Seanad debates

Wednesday, 2 October 2013

Upward Only Rent (Clauses and Reviews) Bill 2013: Second Stage

 

3:40 pm

Photo of Paschal MooneyPaschal Mooney (Fianna Fail) | Oireachtas source

The Supreme Court judge, Mr. Justice Gerard Hogan states in a legal opinion on this issue:


The critical question is rather whether such legislation would be proportionate and objectively justifiable. For the reasons set out in this opinion, there are far reaching policy reasons why the Oireachtas might think that the prohibition of such clauses is necessary in the public interest. Not the least of those reasons is that the Oireachtas might consider that such clauses artificially maintain unrealistically high rental levels in the retail sector,thus hindering the recovery of the retail sector.

He also stated:


If the Oireachtas can constitutionally take steps drastically to interfere with existing contractual rights of service providers and public servants without compensation ... then the proposed legislation of this kind would equally seem to be constitutionally valid.
In the Bewley's case this year, Mr. Justice Peter Charleton said that the amount of rent Bewley's pays to its landlord must fall in line with current market conditions, a ruling that could have significant repercussions for upward-only rent reviews. The court had heard that the parties had entered into a lease agreement in 1987, and then with the 2007 review, at the height of the property boom, the rent was fixed at €1.46 million, up from €213,000. In 2012, that same figure was claimed despite it having been fixed "at the height of the property price inflation that undermined the Irish economy". Those are not my words, but those of Mr. Justice Charleton.

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