Seanad Éireann díospóireacht -
Tuesday, 31 Jan 2023

Vol. 291 No. 6

Nithe i dtosach suíonna - Commencement Matters

Tourism Industry

Senator Maria Byrne

I thank the Minister of State for coming here today to discuss this all-important topic. Coming from a small business background and with my family having been in the hospitality trade for many years, I am well aware of the issues faced by people in that trade. I have received local communication from the chair of the Shannon hotels group, which operates in the mid-west, the Irish Hotels Federation , the Restaurants Association of Ireland and small businesses.

There is growing concern among small businesses after Covid. The hospitality industry may have been the worst hit during the pandemic. They were closed for quite a while, opened for a short period and then closed again. Many of them are only beginning to come back now. Having spoken to people involved with small businesses, and especially restaurants and hotels, I am aware that some are not opening on Mondays, Tuesdays or Wednesdays. This is how serious the situation is. In addition, they have been hit with increased energy costs. My understanding concerning hotels is that there has been a reduction of up to 57% in tourists from the UK, one of the biggest contributors of visitors to this country. That is a very high number. Equally, the reduction in the numbers of European visitors is between 30% and 40%. Our own people are also not travelling to hotels as much as they used to. While people are beginning to move out and about, many people, especially those who are older, are still being wary. They may be dining or drinking at home. There is great concern among those in the industry.

Approximately 280,000 people were employed in the hospitality industry prior to the onset of Covid. A number of businesses have not reopened, so this number has certainly fallen but a large number of wage packets are still dependent on the sector. While we can pride ourselves on our level of unemployment, which is under 4%, and this is phenomenal, the important point is what will happen if we do not support the hospitality industry and its call for an extension of the 9% VAT rate for another while. We must look at this matter seriously. Have there been discussions between the Departments of Finance and Tourism, Culture, Arts, Gaeltacht, Sport and Media regarding how we are going to support businesses in future? I know we cannot support them forever and a day, but they have been hit with the double whammy of Covid and energy costs. We must do something to support these small businesses and keep the 280,000 people to whom I refer in employment.

Minister of State at the Department of Finance (Deputy Jennifer Carroll MacNeill)

I thank the Senator for raising this important issue. She is correct that the hospitality sector has suffered this double whammy from the impact of Covid and the energy crisis. She is also right to identify that the Government has tried to support businesses through both of these periods.

As the Senator is aware, the 9% rate of VAT applies on a temporary basis to the hospitality and tourism sectors, until 20 February every 2023. This 9% rate of VAT was reintroduced, having been in place for a time in the last decade, on 1 November 2020 in recognition that the tourism and hospitality sectors were among those most impacted, as the Senator said, by the public health restrictions put in place throughout the pandemic. Through no fault of their own, bars, hotels and restaurants had to close and reopen on multiple occasions in response to the public health crisis.

It is important to remember that even temporary VAT reductions involve a cost to the Exchequer in the context of tax revenues foregone. The estimated cost of the VAT rate reduction to 9% when it was first introduced from 1 November 2020 to 31 December 2021, a 13-month period, was €401 million. This rate was then extended to 31 August 2022 at a cost of an additional €251 million. A further extension to the rate was announced in budget 2023, bringing the total anticipated cost of this VAT rate reduction to more than €900 million by the end of February. This represents the provision of substantial support by the Government to the hospitality and tourism-related sector of close to €1 billion euro in a relatively short time. The estimated cost for extending the current measure to the end of this year is €460 million. This can be broken down into estimated figures of €358 million for the hospitality sector and €102 million for the accommodation sector.

I note that it is possible to change the VAT rate for either the hospitality or accommodation sectors without reference to the other. It is important to be aware, however, that if only the accommodation sector, for example, reverted to the 13.5% VAT rate this higher rate would have to apply to all accommodation, including bed and breakfast establishments and small hotels. This is because of the EU principle of fiscal neutrality. Member states are required to apply the same VAT rate to the same service and this principle is also the reason it is not possible to provide separate VAT rates based on geography. There are also practical, operational concerns in having different VAT rates applying to hotel accommodation and meals, given how the sector operates, with various packages possible, ranging from bed and breakfast accommodation on its own through to dining and accommodation plus dining.

