Dáil debates

Tuesday, 12 December 2006

Local Government (Business Improvement Districts) Bill 2006 [Seanad]: Second and Subsequent Stages

 

6:00 am

Photo of Paul Connaughton  SnrPaul Connaughton Snr (Galway East, Fine Gael)

Like everyone else, I welcome the overall concept of this Bill. I took particular notice of the Bill as it progressed through the Seanad. Given that the Dáil adjourned early several times in recent months, I do not know why we have such a short period to deal with this Bill. At that time, the Government was not able to bring forward legislation, but all of a sudden this Bill has become hugely important business.

I do not have a background in this area and I am not exactly sure how the issue will pan out. The Bill gives an opportunity to businesses and others to progress matters in a communal manner in a particular area. A number of factors would have to be in place for this to work. Based on what is happening in Britain and the United States, critical mass is important. I find it difficult to see how this will come about in a small town like Ballinasloe, for example. There is no reason that it should not, but I imagine that it would have to be pioneered by an organisation as powerful as the Dublin Chamber of Commerce or some similar organisation. It is worth giving this Bill a chance. Assuming it is passed in its current form, I expect an organisation will pilot this in one of our cities, probably Dublin.

I was a member of local authorities and have been a Member of this House for some time, and I have always found great tension between the business community and local authorities. It should not be like that; everyone should be on the same path and should aim to bring about prosperity and the better delivery of services. However, for some reason there is barely a town with a local council where there is not tension between it and the business community. Perhaps when this concept was first mooted many years ago it was done with the intention of overcoming this problem. If that could be achieved, it should be closely examined. With the competition this county faces, there is no room for tension between local authorities and the business community — it is better that they sing from the same hymn sheet. I assume that much of the tension arises from rows over rates and valuations. Many people either think the money is not well spent or that they are too highly rated. There is also the clear disparity between what is deemed commercial and social in a community. These lines can be jarred on occasion.

I note that the chambers of commerce are strongly behind the concept of this proposal. There are likely to be big businesses in the areas where this will work best. They tend to bring a lot of business and traffic into particular areas. One could argue that they might have been the cause of extinguishing or diminishing existing businesses. The Minister proposes checks and balances in the system of rateable valuations by the use of a mechanism preventing one anchor tenant controlling everything. That is a very important provision as the proposals would not otherwise work.

The Bill reminds me of the Leader programme in agriculture in the way it tries to bring together various features which increase productivity and beautify an area. That is a very useful concept, provided it is handled correctly.

I also understand the Minister proposes to amend the Valuation Act 2001. Some businesses have low valuations and others high, which has been a vexed question for many years. It can be assumed that any changes in valuations will be upwards — current high valuations will not be reduced and lower valuations will be increased, which will cause problems.

The Bill proposes to introduce outside audit experts to sit on existing boards, on strategic policy committees and on finance committees of county councils or local authorities. I share the view of Deputy Gilmore on this matter. Having been a member of the Committee of Public Accounts for a few years, I always believed that local authorities should be brought under its remit. I do not think many in the Dáil would disagree, however, that local authorities have a good record on the question of misappropriation of funds. Over the years there have been no major disasters and, while they may move slowly and lack imagination when proceeding with various projects, at least the books always seem to have been correct, for which I pay tribute to them. Will the people who take up additional seats on the board become directors? What responsibilities will they have?

On the detail of a BID proposal, the Minister said: "Following publication of a BID proposal, the local authority must, by way of public notice, invite submissions from the public on the proposal." When summing up can the Minister say what will happen if the public objects to a proposal in large numbers? What mechanism will deal with that? It is very important the public be taken into account but, at the same time, a good project should not be jettisoned for a frivolous reason.

Fine Gael, like most in the House today, supports the principle of the Bill and hopes the Minister provides answers to the many questions that have been asked. He does not have much time to convince us, however, for which he should be ashamed. There is no excuse for that but we await his words of wisdom between now and 7 p.m.

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