The working group to which the Deputy refers was established by me in March of this year. Its terms of reference were as follows:
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.
When I established the group, I was concerned to ensure its membership was such that any recommendations it might bring forward would be reflective of the broad spectrum of opinion in this area. Thus, in addition to other participants, the membership of the group is drawn from key stakeholders in the retail and commercial property area. It includes representatives from the Irish Business and Employers Confederation, the Irish Small Firms Association, the Irish Small and Medium Enterprises Association, and Retail Excellence Ireland. It also includes representatives from the Irish Association of Investment Managers, the Irish Association of Pension Funds, the Irish Auctioneers and Valuers Institute and the Society of Chartered Surveyors.
The problems which confront the retail sector at the moment are not in dispute. I have met members of that sector and listened very carefully to what they have had to say about the difficulties which they are experiencing regarding the rent issue in general. In the legislative area, I moved very quickly last July to introduce a provision to prohibit upward-only rent review clauses in leases entered into as and from a particular date. The date for the commencement was eventually fixed at 28 February 2010. Action on pre-existing leases was precluded for legal and constitutional reasons.
In establishing the group, I was conscious that concerns had been expressed to me about areas other than upward-only rent review clauses. Specifically, there were concerns about the arbitration process and about the lack of transparency attaching to the provision of information. Again, I wished to move quickly in an attempt to see if workable solutions could be devised to address these concerns. Accordingly, I asked the group to report to me by the end of June and I am hopeful it will adhere to this deadline. However, while the group is close to finalising its report, I understand that it will need a little more time in order to conclude its deliberations. I have agreed that some additional time will be made available to the group to enable it to bring matters to a speedy conclusion. I expect that the report will be finalised during the month of July. It will, of course, be put into the public domain once it is presented to me.