Jerry Buttimer (Fine Gael)
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I welcome the Minister of State, Deputy Noonan.

Victor Boyhan (Independent)
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I welcome the Minister of State on this bright spring morning. It is great to see him back in the House. The matter I raise relates to the derelict site levy. As he will know, there are 31 local authorities, so there are varying performances in respect of its collection. It is more of a challenge for big urban areas and cities than it is for some rural areas, given land values, dereliction and a range of other reasons, but it has become an issue. I am loath to suggest the Revenue Commissioners should have any additional work, but I am also pragmatic enough to know that when the Revenue Commissioners are involved in the collection of outstanding taxes or levies due to the State, people perform and live up to that expectation. Revenue has an exceptionally good name. Indeed, as someone who has represented a number of people over many years who have had difficulties with Revenue, I have always found it to be very amenable and progressive in its engagement. The Minister of State might outline what he considers we should or should not do about this issue.

In preparing for this Commencement matter, I made contact with a number of local authorities, and I will speak about the one that covers the area where I live because it gives some measure of the challenges. Currently, there is just over €700,000 in outstanding instances of the derelict site levy in Dún Laoghaire-Rathdown County Council, as was confirmed to me by the council this week. Two of the properties have been on the register for many years, while two others have high valuations, and the four of them constitute the bulk of the outstanding levies owed. The volume of debt, therefore, that is due to the local authority relates mostly to these four key large sites. Dún Laoghaire-Rathdown County Council has made great progress over the past three years in reducing the number of sites on its register and, in turn, reducing the volume of site levies owed, and I acknowledge the significant work of the chief executive of that council and the staff who are responsible for this area. Nevertheless, there are currently 11 sites on the register, even if a number of them are in the process of being developed.

What I found common among all the local authorities to which I spoke were sites that are in receivership. There seems to be no commitment or support. A general comment from city and county managers, or chief executives as we call them now, indicated it is difficult to engage in cases of receivership. The owners do not see it as an issue or challenge but rather that they believe that, because their property is in receivership, the new people coming in can deal with it, but that can go on for years. That is not good enough, not least when, as we know, local authorities are struggling to get funding. That is the real challenge.

The derelict sites levy amounts to 7% shy of the market value of the land concerned. The Minister for Housing, Local Government and Heritage may prescribe a higher percentage, but it cannot be more than 10% of the market value. That is a challenge in itself. There are also the fines associated with the payment, or the lack thereof, and there are issues with the length of time. How can we assist and support the chief executives in our local authorities, and the authorities themselves, to get in this money? Not only is it a levy on derelict sites but these sites are sitting idle at a time of a housing crisis. What are the Government's policies for the rejuvenation and renewal of our cities, towns and villages? It all goes hand in hand and is linked. Will the Government consider, in consultation with the CCMA, how we can progress this matter and, perhaps, empower Revenue to collect the levy on behalf of the local authorities?

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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I am taking the spirit of the question the Senator is asking as regarding assistance to local authorities in collecting the revenue and in animating sites for activation for development. I think this is a very important issue.

For some background, the Derelict Sites Act 1990, as amended, imposes a general duty on every owner and occupier of land to take all responsible steps to ensure the land does not become or continue to be a derelict site. The Act also imposes a duty on local authorities to take all reasonable steps, including the exercise of appropriate statutory powers, to ensure any land within their functional area will not become or continue to be a derelict site. Local authority powers include requiring owners or occupiers to take appropriate measures on derelict sites, acquiring derelict sites by agreement or compulsorily and applying a derelict sites levy on derelict sites.It is a matter for local authorities to determine the most appropriate use of the legislation within their respective functional areas.

