Victor Boyhan (Independent)
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It is the first I have been in the Chamber when the Minister of State, Deputy O’Donnell, has been here. I congratulate him on what I think is one of the best jobs in government, which relates to local government. I know he has much experience in that and I wish him well.

I raise the issue of urban regeneration. There has been much talk about it.Funding under the urban regeneration and development fund comes under three strands, namely, strands 1, 2 and 3. There is a common problem. The Minister of State will know the country pretty well. I will single out a number of places. Councillor Annemarie Ryan has been in contact with me about Tipperary town. Half of the place is empty. I was there last week. I will also mention Gort in County Galway, Athy and Monasterevin in County Kildare, Fermoy in County Cork, Limerick city, Tralee, Longford, Navan in County Meath and Boyle in Roscommon. When you go around these towns - and they are towns, not villages - you will see great dereliction. Many of them are market towns that have beautiful architecture and the potential for beautiful public realms and urban spaces.

We talk about funding. I welcome the funding; I am not here to knock it. It is fantastic. I will mention one of the travesties in this area. A circular that was issued yesterday to all of our county managers, Circular URDF 01/2023. On page 2, it is stated that "While just under €1.5bn was originally allocated under Calls 1 and 2 only €144m had been drawn down by local authorities". That raises questions. I know the Minister of State is not here to cover that particular issue today but it is a real concern.

What am I saying? I am saying that our city and county councils are telling us that all of this is bypassing the little villages and towns and that we need to focus on the likes of Schull in County Cork and other smaller towns and villages. I think of the great potential of Ennistymon. It is not good enough to say that, unless a town has a population of 10,000, we are not prepared to fund it. I believe the reverse. I believe in going to the smaller little towns and villages and getting them right. The others will have to compete with them while they grow. That is a really important point.

I am conscious of time but I want to draw the Minister of State's attention to the fact that the Joint Committee on Housing, Local Government and Heritage, of which I am a member, commissioned a major study in respect of town and village urban regeneration last year. We made 39 recommendations, many of which have not been implemented. As a new Minister of State, I ask Deputy O'Donnell to look at that again and to see how we can implement these recommendations. We have wonderful towns and villages. Cities tend to be bigger and can manage better. They can take a more collective approach with regard to funding. Let us get these communities up and vibrant. For communities to be vibrant, we have to people living and working in them and we have to build them. All over this country, there is a necklace of wonderful little villages. Surely we can focus on them.

I ask the Minister of State to please look at this circular. It is many pages long. You would need degrees in English and engineering to master it. Can somebody provide a simpler version? I circulated it to all of our city and county councillors today. I had to read it ten times myself. Some 12 or 13 people came back to me to ask what it was all about. Can we simplify the documentation and the language within it? If local authorities are not spending the money to rejuvenate these towns, we should give it to somebody else. Let us not have a situation in which Government funds are not drawn down. I wish the Minister of State well with this project.

Kieran O'Donnell (Limerick City, Fine Gael)
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I thank Senator Boyhan very much for raising this matter. The urban regeneration and development fund, URDF, is a flagship element of Project Ireland 2040 and was established to support more compact and sustainable development through the regeneration and rejuvenation of Ireland's five cities and other large towns. The Senator noted that is based on populations exceeding 10,000. The fund also caters for towns with fewer than 10,000 people but where there are 2,500 or more jobs. It very much feeds into compact growth. The updated census returns will be looked at to see what additional areas will qualify but I note the points the Senator raises in that regard. This funding will enable a greater proportion of residential and mixed-use development to be delivered within the existing built-up footprints of our cities and towns and ensure that more parts of our urban areas can become attractive and vibrant places that people choose to live and work in and to invest in and visit. Through the URDF, public bodies are receiving targeted support for innovative and holistic solutions to the issues that have hindered the regeneration and rejuvenation of our large towns and cities. To date, there have been two calls for proposals under the URDF, with in excess of €1.6 billion allocated to 132 projects, comprising almost 400 sub-projects, located right across the country.

I have read Circular URDF 01/2023, which was issued yesterday. The Senator draws attention to the level of funding drawn down.I will make the point, however, that many of these projects are now drawing down the funding at different levels. Looking at the level of funding that has been drawn down and the roll-out of projects would not be totally compatible. It is a matter I have taken up with my Department. There are numerous other projects, many of which are now coming to fruition. I expect the Senator will see major drawdowns in the not-too-distant future in that regard.

