Joan Burton (Dublin West, Labour)
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Question 44: To ask the Minister for Finance if he will provide, by number and value, the proportion of leases for office accommodation entered into by the Commissioners of Public Works for fixed rents, that are subject to rent review clauses, and that are subject to upwards only rent review clauses; if and when the Office of Public Works ceased to agree to upwards only rent review clauses; the position adopted by the OPW in current circumstances when negotiating rent reviews in general and upwards only reviews in particular; if upwards only clauses have been successfully re-negotiated; and if he will make a statement on the matter. [19406/09]

Martin Mansergh (Tipperary South, Fianna Fail)
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Over the last twenty years, it has been standard practice in the property industry for almost all medium to long-term commercial leases to incorporate an upwards only rent review clause. The vast majority of leases entered into in that time by the Commissioners of Public Works complied with this commercial norm.

Currently, the Commissioners hold over 490 leases with an annual rent in excess of €10,000. Some 90% of these, with an annual rental bill of about €120m, are subject to periodic rent review.

Since the beginning of 2009, the policy of the Commissioners has been to avoid, where possible, upwards only review clauses in negotiations on all new medium to long-term leases and the renewal of existing leases. The Commissioners have also adopted a policy of seeking, where possible, reductions on existing rents that fall due for review in 2009.

To date, no rent reviews with a 2009 date have been concluded, although two lease renewals have been agreed this year, both at reduced rents.