Alan Dillon (Mayo, Fine Gael)

I thank Senator Duffy for raising this important issue and for his constructive suggestions in regard to the living city initiative. I think everyone in both Houses shares the same ambition about bringing more vibrancy, sustainability and revitalisation to our urban centres to meet the housing needs of the future and support social and economic needs within our towns.

The living city initiative is, as the Senator said, a targeted tax incentive that is designed to bring people and businesses back into the heart of our cities, preserving historic buildings and revitalising urban centres. It is not just about a tax relief; it is about breathing new life back into areas that have suffered decline, while also supporting housing and strengthening communities. We are making significant changes through the Finance Bill 2025. That is being amended currently, with the aim of bringing more buildings back into residential use. The Bill is currently in Committee Stage in the Dáil and it will come before the Seanad on Second Stage. That will be important with regard to having an input into that initiative.

In the Finance Bill, the principal aims are to improve the uptake and impact of the initiative. We are extending the scheme until 2030. We are reducing the building age rule from 1915 to 1975, which will dramatically increase the number of eligible properties. We are also introducing a new living-over-the-shop category that will have no age restriction and will unlock mixed use conversion. We are increasing the relief cap to €300,000 per undertaking in line with the EU state aid policy, where it allows claims for over two and up to ten years. That is giving greater flexibility to both businesses and homeowners. We are removing outdated restrictions, including the ban on property developers.

Crucially, the Minister for Finance has committed to extending the scheme to five regional centres under the national planning framework, namely, Athlone, Drogheda, Dundalk, Letterkenny and Sligo. These towns have played a strategic role in balanced regional development. The Minister has made the extension very clear. It is grounded in the national planning framework, which prioritises these centres. At present, there is no plan to extend beyond these towns, but the upcoming Seanad debate will allow further debate in that regard. The Minister for Finance has also outlined his determination and commitment to use every lever and use tax, planning and investment to tackle vacancy and dereliction. The living city initiative is evolving to meet that challenge. I look forward to working with Senators to ensure it is successful.