Mark Duffy (Fine Gael)
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I welcome the Minister of State, Deputy Dillon, to the House. My Commencement matter relates to the living city initiative. The initiative is a tax instrument to stimulate regeneration and redevelopment in cities across Ireland. Budget 2026 extended the living city initiative to other regional towns, including Athlone, Sligo and Drogheda. My call is for this incentive to be expanded to all towns with a population over 10,000. One size does not fit all in trying to solve the housing crisis, as the previous Minister of State just mentioned. We need to have a full-court press and a whole-of-government approach to it.

This is one such measure which can help stimulate regeneration, especially above-the-shop living and living in historic buildings and our market towns. We have substantial buildings that are not viable to regenerate and bring back into use. They are a scourge on the high streets of all our market towns and built-up urban areas. The living city initiative also presents a huge opportunity to bring life, people and families back into the heart of our towns. That could have a positive social impact and help in a small way to move the dial on what is the most pressing social issue of the day. I look forward to the Minister of State's reply.

Alan Dillon (Mayo, Fine Gael)
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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.

Mark Duffy (Fine Gael)
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I thank the Minister of State for his reply. We need to revisit this. The reason I say that is that anyone who walks through any of our towns with a population of over 10,000 will see substantial buildings in a state of dereliction, disrepair and vacancy. In Mayo, two towns, Castlebar, where the Minister of State is from, and Ballina are examples of that. There is a housing crisis in the towns with a population of over 10,000. Even in rural areas, there are challenges across the board. We need to use every measure and instrument to move the dial on the housing crisis. This is one small measure and it needs to be revisited. I look forward to pursuing this further with the Minister, Deputy Donohoe, because it has real merit.

While it might not be financially viable in the larger cities - the living city initiative might not have had the uptake that was hoped - there are lower real estate values in towns with a population of over 10,000 and market towns generally. It might just be the perfect match. I will continue to pursue this issue.I thank the Minister of State, Deputy Dillon, for his time this morning. We need to reconsider this proposal and broaden it to cover towns with populations of over 10,000.

Alan Dillon (Mayo, Fine Gael)
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I acknowledge and compliment Senator Duffy in regard to this important debate. It will present an opportunity when the Minister, Deputy Donohoe, appears before the Seanad. We support all the ambitions to tackle the scourge of dereliction and vacancy. While I understand the call to include more towns outside the specific growth areas contained within the national planning framework, at present the scope is very much guided by the national development plan, NDP. The recent initiatives, such as removing age restrictions on converting commercial properties for residential use, and updating the qualifying age for older buildings from 1915 to 1975, will be important. Many people will understand the challenges for developers in converting over-the-shop residential units and the associated costs. Anything that can be used as a lever is important.

This initiative complements the urban regeneration and development fund, URDF. In the Senator's town, Ballina, we have seen a huge regeneration project around the old military barracks. This was opened last year. In Castlebar, we had URDF funding for the old post office, the Imperial Hotel and the military barracks. In time, we would like to see the living city initiative complement this and be expanded further. We need more initiatives under URDF calls 4 and 5 to support local authorities in bringing old buildings back into use. Again, I compliment Senator Duffy on his raising of this matter.