Seán Sherlock (Cork East, Labour) | Oireachtas source

I am rather disappointed because I thought there might be some imaginative ideas from the Deputy opposite in respect of discussing the actions the Government is taking to address the decline of town centres throughout the country. The Deputy referred to towns within his constituency which are probably similar in character to those in my constituency. I have analysed the situation in the towns I familiar with. During the boom years section 23 investments prevailed and in some instances one could argue these were put together by the party opposite. Now, there is a lack of occupancy in many of the buildings and there are empty storefronts throughout the country as a result of those taxation policies and the ill-informed Government policies of the past. They have led us to the point where many of our towns throughout the country have been hollowed out. If we are to have a reasonable and rational debate on this issue we should not start from the premise that economic history or the decline started only two years ago. We need to go back to 2007 and 2008 onwards in order to figure out where towns are now.

I will give the response that I have been given on the rates issue. The action programme proposes rates harmonisation to cater for differences between annual rates on valuation of towns and counties. The approach of the Department of the Environment, Community and Local Government to rates harmonisation seeks to ensure that, on the one hand, harmonisation does not lead to significant net loss of revenue in individual counties with consequential implications for services, and, on the other, increases in rates do not impact negatively on business and employment. In this regard local authorities have already been asked by the Department by way of circular to exercise restraint, and, where possible, reduce commercial rates in 2013. In fairness to many local authorities, this is what they have done or they have maintained rates at pre-existing levels.

There are several issues. Why have town centres declined? There significant property rights in this country such that it is very difficult for a town council or a local authority to intervene where a building is not occupied or where it is falling into decline. The property rights of the owner seem to take precedence over the wider social responsibility in respect of the upkeep of the premises. That is one challenge for local authorities in terms of attracting new activity to the main street. There is also the fact that in any town throughout Ireland at the moment there is an increasing number of courier vans delivering goods that have been purchased online. This is having a serious impact in terms of high street retail sales as well. One need only discuss the matter with one's peers, friends and family to get a sense of how much activity is being driven online nowadays.

The Deputy made a point about IDA visits. I have no specific knowledge in respect of IDA visits in the areas he referred to but I know from my experience in my region that there have been significant IDA visits. However, often the decision is made by the relevant person, business or company that they wish to locate to larger conurbations because of the particular type of business that is coming into Ireland at the moment, especially in the information and communications technology sector. In this sector, younger companies and younger people are looking to move to clusters around larger conurbations because it is deemed to be more attractive than locating to more regional towns such as my town of Mallow. That is a major challenge as well.

Domestic demand has flat-lined. Therefore, to say that the Government is at fault for the flat-lining of domestic demand makes no sense. The Government, in fairness, is trying to create the jobs and replenish the jobs that were lost. A total of 250,000 jobs were lost between 2008 and 2011. Nobody can convince me that if one puts all one's eggs in the construction basket and if that fails, then it would not have a detrimental effect on retail or the shape of towns and retail businesses within towns. We must create the jobs to create domestic demand and we are making a good fist of it although it is taking time.

We must be more imaginative in terms of how the planning guidelines, which were issued recently, will impact. We must ensure, as per the Minister of State, Deputy Jan O'Sullivan, that the planning system plays a key role in supporting competitiveness in the retail sector in order that there is an advancing choice for the consumer while promoting and supporting the vitality and viability of city and town centres and contributing to a high standard of urban design.

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