Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I move: "That the Bill be now read a Second Time."

Across the length and breadth of Ireland, towns are showing the scars of disastrous unemployment rates, abysmally low confidence, myopic planning and the slow bleed of emigration. Abandoned shops dot the streetscape while remaining businesses struggle to entice customers and to keep their doors open. Government public relations are promoting the slow signs of recovery. However, it is obvious to many of us that outside the M50, towns are struggling under an incessant stream of closures. It is a vicious circle of reduced spending, declining trade and a move to out-of-town shopping centres, leading to what I call a hollowing-out of towns.

Fewer shops mean reduced footfall on the streets and reduced spending, leading to further closures in a downward spiral. In short, Irish towns are in crisis.

The rich traditions of town life stretching back centuries, from farmers' marts to a vibrant social life, have been and can be again an integral part of the fabric of Irish society. Towns have played and can continue to play a pivotal economic role in Ireland, providing local entrepreneurs with a place to set up businesses and provide local jobs through direct and indirect employment. A lively town centre is one that has a commercial, social and cultural space, with vibrant local businesses at its heart. Strong local businesses create employment, invest in the civic amenities of towns, provide revenue for local authorities and sponsor local community groups, sports and cultural organisations. Without them, towns will continue to die. As is the case with many Deputies, I know that this is true of my constituency. Banagher, Clara, Birr, Tullamore, Daingean, Kilcormac and so on have traditionally been the centres of their hinterlands, but they are under immense pressure to retain that status.

Ironically, these threats to the future of towns as vibrant economic and social hubs come at a time when broader demographic changes mean that towns are growing in importance. Over the decades Irish society has been transformed from a predominantly rural society into an urban one. Some 62% of the population now live in urban areas compared with just 42% in 1951, bringing Ireland closer to the European norm. Despite these population increases, towns face a grave challenge to their position as hubs of activity. The systematic closure of 140 Garda stations, the threats faced by An Post to its future viability and the policy of major State-supported banks in withdrawing their services and closing down branches have left numerous towns reeling from the loss of critical local services. On top of this, the Government is taking the axe to the democratic institutions of town councils which give these communities a focal point to fight their corner. All the while, the changing nature of commerce and the rise of Internet shopping present new problems for towns to tackle as the old models of business are put under pressure.

In order to rise to the challenges presented by this crisis, it is imperative that we put in place a legislative framework for towns to develop a viable, comprehensive strategy to revitalise their centres. This Bill is a step towards that aim. It is drawn from Streets Ahead, a Fianna Fáil policy document specifically designed to revitalise town centres throughout the country. It would empower and charge local authorities to establish town teams to lead the way in creating an holistic plan to tackle the problems facing each town. Under the Bill, each town would have a team drawn from business, the Civil Service, politics, the Garda and civic groups to evaluate the issues facing it. While the broader difficulties are nationwide problems, they manifest in different ways. As opposed to the unwieldy top-down approach, a localised team for each town would allow people to identify their own needs. The teams would be tasked with developing individualised town revitalisation plans with clear targets and timeframes encompassing various facets that I will now seek to outline.

A key issue for the teams would be the unsustainable financial burden placed on businesses and consumers that is crippling commerce in towns. The archaic commercial rates system in Ireland is a Victorian invention in an Internet age. Businesses faced with a downward spiral of trade are being hit with rate bills that are pushing them over the edge. Retailers in towns are being burdened with financing local authorities to an unsustainable level, with local authorities deriving 28% of their finance from commercial rates. For entrepreneurs hoping to set up new businesses or existing retailers fighting to keep their heads above water, the commercial rates system is the straw that is breaking their backs and rendering their efforts financially impossible. It is imperative that the Government and local authorities work together to establish a revamped system that would create breathing space for retailers in financial difficulty, incentivise new businesses to set up in towns and form a sustainable base for local authority finances. Rates should also reflect the need to attract businesses away from the environmentally and socially unsustainable out-of-town shopping centre model.

Introducing flexibility for local authorities to use discretion in reducing or delaying commercial rate charges against new businesses would be a vital power that would enable towns to attract fledging businesses and new ideas and foster a greater sense of entrepreneurship across the country. As old business models change in the age of Internet shopping, fostering new enterprises to fit new demands will be increasingly important in keeping the main streets of towns alive with commerce. In the United Kingdom, for example, councils have the power to exempt struggling businesses from paying rates and provide a 50% mandatory rates exemption. Empowering local authorities to alleviate the burden of rates in specific key sites in towns for new businesses would serve as an incentive for innovative retailers to set up shop and create local jobs.