The complexity of it is quite real. As Senator Byrne and all Senators will be aware, this temporary 9% VAT reduction also applies to other sectors of tourist activity, as well as hairdressing. If the VAT reduction was extended in full to the end of the year, it would cost just over €500 million, with €460 million for tourism and hospitality, and €40 million for other sectors. However, in the coming weeks the Government will examine the full suite of taxation and other measures due to expire at the end of February, as the Senator identified. It is important to note that no decision has been made on whether the measures currently in place will be allowed to expire or whether new measures will be introduced. It is therefore premature for me today, at the end of January, to comment on that further except to say that the range of supports available to businesses is under consideration in a deep way. The decisions that must be made relate to the nature of supports, prospects of inflation, development in public finances, effectiveness of current measures and how that can be fully evaluated.

Senator Maria Byrne highlighted the significant cost of energy, which is important to reference. It is a huge pressure for businesses, especially those in the hospitality sector. Of course, Senator Maria Byrne is aware of the temporary business energy support scheme, TBESS, which is aimed at businesses with an average unit gas or electricity price that has gone up by over 50%. I may come back to that in closing remarks; I have more data for the Senator.

Senator Maria Byrne

I am glad to see Senator Conway as the Acting Chairperson. I thank the Minister of State for her comprehensive response. I acknowledge all of the supports that have been given to small businesses and businesses in general. There is a case to be made, and I am glad to hear, that the Government is monitoring it and will be looking at it. That is a positive step. I encourage the parties involved when sitting around the table in the Department to think of the 280,000 people and their families, who are reliant on their salaries. We need to be cognisant of the double whammy of energy and the VAT rate. Any support that can be given, especially to small businesses, would be appreciated

Deputy Jennifer Carroll MacNeill

I thank the Senator. I know and appreciate the importance of the tourism and hospitality sectors as significant employers. Both the Senator and I come from that background. It is right across the country. I emphasise the TBESS. In the Senator's area in County Limerick, there have been 736 applications to date, with 719 approved so far and €815,000 distributed. I see Senator Dolan from County Roscommon in the Chamber; some 238 businesses there have applied, with 230 approved. I can provide data to any other Senators on their areas of interest.

This scheme will also be considered to make sure it is meeting needs. Take-up could be higher and I am aware people are making applications now. The Government is extending the period for applications. If I were going back to any part of Ireland including my constituency, I would emphasise the simplicity of the process to make applications for that scheme through the Revenue system. There is substantial support available through that scheme. It is also under consideration. What Government needs to reflect is the balance of support, where it is most needed and where it can be most effectively delivered at this time, recognising that Covid-19 is different now than it has been previously. It is about recognising the most appropriate targeted support of the best benefit while being mindful of the pressure on public finances posed by the considerable sums involved.

Acting Chairperson (Senator Martin Conway)

As the Ministers of State must attend a vote in the Dáil, we will suspend the House.

Cuireadh an Seanad ar fionraí ar 2.45 p.m. agus cuireadh tús leis arís 3 p.m.

Sitting suspended at 2.45 p.m. and resumed at 3 p.m.

Bus Services

Acting Chairperson (Senator Martin Conway)

I welcome the Minister of State at the Department of Education, Deputy Madigan, to the House.

Senator Aisling Dolan

I also welcome the Minister of State to the House. She is here to take this Commencement matter on behalf of the Minister for Transport, Deputy Eamon Ryan. This is about the need and urgency around bus services in rural areas and specifically my own home area of Roscommon and Galway and Ballinasloe town.

