The Minister of State, Deputy Richmond, is most welcome to the House.
Nithe i dtosach suíonna - Commencement Matters
Emigrant Support Services
I thank the Cathaoirleach for selecting this matter. I welcome the Minister of State and thank him for coming here to directly deal with this issue.
My Commencement matter addresses the need for the Minister to make a statement on the Irish emigrant support programme, ESP, in the United Kingdom and the ongoing funding opportunities. I spent a week in London, including St. Patrick's weekend, as did many Members of the Seanad and the Dáil as part of a delegation led by Deputy Feighan. I wish to thank him for that ongoing work and building of that important, mature, new, emerging relationship between the islands. It is extremely important that should continue. I believe in the term "soft power". Relationships are very important. As we meet across the various jurisdictions, it is important that we develop. "You win their hearts, you win their minds" is an old expression and I firmly believe that. For those who were in Westminster and in other parts of these islands last week, anything that cements relationships has to be positive.
The work the Irish centre is doing is excellent. I wish to acknowledge our ambassador, Martin Fraser and his team in London. They do an exceptional job. They too joined us in Westminster and engaged in the dialogue, conversation and the social aspects of that visit. Much was learned and a greater depth of understanding between us was teased out and developed.
I wish to touch on the issue of the emigrant support programme because while we celebrate the great diversity of Ireland and our heritage, we also know that many Irish people in the forties, fifties, sixties and seventies left this island through no choice of their own. It may have been social stigma. There were many young pregnant women who left with a promise that they could come back but they were never welcomed back. I met some of those women last week and there are sad stories. I sat on the tube the other day in London between Richmond and Westminster and there was an advertisement on the train encouraging people to engage with the mother and baby redress scheme, which is positive. I do not see those advertisements on buses, trains or DARTs here. There is an awareness. However, there is not a big enough awareness. It is important that we reach out to many of our citizens, who are trapped in the other parts of the word. I do not have time to talk about America and other places and the undocumented, but we know there are many undocumented Irish struggling in Birmingham, Manchester, London and other parts of the UK.
I am greatly encouraged by the positive work that is happening but it is important that we continue to build on that network and continue to support our people. They are our people; they are of us; they are our relations; they are our family; and they are steeped in their sense of Irishness. One of the things we encounter when going to Liverpool, Birmingham and all over the place, particularly on St. Patrick's weekend, is that great sense of pride. We and they are Irish. There is a commonality and there is a humanity in all of their stories that we need to respond to.
I know the Minister of State is fully committed to this. I know of his deep work in building relationships on the islands. Can we, however, continue to develop and reach out to the London Irish Centre and the lunch clubs? There are many lunch clubs. My sister is involved in a lunch club five days per week in Falconwood, just outside London, where up to 60 people who are in their seventies and eighties come for lunch and support every day. Sometimes they need assistance navigating their social welfare payments and other issues.
It is not possible to bring them all home but it is possible to interplay with and support the agencies that support our people. That is very important. For those who are the most vulnerable and who were chased out of this country or felt that they had to leave for a better life and did not achieve that better life, we need to continue to advocate for them and tell them that we are here to support them through the established agencies that the Minister of State, his Department and the embassy work with in London. I wish to acknowledge the enormous work of our embassy in London and Martin Fraser. It is greatly encouraging what he is doing and we need more and more of that.
I thank the Senator for tabling this timely Commencement matter. I wholeheartedly agree with every point he made. I really appreciate the passion that he brought to this discussion.
In line with our current diaspora strategy, the Government is committed to strengthening the ties between Ireland and our communities overseas and ensuring we look after the most vulnerable of our emigrants. Britain remains home to the largest Irish-born community outside Ireland. It continues to be the most popular destination for those emigrating from Ireland. The Government has provided financial support to Irish community organisations in Britain since 1984. This is co-ordinated by the Irish abroad unit of the Department of Foreign Affairs and Trade, working with the Irish Embassy in London and our consulates in Cardiff, Edinburgh and Manchester.
Our engagement today is underpinned by the emigrant support programme, which was launched in 2004. In that time, the programme has granted in excess of €250 million to 900 organisations in 51 countries. Last year, we allocated ESP funding of more than €7.8 million to 112 organisations in Britain alone in respect of 202 projects. This represented just half of the total ESP budget. In addition, Irish-based organisations such as the GAA, Safe Home and Comhaltas Ceoltóirí Éireann receive funding for their work with our community in Britain. More than 75% of the funding was allocated to front-line services for vulnerable and underrepresented groups in Britain.
We supported counselling and outreach services and projects which address social isolation and actively improve the well-being of Irish people. We also invested in projects that foster a sense of community, nurture our identity and culture overseas and deepen our trade, business and education links.
