Oireachtas Joint and Select Committees
Wednesday, 5 November 2025
Select Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation, and Taoiseach
Finance Bill 2025: Committee Stage
2:00 am
Paschal Donohoe (Dublin Central, Fine Gael)
Great. Thanks very much everyone. I will begin with Deputy Nash and his different points. I fully agree with him regarding the maps and I hope the expedition of these maps in a timely way by local authorities will in turn allow us to implement the changes we are making here. What we have been doing up to this point has not worked in the way I want it to and we need it to. With the combination of changes we have made, I am making it available to five more cities in order to do more to tackle the issue of dereliction and the use of property that is already built.
The Cathaoirleach reminded us of the really significant issues we have in relation to the use of properties that are derelict or vacant. It is the case that this changed scheme will still have real focus and limit to it, from a geographical point of view. I suspect it is the case that some of the property the Deputy is referring to will still be excluded from it. It is the reason we also have the urban regeneration development fund, which is a fund of €150 million that does aim to support plans that can end dereliction and long-term vacancy. We also have the croí cónaithe fund which provides a grant of up to €50,000 or €70,000 for vacant properties. We also have the vacant property refurbishment grant, with 9,979 grants having been approved at the moment and a further 2,856 having been paid out to a value of €155 million. I am just making the point that while we are understandably focusing on the living city initiative today, there are other schemes that are spending-related and aim to make a difference to this.
In relation to Deputy O'Callaghan and his point about local authority homes that have become voids, a void is just a description for properties owned by local government that do not have anybody living in them and have decayed over time. I have seen the same thing myself. In fairness, it has been an area of focus for the Department of housing and more funding has been made available to quickly turn properties that local authorities own into homes. While I cannot speak to the Deputy's constituency, I can see within Dublin Central now the number of homes that have been owned by the local authority that are now being turned into liveable homes and have people living in them. I greatly welcome that and want to see that progress continue.
I have taken a note of the questions Deputy Doherty has put to me. First, we have not expanded the maps or cities for some time. This is the first revision of the cities that has happened for many years. Even in what I am doing here today, I am not proposing a revision of the maps for existing areas that are in the scheme because I believe that would be a counterproductive thing to do, given all the other experience I have had with maps and the need for mapping from local authorities. It is some time now since we have had any significant revisions to the scheme and there has been no change for many years with regard to the cities or maps.
On the point about why we went to 1975, it previously stood at 1915, as Deputy Doherty said. The aim was to try to maximise the number of properties within the existing parameters of the scheme that would benefit from this because of the shift in gear we need in regard to the use of these properties. To bring some figures to it, at the moment, the number of properties that qualify within the existing special regeneration areas is 14,000 properties. We estimate that will rise to 34,000 properties. That is not the same thing as saying all of these properties would then access the scheme but that is the number of properties that qualify for it.
As a result of the decision that we have now made with regard to so-called regional centres, that will further increase it by another 7,000 properties, bringing the number of properties that will be applicable to the scheme up to 41,000. It is currently 14,000.
On why the owner-occupier provision is able to be drawn down over a seven-year period, owner-occupied properties will be set against either PAYE income tax or the self-employed tax. For that reason that is applicable over a seven-year period, whereas commercial and residential properties will be applicable only over a two-year period.
The Deputy noted that private developers will be able to access the scheme. That is the case because the private sector is going to play a role in dealing with the issue of dereliction, but I have made the point that the maximum that is applicable under a property here in this scheme is €300,000 per undertaking due to the application of our state aid rules. A cap is in place regarding the maximum that can be drawn down in relation to this per undertaking. Yes, I am bringing the development sector into the operation of this scheme because I am trying to use, in a targeted and responsible way, the tax code to make a difference to the availability of homes within city centres, recognising that tax in a targeted way can play a role with regard to it.
On the point made about the number of areas, they are informed by the designation of regional centres within the national planning framework, and the national planning framework lays out a number of cities that are classed as regional centres. I am using that classification to expand the scheme.
That leads to the question put to me on whether I believe in it. I do believe in the changes that we are making. As for why we do not do more and not expand the maps further and bring more cities into it, there is still a balance we need to strike. These are significant changes that are being made here. I believe that changes of this nature should be targeted and I do not believe they should be broadly available across our country. I also do not believe that, for example, they should be operating without maps or that the maps should be massively expanded. What I do not want to see happen is the owner-occupied residential relief being used as some kind of scheme that would facilitate, for example, extensions or upgrades of existing homes. That is not the intention of this. The intention of this is that it is used in a targeted way. The best way I have of delivering that targeted policy objective, which is about delivering new homes and trying to do that in the best way possible, is through maintaining maps and extending it in a targeted way to five more cities in a way that is consistent with the national planning framework.
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