Dáil Éireann Debate, Tuesday - 16 April 2013
907. Deputy Joanna Tuffy asked the Minister for Justice and Equality if he will re-examine the decision not to proceed with legislation to abolish upward only rent review clauses in commercial leases in view of the fact that small and medium sized businesses are closing on a daily basis due to high rents; and if he will make a statement on the matter. [16744/13]
View answer909. Deputy Michael Healy-Rae asked the Minister for Justice and Equality in view of the recent judgement in the courts regarding upward only rent, if he has any proposals regarding upward only rents; and if he will make a statement on the matter. [16856/13]
View answerI propose to take Questions Nos. 907 and 909 together.
There is almost certainly a general consensus in the House concerning the need for landlords to engage actively with commercial tenants who are experiencing difficulties because of high rents in order to bring those rents down to a viable and sustainable level. Deputies will recall that the Government made a difficult decision in December 2011 not to proceed with the commitment in the programme for Government to legislate to end upward only rent review clauses for leases entered into prior to 28 February 2010. That decision was taken on foot of consultations with the Attorney General, who made it clear that the proposed legislation gave rise to significant constitutional difficulties. It was also clear that any legislative proposal would require the payment of compensation to those whose property rights would be infringed if that proposal were to be compatible with Constitutional and European Court of Human Rights norms.
There are no plans to re-examine the decision which was taken in 2011.
