Dáil debates

Thursday, 7 May 2009

Priority Questions

Economic Development.

3:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 4: To ask the Minister for the Environment, Heritage and Local Government his views on new policies on the way local government can play a more central role in supporting local business and employment; and if he will make a statement on the matter. [18405/09]

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Local authorities have a central role to play in supporting economic development and enterprise at local level. They do this in a number of ways including through their capital and current budgets, economic planning and development and the provision of goods and services, as well as community infrastructure.

More recently, local authorities have taken direct action to reduce the burden on business and promote employment, including by keeping the increase in commercial rates for 2009 to just over 1% on average and undertaking an examination of their costs to maximise efficiencies. In addition, local authorities have been working with my Department and the Department of Enterprise, Trade and Employment on support for businesses and employment at local level. In this context, the Tánaiste and I recently met the County and City Managers' Association. Arising from this meeting, a number of steps were agreed including developing arrangements for engagement at national level between local authorities and the enterprise agencies. At local level, local authorities will focus on streamlining the way in which they respond to businesses in areas such as planning, water and roads. Local authorities also work closely with all relevant agencies at local level, including through their leadership of the multi-agency county and city development boards in respect of economic planning and the promotion of enterprise at local level.

I am satisfied that with the steps being taken, local government is well placed to play a key role in supporting local business and employment in these challenging economic times. I will, however, ensure that my Department, in consultation with the Department of Enterprise, Trade and Employment, continues to engage with local authorities to achieve the best ongoing support for enterprise at local level.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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I wish to make three suggestions to the Minister and I ask him to support Fine Gael on these three matters. Does he support the establishment of a business and employment section in each local authority to bring together all the agencies that are involved in enterprise, some of which reside in various Departments and more of which operate through local authorities? However, no co-ordination takes place between them. Does the Minister agree it is now essential to bring together all those groups to make a concerted effort at local level to enhance the prospects of employment?

Second, will the Minister ask local authorities and the managers he meets on a regular basis to freeze commercial rates for the next five years? The easiest option available to such managers is to increase commercial rates to balance the books and councillors sometimes fall into that trap. Third, there is an issue regarding five years being the termination date for planning applications for major works. It is essential to extend this limit to seven years to reduce costs to applicants and to remove the existing backlog in An Bord Pleanála.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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As for the Deputy's point on commercial rate increases, at my request commercial rates have been kept down and the increases for 2009 were approximately 1%.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister will note I also issued a letter in that regard last October.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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Yes. It is significant that 34 local authorities held their rates at 2008 levels. This constitutes significant progress because, as the Deputy appreciates, the business sector is under extreme pressure and I am highly aware of that.

I have undertaken a number of measures and some of the Deputy's suggestions are constructive. I have asked local authorities to examine rigorously their costs to maximise efficiencies, which in turn will have a positive impact on business, and to focus on streamlining the ways they deal with business in areas such as planning and water. For example, Galway County Council has established a business support unit, which is exactly what the Deputy has suggested, and I have asked other local authorities to do likewise. I have asked them to lead on the soon to be completed reviews by county and city development boards on strategies to promote economic development in their own areas and to take steps to ensure that reductions in staffing levels do not focus on front line service. As for overall capital investment by local authorities, as I noted in my response to the previous question, this will exceed €6 billion this year.

I have also taken a number of specific actions to promote economic development. I have asked local authorities to do all they can to reduce development contributions or to defer the payments. My Department is facilitating discussions between certain local authorities in the greater Dublin area and An Bord Pleanála with a view to those authorities acting on an agency basis for the board in processing some of the board's caseload. The Deputy may recall we discussed this issue at committee level. I expect this arrangement will be in place shortly. As I stated in my initial response, the Tánaiste and I met the county and city managers to talk about reducing the cost to business. I have asked the county and city councils to streamline the manner in which they deal with businesses, including, as I stated, the support units. Finally, each county and city development board, led by local government, has now established an economic subgroup to promote economic and enterprise development. In many instances, this group also acts as a special taskforce to provide a co-ordinated response to business closures in their area.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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The Minister will agree there is a very disjointed approach to promoting enterprise in local authority areas at present because of the current plethora of agencies. I ask the Minister to bring forward proposals, together with his colleague, the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, to bring them together to a greater extent under local government.

In respect of An Bord Pleanála, a huge backlog of potential employment generating proposals has built up before the board, which must be released from decision-making. Does the Minister agree that to assist in removing the backlog, existing planning permissions that last five years could be extended to seven years? This proposal might meet some of the requirements in respect of major infrastructural projects.

Photo of John GormleyJohn Gormley (Dublin South East, Green Party)
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On the Deputy's last point, this matter can be addressed in the forthcoming planning and development Bill. However, this must be considered carefully. One cannot give a full blank cheque as all the existing permissions must meet the new energy standards. In addition, one also must consider carefully what constitutes good planning and whether such proposals fit in. Overall, however, and I have received representations from colleagues from all parties in this regard, it makes sense that if one wishes to continue to stimulate economic activity, something should be done in that regard and certain planning permissions should be extended. For example, permissions relating to renewable energy are perfect candidates.