Written answers

Wednesday, 24 March 2010

Department of Justice, Equality and Law Reform

Rent Levels

9:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 153: To ask the Minister for Justice, Equality and Law Reform if his attention has been drawn of instances in which high nominal rents are being maintained in order to force the hand of other tenants, but where rebates, rent holidays or other deals are being negotiated with new or existing tenants; if his further attention has been drawn to fact that the maintenance of rent at unrealistically high levels is undermining efforts to restore competitiveness and is forcing many businesses to close; and if he will make a statement on the matter. [11664/10]

Photo of Dermot AhernDermot Ahern (Louth, Fianna Fail)
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Representations have been made to me concerning alleged deals of the kind instanced by the Deputy in her question. However, I have no direct knowledge of such deals as the establishment of the conditions associated with a business tenancy is essentially a private matter between the parties to the contract.

The concern expressed in relation to this matter was one of the factors which led me to establish a Working Group to examine the question of transparency in rent reviews. The terms of reference of the Working Group are as follows: "To consider the operation of the current system for determining the rent payable on foot of a rent review clause, with particular emphasis on the arbitration process and the adequacy of the information available to all parties and, if necessary, to make such recommendations for change as may seem appropriate."

It is envisaged that the Group will report by 30 June 2010.

In relation to the general issue of competitiveness, it is obviously the case that every effort must be made, by all relevant parties, to ensure that all our cost pressures are kept under control. This applies in relation to the area of commercial rents in much the same way as it applies in relation to areas which fall directly within Government control.

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