Last month in England, I saw at first hand the vital work the ESP is funding when I met with community groups in London, Coventry and Birmingham. I visited lunch clubs and sat with our fellow Irish men and women and I heard and discussed their stories. Their story of emigration is in stark contrast to the story of emigration among my generation. My peers, and perhaps those younger again, had no choice. They left Ireland at a different and darker time with few skills or qualifications. Senator Craughwell referred the other week to the dreaded mailboat, which Senator Boyhan and I know well. They took that from Dún Laoghaire to Holyhead and other places. They were the navvies on the building sites and the nurses in the hospitals. They often met hardship, tough economic times and prejudice. They lived hard, tough lives but they thrived in their new homes and did not for one instant lose their sense of Irishness. We should never forget that.
In 2025, we will allocate almost €16.5 million to strengthen ties with the diaspora and communities overseas. The funding year runs from 1 July to 30 June each year. The 2025-26 ESP opened for applications on 29 January and closed on 19 February. Applications are now being assessed and details on disbursements of grants will be made available over the coming months.
The Senator referred to my next point. An important part of Ireland's diaspora strategy is a commitment to heal the relationship with those who left Ireland in crisis and survivors of institutional abuse. Britain is home to the largest numbers of victims of institutional abuse. It is estimated that 30% of all survivors live in Britain. The Senator spoke of an advertisement he heard on the tube but this is not an issue that is in the news in Britain. It has not had documentaries made about it and is perhaps not in the social consciousness we all live with every day. That is why we are advertising, why people like the ambassador, H.E. Mr. Fraser, whom the Senator rightly commends, are reaching out to those communities and why I met representatives of the survivors. We are working closely with community organisations to make sure relevant UK departments can provide people with access to compensation schemes without negatively affecting other welfare supports they may be entitled to.
The ESP provides funding to community organisations in Britain supporting survivors such as the immigrant counselling and psychotherapy organisation known as ICAP, the London Irish Centre, Coventry Irish Society and Fréa in the north of England. Our funding supports eight full-time posts and two part-time posts to ensure dedicated support is provided to the survivor community. These organisations have been centrally involved in assisting survivors in Britain to access the mother and baby institutions payments scheme.
As we look to the future, it is vital that we support our vibrant and diverse diaspora, particularly in Britain. I will continue to ensure that the ESP prioritises projects that place the welfare and care of our citizens at their heart and that deepen our ties with our uniquely rich and dynamic Irish communities. I look forward to engaging further with the Senator.
I thank the Minister of State for the detail and his passion for this important subject. He mentioned Dún Laoghaire Harbour. He and I know it because we both served on the council where the harbour is located. It is known locally as the harbour of tears and we understand why. So many people emigrated. They did not fly; they left mainly from Dún Laoghaire and Dublin ports.
There were two key messages I am very encouraged by. The Minister of State said:
An important part of Ireland's diaspora strategy is a commitment to heal the relationship with those who left Ireland in crisis and survivors of institutional abuse. Britain is home to the largest numbers of victims of institutional abuse.
I have had that experience, as I have shared in this House. I do not like getting emotional but I can see people leaving our harbour of tears. We have to reach out to them and be there for them. I thank the Minister of State.
I sincerely thank the Senator and reassure everyone in the House, particularly the Senator, that not a day goes by that our team in Britain does not reach out to prevent people being forgotten and make sure their pain is in some way addressed. This cold State provided no home for them and forced them to get on the ferry or mailboat and leave, wrapped in awful emotional distress. The Ireland of today, the modern Republic the Senator and I love, is not the same place. We will continue with every instinct and at every opportunity to in some way address the great miscarriage of justice and sheer evil carried out in our institutions over such a long period of time.
The survivor community in Britain is perhaps the most vulnerable at this stage. Their age profile is growing older and their health is not great. They have been hidden, have tried to forget their past and have not told their new families or communities about it. It is our responsibility to reach out to them sensitively, appropriately and efficiently and to make sure the care we failed to provide for them previously is not lacking in these important years. I commit to the Senator that every day I am in this brief, I will make sure that is done.
Tax Code
I welcome the Minister of State, Deputy Dillon.
I thank the Minister of State for coming in here this morning. I rise to address a matter of significant concern for many of our constituents: current capital acquisition tax thresholds and their potentially discriminatory impact on childless adults and non-nuclear families.
The capital acquisition tax, CAT, threshold determines the amount of inheritance or gift that can be received tax-free based on the relationship of the disponer, that is, the giver of the inheritance or gift, to the recipient. As of the last budget, the categories were reformed as follows: €400,000 can be inherited tax-free by children, who are category A; €40,000 can be given to siblings, nieces, nephews and linear descendants, who are category B; and it is €25,000 for all other cases, category C. Ignoring the last category for a moment, let us focus on the sheer disparity between the first two categories. The tax-free allowance for category B is one tenth of that for category A. To put it in more concrete terms, if I gift or will a house worth €300,000 to my son, he will pay no tax on that, whereas if I willed it to a grandchild, they would have to pay €82,500. These thresholds create a hierarchy that favours parents over childless adults and grandparents, who cannot pass on the same value of assets tax-free to their loved ones. This issue has been brought to my attention by constituents who feel the system is discriminatory and unfair.