At the public consultation phase of the Connecting Ireland rural mobility plan, I co-ordinated a video campaign to highlight proposed and urgently needed routes. This was in December 2021, at which time we were encouraging submissions. We have seen some of those new services, which I acknowledge. There is a Castlerea service to Ballinasloe that goes through Glenamaddy, Mountbellew, Caltra and Ahascragh. It is a fantastic service, because there were no buses going through some of those towns. In fact, there was no way for some of those people to go to day services in the social services. It is fantastic to see that up and running now. It was only launched in the past month or so. We are looking at three services per day, which again is fantastic. They are linking up places like Ballinasloe and Castlerea, which are already linked by geography by the River Suck. Again, it is bringing students to the university campus town in Mountbellew and linking people to different towns in our area.

We also have the Local Link from Ballinasloe to Portumna, which is going through Lawrencetown and Eyrecourt. The frequency of service is about three times per day. There is a bus running from Loughrea to Ballinasloe. This replaces the X20 route. There used to be the 20 bus. For a student going from Dublin to Galway, there was the Bus Éireann 20 route and the X20, which was the express service. It would take all of the stops to Athlone and then go directly from Athlone to Dublin. That route was taken off one or two years ago and it has caused a lot of challenges for people who use the bus pass to travel and for students travelling. A Local Link was put in place from Loughrea to Ballinasloe covering some of those areas like Kilreekil, Cappataggle and Kilconnell. We also have some commercial services and providers covering those routes.

However, there are crucial needs here because there is currently no link between and Athlone and Ballinasloe on the old Dublin to Galway road. That would go through the communities of Summerhill, Drum, Moor, outside of Creagh and into Ballinasloe. There is no public service on that route, which used to be a major route in Ireland on the old Dublin to Galway road. It is one of the proposals under the Connecting Ireland rural mobility plan and I want to ask about that particular route because in Ballinasloe we have Portiuncula University Hospital. It is the hospital for more than 20,000 people in Athlone and covers and takes in a catchment area of almost 500,000. It is the hospital for that city. For people attending maternity appointments in particular, there is no way for them to get directly to the hospital. The train station is roughly 15 minutes from the hospital itself, which is almost a one mile walk. If someone is in need and not able to walk, the bus service would be fantastic as it would stop right outside the hospital. I am asking that we have that service going forward. I am hoping it is a service being proposed and is one that would connect. We had the Minister, Deputy Ryan, down to launch the first electric bus in Athlone only a week or two ago.

The other services I want to inquire about are the A78 from Athlone to Roscommon. Athlone to Ballinasloe is one route, then Athlone to Roscommon goes through Ballyforan, Ballygar and Athleague. This is one of the proposals. It would bring connectivity to some of those towns and connect people from Athlone to Roscommon. Route 440 from Athlone to Westport is also proposed, bringing in Roscommon and Mayo.

My other points are on communication in local communities. What is the National Transport Authority, NTA, doing on communication with regional newspapers, local radio stations and community publications? I do not know if all of the information is on bus stops. However, that is something we need to see.

Minister of State at the Department of Education (Deputy Josepha Madigan)

I thank the Leas-Chathaoirleach and I thank Senator Dolan for her question. I am delighted to be here today on behalf of the Minister for Transport, and I understand the Senator's question relates to the roll-out of the Connecting Ireland plan more generally, but also specifically regarding route 23 between Athlone and Ballinasloe. I know she mentioned a few other routes too.

The Department of Transport has responsibility for policy and overall funding of public transport. However, the Department is not involved in the day-to-day operation of public transport services nationally. It is the NTA, the National Transport Authority, that has statutory responsibility for securing the provision of public passenger transport services nationally by way of contracts, and for the allocation of associated funding to the relevant transport operators. I reassure Senator Dolan that the Government is dedicated to providing the public with reliable and realistic sustainable mobility options, and public transport plays a key role in the delivery of this goal. The Minister for Transport is obviously very conscious of the need to connect people and places across Ireland. It is important to provide opportunities for all citizens to access employment, education, healthcare or retail.

