Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

I welcome this debate because a great deal of sense is being spoken on all sides of the House. The debate really resonates with people connected to small businesses and rural towns in particular.

There are a number of issues that I would like to address, one of which is upward-only rent reviews, ironically. The previous speaker said that something needs to be done, the most infamous words of this House. I would prefer to have a couple of proposals and, to that end, I am going to make a couple of recommendations, which I hope the civil servants will try to take on board.

I agree with the concept of taking ability to pay into account. Three factors arise in this regard. First, one could consider the percentage of turnover of a business. Second, one could consider its number of employees and, third, one could examine its profitability or liquid assets. In this regard, big businesses have the capacity to make far higher profits than SMEs which do not have the core competencies they are competing with in locations such as shopping centres, in particular.

I admit to being a ratepayer and having a business in a shopping centre, but I wear a neutral hat regarding this matter. I prefer to see SMEs developing and also getting into a position in which landlords and tenants have a relationship that promotes the occupation of empty buildings in every town, village and city. There ought to be a perspective on how a building contributes aesthetically to the well-being of its entire neighbourhood. Unfortunately, there are at present many dormant buildings that are not being used; their landlords are sitting on them. Some landlords with three or four shops in a town might have one vacant but will not rent it until they get the market rent. Therefore, they are in some control over what they seek to achieve.

Many cities throughout Europe require the payment of rates on buildings that are not being used. The rate is less than for used buildings but the owner must pay a contribution towards the well-being of the entire area and is compelled to maintain the building aesthetically, at a level higher than obtains currently in our local authority areas, where there are buildings dragging down the aesthetic standard. This is a good model on many fronts and it could be used against a charge on the property in the event that it is eventually sold on or somebody does not currently have the capacity to do something with it. It recognises the fact that many small and medium-sized businesses are not in a position to enter into leases or take on the rates with immediate effect. If there were a lowering of the rates and the overall rent applicable, since the supply would increase dramatically, businesses and business opportunities would become more viable.

Let me develop another couple of ideas. There are many places throughout the country with redundant buildings that are outdated, yet the banks are not in a position to put finance in place for people to convert them into turnkey operations that would attract businesses. We are now launching - thanks be to God - the rural regeneration programme and the Action Plan for Jobs. There was a welcome announcement in my home town, Tralee, during the week. An advanced manufacturing facility is being put in place there. Until now, we were told continually by IDA Ireland that we did not have suitable properties to attract people to the area. We need to go a step further in this regard, specifically by focusing on private landlords who own lands. In the event that we could incentivise private landlords to restore their buildings to an attractive standard, could we consider offsetting some of the costs against the rates applicable to those buildings for a certain period? In the first instance, this would attract more foreign direct investment and, second, it would afford people the opportunity to commence a business without significant capital expenditure. It would allow turnkey operations, thus increasing the financial viability of the town. It would create jobs, including in reconstruction, and kick-start the entire area.

I welcome some very salient provisions in the legislation. Child care operations being provided for the State will not be subject to rates. We need to do more in the private sector in this regard. We talk about the generation that has most felt the downturn, and we have taken steps in this regard through mortgage interest relief, but this generation is having children at present and those children are entering the child care system. Child care needs to be more affordable. While this can be achieved through social protection, the instrument in question is a very simple one as it means child care can be provided if the rates are less and that the overall cost to the individual of procuring the service can come down. I acknowledge that it is only a little piece of the jigsaw for child care. I encourage the Minister to examine the private sector in addition to the public sector.

The attractiveness of towns and the tourism aspect are important. Some Deputies said that, during a fine summer, owners of restaurants and public houses want to put chairs and tables outside. There needs to be collaboration between the Valuation Office and local authorities. There needs to be flexibility to prevent people from overstepping the mark and obstructing businesspeople from carrying on as normal. All concerned should work in a tasteful and meaningful manner that promotes business and makes a place look better. Chambers of commerce and chambers of alliance have a role to play in this regard. We are probably reaching a point in our history at which we are integrating all services in a better fashion. I encourage this. A top-down approach would be a better one.

There is a fairer and better form of flexibility provided for in this Bill. Shopping centres will now be subject to a rate that recognises that the free car parking they provide to their customers will be linked intrinsically to the valuation of car parking for which the public must pay in adjacent neighbourhoods. This will increase rates and the cost will be pushed onto the businesses. As a business owner, I have no problem with that because it actually means people will be on a more level playing field. It is very good.

A lot more needs to be done to promote businesses, but I acknowledge this legislation is a start. With regard to the speed at which we can proceed, some recommendations involving the Valuation Office could take ten or 15 years to address. Overall, small businesses need a break and need to be promoted. Buildings that are redundant need to be put back into the system, forcibly and not just when there is a demand on them.

The French model is the one I have been researching most of all. When one walks through an area in France on a Sunday afternoon, one notices that the shopping centres are compelled to close at that time. People go towards the town centres. It is a family day out and there is no obsession with the shopping ethos. There is a vibrancy in the older-generation areas and this results in a boutique feel, a cultural feel and a uniqueness that needs to be examined and promoted.

It is not just a question of saying something needs to be done, because we must generate ideas. That is what this place is about. I am just conveying some of my thoughts and welcoming some developments that have taken place heretofore. Overall, this is a great debate because Members have ideas and are conveying them. Perhaps another Private Members’ Bill could come before the House to develop this further.

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