Martin Conway (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy Catherine Byrne. I am delighted she is here to respond to me on behalf of the Minister for Housing, Planning, Community and Local Government. As a representative of an urban area, I am sure she will understand the various challenges that arise when successful businesses that want to get bigger decide to purchase greenfield sites to develop large out-of-town shopping centres and retail outlets. One such challenge develops when the premises from which such businesses previously operated are left empty. While these vacant facilities are available for leasing and renting, the terms and conditions involved, including the requirements and duration of the lease, make it impractical for anyone to promote a realistic business opportunity at such premises.

I know this used to be a major issue in Dublin and other cities when successful retail outlets, especially supermarkets, that were leaving sites vacant were able to claim a 100% rebate on their rates each year. The way it used to work was that a company with one of these units would pay rates on that unit on 31 December each year, before claiming those moneys back on 1 January of the following year by demonstrating that the unit was available for renting to a suitable client who could meet strict terms and conditions. To deal with this problem in Dublin and other big cities, it was decided to introduce legislation limit to 50% the rebate such companies could get on their rates. They paid 50% and got a discount of 50%. I want this legislation to be extended to all urban areas in order that it covers towns like Ennis in County Clare and Tralee in County Kerry.

A large unit in Tralee town centre from which Dunnes Stores traded successfully for many years is now empty. The company was so successful in the town that it decided to build a big out-of-town unit on a greenfield site. As a consequence, its former unit in Tralee town centre has been empty for some time. The existence of this vacant unit in the centre of Tralee is choking development in the area. It is fair and reasonable to expect a successful company like Dunnes Stores to make a contribution towards the rates bill for what I would describe as a derelict site.There has been no effort whatsoever made to rent it out, either as small units or to an alternative business. The particular example in Tralee is replicated in towns all over the country. I have huge sympathy for somebody who goes out of business and is having difficulty in renting a unit, given that it may require significant investment to bring it up to an acceptable standard and the particular client may not have money to do so. However, it is a different ball game when there is a major company with significant profits which is in a position to prevent this from happening. It is a reasonable request that legislation be introduced to extend the 50% rebate across the country.