Written answers

Tuesday, 23 April 2013

Department of Jobs, Enterprise and Innovation

Commercial Rent Reviews

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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329. To ask the Minister for Jobs, Enterprise and Innovation the extent to which upward only rent reviews continue to remain a reason for closure or job losses in the retail or commercial sectors; and if he will make a statement on the matter. [19009/13]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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In the current economic climate, a range of factors are impacting on job losses in the retail and commercial sectors, including, for example, changing patterns of consumer behaviour through on-line trading. I am aware that many retail and commercial companies are concerned about the impact which upward only rent reviews are having on their cost base. When the Government came into office, it gave extensive consideration to abolishing upward-only rent reviews in leases signed before 28 February 2010. The advice received by the Government was that it was not possible to develop a scheme to tackle this issue that would not be vulnerable to a Constitutional challenge or compensation claims from landlords. On the basis of this advice, the Government concluded that it was not feasible to legislate to abolish upward only rent reviews.

The Government has also committed, in the Action Plan for Jobs, to establishing an Interdepartmental Group to undertake a short examination of further possible measures to assist the retail sector, which could, for example, be considered in the context of the Budget or the 2014 Action Plan for Jobs. The Group will comprise key Government Departments and will consult with relevant stakeholders across the retail sector as part of its work. The Group will hold its first meeting in the coming weeks.

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