Richard Bruton (Dublin North Central, Fine Gael)

Section 132 of the Land and Conveyancing Law Reform Act 2009, which provides for the abolition of upward-only rent reviews in commercial leases, became operative on 28 February 2010. The two enterprise agencies which report to my Department and have significant property portfolios, namely IDA Ireland and Shannon Development, have acted in accordance with the provisions of section 132 of the 2009 Act.

IDA Ireland has informed me that it currently has 73 occupational leases across its private finance building portfolio. Sixty-four of the leases were granted prior to 28 Feb 2010, at which time all IDA Ireland building leases would have contained upward-only rent reviews. From 28 February 2010, IDA Ireland's leases are linked to market rent and there are currently nine leases which were granted after 28 Feb 2010. Shannon Development has 48 long-term leases, 43 of which contain the upward-only rent review clause as they were entered into prior to February 2010.

Both agencies have confirmed that where businesses are in difficulties, they have, on a case by case basis, responded to and facilitated requests from companies for reduced rent and they will continue to do so.

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