in bringing together the various strands of opinion. Now that all stages of the process have been completed, the Minister is working on the development of a framework for urban renewal policy.

While it is obvious that a strong case can be made for the inclusion of many areas such as Rathkeale in the urban renewal scheme, the Minister has indicated on a number of occasions previously that the issue of designating additional areas would not be considered until such time as the review of the urban renewal schemes has been completed and future policy proposals have been finalised. Policy proposals in this respect will be submitted to Government as soon as possible, so the designation of further areas under the current scheme does not arise at this stage.

However, I will ensure that Senator Neville's contribution to this debate will be brought to the Minister's attention when the issue of urban renewal designation arises again.

I thank the Minister for her reply. I cannot over-emphasise the need for Rathkeale to be considered under the scheme.

The Seanad adjourned at 2.55 a.m. on Wednesday, 23 April 1997, until 10.30 a.m.

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