Brian O'Shea (Waterford, Labour)

At the outset, I compliment my colleague, Deputy Ciarán Lynch, on introducing the Land and Conveyancing Law Reform (Review of Rent in Certain Cases) Amendment Bill 2010 to the House. This critically needed legislation, which would allow downward reviews for commercial rents is most timely.

I would like to quote from an e-mail I received today from Mr. Michael Garland, the chief executive officer of Waterford Chamber of Commerce:

The general situation here in Waterford is that businesses have cut so much out of their cost base that often the only costs left to tackle are rates, rent, water charges, employers' PRSI etc. These cost centres are out of their control. There needs to be direction on all of these issues for businesses, and not just for rents. Simple small changes to all these costs will have a huge cumulative effect, a positive one, for any business. For example, a reduction in the PRSI rate, as well as a reduction in rent, could be the very thing that stops business making a person unemployed.

It really is as simple as that. I understand this and I do not have to be an economist. Of course, upward-only rent reviews should be addressed, and businesses, where they find themselves in this situation, must tackle their landlords as soon as possible and put a coherent business argument or plan together to get a reduction or moratorium on any rental agreement.

Strong direction from Government would help act as leverage for individual cases. Clear Government advice on the issue must be communicated. We need strong leadership on the issues facing business at the moment. Immediate action now will secure many jobs and immediate action will mean we are better placed to take advantage of any future upturn in the economy. Businesses have collectively made these brave, strong decisions and we must see others follow suit.

Commercial rates in Waterford are a massive issue for business. Businesses are hanging on by their fingertips in the hope that a strong summer tourist season will arrive. Without that, the consequences for business and employment will be catastrophic. We are in the sharpest economic downturn in the history of the State with banking decisions no longer being made in cities like Waterford, but in Dublin, and credit for small and medium size businesses being scarce at best. This is in spite of the vast resources the State continues to provide to the banking sector.

The Minister for Justice, Equality and Law Reform stated last night that we as legislators need to be here, breaking our backs to find workable and practical solutions that will lead to real jobs and real prosperity. I could not agree more. What evidence is there, however, that the Government is producing such solutions? The Government's response to Deputy Ciarán Lynch's Bill, which was thoroughly researched and backed by legal opinion, is to dismiss it as legally and constitutionally unsound. This was done without the production of the legal opinion underpinning the Minister's dismissal of it. Let us test the opinion in the light of day and work as a Parliament to find an urgent, agreed solution for those many business people and workers, who live with the daily fear of their businesses collapsing and their jobs disappearing.

Urgency in problem solving appears to be anathema to this weary Government. It is bereft of the ideas and energy needed to overcome obstacles such as the one this Bill seeks to address. People need hope, leadership and confidence that jobs are being created and economic recovery pursued, but the Government's inability to take bold action will only push them deeper into despair.

When governments cannot, or will not, do the jobs they are elected to do, it is time for them to go. The Government's opposition to this Bill is further evidence of a siege mentality which is paralysing its will to address the many urgent problems which have been inflicted on Irish people as a result of the wasted years since 1997.

See this speech in context