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EMBARGO 11.15 a.m., Monday 24 July
GREEN LIGHT FOR 100 TOWNS AS
TOWN RENEWALSCHEME GETS UNDERWAY
Unprecedented opportunity for our small towns – Molloy
Residential tax incentives start from today, 24 July
“An unprecedented opportunity for Ireland’s small towns”, was how Minister for Housing and Urban Renewal, Mr. Robert Molloy, T.D., described the new Town Renewal Scheme as he unveiled details of the designation of areas for tax incentives. 100 towns around the country are set to benefit, making it “the broadest based renewal scheme ever introduced in this country”.
These designations are based on Town Renewal Plans (TRPs) submitted by county councils and in line with recommendations made by a special Expert Advisory Panel. Residential tax incentives will apply within the designated areas approved from today, 24 July, but the incentives for commercial and industrial development cannot be brought into effect until approved by the EU Commission under State Aid rules.
Details of the various areas designated under the new scheme, the residential tax incentives, and the membership of the Expert Panel are attached.
Minister Molloy stated: “Since the mid 1980s, national policy has given priority to addressing the problem of decay and dereliction in inner core areas of our major cities and towns and we have all seen and shared in the success of the major urban renewal programmes which have transformed and revitalised these long neglected areas. Our smaller towns have experienced these problems too and many have suffered from the high rates of depopulation brought about by emigration and migration to larger urban centres. There has also been the added problem of people finding it more attractive to move to the surrounding countryside rather than reside in the towns themselves.
The reality is that many of these towns function largely as daytime service centres and with many vacant or underutilised buildings and with some derelict or vacant sites. It was against this background that the Government decided to take a closer look at our smaller towns in order to craft a scheme that would meet their needs having regard to their population and size. ”
The Minister added: “Now it is the turn of these towns to share in the success that the tax incentive approach can deliver in combating decay and dereliction. It is the turn of small Irish towns to have their day in the sun and I know it is an opportunity that they will grasp with enthusiasm.”
Minister Molloy went on to say that he saw the Town Renewal Scheme as being pivotal in promoting development which is balanced and sustainable. “I am confident that the new scheme will inject new life into the towns targeted, discourage the trend of moving to the surrounding countryside, and stem the haemorrhage of shopping and other commercial activities to the larger urban centres. We need to build sustainable, commercially thriving centres while enhancing their environment and amenities, and I believe the new scheme will achieve major progress towards achieving this goal.”
Town Renewal Plans (TRPs)
Designations were based on concept of Town Renewal Plans (TRPs) which in turn were based on the principles of promoting the phyiscal renewal and revitalisation of towns, enhancing their amenities and promoting sustainable development patterns. These plans, which county councils were asked to prepare on the basis of comprehensive guidelines, were required to identify targeted sub-areas for tax designations. They were also required to justify the proposed designation by reference to the plans’ objectives. Following examination of the plans by the Expert Panel, the sub-areas recommended by county councils have been reduced in many cases. A total of 100 of the 102 plans submitted have received designations.
Tax incentives
While the incentives under the new Town Renewal Scheme apply to commercial and residential development, it is not possible to proceed with the application of the commercial incentives as the approval of the EU Commission to these incentives is required.
The Government has agreed to the Minister’s proposal to introduce the scheme in two phases i.e. proceed with designation and apply residential incentives which do not require EU approval under State Aid rules immediately and introduce the commercial incentives when the outcome of the application to the EU Commission is known. “There are compelling reasons why we should proceed immediately with designation and application of the residential incentives. At a time of high demand we need to ensure that everything possible is done to bring forward development of all sites on which housing is planned to help boost supply.”
The Minister urged county councils who have the pivotal role in relation to this scheme to make every effort to ensure that it is promoted and implemented successfully. “This is a golden opportunity for the communities involved and I am confident that it will be used to ensure that these towns will be prosperous and viable well into the future”, the Minister concluded.
ENDS
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APPENDIX 1
TOWNS RECOMMENDED FOR DESIGNATION
COUNTY / TOWNS SELECTEDCarlow
Hacketstown
Muinbheag
Tullow
Tinnahinch/Graiguenamanagh
Cavan
Cavan
Cootehill
Baileborough
Ballyjamesduff
Clare
Scarriff
Sixmilebridge
Kilrush
Miltown Malbay
Ennistymon
Cork
Cloyne
Skibbereen
Charleville (Rathluirc)
Doneraile
Kanturk
Bantry
Fermoy
Donegal
Moville
Ardara
Ramelton
Ballyshannon
Ballybofey - Stranorlar
Galway
Portumna
Headford
Loughrea
Clifden
Ballygar
Kerry
Listowel
Castleisland
Killorglin
Caherciveen
Kildare
Kilcullen
Castledermot
Rathangan
Kilcock
Monasterevan
Kilkenny
Callan
Castlecomer
Thomastown
Urlingford
Pilltown
Laois
Mountrath
Rathdowney
Portarlington
Mountmellick
Limerick
Abbeyfeale
Castleconnell
Croom
Kilmallock
Rathkeale
Louth
Carlingford
Ardee
Dunleer
Castlebellingham
Mayo
Ballinrobe
Belmullet
Claremorris
Foxford
Newport
Meath
Oldcastle
Duleek
Kells
Trim
Monaghan
Clones
Castleblayney
Ballybay
Offaly
Clara
Ferbane
Edenderry
Banagher
Roscommon
Roscommon
Sligo
Rosses Point
Bellaghy-Charlestown
Tipperary N.R.
