Phil Hogan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

There is a meeting in Longford on Monday night, if that is of any use to Deputy Penrose. Senator Kelly and Deputy Penrose both covered the range of problems we have in rural towns and villages, particularly for small shopkeepers. We identified that very early on and in line with the Planning Development Act, we got on with the work of developing the core strategy areas in every town to stop this nonsense of denigrating the town centres by moving everything to the periphery. We can give plenty of examples but perhaps the best is Naas, where Tesco and 36 other shops are 1.5 kilometres from the town centre. That might have been fine when times were good but we can see the damage it did by pulling the heart out of the centre.

If the town centre looks well, and there are plenty of shops open, it makes a great impression. We have initiated a proposal asking local authorities to reduce development levies, particularly for town centres. Any influence committee members might have with their local councillors should be brought to bear so they focus on bringing in a meaningful reduction in development levies, which are more in keeping with the boom than they are with conditions now.

We hope they will adopt a scheme that will be more in keeping with the current times and will ensure substantial increases in income. Some years ago, a reduction in capital gains tax resulted in a substantial increase in revenue from the tax because the reduction stimulated activity. A similar increase could occur if development levies were reduced. Financial institutions will no longer pay development levies as part of a loan. Local authorities need to join the real world by substantially reducing the development levies they charge.

I agree that a differentiated approach to commercial rates is required. I have made this point regularly inside and outside of Government meetings. While we lack the resources to do a meaningful job in this regard, I continue to beat the drum on the issue and the joint committee should do similarly. A reduction of 5% or 10% in commercial rates could be meaningful for a large company but would be minuscule for a small shop. Thinking outside the box is needed, for example, providing for a short holiday from commercial rates, if we are to ensure the entities to which the Senator and Deputy referred survive in the next couple of years.

The retail planning guidelines, in which Deputy Penrose was involved, are a perfect example of how we put our shoulders to the wheel to protect shopkeepers and face down a certain type of lobbying. I make no apologies for doing so. The large organisations which regularly appear before the joint committee may not appreciate this view.

The other area on which we are working is the rationalisation of licences along the lines described by the Deputy. The Minister of State, Deputy Perry, may have discussed with the committee the requirement on shopkeepers who are involved in the delicatessen and food business and may have a forecourt where they distribute certain oil products or perhaps a bottle of whiskey to comply with approximately 20 licences across local and national agencies. This is outrageous and a one-stop-shop is required for licensing this type of activity and providing the support we want to give entrepreneurs who want to start up a new business.