I will share the story of a constituent who inherited his parents' house and paid €165,000 in inheritance tax. This constituent, who is single and childless, now wishes to pass on the house to his nephews or nieces but faces the possibility that they will be unable to afford to inherit it due to the tax burden they would face. If he had children, there would be no inheritance tax due, which highlights a truly unacceptable disparity and unfairness in our system. In another case, a young man and his partner have recently moved into their first home, which he inherited from his grandmother. What could have been a very happy occasion in his life was overshadowed by the fact he faces paying off a loan for the next ten to 20 years to cover the tax bill. This is because he happened to be two generations removed from the disponer instead of one.
The principle of equality before the law is enshrined in our Constitution. It is our duty to ensure all citizens are treated equally, regardless of their parental status. The current CAT threshold appears to violate this principle, discriminating against people and creating huge financial hardship for loved ones simply because they are not immediate children. It leads to the State extracting huge amounts of wealth from assets that have often been saved and invested in over the lifetime of childless adults. This is at a time when many families have changed from the straightforward nuclear model and relationships are not as clear cut and uniform as they used to be.
I ask the Minister for Finance whether any action or investigation is being undertaken to review whether the current CAT inheritance tax categories constitute a form of unconstitutional discrimination. Furthermore, I ask if the Government is taking steps to reform the tax system to ensure real fairness and equality for all citizens. Last year's reforms simply do not cut it. This is a time for us to address the issue and ensure our tax system reflects the values of equality and fairness. I look forward to the Minister for State's response. I hope we can work together to bring about meaningful reform for the benefit of all our constituents.
I thank the Senator for her question. I note the concerns and cases raised. I am taking this Commencement matter on behalf of the Minister for Finance, Deputy Donohoe. As the Senator stated, CAT is a beneficiary-orientated tax payable by the recipient of a gift or inheritance, as opposed to the person providing that gift or inheritance. For CAT purposes, the relationship between the person giving a gift or inheritance, the disponer, and the person who receives it, the beneficiary, determines the maximum amount, known as the “group threshold”, below which CAT does not arise.
The group A threshold, currently €400,000, applies where the beneficiary is a child of the disponer. For clarity, it is useful to note the definition for children for CAT purposes includes any stepchildren, adopted children or certain foster children. All can avail of the group A threshold in respect of gifts and inheritances received from that disponer. The group B threshold, currently €40,000, applies where the beneficiary is a brother, sister, nephew, niece or lineal ancestor or lineal descendant, such as a grandchild of the disponer. The group C threshold, currently €20,000, applies in all other cases. Where a person receives gifts or inheritances in excess of the relevant tax-free threshold, CAT at a rate of 33% applies on the excess benefit.
There are several exemptions and reliefs from this tax that may apply depending on the circumstances of the case, some of which do not require that any specific family relationship applies. One such exemption is the CAT dwelling house exemption. Where a person takes an inheritance of a dwelling house, that person may be able to avail of the dwelling house exemption. To qualify for the exemption, the inherited property must have been the disponer’s principal private residence at the date of death. The beneficiary must also have lived in the house for three years prior to the date of the inheritance and must continue to live in the house for six years after that date. In addition, the beneficiary must not have a beneficial interest in any other residential property. Detailed guidance on the dwelling house exemption is published on the Revenue website. In addition, nieces or nephews of that disponer may qualify for favourite niece or favourite nephew relief in respect of gifts or inheritances of business assets. The relief allows a niece or nephew who qualifies for the relief to avail of the group A threshold. Qualifying nieces or nephews are those who have worked substantially on a full-time basis for a period of five years prior to the gift or inheritance being given in carrying on, or assisting in the carrying on, the trade, business or profession of the disponer.
The Senator should note that the existing CAT regime, as with all legislation, was created with the benefit of advice from the Attorney General. In this regard, all legislation enjoys the presumption of constitutionality unless the courts determine otherwise. Superior courts review the constitutionality of legislation when specific cases are presented. Therefore, we do not believe the current CAT is unconstitutional.
I thank the Minister of State for his reply and for repeating everything we know about the CAT concerning households. It is not addressing the discrimination case in respect of childless couples. I am not advocating for anything to be taken away from adults with children but for giving a voice in these Houses for equality for couples and single people without children. Everyone should have the same level of control over how their fully taxed assets are passed on. All citizens should be treated equally. This is definitely not the case now.