There is currently no proposal to replace the derelict site levy with a tax. Such a measure would require new legislation by the Department of Finance for, as suggested by the Senator, the collection of the tax by the Revenue Commissioners. However, the Department continues to liaise with local authorities on the enforcement and implementation of the Derelict Sites Act 1990, as well as on the collection of levies due, with a view to improving its effectiveness in delivering on its objectives. My Department initiated a review of the Derelict Sites Act 1990 in November 2021 and invited local authorities to make initial submissions on potential improvements to legislative provisions and how they are applied. A focused working group of local authority officials nominated by the City and County Managers Association, CCMA, was subsequently established. The working group met on three occasions during 2022 and remains active. It is expected that the report of the group will be finalised shortly. The recommendations contained in the report will be considered once it is received.

Addressing vacancy and dereliction and maximising the use of existing housing stock is a priority objective of the Government, with a range of concerted actions currently being progressed in this area. Pathway 4 of Housing for All sets out a blueprint to address vacancy and make efficient use of existing housing stock. Many areas of cities, towns and villages of all sizes face the blight of vacant and derelict properties, which, if brought back into use, could add real vibrancy and provide new accommodation in local areas and towns. Measures being taken to address vacancy and dereliction include a vacant homes action plan launched by the Government on 30 January, which captures and reports on progress across all objectives in pathway 4 of Housing for All and the planned actions to continue to bring vacant homes into use and maximise use of existing housing stock.

The town centre first policy, a major new policy initiative that aims to tackle vacancy, combat dereliction and breathe new life into our town centres has also been launched. A €150 million urban regeneration development fund has been made available for local authorities to acquire vacant or derelict properties. This has been supplemented by new guidance for local authorities on acquiring properties compulsorily, providing a step-by-step guide on the process to be followed in the compulsory purchase of derelict sites by local authorities. The vacant property refurbishment grant funded by the Croí Cónaithe towns fund was launched on 14 July 2022 for eligible vacant properties in towns and villages. On 15 November 2022, the grant was extended to include vacant properties in cities and towns in rural areas. A grant of up to €30,000 is available, with an additional €20,000, bringing it up to €50,000, available in the case of derelict properties. The fair deal scheme has been reformed and the Minister has extended planning regulations to exempt certain vacant commercial premises, including vacant spaces over shops, from the requirement for planning permission for change of use to residential accommodation. I will make a supplementary contribution if that is okay but those are just some of the initiatives we have taken to try to address the issues of vacancy and dereliction across the country.

Victor Boyhan (Independent)
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I thank the Minister of State for the comprehensive response. It is a little weak but not on his part. I am glad we have had this dialogue because there are derelict sites and a housing crisis. There are motions every second week in the Dáil on the housing crisis. It points up a weakness that reports on derelict sites were done by the CCMA in 2021 and 2022, and it will soon issue an interim report on derelict sites, yet the country is blitzed with derelict sites. The Land Development Agency, LDA, stated yesterday it can build houses all over the place. It has been in operation for a few years and has built sweet damn all. It bought houses from private developers to fill a quota.

There is a case to be made here. There are derelict sites in all our towns and villages. We need to do something. This is weak legislation. There needs to be a penalty. I posed a question to the Minister for Housing, Local Government and Heritage as to whether responsibility for the collection of tax should be given to Revenue. I did not suggest it should be although I believe Revenue is the only organisation that can get the money in. I thank the Minister of State and look forward to seeing the report. We must ask the CCMA to come up with a report. We have a problem. There is a housing crisis and derelict sites are sitting on the books. Local authority managers tell me they cannot get the money in and the sites are sitting derelict. That is a challenge for us all.

Malcolm Noonan (Carlow-Kilkenny, Green Party)
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I take from the Senator's question that he sees a lack of urgency. I will relay that comment back to the Department. Regarding the working group, it is important that it concludes its work and is able to issue a set of recommendations to the Minister. The measures I outlined to address vacancy and dereliction are having an impact across the country. While it is perhaps not on the scale we want them to, they are making good ground across. I announced grants in the last few weeks that also address our heritage building stock, in which the Senator has a major interest. There is no doubt this is a challenge, including for local government, to take in that revenue, which is the leverage by which we activate these sites for productive use. I will relay the concerns the Senator raised to the Department.