Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I am sharing time with Deputy Durkan.

I am going to focus on a specific aspect of the Bill. I have raised this matter previously with the Minister and his officials. It relates to the living city initiative, particularly in the context of Limerick city. When the initiative was introduced in 2015, €20 million was budgeted to be drawn down by people availing of the scheme. By 2018, only about €1 million had been claimed in tax relief under the scheme. Limerick city is unique in that our footprint as a city is Georgian. Therefore, unless we get people to come to live in the city centre, it will be difficult to ensure the complete rejuvenation of the city. We are doing very well with regard to jobs and businesses but we need more people to live in the city centre. That is the context in which I make my contribution.

I sought figures on how the scheme has done to date. Since it started in 2016, only 121 successful applications have been made for Limerick overall. That is fewer than 20 per year. While there has been a take-up of the scheme, it has been somewhat disappointing. The works involved in a Georgian house tend to be significant. They are above the norm. I am focusing on the issue of owner-occupiers, although I would obviously welcome also increased rental accommodation and there is a commercial element to that. In both 2016 and 2017, there were fewer than ten successful claimants each year. The figures for 2018 to 2020, inclusive, were 16, 19 and 33, respectively, while to date in 2021, there have been 33. They are figures I received in response to a parliamentary question I submitted to the Minister's Department. There have been 121 successful applications to date, or roughly 20 per annum.

I have proposed to the Minister and his officials that they might consider various amendments of what has been put forward. As it stands, owner-occupier relief is calculated over a ten-year period but we should consider changing it to five years. The equivalent period for both rented residential relief and commercial relief is seven years. We should consider reducing all the periods to five years. Unused reliefs in a given year cannot be carried forward in the case of owner-occupier relief, unlike rented residential relief and commercial relief. It would be worthwhile examining whether the period over which the relief can be claimed can be reduced and we should address the issue of unused capital allowances not being able to be carried forward. Obviously, in regard to all these measures there should be a sunset clause, as there should be for all tax provisions. The scheme is a good initiative but, like everything else, it just needs a review and a bit of housekeeping.

I will table amendments on Committee Stage to propose these changes. I am putting the proposals forward specifically in regard to the uniqueness of Limerick city, which has such a Georgian footprint. It is critical to get people into the city centre. That is what it is all about.

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