John Perry (Sligo-Leitrim, Fine Gael)
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Question 558: To ask the Minister for Communications, Marine and Natural Resources if he will reconsider the enormous increase, which is being proposed for rent of rooms (details supplied); if he has examined the implications of the lost revenue when the fishing fleet leaves Rossaveal; if he will provide the levels of rent or lease rates, which are being paid in every other harbour around the country; and if he will make a statement on the matter. [15096/07]

John Browne (Wexford, Fianna Fail)
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The premises referred to has been occupied since 1995 by the current occupant under a caretaker's agreement. It was envisaged that ultimately a lease would be put in place for this premises but this has been delayed by problems reaching agreement on rent.

The Department sought an updated valuation in 2000 in view of the length of time that had elapsed since the premises were first occupied and to take account of any change in market conditions that had occurred in the meantime. This valuation was done by the Valuation Office, the State property valuation agency whose core business is to provide accurate, up-to-date valuations. The Valuation Office advised a revised rent but the occupant indicated it was not agreeable to paying this advised rent. Further protracted negotiations then took place between the Department and occupant. All possibilities were explored including the offer of a pro rata reduction in rent in exchange for the return of some office space to the Department. This appeared to offer a practical solution given that the occupant has considerable office space available to it in its own building nearby. However, this offer wasn't taken up.

Further meetings were held with a view to resolving the matter. The Department explained to the other party that under Procurement Guidelines from the Department of Finance, it was charged with obtaining a fair price for any properties leased by it. It was agreed that an independent valuation be undertaken along with one from the Valuation Office and this valuation took place in 2005. The independent valuer advised a reviewed rent, which the Department was prepared to accept but the other party has, to date, not accepted it.

The Department has made every effort to accommodate the other party's requirements and has been flexible at all times in trying to bring this matter to conclusion. In recent months the Department has had further negotiations with the occupant and has offered to further subdivide the premises with a corresponding reduction in rent but again the offer has not been accepted. If agreement cannot be reached the Department will have no option but to recover the premises and put it out to tender. The levels of rent for the leasing of commercial property in the Fishery Harbour Centres are those which are agreed on the basis of valuations provided by the Valuation Office or other independent valuer.