With URDF-supported projects now active in every local authority area in the country, it is clear that local authorities are eager to embrace the unique opportunity presented by the URDF programme to harness significant Exchequer support to reimagine and optimise the potential of Ireland's urban areas.

To support the Government's new vacant homes action plan that he launched yesterday, the Minister, Deputy Darragh O'Brien, also announced details of a third round of funding support under the URDF. Supporting key objectives of Housing for All and town centre first, this round of supports specifically addresses long-term vacancy and dereliction across URDF eligible cities and towns.

Distinct from previous URDF funding calls, the third funding round will not be a competitive bid process. Instead, specific allocations will be made to each local authority to address the financial barriers and risks faced by local authorities in seeking to tackle vacant and derelict buildings and sites. The Senator will know from the circular that there will be engagement within the Department and the local authorities. They will have to make submissions by Friday, 10 March giving an appraisal of where they are . Previous to that on Wednesday, 15 February, there will be a plenary session with all the local authorities and the Department on the issue. We will seek to have workshops with the local authorities in March and early April. We will then follow up with approved recommendations in terms of the eligibility of projects and reporting requirements for the third round of funding and associated financial allocations by quarter 2 of this year.

The funding will be available to cover the acquisition costs of a property or site and any civil or design works that may be required to de-risk or improve the site or building to make it more attractive for reuse, development by others and onwards. We are looking at brownfield sites, which are very much part of this as well. The intention is that the fund would be replenished from the proceeds received from the end user, thereby allowing the local authority to put in place a rolling programme to tackle long-term vacancy and dereliction without recourse to borrowing. Up to €150 million of URDF support will be made available in individual allocations to local authorities.

It should be noted that while the third round of funding is specifically tailored to help deliver specific objectives of the national planning framework, the national development plan and the Housing for All and Town Centre First plans, the Minister has committed to a fourth round of funding support, which will be made available later in 2023. This further call will revert to the heretofore wider scope of URDF projects which reflect the complex investment proposals required to transform key areas of our cities and towns.

Victor Boyhan (Independent)
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I will be very brief. I am conscious of time and I know the Acting Chairperson is under pressure. I will make four key points. The reality is that the circular issued by the Department yesterday confirmed that €1.5 billion was allocated. We have had calls 1 and 2, we are heading into call 3 and, to date, only €144 million has been drawn down. That has to be of concern. I will leave it at that.

The next issue is around the population figure of 10,000 when we talk about villages. These communities are represented by Government party councillors. They are crying out for support and funding. The Minister of State might look at that again, please.

This is about staffing and resources. Local authorities do not currently have the staff in place to administer these schemes. More importantly, the officials are scratching their heads and asking the question of who is paying for the costs of compulsory purchase orders, CPOs, to acquire these properties. If substantial progress is to be made in this regard, they need this funding. There is a need for additional information. I know the Minister of State is carrying out workshops, which I respect and appreciate. Let us stay alert, however, and be sure we are drawing down the funds that have been allocated for these schemes. I thank the Minister of State.

Kieran O'Donnell (Limerick City, Fine Gael)
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As I said, many of these projects are now coming to fruition. The Senator will see much more of that €1.5 billion in funding being drawn down. As I outlined earlier, a key action in supporting the Government's vacant homes action plan is the third round of URDF support, which will be specifically designed to address long-term vacancy and dereliction across our URDF cities and towns and the acceleration of the provision of residential accommodation. This initiative is also in support of objectives under the revised Housing for All and Town Centre First plans.

It should be noted that the third round of funding support is not seeking to replicate or replace the various social housing programmes available to local authorities to tackle vacant and derelict buildings and sites. The revolving fund is intended to act as an additional and much broader tool for the activation of long-term vacant and derelict sites and buildings.

There are extensive examples of vacant or derelict buildings that are problematic but which may not be appropriate or viable for social housing schemes. This funding is intended to address such properties while addressing the financial gap that exists currently for local authorities in that regard.I note the Senator's points on the issue with regard to staffing. I will take the matter up with my Department. Compulsory purchase orders are a considerable element. They are being looked at under the new planning legislation, but they are a measure. We want this plan to work. It is working, but we wish to expedite this roll-out. I very much take on board Senator Boyhan's points.

Martin Conway (Fine Gael)
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Senator Boyhan has decades of experience in this area. When he speaks, he speaks with authority.