The Minister is strongly committed to improving public transport services in rural areas and piloting new transport initiatives for people of all ages and abilities living there. Whether it is reduced car dependency or a more integrated transport network, our vision for rural Ireland is ambitious and one that is central to his Department's work programme for 2023.

The Connecting Ireland rural mobility plan supports this ambition, with its core aims being improvement of public transport services in rural areas and piloting of new transport initiatives for all. Under this pivotal plan we will see a 25% overall increase in rural bus services, over 100 rural villages benefiting from a frequent public transport service of at least three return trips daily for the first time and over 60 new connections to regional cities from surrounding areas. Importantly, the ethos of community-led transport will also be maintained. This has already been seen in the adaptation of the Connecting Ireland proposals in supporting the increased demands for public transport in local areas where the population has increased due to the high influx of Ukrainian refugees.

In relation specifically to the Senator's question on services connecting Athlone and Ballinasloe, I am happy to clarify that regional corridor 23 is currently served by a number of express and multi-stop services between Galway and Dublin. As a part of upcoming Connecting Ireland phases, the National Transport Authority, NTA, plans to review services on this corridor in the years 2024 and 2025 to assess the possibility of an increased frequency of services and better integration. While it is not currently planned to introduce new or enhanced services along the R446, the old Dublin to Galway road, between Athlone and Ballinasloe, the Department and the NTA remain agile and flexible in their management of the programme, so that where implementation can be kept under review and where progress could be impacted, other plans can be advanced instead. The NTA also publishes updates on the implementation of these services in its quarterly bulletin, which can be found on its website.

It is also important to note there are currently a number of routes operated from Athlone to Galway. We have the Citylink services 660, 760 and 761 with nine services per day to Ballinasloe. There is the AirCoach 706 express, with a number of services per day to Portiuncula Hospital, Ballinasloe, and the GoBus 720. The Senator is shaking her head at that. It differs from her experience. She can let me know and I will come back to her on it.

Senator Aisling Dolan

I appreciate the Minister of State is representing the Minister, Deputy Eamon Ryan, but the services she has mentioned from the commercial providers go on the motorway. They do not go through the towns and villages we are supposed to be connecting. My huge issue is there are communities that benefited. Families, older people and students use that service. When the buses went on the old Dublin-Galway road the service was very well used and was the main route from Dublin to Galway. The motorway has happened and it has bypassed many of these communities. We are instead left with commercial providers that are of course going to go from town to town on the motorway, but what happens to the communities living in between the motorways? It is up to us and to the State to provide a public transport service to people who are not being connected by commercial providers. I am surprised it is going to take two more years, when we have an electric bus that has just been launched that is supposed to do a 150 mile-radius. It is less than 20 miles from Athlone to Ballinasloe. It is in the proposal.

Deputy Josepha Madigan

I thank the Senator. I note she welcomed the Castlerea to Ballinasloe service, which will offer three services a day to students, the campus and all of that. I note she also mentioned the 878 Athlone to Roscommon service and the 440 from Athlone as well. I will ask the Minister for Transport to come back to her directly on those. There are, I understand, four routes planned for the first phase of Connecting Ireland for Galway. Some have been implemented already in the Connemara region, including route 431 from Carraroe to Claremorris via Maam Cross, Cong and Ballinrobe. There is also route 432. In the coming months two further routes will be implemented, namely, route 546 from Ballinasloe and route 438 from Tuam to Galway. All of the aforementioned routes will offer a minimum three return trips seven days a week.

Local Representation Allowance

Acting Chairperson (Senator Martin Conway)

I believe this is the first visit of the Minister of State, Deputy Kieran O'Donnell, to the House.

Minister of State at the Department of Housing, Local Government and Heritage (Deputy Kieran O'Donnell)

This is my second visit.

Acting Chairperson (Senator Martin Conway)

My apologies; it is my first time meeting him as Minister of State.

