Written answers
Tuesday, 25 June 2024
Department of Enterprise, Trade and Employment
Business Supports
Fergus O'Dowd (Louth, Fine Gael)
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152. To ask the Minister for Enterprise, Trade and Employment if a query regarding the rent freeze during Covid will be examined (details supplied); and if he will make a statement on the matter. [26949/24]
Peter Burke (Longford-Westmeath, Fine Gael)
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The issue of commercial rents is a contractual matter for the parties involved. In October 2020, my Department published a Code of Conduct between Landlords and Tenants for Commercial Rents as a voluntary framework 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. While the Code has since expired, it still provides a good framework for discussion between both parties and is available on my Department’s website. Apart from the Code, during the COVID-19 pandemic, the Government put in place a comprehensive package to help businesses and workers, including the Employment Wage Subsidy Scheme (EWSS), the Pandemic Unemployment Payment (PUP), the COVID-19 Restrictions Support Scheme (CRSS), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates. These supports, in particular the CRSS, acknowledged that affected businesses needed time and space to restructure and resume activity, without the added pressures of trying to repay legacy debts, such as commercial rents, when revenues are just beginning to return.The matter of legal protections for businesses who are unable to pay their commercial rents was raised with the Attorney General in 2020. In the response received, the Attorney General advised that there are significant legal difficulties in respect to both a moratorium on evictions and on payment of commercial rents. The difficulties stem from a variety of legal bases including statutory, constitutional, contract and common law. The Attorney General also noted the existing arrangements that are already in place in the commercial lease agreements to deal with disputes (alternative dispute resolution mechanisms) should this be required.Commercial leases, and any breaches of same, are dealt with under the Land and Conveyancing Law Reform Act, 2009 and the Landlord and Tenancy (Amendment) Act, 1994, which are both under the remit of the Department of Justice.
Seán Sherlock (Cork East, Labour)
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153. To ask the Minister for Enterprise, Trade and Employment if there is flexibility for businesses seeking to avail of the increased cost of business scheme grant if they pay rates to a landlord rather than to a local authority. [26819/24]
Peter Burke (Longford-Westmeath, Fine Gael)
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As the Deputy will be aware, I announced the reopening of the ICOB grant scheme from May 15th until May 29th. This was to ensure those business owners who missed the original deadline had the opportunity to register.
I also made a change to the scheme that allows for a second payment to be made to businesses in the hospitality and retail sectors, or for a double payment to businesses in those sectors.An important aspect of the ICOB grant scheme has been to directly involve the Local Authorities in the authorisation and payment processes, as they are closest to the commercial life within their cities and counties and work in the provision of supports to smaller enterprises via the Local Enterprise Offices. This is one reason why eligibility is in part determined by the rates system which is a good proxy for determining the scale and size of businesses.Businesses who are tenants could register as long as they are the rate payer. It has been brought to my attention that some businesses have entered into arrangements with their landlords whereby the rent payable includes an amount towards rates, and their rates bill is in turn satisfied by the landlord. The legal position, (under section 4 of the Local Government Rates and Other Matters Act 2019, as well as the amendments introduced through the Historic and Archaeological Heritage and Miscellaneous Provisions Act 2023) is that tenants whose rent incorporates their rates obligation and is remitted by the landlord cannot be deemed to be the ratepayer.The Deputy will appreciate that it would be inappropriate for me to attempt to interfere with existing commercial arrangements between small businesses and their landlords, in the context of the Increased Cost of Business Scheme. The priority has been to ensure that as many businesses as possible receive the money as quickly as possible.
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