Dáil Éireann Debate, Wednesday - 15 September 2021
122. Deputy Rose Conway-Walsh asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps that have been taken to protect businesses such as retail and hospitality from commercial landlords attempting to recoup rent waived during periods of lockdown; and if he will make a statement on the matter. [43819/21]
View answerI understand some businesses are under pressure to meet their fixed costs, such as rent, after what has been an exceptionally challenging period. At the same time, we must remember that commercial landlords have their own financial obligations that still need to be paid. Where a landlord has debt in place, their flexibility will likely be driven by what their bank/lender will accept. One person’s rent might be another person’s income or pension.
Over the last eighteen months, the Government has urged commercial 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. As such, last October, I published the Code of Conduct between landlords and tenants for commercial rents. The aim of this 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.
The Code states that landlords should be willing to do what they can to help their tenants to continue to operate rather than facing the risk of a vacant premises and inability to obtain new tenants. Equally, tenants should pay what they can and speak with their landlord when difficulties arise. In addition, as set out in the Code, care should be taken to ensure that any repayment of the deferred rent does not compromise the ability of the affected tenant to recover from the crisis.
As the relationship between landlord and tenant is a legal matter, the Code advises that parties may wish to seek legal advice when deciding new arrangements. If one party feels that another is reneging on new arrangements or new contractual commitments, they may also wish to seek legal advice in that instance.
However, the Code should not be seen in isolation. The Government has put in place a comprehensive package to help businesses through the crisis including the Employment Wage Subsidy Scheme (EWSS), the COVID-19 Restrictions Support Scheme (CRSS), Small Business Assistance Scheme for COVID (SBASC), the forthcoming Business Resumption Support Scheme (BRSS), low-cost loans, the deferral and warehousing of tax liabilities and the waiver of commercial rates. Many of these alone, or in combination, can be used to assist in the payment of commercial rents if needed.
