Dáil debates
Thursday, 2 May 2024
Saincheisteanna Tráthúla - Topical Issue Debate
Business Supports
3:50 pm
Chris Andrews (Dublin Bay South, Sinn Fein)
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Earlier this week, the Minister for Housing, Local Government and Heritage made another big announcement with little substance behind it. The Minister, Deputy Darragh O'Brien, said he was going to waive the fees for local businesses for outdoor seating, but he has provided little clarity around that. There was no clarity for the local businesses because there was no engagement with them. There was no clarity with the council and no clarity on what exactly will be waived or when that will happen.
Currently, small businesses are being robbed for outdoor seating. To place a table and seats on the footpath outside a coffee shop or restaurant, the biggest cost is renting space from the council. I spoke to the manager of a family-run coffee shop this morning. To put three tables and six seats outside that small coffee shop, the charge will be €6,000 per year. That can only be good for the coffee shop for half the year, given the Irish weather. It is being charged, but the seats are unusable for six months of the year. During the pandemic, he spent more than €3,000 installing a high-quality outdoor seating area. This is good for business, but it is also good for the local community. Due to the extortionate fees, however, this family-run coffee shop removed the outdoor seating area just a few weeks ago. The same story goes in Rathmines, where the coffee shops cannot afford seating, so they have scrapped it. There are now empty seats in Rathmines and across the city. These seating areas could have added a nice buzz to the local community and area. It is the city's loss. Ernesto's in Rathmines has a few tiny tables for people to drink coffee and rest. It is a lovely shop. Again, however, it is being robbed and crushed by these extortionate charges. It has to pay €4,500 for a few tiny tables for one year and, again, for most of the year he cannot use them, which means €4,500 for six months. It is extortionate. Businesses feel they are being robbed. Most businesses need to hire a professional to make the planning application, which, of course, is another cost.
Businesses are already hard enough pressed, particularly small independent coffee shops, cafés and restaurants. They have been hit with higher energy costs, higher costs for ingredients, higher staff costs, rent and rates, of course, and then, as if all of this was not enough, the council comes around and picks their pockets. Ernesto's is a small family business but, like all the businesses in Rathmines and across the city, it improves the area and adds to the community. It really seems like there is an attempt to milk every cent out of these local traders. Coffee shops like Ernesto's and Eathos add so much to the community and the city. The Government and councils need to be helping small businesses across the city, such as Ernesto's, not crushing them. Reducing and waiving these fees partially is not just going to support the businesses; it is also going to support the city and, God knows, the city needs help.
Does the Minister of State support these extortionate fees? Will the fees per square metre of footpath be waived? An ad hoc announcement in an election year, which will only last until the end of the year, seems cynical.
Dara Calleary (Mayo, Fianna Fail)
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I thank Deputy Andrews for raising this issue, which relates to the proposed Planning and Development (Street Furniture Fees) Regulations 2024.
First, I must state that under section 30 of the Planning and Development Act 2000, as amended, the Minister with responsibility for planning is specifically precluded from exercising any power or control in respect of any particular planning related matter with which a planning authority or the board may be concerned.
We agree with the Deputy that the hospitality and restaurant sector, and indeed the wider tourism sector, suffered the brunt of the Covid-19 pandemic, which resulted in the Government introducing a range of measures, including measures to facilitate outdoor dining, to manage the impact of the pandemic as well as the impact of cost inflation in recent years.
The Government is committed to providing necessary supports to relevant sectors, where appropriate. The street furniture licence fee regulations will be a repeat of the measures introduced in 2021, 2022 and 2023, which will continue to assist the hospitality and tourism sectors in 2024 by reducing the cost for maintaining outdoor dining facilities in public spaces.
The power for the Minister for Housing, Local Government and Heritage to make regulations for the fees payable for street furniture licences, such as tables and chairs for outdoor dining, is set out in section 246(1) of the Planning and Development Act 2000. In accordance with section 262(4) of the Act, regulations relating to the setting of fees for street furniture licences that are made under section 246(1) of the Act are first required to be laid before both Houses of the Oireachtas in draft form, with the regulations not being able to be signed by the Minister for Housing, Local Government and Heritage unless a positive resolution approving the draft regulation has been passed by each House.
