Denis Landy (Labour) | Oireachtas source

I move:

"That Seanad Éireann:- notes with concern that SMEs in rural towns are suffering currently with many vacant units appearing on main streets as they struggle to compete on issues like parking costs with large out-of-town shopping malls;
- notes the urgent need for an urban renewal scheme to incentivise the refilling of vacant units, and notes further the impact of upward-only rent reviews in bringing about the closure of businesses in regional towns where commercial leases were entered into prior to 28 February 2010 (therefore not falling under the protection of Land and Conveyancing Law Reform Act 2009);
- notes the great work of the business improvement district scheme, BIDS, in delivering significant positive impacts for economic vitality and the viability of town centres;
- proposes that the Department of the Environment, Community and Local Government should support initiatives such as a first hour free parking scheme for town centres and main streets to help counteract the unfair advantage of out-of-town shopping complexes;
- proposes further that the Department should consider the provision of statutory recognition to initiatives such as pop-up shops; and
- proposes also that the Government should consider adopting measures to alleviate pressures on town centres and main street businesses through measures such as:

- encouraging and support the letting and reopening of derelict properties in town centres and main streets;
- adopting schemes to promote town centre and main street revamps, as well as the regeneration of shop-front facades and signage;
- schemes to curb anti-social behaviour in town centres and to incentivise multinational outlets which source locally-produced materials rather than importing goods from other countries; and
- schemes to attract investment and improve infrastructure and competitiveness in regional towns.”.

I welcome the Minister of State. This important motion has come about as a result of the demise of rural towns across the country, particularly the centres of rural towns. Some 90,000 people own and are employed in independent family shops in this country. They generate €3.5 billion annually. The broader retail sector employs 250,000 people, amounting to 14.5% of the workforce.

The contribution of the retail sector to GDP is 10% per annum. It is interesting to note that 86% of retailers employ fewer than ten employees. In the period since the recession began, 47,000 jobs have been lost in the retail sector, which equates to a drop of 30% since 2008. In my home town of Carrick-on-Suir, 24% of retail units in the town centre are currently vacant. A similar situation exists in Clonmel, Cashel, Cahir and many other towns across the country. A number of factors are causing difficulties, the most obvious being the slowdown in the economy. Car parking in town centres is a problem, and shoppers are choosing to shop in shopping centres. The cities of Dublin, Cork and Limerick have 17,800 free car parking spaces available to shoppers. Shoppers in small towns in rural Ireland have remained faithful to town centre shops and businesses in small towns have fought back. For example, the local traders in my own town of Carrick-on-Suir have reached agreement with the town council to allow 15 minutes' free car parking in the centre of the town in order to help trade. The local business association has organised "golden oldie" shopping days, among other initiatives. However, a national response to this problem is required, such as guidance from the Government on the issue of car parking in towns. Retailers should be enabled to issue tickets to shoppers to provide more shopping time.

Urban renewal in town centres needs to be considered. The original urban renewal scheme was introduced in 1986 and lasted until 2008. Strange to say, it was availed of through all the Celtic tiger years and abandoned in 2008, when it was needed most. A new scheme that takes into account the lessons learned from the old scheme must be established. The previous scheme concentrated too much on providing tax derogations rather than dealing with social issues, as was the case with the first renewal scheme. Run-down areas need to be improved and tax derogation must be linked to the provision of jobs. The question of upward-only rent review must be tackled, a topic which was debated in the House last week. I was accused of being absent for the debate, but I was paired that day. The business districts improvement scheme needs to be enhanced and supported at national level. It has been adopted by only two local authorities, Dublin and Dundalk, but there is great merit in the scheme, which can provide a clean and safe environment for shoppers.

I refer to another initiative in the response by retailers across the country. Pop-up shops have arrived on the scene, many of them in Dublin. I note there was a Glenisk yogurt company pop-up shop across the road at the corner of Molesworth Street for a couple of months. These shops have fantastic potential but they require planning permission in order for the entrepreneur to access finance from enterprise boards and from the Leader programme.

We need to give statutory authority to these initiatives.

There is also the matter of safety in town centres. There has been some great work in the provision of closed-circuit television, CCTV, in town centres, with €4 million invested to date. None the less, many more towns need these systems. Despite our economic woes, many town councils have surplus budgets and run in the black, so before the Government proceeds to abolish town councils after the elections in May next year, those authorities should be allowed to use some of that money to carry out improvements that are badly needed to kick-start retailing.

Development levies form another major issue. During the boom - between 2000 and 2006 - €2.1 billion in levies were collected, while in the last number of years the same method of collecting money has been, to say the least, unsuccessful. Currently, €750 million is owed to local authorities across the country, so it is clear not only that new businesses cannot start because of development levies but also that those that have started are unable to pay them. What should we do? I suggest we give all new businesses, particularly in the retail sector, an exemption from development levies for two years, and if the business continues trading, payments can be phased in over five years. This will give a chance to new businesses to kick-start rural towns by helping to generate employment.

Rates are currently crippling retail outlets throughout the country and there must be some change in the current system, which is archaic. There should be a link between the rates and the turnover and profit of a business. There should be a requirement to maintain the front of vacant business premises at an acceptable level if there is to be a rates holiday when a premises is unoccupied. In small town centres in rural Ireland, vacant premises are becoming dishevelled and run down, lowering the atmosphere and ambience of town centres. The owners of certain businesses do not have to pay rates but I ask the Minister to ensure they keep the premises maintained.

The town councils with surplus cash should be allowed to use it to incentivise new retail business in the local authority areas between now and May of next year. In other words, that provision should be made in the 2014 budget. I ask the Minister to set up a national task force on town centre retailing, amounting to a body representing all the various interest groups. It should only sit for 12 weeks but it should bring forward recommendations to be implemented by the Minister. If that alone is accomplished, the sector can be helped.