Thursday, 17 April 2014

Questions (184, 187)

Marcella Corcoran Kennedy

Question:

184. Deputy Marcella Corcoran Kennedy asked the Minister for Justice and Equality his plans to address the problem of upward-only rent reviews; and if he will make a statement on the matter. [18389/14]

View answer

Finian McGrath

Question:

187. Deputy Finian McGrath asked the Minister for Justice and Equality if he will support the Irish Hairdressers Federation and its concerns regarding upward-only rent reviews (details supplied); and if he will make a statement on the matter. [18308/14]

View answer

Written answers (Question to Justice)

I propose to take Questions Nos. 184 and 187 together.

It will be recalled that the Government made the difficult decision in December 2011 not to proceed with the commitment in the Programme for Government to abolish upward only rent reviews in so called "legacy leases", i.e., those entered into before 28 February 2010. There was a substantial concern that any legislative scheme involving interference in the contractual relationships of private parties would find it extremely difficult to survive a Constitutional challenge. In addition, the Government was advised that any model proposed would require the payment of compensation to landlords whose rights were infringed in order to ensure that the proposal would be compatible with the Constitution and with the European Convention on Human Rights. The situation has not changed since 2011 and, as I have indicated in my replies to previous Parliamentary Questions on the subject of upward only rent review clauses, there are no plans to re-examine the decision which was taken in 2011.