The Planning and Development (Street Furniture Fees) Regulations 2024 were laid in draft form before both Houses of the Oireachtas on 16 April 2024 in accordance with section 262 of the Act. On 30 April 2024, which was Tuesday of this week, the Minister, Deputy O’Brien, appeared before the Oireachtas Joint Committee on Housing, Local Government and Heritage to present the Planning and Development (Street Furniture Fees) Regulations 2024, which will set the section 254 licence fees for tables and chairs for the purpose of outdoor dining to zero until 31 December 2024.
Having been discussed and generally welcomed in the joint committee on Tuesday last, the current position is that the regulation to remove the normal licence fee of €125 per table now awaits positive resolutions from the Houses of the Oireachtas. Once the positive resolutions have been adopted - they are expected imminently - it is the intention of the Minister, Deputy O’Brien, to sign the regulation at the earliest opportunity.
Once signed, the Department of Housing, Local Government and Heritage will issue a circular letter to local authorities informing them that no fees shall be charged or levied for tables and chairs for the purpose of outdoor dining up to 31 December 2024. The circular letter will also provide any further necessary clarifications on the matter. These regulations are a positive measure aimed at reducing the operating costs of businesses in the wider hospitality sector in these challenging times of increased costs and they have been welcomed over a number of years.
It would also be the intention of the regulations that any street furniture licence fees already paid by businesses in respect of the current year prior to the signing of the regulations by the Minister, Deputy O’Brien, would be refunded by local authorities.
Chris Andrews (Dublin Bay South, Sinn Fein)
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The Minister of State might clarify something. My understanding is that the charge of €125 per table will be waived. However, the cost for renting the space, which can work out between €200 and €400 per square metre, is not going to be waived. Obviously, that it is a huge expense. The waiving of the charge of €125 will going to have a huge impact. It is obviously welcome; anything is welcome. However, the bulk of the charge will be for the renting of the square metre on the footpath and that is not being to be waived. That is having a devastating effect on businesses right across the city. That needs to be waived as well if the Government is serious about helping. I cannot help but think is a bit cynical given that it is during an election year, and it is only until the end of the year. There needs to be some respite given to businesses.
One business not too far from here, Mamma Mia pizza restaurant, is a small, locally run business that adds to the local community. It is on Grattan Street, right next to Mount Street. It has been in existence for 14 years and for the past year, it has been trying to trade with tents facing it and the smell of urine constantly in the air. The Taoiseach mentioned during the week that he did not want an ad hoc approach to immigration. However, the Government's failure on immigration has damaged this family business and may close it. To make matters worse, the council is robbing it with these outdoor charges and is refusing to give it any relief whatsoever. The business has been expected to pay for outdoor seating despite the Government's failure on immigration creating a shanty town in front of this business.
Where is the common sense? Dublin City Council needs to support these businesses, not rob them. The council has shown zero flexibility. Other councils have much fairer payment plans in place. How can the Minister of State justify these charges when businesses are on their knees? The State has failed the Mamma Mia pizza restaurant and should show some support for this small family business.
Dara Calleary (Mayo, Fianna Fail)
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I can confirm that the power with regard to this fee falls under section 262(4) of the Act, which relates to the fees payable for street furniture, which amount to €125. I would also point out that this was done in 2021, 2022 and 2023, in non-election years. The Minister will sign the regulation at the earliest opportunity.
We have just completed a range of supports for small businesses through the increased cost-of-business scheme, and in the coming days we will be able to provide figures, including for Dublin city, as to the uptake of that.
For clarity, the Minister will sign the regulation at the earliest opportunity, in accordance with section 262 of the planning Act.
4:00 pm
Chris Andrews (Dublin Bay South, Sinn Fein)
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The square meter figure, however, will not increase.