Michael D'Arcy (Wexford, Fine Gael)
Link to this: Individually | In context

Question 157: To ask the Minister for Finance the number of properties his Department has paid rent on in the past three years; if the rent on such properties is fixed; if such rents have been reviewed in the past year; if he has tried to negotiate the cost of rent downwards in the past year; and if he will make a statement on the matter. [27593/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I have been informed by the Office of Public Works that they manage around 500 leases on behalf of various Government Departments. The leases have an annual rental charge of €10,000 and above associated with 400 Properties/Buildings and relate to general office space, Garda Stations, Warehouses, Car parks, etc.

Details in respect of the properties rented on behalf of my Department by the Office of Public Works in the past three years are contained in the following tables.

Buildings No longer Occupied by Department of Finance

Buildings Currently Occupied by the Department of Finance

I have been informed by the Office of Public Works that every lease agreement that they enter into has at the negotiation stages, the potential to have their own terms and conditions in respect of Rent Reviews, Lease Breaks , etc, that are specific to that lease. Generally with long term leases, Rent Reviews and Lease Breaks are on a five –year basis. Where agreement for Rent Reviews and Lease Breaks are included in the terms of a lease, due notice must be given before negotiations will be entered into. The Office of Public Works is not in a position to instigate Rent Reviews at will.

It should be noted that although a 'Rent Review' date may be specified in terms of a lease, the actual review itself takes time. Negotiations have to take place during which various factors must be taken into account, such as the current market value at any given time, before a new rental figure is agreed. Negotiations can only take where the lease provides for such an event. Where a rent review arises, the Office of Public Works is entering negotiations with a view to effecting a reduction in rent.