Deputy Kieran O'Donnell

This visit is just as important.

Acting Chairperson (Senator Martin Conway)

It is a privilege for me, while in the Chair, to welcome my neighbour and good friend, the Minister of State, and I congratulate him on his appointment.

Senator Aidan Davitt

I welcome the Minister of State, Deputy O'Donnell. He is one of the hardest-working Ministers of State in the House. I am sure he will have no problem in taking over the big shoes of Deputy Peter Burke in what is a tough portfolio. I am also sure we will see a lot of the new Minister of State here.

I raised this issue with the Minister of State's predecessor. I acknowledge that the new Minister of State has put a great deal of work into it because we have talked about the local representation allowance that councillors receive. I believe the legislation does not specify whether the allowance covers alarms, CCTV and panic buttons. I believe that this is something that needs to be outlined, particularly in the light of recent attacks on the homes of politicians, as well as marches and protests at their houses. We should at all cost protect councillors because they are at the forefront of politics. Like Deputies, councillors are extremely immersed in their local communities. The basic thing that councillors need is protection and anything that we can do to help and to improve their security would be beneficial.

As the Minister of State will be aware, councillors can submit a claim that covers 14 categories. Some of them tie in but I advise that we add another category of home security systems. As the Minister of State has been working on this issue, I ask him to enlighten us about the situation.

Deputy Kieran O'Donnell

I thank the Acting Chairperson for his words of welcome. As a former Member of this House I am always glad to come back here for its excellent debates on various topics. I thank Senator Davitt for raising this matter. I am particularly grateful for the opportunity to come before the House today to speak about the important issue of councillors' security.

Local government plays an important role in the life of the nation and is responsible for the delivery of a wide range of services. The activities of local authorities are overseen by elected councils, which provide a forum for the democratic representation of local communities.

All elected representatives should be free to carry out their functions and representational role without fear of harassment or intimidation. Heightened adversarial attitudes to elected representatives is corrosive to democratic participation. It risks deterring potential new candidates and inducing existing representatives to withdraw from political life, which is very regrettable..

I know some concern has been expressed about candidates' information being publicly available whether through the ballot paper, ethics returns or other public documentation or, indeed, simply local knowledge. It is important that people are clearly identifiable when seeking to become public representatives. There is little that can be done to counteract local knowledge but we can and we must ensure that local representatives are in a position to protect themselves.

Under the provisions of the Local Government (Expenses of Local Authority Members) Regulations 2021 a range of allowances are payable to councillors to support them in carrying out their role. Senator Davitt has referred to that range of allowances. The 2021 regulations were given effect following the independent review of the role and remuneration of local authority elected members, which was overseen by Ms Sara Moorhead SC.

The local representation allowance, LRA, was introduced under the 2021 regulations. The LRA is payable to all councillors on a vouched basis. Its terms are similar to the public representation allowance that is payable to Oireachtas Members. The maximum annual allowance that can be claimed under the LRA is €5,160, which is €4,200 plus the €80 per month unvouched. .

The LRA is a flexible allowance with 14 eligible expenditure categories, which the Senator has identified, under which a councillor can claims expenses. Expenditure which may be claimed under the LRA must be wholly and exclusively incurred by a councillor in the performance of his or her duties, and must not include any personal element of expenditure. A member must be able to provide relevant documentation in the form of bills, receipts, invoices etc. for expenses that he or she incurred.

Local authorities are encouraged to be flexible provided that a member's requests are deemed to be reasonable and that the item of expenditure can be reasonably construed as coming under one of the 14 categories of eligible expenditure.

The eligible expenditure categories include improvements to office accommodation and utilities of an office or offices, including home offices. Most councillors work from home some of the time and may have space in their home designated as a home office.