Let us be honest. Why should the children of my children and the children of Micheál Martin and Simon Harris be treated differently from, let us say, the nephews and nieces of Senator Victor Boyhan, Senator Gerard Craughwell, Deputy Ken O'Flynn or Deputy Roderic O'Gorman? Why should they be treated differently? It is wrong. It is discrimination. I ask the Minister of State to reflect on this point and see what he can do in relation to this issue. I definitely do not believe it is unconstitutional and I am sure a case will be taken against the Government.
As regards getting someone to move in with you three years beforehand, you may end up getting sick and somebody might have to move in. Somebody in their 30s, 40s or 50s can get cancer and a relative might have to move in. They will not have that three-year grace period. As far as I am concerned, the legislation needs to be changed.
I again thank the Senator for her contribution on this issue. I note the concerns she raised in her contributions. The Minister for Finance and his Department, however, are satisfied as to the constitutionality of the existing CAT legislation.
It should also be noted that contrary to the Senator's arguments, there are exemptions in place currently for CAT. This is the case where dwelling houses can be provided to individuals, in the context of people who have passed on, who have lived in the dwellings in question for a specific time before the inheritance and will continue to live in the houses for a specific period afterwards. There are, therefore, exemptions in place now.
There are no proposals at this time to make any changes to the existing arrangements to address the particular matters referred to. The Senator should also be aware that there would be a significant cost. Indeed, in budget 2025 we increased the thresholds across groups A and B to the tune of €88 million. We will continue to review it. Options are also available for setting CAT thresholds. This must be balanced against competing demands. As with all tax matters, the Department of Finance will consider the CAT exemption levels and related group thresholds throughout the process and will advise the Minister accordingly.
Road Projects
I welcome the Minister of State, Deputy Buttimer, to the House.
I thank the Minister of State for coming into the House. I express my best wishes to him in his new role. I look forward to working with him and to his statement in relation to my Commencement matter. I will discuss the complete deterioration and disrepair of the N69 national road from an area called Bolton's Cross, around Listowel, to the Tim Kennelly roundabout in Listowel. As a national road, the N69 into Listowel is a lifeline and the gateway into the town from Limerick and the west. To say this is a safety issue is an understatement. The road enters the town close to the Kingdom of Kerry greenways, which is also adjacent to the newly constructed Listowel bypass that has been a wonderful success. This issue impacts all road users, including drivers, pedestrians and cyclists. The state of disrepair of the road is causing damage to cars constantly and is negatively impacting businesses and residents located on the same stretch of road. It is not safe to travel the road because of the dangerous condition into which it has fallen over a long time.
As a county councillor in County Kerry, I raised this issue in July 2023 as a notice of motion at a Listowel municipal district meeting. I described the response I received as a copy-and-paste answer. The motion related to safety improvements and road resurfacing from the Bolton's Cross junction on the Tarbert road to the Tim Kennelly roundabout in Listowel. I told those at the meeting that the location was the scene of a fatal accident. Further accidents have taken place since. I asked if funding needed to carry out works at the location had been obtained from Transport Infrastructure Ireland, TII, and Kerry County Council told me a payment assets repair and renewal, PARR, report was being carried out as part of an application to seek further surfacing improvements between Bolton's Cross and the Tim Kennelly roundabout.
That report was to be ready by the end of 2023. Specific details regarding the status of these improvements, including the exact nature and extent of the works, have not been made available. To say that this has been an embarrassment for the people of Listowel when we welcome visitors into our town is a complete understatement. It is a national road and should look like a national road. We are discussing a road that is only 1.7 km in length. Will the Minister of State provide an update on when these road safety improvement works will commence? I look forward to his statement.
I thank Senator Kennelly for raising the matter with me. I am taking it on behalf of the Minister for Transport. I know the road in question is of particular importance to the Senator. Road safety is a priority for us as a Government. The Minister for Transport is responsible for the overall policy and Exchequer funding for the national roads programme. TII delivers the national roads programme in line with Project Ireland 2040, the national planning framework and the national development plan, NDP. The Senator mentioned copying and pasting. I will not insult Senator Kennelly with some of the remarks in the prepared script but I am conscious that this is an important road for him and the people of Listowel. The Government has earmarked €5.1 billion for capital spending on new national roads projects from 2021 to 2030 as part of the NDP. As Members will be aware, this funding will do a number of things. It will enable improved regional accessibility as well as allowing for growth, which are key strategic outcomes. It will also provide for the development of numerous national road projects and include projects that are already at construction stage and those close to it, as well as the development of a number of others.
