Dáil Éireann Debate, Tuesday - 15 January 2019
205. Deputy Fergus O'Dowd asked the Minister for Finance if consideration will be given to implementing the living city initiative in Drogheda, County Louth to help drive residential numbers up and vacant properties down (details supplied); and if he will make a statement on the matter. [1088/19]
Amharc ar fhreagraThe Living City Initiative was introduced in the Finance Act 2013 and commenced on 5th May 2015 when the initiative was extended beyond the original planned pilot cities of Limerick and Waterford, to include the cities of Dublin, Cork, Galway and Kilkenny. In line with my Department's commitment to evidence based policy-making, the inclusion of these additional four cities followed the completion of a comprehensive, independent ex-ante cost benefit analyses.
The specific Special Regeneration Areas for the Living City Initiative in each city were designated following consultation with the relevant city councils and an independent review by a third party advisor. Specific criteria were set down in respect of the areas that should be included within the remit of the Living City Initiative which were required to be taken into account by the relevant city councils when putting forward the proposed Special Regeneration Areas for each city. In particular, Special Regeneration Areas should be inner city areas which are largely comprised of dwellings built before 1915, where there is above average unemployment and which demonstrate clear evidence of neglect, dereliction and under-use.
Officials in my Department reviewed the Living City Initiative in 2016 in consultation with the relevant councils and the then Department of Arts, Heritage, Regional, Rural and Gaeltacht Affairs. On foot of that review, a number of changes were brought forward to the scheme in Budget 2017 in order to make the initiative more attractive and effective. The principal change extended the residential element of the scheme to landlords, who are now able to claim the relief by way of accelerated capital allowances for the conversion and refurbishment of property, which was built prior to 1915, where such property is to be used for residential purposes. In addition, the requirement for a pre-1915 building to have been originally constructed for use as a dwelling in order to qualify for the residential element of the Initiative was removed. The floor area restriction for owner-occupiers has also been removed, while the minimum amount of capital expenditure required for eligibility for relief, under all elements of the scheme, was also amended and must now only exceed €5,000.
The aim is to get the design of the Initiative right so that it can work in an effective manner. Once it is proven that this have been achieved, it will then be possible to consider if and how the Initiative should be extended to other locations. Unless the underpinning scheme is made more effective, extension of eligibility for it to other towns would be largely ineffective.
