Peadar Tóibín (Meath West, Sinn Fein)

Upward-only rents affect competitiveness and raise the costs for end-user consumers. There is also a cost in jobs for the State. Approximately 250,000 people work in the retail sector in the State and it is estimated that approximately 46,000 people have lost jobs in the retail sector in recent years. It is reckoned that approximately 50,000 jobs in the retail sector are in serious danger of being lost at the moment. This sector is a very sensitive to cost changes.

Between 2000 and 2007 there was an increase of approximately 240% in rents in the State for businesses, which was a massive increase in the base cost. The programme for Government states clearly that the issue will be dealt with but Opposition parties are hearing that the Government feels there may be a constitutional issue. Retail Excellence Ireland has stated there can be a change within the parameters of the Constitution.

It is these costs, along with the VAT increases that will be brought about by the Government in the upcoming budget, which form a line from Dublin to Galway, making businesses north of that line extremely uncompetitive compared to their counterparts in the North of Ireland. This issue does not only affect the private sector, it also affects the public sector. How much is the Government paying in upward-only rents?

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