A major priority in the NDP, in line with the Department's investment hierarchy, is to maintain the quality and safety of the existing national road network. The NDP will have about €2.9 billion for the protection and renewal of existing national roads over the ten-year period to 2030, allocated evenly across the decade. This includes minor improvement projects, safety schemes such as junction upgrades and road realignment and pavement renewal. As Members will be aware, the greater portion of the funding in the NDP becomes available in the second half of this decade, which has meant that up until now, there has been a constraint on the spending of money. However, €411 million of Exchequer capital funding was provided for national roads through TIl to local authorities last year and the allocations for this year will be announced in the coming weeks.
l understand from TII that Kerry County Council has not been in a position, as the Senator said, to prioritise a scheme for the N69 from Bolton's Cross to the Tim Kennelly roundabout due to the many competing demands for these resources, which have been required to fund other high-priority schemes, such as the Listowel bypass, which, as the Senator said, has been a huge success. In 2024, approximately €4.7 million was allocated for the construction of new national roads in Kerry, with an additional €9.7 million being allocated for the improvement of the existing network. This was in addition to the allocation of €118 million in Exchequer capital funding that was allocated for the national road network in County Kerry between 2020 and 2023, which has resulted in many improvements to the network, as demonstrated, as we have said, by the Listowel bypass, which was completed last summer.
I am conscious of the necessary improvement to this lifeline and gateway to the west, as the Senator put it, and that it is just a 1.7 km stretch. This important project, aimed at enhancing regional accessibility and improving connectivity in the south west, will be of benefit to the region. It will improve journey time certainty and have quality-of-life impacts on road users. The project will enable safer journeys and the improved connectivity will strengthen tourism in the area while relieving congestion and delays within the heritage town of Listowel. In diverting traffic away from the town centre, the project will reduce noise and improve air quality. In addition, with traffic redirected to the Listowel bypass, the existing route will be developed to facilitate safer cycling and walking routes.
I will take back the Senator's concerns to the Department and work with him to champion this issue because it is important. The programme for Government commits to increasing funding for new roads as part of the NDP, the maintenance of existing roads and the protection and renewal of the road network to address maintenance backlogs. As the Senator said, it is about ensuring we deliver this project. I look forward to working with the Senator in the coming months to make sure we get this road prioritised for him and the people of Listowel.
I thank the Minister of State. It is unfortunate to hear the statement on the works. My community, which I represent on a national front, has been enduring this road for a long time. It is disappointing to hear that TII and Kerry County Council have not been in a position to prioritise the scheme for the N69 from Bolton's Cross to Tim Kennelly roundabout. It is an embarrassment at this stage. I do not know how to take back the information that there is no start date or finish date for the works that I proposed for everyone's safety. Road safety, as illustrated in the Minister of State's response, is our priority and his concern.
I look forward to working with the Minister of State. This section of road has to commence and be prioritised by him and the Department for completion as soon as possible. I formally invite him as a Cork man down to the kingdom. He can come from the west or whatever side he comes from. I invite him when he returns with a start date for these works for everybody's safety. We have a wonderful bypass and a road in the worst condition entering the town. It does not add up.
I thank the Senator. I know this road and roundabout is of particular importance to him. The name Tim Kennelly, for us in Cork, is a huge reason why we should be supporting this. I take the Senator's concerns and share his view on the lack of progress. I commit to working with the Senator, the Department and Kerry County Council in a manner that will achieve the key outcomes he desires. The Government is committed in the programme for Government to enhancing connectivity in both urban and rural areas through investing in diverse transport options, including roads and the national development plan. I will take the Senator's points to TII and Kerry County Council. I will not insult him by giving him a prepared script, because I know the importance of this road. Thankfully, it is not on the way to Killarney, not that I think we will be getting to Killarney too often in the coming months, but I hope that next Sunday we will have a better result. This is about better results for the Senator and the people of Listowel. We have seen the benefit of the bypass. It is critical that we continue with road improvement. The Government has committed to that. We have seen a variety of benefits but the Senator made the point about safety and connectivity. I will sit down with him and take up his offer to visit and work with him on behalf of the Department to make sure we get this project moving.
Vacant Properties
I thank the Minister of State for coming to the House. In a world where we are surrounded and bombarded daily with bad news housing stories, I want to talk about one positive housing story. The croí cónaithe vacant property grants were introduced by the previous Government in 2022. I had the privilege of working with the previous Minister, his Department and our local authority members to introduce those grants, because we all know the fastest and most sustainable way to increase our housing supply is to use the vacant properties that are already built and connected to fresh water, wastewater, public lighting, and roads and are close to our communities, schools and all the other community services. Those grants have been successful. The previous Government did not just provide the funding for the grant but also ensured that the grants would be delivered locally by each of our 31 local authorities. It gave the local authorities the funding for the grants and also gave the local authorities funding to establish vacant housing offices and dedicated vacant housing officers. The response has been tremendous. There have been more than 11,000 applications for those grants and they have been very successful.
There is an opportunity, as I am sure the Minister of State will agree, to go further with those grants.
