Simon Harris (Wicklow, Fine Gael)

The Deputy's initial analysis is somewhat right. He has the corporate memory to be able to go back to the then Minister, Michael Noonan. This scheme has not seen a very significant level of uptake. We have been trying to examine ways in which more people could benefit from this scheme, which brings properties back into use. Across the political spectrum, we all share the objective of trying to use every bit of underutilised capacity we can to provide housing. The Bill provides for substantial changes to the living cities initiative. The Deputy has noted the scale of the reform and the expansion of the scheme. These are significant changes but they are consistent with our policy intent. The changes were carefully considered and have built-in restrictions to limit the amount of relief that can be claimed. There is a €300,000 limit placed on an undertaking, which may include a business or landlord, availing of the scheme by the state aid de minimis regulation. To facilitate greater uptake of the measure, the Bill removes the restriction on connected persons to broaden the reach of the relief.

This will mean that a person connected with a developer of rented residential or commercial property within the scheme will be in a position to retain the property for the purpose of letting, but it should be noted that the state aid cap will still apply over a rolling three-year period.

In addition, the relief for income taxpayers is within the scope of the high earners' restriction, and any capital allowances remaining unused at the end of the tax life of the building will be terminated. A number of other features of the scheme implicitly set an upper limit on the Exchequer cost in respect of residential premises, including that the local authority must issue a letter of certification confirming that the cost of the refurbishment seems reasonable.

It is a good question as to what towns are included or not included. Many Deputies have made representations for other towns to be added, although not on the record of this House. There are always compelling cases. Considering that this is a significant expansion, what we have decided to do is to utilise the towns identified as the five regional centres in the national planning framework. This is a scheme that I would not rule out extending to further areas in the future. That is the rationale behind what we are doing. I believe there are enough safeguards built in. As the Deputy rightly implied, as the take-up has been so low to date, the policy aim has been to increase uptake in the first instance. We will monitor it and see how it goes this year and in future finance Bills.

See this speech in context