Fiscal incentives and urban regeneration in Dublin 1986‐2005
| Date | 01 November 2006 |
| Pages | 542-558 |
| Published date | 01 November 2006 |
| DOI | https://doi.org/10.1108/14635780610708329 |
| Author | Brendan Williams |
| Subject Matter | Property management & built environment |
PRACTICE BRIEFING
Fiscal incentives and urban
regeneration in Dublin
1986-2005
Brendan Williams
Department of Geography, Planning and Environmental Policy,
University College Dublin, Dublin, Ireland
Abstract
Purpose – This paper seeks to examine the critical role fiscal incentives have played in urban
regeneration in Ireland since 1986, focusing on the role of such incentives, their impact on development
and implications for the market of their termination.
Design/methodology/approach – The paper is structured as a periodised chronology where real
time is divided into analytically defined phases linked to policy shifts. In this way features of urban
regeneration policy can be discussed within the economic context and policy constraints within which
their decisions were shaped. Policies have evolved from blanket subsidisation of development in
designated areas towards a more selective approach. The paper reflects the results of structured
interviews of policymaking, planning and development interests on the operation and effectiveness of
the schemes. Quantitative analysis of the costs and benefits of a selected number of property
developments in Dublin is included and can be compared with similar schemes internationally.
Findings – The findings of this paper are that urban regeneration policies as operated over the
period have had a significant role in the physical rejuvenation of previously derelict areas and that the
role of incentive based policies requires continual monitoring to avoid market distortion effects and to
achieve wider regeneration objectives in terms of social and economic aims.
Originality/value – Despite the importance of the subject there has been a noticeable lack of
evidence-based research in the area and this paper provides quantitative and qualitative evidence
based material upon which further research on the costs and effectiveness of the schemes can be based.
Keywords Urban areas, Fiscalmeasures
Paper type General review
Introduction
The ideal conditions for implementation of urban renewal strategies would include a
strong economy, adequate public resources and a determined commitment to solving
urban dereliction problems while achieving social and economic benefits. In such
circumstances planned improvements to infrastructure, transportation and
environment should coincide with renewal and new development that has the
support of all social partners. As such conditions rarely occur, policy makers must
shape and reshape programmes and interventions based upon the constraints they face
at each particular time period. The changing economic climate in Ireland since the
introduction of Urban Renewal programmes in 1986 can be separated into analytically
defined phases which in turn can be linked to policy shifts. In this way features of
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Winner of the Hamilton Osborne King Prize for Best Paper on the Irish Market.
JPIF
24,6
542
Journal of Property Investment &
Finance
Vol. 24 No. 6, 2006
pp. 542-558
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635780610708329
urban regeneration policy can be discussed within the economic context within which
their decisions were shaped. This is particularly important in terms of public finance
issues and policy constraints.
A major issue for urban development markets in the coming years is the expiry of
urban renewal and property based taxation schemes based upon a government review
of such schemes (Department of Finance, 2006) This paper emphasises the relationship
of policy to prevailing economic trends in the relevant time periods. The rationale for
policy shifts in Ireland is examined over various phases, 1986 to 1994, 1994 to 1998,
and 1998 to 2005 and finally the implications of the planned termination of such
schemes are considered of future prospects.
The challenges facing many European cities of globalisation and economic
restructuring, resulting in urban blight, social exclusion or segregation and property
market failures are evident. Jones (1996) identified the attraction of property led
development to public sector interests as being centred on the proactive nature of the
approach. These agencies have few powers in terms of local economic development but
they do have a range of powers relating to property development. These include
planning, infrastructure and compulsory purchase powers together with the
availability of public land assets. (Williams, 1999) If used proactively it is possible
influence local economic development, stimulate employment and boost activity at
least in the short term (Moore, 2002). Problems however exist with increasing demand
on urban management structures to produce a more sustainable urban environment, on
diminished public finances and are well recognised.
The origins of inner-city decline are attributed to economic restructuring,
suburbanisation of land uses and inappropriate policy structures. Power (1997)
identified weak planning and development policies as a common problem in many
European cities after the Second World War as a significant factor in later urban and
social problems. Economic social and electoral pressures promoted immediate
solutions to housing and development problems. Solving housing shortages was
achieved through the creation of large-scale state subsidised housing schemes often
under resourced and without corresponding supporting area development. Decline and
dereliction in older central areas now vacated along with declining demand for
commercial space due to economic restructuring a suburbanisation and inappropriate
policies combined to create the classic inner city decline. The necessity for intervention
and initiatives to deal with such problems does not mean however that any consensu s
as to ideal approaches exists. Hemphill et al. (2004) noted that much research on the
effectiveness of regeneration policies in the UK tends to be critical with a persistent
sentiment that urban policy has failed cities. The European model of sustainable cities
(European Commission DGXI, 1996 ) with aspirations to building susta inable
communities and cities has proved an attractive if difficult policy option (DOELG,
2002; ODPM, 2003). Subsidisation of development activity, as has occurred in Dublin
and internationally, offers an area-based renewal approach where a weak property
market exists (McGreal et al., 2002).
In Ireland the long period of subsidised property development led urban renewal
commenced in 1985. The core objectives of such schemes has been the promotion of
investment by the private sector in construction and reconstruction of buildings in
what became known as designated areas of towns and cities (DOEHLG, 2005). The
priming of the schemes through fiscal incentives has seen major successes in terms of
Urban
regeneration in
Dublin
543
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