I believe that if those grants were extended, as Fianna Fáil promised in its manifesto, to include an increased grant of €100,000 for over-the-shop developments, those grants would enable property owners in towns, villages and cities and elsewhere throughout the country to turn those vacant properties into liveable homes. They would not just be providing essential homes for people but would also be providing new life into the towns and villages. It would be a significant stimulus of regeneration in urban and rural communities. My Commencement matter seeks an update from the Department on where it is at in amending the grants to extend them to the over-the-shop grant of €100,000.
I am also hoping the Minister of State, Deputy Buttimer, will have been sent here today with an update on the question of amending the payment schedule for the grants to staged payments. I advise everyone I speak to to engage early with the vacant housing officer because every vacant property has its own unique circumstances and its own unique challenges and opportunities. The way the grant is set up at the moment, once the grant is approved following application, the applicant has up to 13 months to draw it down. That is a reasonable amount of time because it can take time to secure contractors, for the contractors to be available, and for the works to be complete, but there is an ask that the payment would be made in stages and that there may be a facility for either a first or second stage payment.
I appreciate the Minister of State is taking this Commencement matter at short notice and his presence is very valued, but I hope the Department has sent the Minister of State with an update on my two queries. There is a huge opportunity for us to do more with those grants and for those grants to play an even greater part in increasing housing supply in areas in towns and villages where there is a huge need, where there is already a community that would welcome additional residents, and, most important, where the utilities connections are already in place for fresh water, wastewater and electricity. All that is needed is the human activity brought back again to bring life into the towns and villages and these vacant properties. I look forward to the Minister of State's response.
I will take this Commencement matter on behalf of the Minster of State, Deputy O'Sullivan, who apologises that he cannot be here. I thank the Senator for being a champion and advocate of housing policy and for being one of the key drivers in revitalisation of many vacant properties. To be fair to the Senator, she has been ahead of the curve in many ways. I commend her on that, during our time together in this House and now in different roles. Addressing the vacancy and dereliction issue and bringing existing properties back into use as homes form a key priority for this Government and the Minister. I completely agree with the Senator that this grant is about new life, reimagining and revitalisation. The Senator and I could walk many parts of this city and of Cork, or wherever, and it is something we need to see more of. I agree with the Senator completely.
Since the vacant property refurbishment grant was announced in 2022, it has provided support of up to €50,000 for the refurbishment of vacant properties and a further €20,000 for derelict properties. I concur with the Senator completely that there is a need to go further and I hope we can do that. Feedback on the grant has been very positive and the grant is making a real difference in urban and rural areas. Last month the Department of Housing, Local Government and Heritage published grant statistics that show more than 11,300 grant applications were received, in excess of 7,700 were approved and 1,449 grants were paid to 31 December of last year. Currently, the grant is paid on completion of the approved works to ensure the applicant has carried out the works applied for. This is also the approach in other grants such as the SEAI and housing adaptation grants. It is important to note also that staged payments would result in additional inspections by local authorities with a resulting impact on timeframes for grant payments.
Under the new local authority purchase and renovation loan launched last July, a first-time buyer or fresh start applicant who wishes to purchase or renovate a home eligible for the vacant property refurbishment grant but who cannot get sufficient funding from commercial lenders can apply to their local authority for a loan under the scheme. The loan has the potential to help eligible applicants by providing the necessary finance to make their project viable.
Recognising the need to bring as many vacant properties into use as homes, particularly in our towns and cities, the programme for Government includes a commitment to expand the vacant property refurbishment grant to include an above-the-shop top-up grant. The grant is currently available to support the refurbishment of vacant upper floors of commercial premises. So too is the repair and leasing scheme, providing up to €80,000 per unit, with no limit on the number of units in one property, for use as social housing. The Department of Housing, Local Government and Heritage is working to progress the commitment to introduce a top-up grant for such properties, how it will operate and who it will be available to. The Minister, Deputy Browne, will update Senators in the coming weeks and months on this matter.
I will be happy to bring back to the Minister the issues raised by the Senator. I share her views. I have a similar view regarding the payment in stages. I understand the knock-on effects of that. The Senator is right that we need to make it easier for and to incentivise more people who want to convert vacant properties, in particular those two or three floors over a shop. I am not sure if the Senator is familiar with the situation in Cork, but when I look up St. Patrick's Street and see some of the vacant properties, I ask why people cannot be incentivised more.
I again commend the Senator on what she has been doing and for the role she played. At a time when some people are critical of Government policy the Senator, has been the opposite. She has been a breath of fresh air in coming up with ideas and in pushing and cajoling members of both political parties in the area housing. I will bring back the Senator's views on croí cónaithe. I am sure the Minister, Deputy Browne, the Minister of State, Deputy O'Sullivan, and the other Ministers of State in the Department, including the Minister of State, Deputy Cummins, will work with the Senator on this matter. The Senator is right. It is about breathing new life into and creating a new imagined space in our towns and cities. I will bring back the Senator's remarks and I share her views on this scheme. I apologise if the reply is not what she needs or got but I will certainly take her views back.