I am pleased to inform the Senator that clarifying guidelines issued from my Department in December 2022 included guidance of the issue of home security systems for councillors who have home offices. Installation costs of CCTV security systems may be covered in full under improvements to office accommodation category. Monthly and annual costs associated with home alarm monitoring may also be apportioned and claimed under utilities at up to a maximum of 20% of the total cost. The installation is under category 3 and the annual running costs are category 4.

To give full clarity on the guidance issued to the local authorities, the installation cost of CCTV may be covered in full under the category "improvements to office accommodation". Monthly annual costs associated with home alarm monitoring may also be apportioned and claimed with category 4, utility, up to a maximum of 20%.

Having looked back through it, the directions on it were updated on 1 September, including the improvement to office accommodation category. It does not specifically mention CCTV cameras. Utilities of an office or offices, under category 4 directions, include alarm security costs. I have discussed it with my Department. We will issue revised, updated directions. I have asked that category 3 will specifically mention CCTV installation. That should bring full clarity. However, under the guidance, under category 3, councillors can claim for installation of security cameras and they can claim annual running costs under category 4.

Senator Aidan Davitt

When the Minister of State is tightening up on the little bit of legislation-----

Deputy Kieran O'Donnell

Just directions.

Senator Aidan Davitt

Yes, directions on it. When he is on it, I implore the Minister of State to look at the full cost of paying an alarm company. To have only 20% allowable is not 20% security. Mainly, the security is tied to the person's position as an elected representative. I would implore the Minister of State to allow the 100% grant of the monthly expenses. The expenses are €4,200 plus the €80 per month. If they want to claim it for security and they think it is the most important thing for that particular councillor to do, they are well entitled to it. I cannot see why it would be just 20%. We looked for phone expenses and we were only talking about 20% and whatever else. Now, mobile phones are totally allowable. The Minister of State might please try to tighten up that end of it.

Deputy Kieran O'Donnell

To give clarity to the Senator, under the current directions, statutory instruments and guidance issued last September, councillors are entitled to get the full cost of an installation of a CCTV camera system in their home. They are entitled to 20% of the annual running cost thereafter. I take on board the Senator’s point. They will be issued with revised directions for expenses of elected members of local authorities. My Department officials are now working on that. I will ask them to take on board the points that the Senator raised.

I thank Senator Davitt for his insightful contribution. He brought up the wider questions about public life. I acknowledge the work of the Association of Irish Local Government, AILG, the Local Authorities Members Association, LAMA, as well as the County and City Management Association, CCMA. In 2022, the AILG provided a training module to councillors to provide an understanding of personal security and safety risks in a number of settings and a number of particular risk types. It plans to deliver further courses this year involving senior members of the Garda.

I would be very pleased to engage with the councillors and their representative bodies. I thank the Senator for bringing up this important issue.

Acting Chairperson (Senator Martin Conway)

I thank the Minister of State. I would like to acknowledge the sterling work that Senator Davitt does in this area on a regular basis in this House.

Urban Development

Senator Victor Boyhan

It is the first I have been in the Chamber when the Minister of State, Deputy O’Donnell, has been here. I congratulate him on what I think is one of the best jobs in government, which relates to local government. I know he has much experience in that and I wish him well.

I raise the issue of urban regeneration. There has been much talk about it.

Funding under the urban regeneration and development fund comes under three strands, namely, strands 1, 2 and 3. There is a common problem. The Minister of State will know the country pretty well. I will single out a number of places. Councillor Annemarie Ryan has been in contact with me about Tipperary town. Half of the place is empty. I was there last week. I will also mention Gort in County Galway, Athy and Monasterevin in County Kildare, Fermoy in County Cork, Limerick city, Tralee, Longford, Navan in County Meath and Boyle in Roscommon. When you go around these towns - and they are towns, not villages - you will see great dereliction. Many of them are market towns that have beautiful architecture and the potential for beautiful public realms and urban spaces.

