Wednesday, 26 February 2014
Upward Only Rent (Clauses and Reviews) Bill 2013: Committee and Remaining Stages
I move amendment No. 1:
I welcome the Minister of State and thank him for attending. We had a very good debate on this issue on Second Stage so I do not intend to go back over it. I listened very carefully to the words of the Minister of State and these three amendments should solve the problems in this area. Rather than speak on them, they will speak for themselves.
In page 3, between lines 21 and 22, to insert the following:
“Disapplication of certain clauses
2.(1) A clause which is contained in a relevant lease and which purports to set the amount of rent payable in respect of that land at a level which is
greater than the amount of the prevailing market rent for that tenancy at that time may be disapplied by an arbitrator during the course of a review
where the considerations set out in subsection (4) are satisfied.
(2) A tenant who is subject to a relevant lease may give notice of his or her intention to invoke a review under this section.
(3) (a) A review under this section shall be conducted by an arbitrator appointed by the Chartered Institute of Arbitrators Ireland whose determination
shall be final and binding.
(b) An arbitrator's determination may—
(i) direct that the current level of rent remain in place, or
(ii) direct the payment of a reduced level of rent.
(4) In conducting a review under this section, the arbitrator shall have regard to whether—
(a) due to the external economic environment the business is currently, or is imminently in danger of, experiencing financial distress,
(b) the level of rent currently payable represents a threat to the continued viability of the business,
(c) a reduction in the level of rent will enhance the viability of the business, and
(d) a reduction in the level of rent will preserve existing levels of employment.
(5) This section shall not be used to confer the benefit of reduced rent payments on a business whose financial distress has been shown to have
been principally caused by inadequate or ineffective management.
(6) A review under this section may only be invoked once during the term of the relevant lease.”.