I thank the Minister of State for his kind words. Solving the housing crisis is our number one priority. The work the Government and the Minister of State do, and which all of us can do to support the Government to achieve that outcome, is a privilege for us.
I acknowledge in the Minister of State's reply the fact that the croí cónaithe grant can be used in combination with the SEAI grants. In providing both grants combined, this can provide up to and in excess of €100,000 to convert vacant properties into liveable homes. That is really welcome and this is why it has been successful.
I acknowledge the response from the Department on the staged payments. It would represent an additional burden on local authorities' vacant housing officers and housing officers if there were to be staged payments. I accept that as a legitimate explanation for staying with the one-stage payment.
I also acknowledge the amendment that was made to the local authority home loan. In essence this meets the need of people on low incomes who are unable to secure a mortgage from a commercial bank for a mortgage to combine it with the vacant property grant. The combination of both is very powerful in enabling low-income people to buy vacant properties, combine it with the vacant property grant as an extension of their mortgage and turn it into a liveable home. That is all very welcome.
I must acknowledge the repair and lease scheme as well. The Minister of State is correct that it is an interest-free €80,000 loan and there is no limit on the number of properties as there is in the case of the vacant property grant. On top of that, companies can apply for the repair and lease whereas it is an individual in the case of the vacant and derelict property grants and they are limited to two properties.
I acknowledge all of that. It is all powerful and positive interventions by the Government to turn vacant properties into liveable homes. I urge the Minister of State to go back to the Department and to work with the Department to fulfil on the commitment we made to introduce the over-the-shop grant. I believe the €100,000 grant will go a long way to accelerating the conversion of over-the-shop spaces into liveable homes. There is an additional cost for compliance with building regulations and fire safety when doing an over-the-shop conversion. This merits the additional increase in the grant to €100,000.
I thank the Senator. I will commit to taking her views back to the Department. The Senator is right about the whole concept of liveable homes. I thank her again for her contribution. I reassure the Senator that the Government is committed to addressing the issue of vacancy.
The vacant property refurbishment grant has been successful. An above-shop top-up grant is being developed and other changes are being considered to improve the effectiveness of the scheme. We will continue to support bringing as many existing properties as possible back into use as homes. I will convey the views of the Senator to the Minister.
I repeat that I am as committed to this matter as the Senator. It is a scheme that will revitalise areas. I am thinking of Cork city but I know the Senator is thinking of parts of Dublin. Other urban towns will also benefit from the scheme. It is, as the Senator has said, about tackling the number one issue for all of us. Despite what some people would think, it is the Government's number one priority. I again thank the Senator for raising the matter this morning.
Derelict Sites
I welcome the Minister of State, Deputy Christopher O'Sullivan. I call Senator Joe Conway.
Go raibh míle maith agat. I want to address the business of derelict sites in ten brief itemised points. Over half of local authorities are failing to collect money from the owners of derelict sites. The latest figures suggest that councils are owed more than €20 million in unpaid levies. Seventeen of the 31 local authorities did not collect any money from dereliction merchants. Just €604,000 was collected by the councils in the last year reckonable, despite close to €1 million being owed in these local authorities. This means that €20.5 million is owed by dereliction merchants and the meter is running all the time. Each local authority keeps a derelict sites register, which includes the sites subject to the annual levy of 7%. If unpaid, this levy attracts interest of 1.25% per month. Local authorities can take dereliction merchants to court to recover the debt or they can compulsorily purchase the site and the money owed can become a charge on the land. Incidents of dereliction increased by 21% in 2023 compared with 2022. If local authorities are so ineffectual in collecting levies, would the Minister and his Department consider increasing the levy to something like 10%? Finally, and this is more in the realm of local and folk wisdom, I am sure that the Minister and everybody here has heard the old adage that it is not how high you swing the hatchet; it is how deep you bury it.
We have the legislation and levies but they are not working. We must use our intellectual grey matter as a society, and as local authorities, to come up with answers and understand why this is not working because dereliction is a curse and scourge on local towns and local communities. We cannot realistically allow this to go on because we are patently failing to deal with the scourge of dereliction. There are too many people wriggling out of it by giving easy answers. When we try to raise this issue, we are given all sorts of pat answers - we are told that it is difficult to go to court and that we will never get a washer out of them. I wonder whether the Department, the Ministers and the combined wisdom of the Government can get their heads together to incentivise local authorities - they need to really put the squeeze on local authorities - to go after these people because it is a situation that should not be allowed to prevail.
I thank the Senator. In fairness to him, he has laid out his points in a structured manner and has covered all of the areas. I wish to say at the outset that I agree with him. It is an issue that we need to address. I am going to set out the existing legislation and the powers that local authorities have, but I will come back to his points later in terms of what we can do going forward.