We talk about funding. I welcome the funding; I am not here to knock it. It is fantastic. I will mention one of the travesties in this area. A circular that was issued yesterday to all of our county managers, Circular URDF 01/2023. On page 2, it is stated that "While just under €1.5bn was originally allocated under Calls 1 and 2 only €144m had been drawn down by local authorities". That raises questions. I know the Minister of State is not here to cover that particular issue today but it is a real concern.

What am I saying? I am saying that our city and county councils are telling us that all of this is bypassing the little villages and towns and that we need to focus on the likes of Schull in County Cork and other smaller towns and villages. I think of the great potential of Ennistymon. It is not good enough to say that, unless a town has a population of 10,000, we are not prepared to fund it. I believe the reverse. I believe in going to the smaller little towns and villages and getting them right. The others will have to compete with them while they grow. That is a really important point.

I am conscious of time but I want to draw the Minister of State's attention to the fact that the Joint Committee on Housing, Local Government and Heritage, of which I am a member, commissioned a major study in respect of town and village urban regeneration last year. We made 39 recommendations, many of which have not been implemented. As a new Minister of State, I ask Deputy O'Donnell to look at that again and to see how we can implement these recommendations. We have wonderful towns and villages. Cities tend to be bigger and can manage better. They can take a more collective approach with regard to funding. Let us get these communities up and vibrant. For communities to be vibrant, we have to people living and working in them and we have to build them. All over this country, there is a necklace of wonderful little villages. Surely we can focus on them.

I ask the Minister of State to please look at this circular. It is many pages long. You would need degrees in English and engineering to master it. Can somebody provide a simpler version? I circulated it to all of our city and county councillors today. I had to read it ten times myself. Some 12 or 13 people came back to me to ask what it was all about. Can we simplify the documentation and the language within it? If local authorities are not spending the money to rejuvenate these towns, we should give it to somebody else. Let us not have a situation in which Government funds are not drawn down. I wish the Minister of State well with this project.

Deputy Kieran O'Donnell

I thank Senator Boyhan very much for raising this matter. The urban regeneration and development fund, URDF, is a flagship element of Project Ireland 2040 and was established to support more compact and sustainable development through the regeneration and rejuvenation of Ireland's five cities and other large towns. The Senator noted that is based on populations exceeding 10,000. The fund also caters for towns with fewer than 10,000 people but where there are 2,500 or more jobs. It very much feeds into compact growth. The updated census returns will be looked at to see what additional areas will qualify but I note the points the Senator raises in that regard. This funding will enable a greater proportion of residential and mixed-use development to be delivered within the existing built-up footprints of our cities and towns and ensure that more parts of our urban areas can become attractive and vibrant places that people choose to live and work in and to invest in and visit. Through the URDF, public bodies are receiving targeted support for innovative and holistic solutions to the issues that have hindered the regeneration and rejuvenation of our large towns and cities. To date, there have been two calls for proposals under the URDF, with in excess of €1.6 billion allocated to 132 projects, comprising almost 400 sub-projects, located right across the country.

I have read Circular URDF 01/2023, which was issued yesterday. The Senator draws attention to the level of funding drawn down.

I will make the point, however, that many of these projects are now drawing down the funding at different levels. Looking at the level of funding that has been drawn down and the roll-out of projects would not be totally compatible. It is a matter I have taken up with my Department. There are numerous other projects, many of which are now coming to fruition. I expect the Senator will see major drawdowns in the not-too-distant future in that regard.

With URDF-supported projects now active in every local authority area in the country, it is clear that local authorities are eager to embrace the unique opportunity presented by the URDF programme to harness significant Exchequer support to reimagine and optimise the potential of Ireland's urban areas.

To support the Government's new vacant homes action plan that he launched yesterday, the Minister, Deputy Darragh O'Brien, also announced details of a third round of funding support under the URDF. Supporting key objectives of Housing for All and town centre first, this round of supports specifically addresses long-term vacancy and dereliction across URDF eligible cities and towns.

