Written answers

Thursday, 14 October 2010

Department of Justice, Equality and Law Reform

Commercial Rent Reviews

5:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 121: To ask the Minister for Justice and Law Reform if he has taken legal advice on the legal protection in certain contracts that prevent rents coming down; if his attention has been drawn to the fact that Forfás has recommended that the legal view that it would be unconstitutional to provide for downward revision of rents should be challenged in the courts; and if he will make a statement on the matter. [36846/10]

Photo of Dermot AhernDermot Ahern (Louth, Fianna Fail)
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I presume that the Deputy is referring to upwards-only rent review clauses in commercial leases.

I would remind the Deputy that a provision which prohibits upward only rent review clauses in future business leases is contained in Section 132 of the Land and Conveyancing Law Reform Act 2009. That provision came into force on 28 February last.

The prohibition on upward only rent review clauses does not apply to business leases (or agreements for such leases) which were entered into prior to the commencement of the section. Advice was sought from the Office of the Attorney General as to whether or not the prohibiting provision could be applied retrospectively. It was indicated that wholesale interference with existing leases was not a feasible option. Real legal and constitutional difficulties would arise if property rights were to be affected retrospectively.

The Department of Enterprise, Trade and Innovation has indicated that they are not aware of any recommendation made by Forfas of the type suggested by the Deputy.

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