The Derelict Sites Act 1990 imposes a general duty on every owner and occupier of land to take all reasonable steps to ensure the land does not become, or continue to be, a derelict site. The Act also imposes a duty on local authorities to take all reasonable steps, including the exercise of appropriate statutory powers, to ensure any land within their functional area does not become, or continue to be, a derelict site. Each local authority also maintains a derelict sites register under section 8 of the Act for sites which they consider are derelict under the Act. Sites entered on the derelict sites register are subject to an annual derelict sites levy of 7% of market value, which will continue to apply until the site is rendered non-derelict. As the Senator mentioned, at the end of 2023 there were outstanding community levies of €20.45 million on derelict sites nationally. The collection of these levies is a matter for the individual local authorities concerned. A review of the Derelict Sites Act is being conducted, with local authorities invited to make submissions on potential improvements in the legislative provisions and the way they are applied. Discussions on the review are ongoing. It is intended in the context of related policies, legislative amendments and funding schemes that have been developed since the review commenced, in addition to the increasing challenges associated with dereliction, to now further consider the potential to improve the legislation and related supporting mechanisms.
Placing sites on the derelict sites register, and collecting levies in respect of those sites, is not the sole mechanism that local authorities apply to tackle dereliction. Local authorities are working collaboratively with property owners in local communities on the use of a range of available statutory tools and funding schemes with a view to achieving the ultimate goal of bringing properties back into use. The 2018 planning and development regulations provide for an exemption, which has now been extended to the end of 2025, from the need to obtain planning permission for the change of use of certain vacant commercial buildings, including vacant properties above groundfloor premises, to residential use such as above-shop living. Returns from the local authorities in relation to the exemption for 2018 to 2023 indicate that 1,165 development notifications were received from developers for refurbishments of vacant commercial properties, relating to a total of 2,716 potential new homes being provided.
The vacant property refurbishment grant provides funding of up to €50,000 for the refurbishment of vacant properties, and up to €70,000 where a property is confirmed derelict. The grant is making the transformation of these properties into homes an affordable option for individual home buyers and owners. At the of 2024, over 11,300 applications had been received for the vacant property grant. Over 7,700 of these applications have been approved and over 1,400 grants have been paid to date as refurbishment works have been completed.
Tackling vacancy is also a key action of the Town Centre First initiative, which is a whole-of-government policy framework to address the decline in the health of towns and to support measures to revitalise them. Dedicated town regeneration officers are now established within local authorities. They work closely with vacant homes officers and others to comprehensively develop regeneration and investment plans.
As the Senator will have seen, there are incentives to bring some of these vacant properties back into use and some of them are working. I am sure that some local authorities are better than others in using the tools that are available to them. The legislation is there. Local authorities have that legislation. For some reason, there are large amounts of levies uncollected. That absolutely is an issue. If we are seen to be a light touch, this dereliction issue will continue. The chink of light for Senator Conway is that there is now an opportunity to review the legislation and perhaps give local authorities a bit more teeth in this regard.
Gabhaim buíochas leis an Aire Stáit as a bheith anseo chun déileáil leis an gceist chasta seo. I want to use the maritime coastal town where I live, Tramore, as an illustration of what dereliction looks like. We have two derelict hotels - the Grand Hotel and the Tramore Hotel. The Grand Hotel has been derelict for more than eight years, since 2016, and the Tramore Hotel has been derelict for many more years. There has been a loss of 100 rooms between the two hotels for a period of at least eight years. I have done a back-of-an-envelope calculation of the cost of the loss of bed nights and the loss to the economy of Tramore as a result of those two derelictions. I estimate that there has been a loss, in the form of visitor numbers and the ancillary spin-off to other businesses, of €90 million since 2016. No small maritime holiday town can afford losses of that magnitude. That is what dereliction looks like and what it does to communities, town and small economies.
Again, Tramore is a stunning spot with which I am very familiar. He is right that it is a shame to see many of our beautiful coastal towns, which are important for tourism, impacted by dereliction. It should not be happening. As I mentioned, there are schemes to incentivise property owners to bring properties back into use. That also helps to solve the housing crisis, which is key. That is the way it should be done.
There is an opportunity here. I am sure the Senator will have an opportunity to contribute to the review of the Derelict Sites Act so that we can give local authorities more teeth. If those sums are not being collected, that is an issue we need to address. We all know of towns that are similar to Tramore. Towns across Ireland have issues with dereliction. Progress has been made in some regards but the Senator is right that we could do more. We could solve two problems. Derelict buildings are eyesores but are also potential solutions for tourism, if we are talking about tourist accommodation, and housing. I again thank the Senator for his contribution.
Cuireadh an Seanad ar fionraí ar 10.31 a.m. agus cuireadh tús leis arís ar 11.04 a.m.
Sitting suspended at 10.31 a.m. and resumed at 11.04 a.m.