Finian McGrath (Dublin North Central, Independent)
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Question 244: To ask the Minister for Justice, Equality and Law Reform if he will support a matter (details supplied). [21465/10]

Dermot Ahern (Louth, Fianna Fail)
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The Deputy will be aware that I have legislated to prohibit upward only rent reviews in leases entered into on or after 28 February of this year (section 132 of the Land and Conveyancing Law Reform Act 2009). Similar action in relation to existing leases was not possible for legal and constitutional reasons. Nonetheless, I believe that the commencement of that section will have a persuasive effect in relation to those lease arrangements.

In addition, action has been taken to address concerns which have been raised about the ability of tenants to obtain reliable and comprehensive information in the context of the rent review process and a Working Group has been established with the following terms of reference: "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.

Every opportunity is also being taken to stress the need for landlords to take a flexible approach to rent review negotiations which arise in the context of current leases. It has been emphasised repeatedly that there is nothing to stop the parties to existing business leases from varying the terms of their contract and from agreeing to reduce the applicable rent, having regard to their individual circumstances and the realities of the market.