A new Government scheme to revitalise smaller towns with tax incentives "will put the heart back" into many communities, according to the Minister of State for Housing and Urban Renewal, Mr Bobby Molloy.
The scheme, which is confined to towns with populations between 500 and 6,000, provides for allowances of up to 100 per cent for the construction or refurbishment of buildings in designated areas.
Altogether there are 240 towns eligible for inclusion in the scheme, according to a list published by the Department of the Environment yesterday, but only 104 will be given designated area status initially. It will be up to each county council to select suitable candidates and submit them to the Department of the Environment and Local Government by October 31st.
The Fine Gael spokesman on the Environment, Mr Alan Dukes, said a major flaw in the scheme is that the last word on which communities receive special designation will rest with the Minister for the Environment and Local Government, Mr Dempsey, and the Minister for Finance, Mr McCreevy. He described it as "bad law" and "bad politics to have the Ministers in total control of who gets into the scheme and who doesn't". Dublin city and county are excluded from the scheme. A spokesman for the Department said there were no urban communities in the Dublin area small enough to qualify. The tax incentives on offer are broadly similar to those available under the 1999 urban renewal scheme. Capital allowances for commercial development have yet to be agreed with the European Commission, but owner-occupiers can claim 50 per cent relief for a new building and 100 per cent for refurbishing an old one.
There is also "Section 23" relief consisting of 100 per cent of construction costs for investors/lessors involved in providing residential development for letting. But the briefing notes for local authorities wishing to avail of the scheme state that the "Section 23" incentive "will only apply to new building development in very limited circumstances where shown to be absolutely necessary to achieve the objectives of a particular Town Renewal Plan".
The number of applications from each council will be determined by the number of eligible communities within its boundaries. Where there are fewer than six eligible towns in a county the maximum number of urban renewal plans that can be submitted is three. If there are between six and 10 eligible communities the maximum number of submissions is four. For counties with between 11 and 20 eligible towns, the maximum number of submissions is five and, for Cork, which has over 20 eligible towns, the maximum number of submissions is seven.
A spokesman for the Department said it was hoped the plan could be extended beyond the initial three-year period, if it proved successful. An expert advisory board is to vet the submissions and provide a shortlist for the Minister.
The chairman is Mr Dom Hegarty, principal planning adviser at the Department of the Environment and Local Government. Other members include Mr Eoghan Brangan, senior adviser, planning, at the Department; Dr Seamus Caulfield, professor of archaeology at UCD and director of the Council of the West; Mr Conor Kelly, of Simon J. Kelly architects; Mr Bill Nowlan, a chartered surveyor and management consultant; Mr Paddy Shaffrey, architect and town planner; and Mr David Slattery, an architect and historic buildings consultant.
Submissions will have to be located in appropriate areas of towns and "show an appreciation of the historical establishment and layout of the town". The towns will also have to show that adequate infrastructure is in place to sustain the proposed development.