Distinct from previous URDF funding calls, the third funding round will not be a competitive bid process. Instead, specific allocations will be made to each local authority to address the financial barriers and risks faced by local authorities in seeking to tackle vacant and derelict buildings and sites. The Senator will know from the circular that there will be engagement within the Department and the local authorities. They will have to make submissions by Friday, 10 March giving an appraisal of where they are . Previous to that on Wednesday, 15 February, there will be a plenary session with all the local authorities and the Department on the issue. We will seek to have workshops with the local authorities in March and early April. We will then follow up with approved recommendations in terms of the eligibility of projects and reporting requirements for the third round of funding and associated financial allocations by quarter 2 of this year.

The funding will be available to cover the acquisition costs of a property or site and any civil or design works that may be required to de-risk or improve the site or building to make it more attractive for reuse, development by others and onwards. We are looking at brownfield sites, which are very much part of this as well. The intention is that the fund would be replenished from the proceeds received from the end user, thereby allowing the local authority to put in place a rolling programme to tackle long-term vacancy and dereliction without recourse to borrowing. Up to €150 million of URDF support will be made available in individual allocations to local authorities.

It should be noted that while the third round of funding is specifically tailored to help deliver specific objectives of the national planning framework, the national development plan and the Housing for All and Town Centre First plans, the Minister has committed to a fourth round of funding support, which will be made available later in 2023. This further call will revert to the heretofore wider scope of URDF projects which reflect the complex investment proposals required to transform key areas of our cities and towns.

Senator Victor Boyhan

I will be very brief. I am conscious of time and I know the Acting Chairperson is under pressure. I will make four key points. The reality is that the circular issued by the Department yesterday confirmed that €1.5 billion was allocated. We have had calls 1 and 2, we are heading into call 3 and, to date, only €144 million has been drawn down. That has to be of concern. I will leave it at that.

The next issue is around the population figure of 10,000 when we talk about villages. These communities are represented by Government party councillors. They are crying out for support and funding. The Minister of State might look at that again, please.

This is about staffing and resources. Local authorities do not currently have the staff in place to administer these schemes. More importantly, the officials are scratching their heads and asking the question of who is paying for the costs of compulsory purchase orders, CPOs, to acquire these properties. If substantial progress is to be made in this regard, they need this funding. There is a need for additional information. I know the Minister of State is carrying out workshops, which I respect and appreciate. Let us stay alert, however, and be sure we are drawing down the funds that have been allocated for these schemes. I thank the Minister of State.

Deputy Kieran O'Donnell

As I said, many of these projects are now coming to fruition. The Senator will see much more of that €1.5 billion in funding being drawn down. As I outlined earlier, a key action in supporting the Government's vacant homes action plan is the third round of URDF support, which will be specifically designed to address long-term vacancy and dereliction across our URDF cities and towns and the acceleration of the provision of residential accommodation. This initiative is also in support of objectives under the revised Housing for All and Town Centre First plans.

It should be noted that the third round of funding support is not seeking to replicate or replace the various social housing programmes available to local authorities to tackle vacant and derelict buildings and sites. The revolving fund is intended to act as an additional and much broader tool for the activation of long-term vacant and derelict sites and buildings.

There are extensive examples of vacant or derelict buildings that are problematic but which may not be appropriate or viable for social housing schemes. This funding is intended to address such properties while addressing the financial gap that exists currently for local authorities in that regard.

I note the Senator's points on the issue with regard to staffing. I will take the matter up with my Department. Compulsory purchase orders are a considerable element. They are being looked at under the new planning legislation, but they are a measure. We want this plan to work. It is working, but we wish to expedite this roll-out. I very much take on board Senator Boyhan's points.

Acting Chairperson (Senator Martin Conway)

Senator Boyhan has decades of experience in this area. When he speaks, he speaks with authority.

Cuireadh an Seanad ar fionraí ar 3.30 p.m. agus cuireadh tús leis arís 3.35 p.m.

Sitting suspended at 3.30 p.m. and resumed at 3.35 p.m.