Michael Kitt (Fianna Fail)

I am glad to receive cross-party support. The lighting in Moate makes a scheme such as this very relevant. It is a matter of traders coming together to brighten up an area and market it. The Minister of State provides flexibility and innovation in these proposals. It will give great impetus for the further development of our towns and villages. This Bill provides an opportunity to put such schemes in place. The issue of tackling the scourge of graffiti was also raised and action on that is welcome.

The Minister of State referred to the fact that businesses will vote to establish the level of support for a proposed scheme. As in a referendum, a majority is required to approve the operation of a BID scheme. That is an example of local democracy in action and it provides an opportunity for those concerned to participate in the development of their local community. When the democratic process is complete and the scheme implemented, the services will then be provided.

I am concerned as to whether this funding will be used to replace services provided by local authorities. Smaller towns may state they are not able to come up with a scheme in the same way as a larger town or city. I was not here when the Minister of State made his opening remarks, but I am sure he will reassure me that funding will not be taken from local authorities and replaced with BID scheme money. Extremely effective local authority schemes already exist, such as the urban renewal scheme and village enhancement schemes run in conjunction with the Department of the Environment, Heritage and Local Government.

The explanatory memorandum to the Bill states that the scheme began in Toronto, Canada in 1971. European countries such as Austria, Belgium, Denmark, France, Germany, Holland, Portugal and our neighbours in the United Kingdom also have frameworks to operate these schemes. We are now in line with those other countries, which is positive.

I also welcome the fact that the Bill states that special companies will be established to implement the BID schemes. These companies can be widely representative and will include local authority membership. This is another good example of local democracy. It is also a good example of the partnership approach, which is the spirit behind BIDS. These companies will be charged with ensuring the various projects, works or services making up the BID scheme voted in and approved by the local authority is carried out over a term not exceeding five years. It is critical, as it is for all elected Members, that these schemes face the electorate at regular intervals. I am pleased the Bill provides that BID schemes must have a fresh mandate at least every five years. This election will give impetus to the schemes and will probably improve them.

The research carried out on what has been done in other countries shows the extremely positive influence of BID schemes, particularly on the environment in which they operate. The Minister of State has shown great interest in the Tidy Towns competition. I congratulate all who took part this year on the great results. This scheme will further enhance the environment and tackle litter, which is still a major problem. We have seen great improvement in some towns, particularly through the scheme now in operation. However, black spots will always exist and the Department highlighted them in its approach in the past. I am sure the scheme will tackle litter.

There should be a system to keep costs down. Many businesses claim they are paying a high rate on foot of the rate revaluation system and, given that they are the only real rate payers in the country, they would like a fair and equitable system pertaining to the BID contributions. I hope the Minister of State will assure us that a double rate will not be required of businesspeople.

Another welcome development in the Bill is its provision of relief of 50% on the amount payable in cases where a property is unoccupied for the execution of alterations or repairs, if the owner of the property is genuinely unable to obtain a suitable tenant at a reasonable rent, or if the premises are vacant pending a redevelopment. Refunds of BID contributions are also available where properties are demolished or destroyed.

I will not refer to all the sections in the Bill. I was particularly interested in section 6, which removes the impediment to local authorities gaining rate income in the years following an evaluation of property in their areas. This makes sense because it removes a provision that would otherwise curtail a local authority's ability to provide services in its area simply because a revaluation of property took place, as happens quite regularly.

Section 5 contains a provision to remove a discrepancy between existing valuation law and local government rating law. This is a welcome development.

I support this Bill strongly and agree with the Minister of State and the proponents of the BID schemes that they will work in Ireland. They have worked in other countries.

This legislation is necessary and will lead to enhanced investment in our urban centres. This will be of considerable benefit to those who reside and carry out their daily trade and business in those areas. I support the Minister of State in what he is doing.