Dáil debates
Wednesday, 14 December 2011
Departmental Properties
1:00 pm
Simon Coveney (Cork South Central, Fine Gael)
I have a long reply here which I will not read out, because I want to deal with the issue head-on. The Deputy will be aware of much of what is in the reply. Essentially, we have contractual arrangements with the people who lease properties within fisheries harbours that are owned by my Department, and each case must be dealt with on an individual basis. Most rental leases that were established pre-2008 contain the now infamous upward-only rent review clause. In most cases, we have not used that clause and have agreed not to increase rents since then. In fact, I do not think there has been any increase in rents since 2008. However, I am not sure that is enough. We also have a facility within our Department for people who are struggling to pay their rent in our harbours to establish a payment schedule that may ease that burden, and I encourage people to use that.
I am more than aware of what the Minister for Finance, Deputy Noonan, said on budget day about NAMA's new approach towards businesses that are under pressure due to exorbitantly high rents and that are subject to legal contracts that contain upward-only rent review clauses. He said that NAMA would consider these cases individually with a view to potentially volunteering rent reductions in some cases. I would like to think my Department can do something similar, so I have asked my officials to examine a mechanism that retains a legitimate contract while recognising the fact that upward-only rent reviews should never have been put into contracts.
If someone who is currently renting a property is under significant pressure because of the high rent he or she is paying, which is having a negative impact on his or her business, I do not want to charge him or her more than the current commercial rate through an upward-only rent review clause in his or her contract. I have asked my officials to establish a structure that will allow us to move forward in the way the Deputy is probably seeking. I hope we will have something on that by the end of January.
john shine
Posted on 19 Dec 2011 2:37 pm (Report this comment)
You do not think there has been any rent increases since 2008,Well let me tell you you have increased rent in all your fishery harbours by as much as 250% since 2008.I could name all the properties if you need some help remembering.You Minister Coveney are putting businesses out of business as we speak by charging extortionate rents.This will be your legacy to coastal communities.Watch your back Minister your civil servants are not telling you the whole story.