Louise O'Reilly (Dublin Fingal, Sinn Fein)
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173. To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the Swedish commercial rent rebate scheme to support tenants operating in the sectors for hotels, restaurants, retail and certain other activities; and if he will make a statement on the matter. [25273/21]

Leo Varadkar (Dublin West, Fine Gael)
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These are difficult times and I am aware that some businesses are concerned that some landlords are continuing to insist on the payment of rents and leases as normal despite their premises being closed.

The issue of commercial rents is primarily a contractual matter for the parties involved. However, the Government has urged landlords and tenants to talk to one another and come to some arrangement, as it is in everybody’s interest that terms are amicably agreed. With this in mind, on 1st October 2020, I published the Code of Conduct between landlords and tenants for commercial rents. The aim of the voluntary Code is to facilitate discussions between landlords and tenants impacted by COVID-19. It sets out a structured approach for engagement between both commercial landlords and tenants, based on their mutual interest in continuing to work together.

However, this Code should not be seen in isolation. To date, a range of supports have been developed for businesses, including the Small Business Assistance Scheme for COVID (SBASC), the COVID-19 Restrictions Support Scheme (CRSS), wage subsidies, a commercial rates holiday, low-cost loans, and a VAT reduction.

As public health restrictions are eased and the economy reopens, the Government is committed to ensuring that there is no cliff edge in financial supports for businesses. As such, any business currently availing of CRSS and that can now reopen will be able to avail of double restart week payments for two weeks subject to the statutory maximum of €5,000 per week to support them in meeting the costs of reopening as they exit the scheme.

I would urge business owners to seek the supports outlined above if they have not already done so. I would also suggest that small business owners contact their Local Enterprise Office who can signpost them and advise them of supports that may be available for their business. Details of the Code of Conduct and the wide range of supports available for business are on my Department’s website.

In addition, earlier this week, Minister Troy announced the General Scheme for a Small Business Administrative Rescue Process providing for a simplified restructuring process for viable small companies that is both timely and cost effective.

My officials continue to monitor international developments in relation to commercial rents such as the Swedish scheme mentioned. In this scheme, firstly landlords have to agree to a rent reduction; it is not a mandatory scheme. The Government support is then provided to the landlord. It is also worth noting that in the Swedish scheme it appears that if the landlord has already previously agreed to concessions (and the tenancy agreement has been amended) this scheme is not applicable. State aid rules also apply.

The question of whether Ireland should provide grants to mitigate rental costs for commercial tenants was examined last year and it was found that there may be significant risk to the Exchequer if the State undertook to provide grants to defray commercial rents as the level of financial exposure is unquantifiable compounded by lack of accurate data on rent levels. As with the Swedish model, it was also determined that any financial assistance to business (tenants) tied to rents would likely end up as support to the landlord. The offering of assistance, or even the perception that such relief would be forthcoming, could affect the market and reduce the impetus for landlords to negotiate with tenants.

The Government is committed to ensuring as many businesses as possible survive this challenging period, and it will continue to look at how we can help businesses that have been impacted by the COVID-19 crisis.