Dáil debates

Tuesday, 23 April 2013

3:50 pm

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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To ask the Minister for Jobs, Enterprise and Innovation the measures contained in the Action Plan on Jobs 2013 to deal with the threat to employment in town centres that is posed by restrictive parking regimes; and if he will make a statement on the matter. [18665/13]

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I understand parking by-laws are a roads function of local authorities and made under cover of the Road Traffic Acts 1961 to 2011. They fall within the remit of the Minister for the Environment, Community and Local Government, Deputy Phil Hogan, and the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar.

There are no specific measures in the 2013 Action Plan for Jobs related to parking in town centres. However, I am aware that the impact of parking restrictions has emerged as a concern for some retailers in town centres and this concern has recently been outlined to the Oireachtas Joint Committee on Jobs, Enterprise and Innovation by RGDATA.

The 2013 Action Plan for Jobs includes a number of measures which will support the retail sector, including an initiative to introduce a single portal for business licence applications, a new scheme to help more businesses to trade online and the integration of local business supports into a stronger local enterprise office network to provide better supports for micro and small businesses. My Department will also be chairing an indepartmental committee to consider what measures might be taken to assist the sector in the short term, for example, in the context of budget 2014 or next year's Action Plan for Jobs. In that context, I will ask my officials to examine the recent paper which I have seen on town centre parking prepared by RGDATA in consultation with the Departments with relevant policy responsibility for this issue.

4:00 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I thank the Minister of State for his reply and for offering to bring this matter to the interdepartmental committee. While they do not fall directly under the jurisdiction of the Minister of State some issues arise from the way this is distorting retail competition. Retailers in town centres are forced to put up with these charges while they do not affect those out of town. There are many other issues surrounding this, with policies differing between towns and counties, and often between streets within a town. It is important that the interdepartmental committee consider this and I look forward to hearing further from the Minister of State about it.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I have seen the report. Town trading is made very difficult by the out-of-town centres and it is important to incentivise people to shop in town centres. This report has been before the Oireachtas Joint Committee on Jobs, Enterprise and Innovation. I will report to the Deputy on the recommendations of the interdepartmental committee.

Photo of Peadar TóibínPeadar Tóibín (Meath West, Sinn Fein)
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Town centres are facing a really difficult challenge. Many shops in towns are closed. The local government grants which used to fund local authorities have been reduced over the years and local authorities must generate funds from car parking fees. That pressure would not be there if the Government funded local authorities properly. Will the Minister of State consider the Sinn Féin proposal for a progressive commercial rate that takes into consideration the profitability of the business such that more profitable businesses pay higher commercial rates? In the North of Ireland we brought in a commercial rate which shifted the burden from small businesses to the larger out-of-town shops. There is no strategic plan for most town centres. Local authorities and the new local enterprise offices should be sitting down with the retailers in every town in the country and developing a strategic plan to see how they can grow in a healthy, sustainable and uniform manner.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Does the Minister of State agree with me that the problems of the shops in the town centres is more directly linked to the reduction in people's disposable income than to parking problems? Retail Excellence Ireland published a report stating that the introduction of the property tax has negatively impacted on retail sales during the first part of the year and in its quarterly barometer the retail lobby group said that overall sales across the sector continued to disappoint during the first quarter. Given that the property tax is not based on ability to pay does it not worry the Government that it is further reducing disposable income which is impacting directly on jobs in these town centres and shop units?

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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In response to Deputies Tóibín and Wallace, there are many integrated plans for town centres, some of which are very effectively managed by the local authority. The Minister for the Environment, Community and Local Government, Deputy Hogan, is examining the management of local government. The local enterprise offices will consider every aspect of business and there will be business representation on those committees. A total of 65% of all property tax will be retained. The tax base will be broader whereas until now it was only the business people who paid rates. Local authorities will have more autonomy and discretion to give a derogation to a vacant unit to allow somebody occupy it without paying rates. That will be considered under the new management structure in every local authority where elected members will have far more say in what they want to do to promote business especially in town centres.

Photo of Mick WallaceMick Wallace (Wexford, Independent)
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Does the Minister of State agree that the people passing the doors of the shops will have less money in their pockets? It is a vicious circle. The Government is taking more money out of their pockets and that will impact on jobs in the retail sector. The more money the Government takes out of the system the more difficult it is for the system to work in a healthy manner.

Photo of John PerryJohn Perry (Sligo-North Leitrim, Fine Gael)
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I will not deal with the property tax but from what I hear about the evaluations the rate will be as low as the cost of a TV licence in certain cases which should not dramatically affect the overall spend. It is important to encourage activity in town centres and offer variety. Some retailers are doing exceptionally well in certain town centres. Where the owners or proprietors personally manage shops they can do quite well but the multiple retailers and discounters have grown dramatically over the period too.