Alan Shatter (Dublin South, Fine Gael)

I propose to take Questions Nos. 12 and 14 together. The programme for Government indicates that legislation will be introduced to end upward-only rent reviews for existing leases. I am conscious of where it appears that unrealistically high rent levels are being maintained in the retail sector and that this has consequent negative effects on business viability and on employment. Given the difficult economic circumstances which continue to prevail, I am in the process of developing a legislative proposal which would ameliorate the burden being experienced by that sector as a result of such rent levels. I have already initiated consultations with the Attorney General such that this matter can be progressed as expeditiously as possible.

In addition to the legislation which has been specified in the programme for Government, I am also conscious that one of the difficulties with rent reviews is the absence of readily accessible and accurate information to determine the market rent payable in respect of any given set of commercial premises. The Deputy will be aware that I arranged for the restoration of the Property Services (Regulation) Bill 2009 to the Order Paper, as I mentioned earlier. The Bill is now awaiting Committee Stage. I intend to bring forward amendments to the Bill to provide for the establishment of a public database containing relevant details of letting arrangements and rent reviews in the commercial property market. This will be a particular help in providing a level of transparency that does not exist in this area at present. The Property Services Regulatory Authority will have responsibility for the management of this database.

The recommendation regarding the database was contained in a working group report which was published in August of last year. That report also contained a recommendation for the adoption, by landlords and tenants alike, of a rent review arbitration code which was drawn up by the experts who participated in the group and which was appended to the report. A particular feature of the code is that it contains detailed provisions dealing with the production of comparative evidence in relation to property transactions and it also places a firm duty on all parties to disclose all relevant information in their possession. As matters stand, parties are free to specify that the code should apply in relation to rent review arbitrations. I welcome the endorsement of the code by a number of significant stakeholders in the sector.

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