Legislation has been published allowing for the setting up of new business improvement districts schemes (BIDS) throughout the Republic.

The BIDS are working partnerships, formed between businesses, rate payers, property owners, tenants, residents and the local authority. These groups set up a designated fund that is used to improve the local area and attract more business.

The initiatives must be for services over and above those provided by the local authorities.

The legislation will make BIDS legal entities and ensure that anyone joining a BID will have to make a financial contribution. Each BID board will decide how best to use its resources. The legislation was published yesterday by the Minister for the Environment, Dick Roche.

Chambers Ireland welcomed the legislation, but warned that BIDS must not replicate what is already done by the local authorities. "To avoid the possible perception of this as another form of taxation, all of the activities carried out by a BID must be wholly additional to supplementary to existing services carried out by relevant local authority," said Chambers Ireland chief executive John Dunne.

Mr Roche said whatever BIDS did would be additional and complementary to local services and improvements carried out by the local authority. Mr Roche said BIDS started in Toronto, Canada in 1971 and were now in operation in many cities and towns throughout the world.

"When I first heard of BIDS, I recognised the opportunity to harness business innovation through the opportunity of BIDS. Research on the operation of the schemes in the US, in particular, identified that they provide a vehicle for innovative and proactive management of an area and have significant positive impacts on the economic vitality and viability of cities and towns".

He said his Bill, the Local Government (Business Improvement Districts Bill) 2006, struck a balance between regulatory safeguards and innovation. He said it would be a matter for the business community to develop a BID plan and decide on the type and level of works. He said a plebiscite would have to be conducted in the area before a BID could be set up.

"I am of the opinion that BIDS will in fact leverage further investment by local authorities in BID areas as the goodwill and impetus that BIDS generate will make investment in these areas easier to achieve," Mr Roche added.