Nenagh
Templemore
Borrisokane
Littleton
Tipperary S.R.
Cashel
Killenaule
Cahir
Fethard
Waterford
Cappoquin
Portlaw
Kilmacthomas
Tallow
Westmeath
Kilbeggan
Castlepollard
Moate
Wexford
Ferns
Bunclody
Taghmon
Gorey
Wicklow
Dunlavin
Rathdrum
Carnew
Baltinglass
Tinahely
TOWNS NOT APPROVED FOR DESIGNATION
MeathAshbourne
Sligo
/ Strandhill
APPENDIX 2
Expert Advisory Panel
Membership
Mr Dom Hegarty (Chairman)Principal Planning Adviser, Dept. of the Environment & Local Government
Mr Eoghan BranganSenior Adviser Planning, Dept. of the Environment & Local Government
Mr Conor Kelly Simon J Kelly & Partners Architects
Mr William K. NowlanChartered Surveyor & Management Consultant
Mr Paddy Shaffrey Architect and Town Planner
Dr Seamus Caulfield Professor of Archaeology, UCD
Director, Council of the West
Mr David Slattery Architect/Historic/BuildingsConsultant
APPENDIX 3 - TAX INCENTIVES
CATEGORIES OF INCENTIVES
CategoryConstructionType of Use
1ANew-BuildCommercial - Office development
1BRefurbishment
2ANew-BuildCommercial - Retail/Other commercial
2BRefurbishment
3ANew-BuildIndustrial
3BRefurbishment
4ANew-BuildResidential Owner-Occupier
4BRefurbishment
5ANew-BuildResidential Investor
5BRefurbishment
APPENDIX 4
TYPES AND RATES OF INCENTIVE
RESIDENTIAL DEVELOPMENTOwner-Occupier / New Construction:
50% of eligible construction costs allowed at the rate of 5% per annum over 10 years against total income
Refurbishment
100% of eligible construction costs allowed at the rate of 10% per annum over 10 years against total income
Investor/Lessor / "Section 23" relief
100% of eligible construction refurbishment or conversion costs may be set against Irish rental income (including income from other lettings)
APPENDIX 5
TOWN RENEWAL SCHEME – CONTACT NAMES IN LOCAL AUTHORITIES
COUNTY / NAME / PHONE NUMBERCarlow County Council / Eammon Brophy / (0503) 70366
Cavan County Council / Seamus Neely / (049) 4331799/4361799 Ext. 202
Clare County Council / Myles Carey
Or
Brendan McGrath / (065) 6821616
Cork County Council / Patricia Treacy / (021)933100
Galway County Council / Helen Coleman / (091) 509000 Ext. 217, 218
Donegal County Council / Liam Ward / (074) 72445
Kerry County Council / Michael Scannell / (066) 7121111
Kildare County Council / Charlie Talbot / (045) 873800
Kilkenny County Council / Martin Butler
Don O’Sullivan / (056) 52699
(056) 52699
Laois County Council / Gerry Gibson / (050) 22044
Limerick County Council / Mr. Jerry Sheeran / (061) 318477 Ext. 484
Louth County Council / Patsy Fitzsimmons / (042) 9335457
Mayo County Council / Peter Hynes / (094) 24444
Meath County Council
Trim
Oldcastle
Kells
Duleek / Mary Maguire
Bill Sweeney
Bill Sweeney
Des Foley / (046) 31238
(046) 40064
(046) 40064
(041) 9880700
Monaghan County Council
Clones
Castleblayney
Ballybay / Susan Deery
Paddy Carragher
Marie Deighan / (047) 51018
(042) 9740058
(047) 30504
Offaly County Council / Hazel Meany / (0506) 46884
Roscommon County Council / Brian Duffy / (0903) 37261
Sligo County Council / John McHugh / (071) 43221
Tipperary NR County Council / Risteard O’Domhnaill / (067) 31771
Tipperary SR County Council / Sean Lonergan / (052) 25399
Waterford County Council / Cecily Johnston / (058) 22000 Ext. 2009
Westmeath County Council / Dolores McCague / (044) 40861
Wexford County Council / Martin McDonald / (053) 65026
Wicklow County Council / Paddy Hooper / (0404) 20148