Wednesday, 26 February 2014
Upward Only Rent (Clauses and Reviews) Bill 2013: Committee and Remaining Stages
I move amendment No. 2:
In page 3, between lines 25 and 26, to insert the following:“Abatement of rent under certain review processes
3. (1) A review process which is provided for under the terms of a relevant lease shall not be bound to determine that the amount of rent payable in respect of that land may only be set at a level which is greater than the amount of the prevailing market rent for that tenancy provided that the considerations set out in subsection (2) are satisfied.
(2) Where a review process referred to in subsection (1) is being conducted under a relevant lease the following matters shall be taken into consideration by the reviewer, namely whether—(a) due to the external economic environment the business is currently, or is imminently in danger of, experiencing financial distress,(3) Where the considerations set out in subsection (2) are satisfied, the reviewer may—
(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.(a) direct that the current level of rent remain in place, or(4) 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.
(b) direct the payment of a reduced level of rent.
(5) In this section “reviewer” means the arbitrator or other person charged with leading or otherwise adjudicating upon a review process which is provided for in a relevant lease.”.