In order to assist town teams nationally, a specific inability to pay clause should be introduced via an amendment to the Valuation Act. This clause which is standard in valuation procedures in the United Kingdom would be a key measure to help to alleviate pressure on struggling businesses. It is also a central demand of the Irish Employers for Affordable Rates, IEAR, group and its vision for a reformed rates valuation process. An overhauled commercial rates system should be cognisant of the turnover and commercial rent specific to a particular business and its location.

In order to balance the financial costs of incentivising new business with rates relief, a special commercial rates surcharge should be levied on out-of-town shopping centres. This surcharge would encourage businesses to locate in environmentally and socially sustainable town centres. The additional charge would reflect the parking advantages enjoyed by out-of-town centre developments. A similar charge has been implemented in Northern Ireland since April 2012 through the introduction of an additional tax at a 15% rate which is expected to yield £5 million per annum.

A major obstacle to enticing greater numbers into towns is the parking charges structure. The added costs and hassle of parking are encouraging people to flock to out-of-town centres where there is free parking rather than to the traditional hearts of our communities. The additional costs of parking, the wide variations between local authorities, the expensive fees imposed for overstaying allotted times and the dreaded prospect of clamping have all combined to deter people from shopping in many towns. Local authorities have grown accustomed to using parking charges solely as a revenue-raising mechanism rather than viewing them as an impediment to business. In effect, parking charges are an additional cost to customers, penalising them for shopping in towns. Under the Bill, town teams would be entrusted with tackling this issue head on. A number of steps can be taken to reduce parking costs and encourage greater numbers into towns, for example, a review of the parking fees structure in out-of-town centre developments, a new graded parking fees structure and payment methods, special parking offers to encourage town centre visits and a published parking cost league.

Many town councils are already taking action to address this problem. Town teams can build on this progress and open up towns to greater numbers.

Towns are about more than shopping. They are the social and cultural hubs of communities, not only for those living in the urban area but those across their hinterlands. They must be welcoming places for all generations, young and old. Imaginative planning, cultural initiatives and close co-operation with the Garda to ensure streets are safe and accessible are key components in revitalising towns across the country.

Town teams are tasked with taking the lead across these areas. Out-of-town centres should be discouraged and the retail planning guidelines reviewed to emphasise the need to focus future development on town centres. Car parking facilities should be conveniently located to help encourage visits to the town centre. The layout of towns should encompass enhanced cycling facilities and residential uses near the centre to create environmentally sustainable living practises.

Communities and businesses should have a central role in shaping town development plans to ensure they reflect their knowledge and vision for the future, thereby securing community buy-in to achieving the plan’s objectives. Empty shops should be opened up for pop-up businesses rather than left vacant. Town teams should also be charged with interacting with NAMA to maximise the use of properties in their towns.

In social terms, new cultural initiatives such as local festivals should be undertaken and market days held to foster a more vibrant street life. National events such as Open House nights should be built upon at a local level with new twists and ideas suited to each locality. Town teams are charged with instigating these changes.

To open up streets to all generations, town teams should take the lead in securing Purple Flag street initiatives. Similar to the Blue Flag given to outstanding clean beaches and the Green Flag awarded to the most eco-friendly schools, the Purple Flag is an accreditation scheme that honours excellence in the appeal and management of a town or city centre. Working with businesses and the Garda we can ensure that our towns eradicate anti-social behaviour as a barrier to people enjoying their local areas.

As stated, Ireland and Irish towns are in the midst of a fundamental crisis. However, they do, in my opinion, have the capability not only to survive but to flourish. This Bill is designed to empower them with the tools to rise up to the grave challenges they face. Reducing the costs of doing business, making it cheaper and easier for customers to come into towns, creating a more inviting atmosphere and streetscape and restoring the position of towns as cultural, social and economic hubs is vital to revitalising Irish town centres. We do not want to oversee the hollowing out and desolation of historic towns in every county across Ireland. We do not want a legacy of vacant shop fronts and derelict buildings.

Strong action that draws up the deep well of co-operation between communities and business can help create vibrant towns that will thrive into the future. This Bill is a first step towards this. I hope that the Government will give it full and fair consideration in the constructive spirit in which it is offered.

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