Trevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

It alludes to the issue of creating jobs and is a source for debate. Some of the proposals relate to the cost of rents, while another proposes to abolish upward-only rent reviews. Upward-only rent review leases are one of the leading problems faced by businesses. These businesses are locked into contracts with rents fixed at boom time levels. This is despite the subsequent 50% drop in property prices. These businesses are facing increases in rent, while sales decline and costs rise. This is a potent mix which will lead to business failures. The State itself is locked into contracts with upward-only rent clauses costing ¤53 million per year. The Government recognises the problem and during the 2011 general election campaign, the Labour Party committed itself to introducing legislation to deal with upward-only rent reviews. The commitment dovetailed with Fine Gael's commitment, given in the coalition's programme for Government, yet in December 2011 that commitment was abandoned, purportedly for constitutional reasons.

Our report also outlines the impact of utility costs and rates. We also have proposals on broadband. The State is the sixth most expensive in the euro area with download speeds among the lowest. Landfill and commercial rates vary by geographic location with the State average being more expensive than the European norm. In 2011 Ireland was ranked sixth highest for energy provision costs in the euro area but only thanks to a temporary rebate for large energy users. For smaller businesses, in particular, energy costs have risen, reflecting global trends. We suggest capping utility costs for a period of three years, more investment in broadband, as set out in our stimulus plan, and a review of commercial rates. We suggest beginning the process of reviewing the commercial rates across the State in a cost-neutral reallocation exercise. We believe businesses should pay rates for the services provided by the State but that they should be reflective of the size and scale of a business and should be affordable, not designed to plug the gap in Government funding for local authorities. That relates to the point made very succinctly by Senator Keane and others regarding child care facilities. This would be an enormous exercise that would require the co-operation of all local authorities and should be carried out under the aegis of the Department of the Environment, Community and Local Government.

I recommend the report to my fellow Senators. I hope I will not hear the claim in future that Sinn Féin does not have any ideas or does not have any plans. We have one and I recommend it to them. Enterprise will be the driving force and there is a need to create growth. The Bill is an important one and I look forward to the Minister of State's reaction to the points raised.