Dáil Éireann díospóireacht -
Tuesday, 3 Nov 1992

Vol. 424 No. 8

Written Answers. - Rent Increase.

Michael Joe Cosgrave

Ceist:

99 Mr. Cosgrave asked the Minister for the Marine if, in regard to a company (details supplied) in County Dublin, he will give the reason he has demanded such a substantial rent increase in view of the fact that this business is a longstanding one operating for the past 60 years in the Howth area of County Dublin and providing an essential service to the people of Howth; if, in view of the employment provided by this company, he will enter into negotiations as a matter of urgency with a view to reducing the rent to a more realistic figure; if he will have arrangements made that, following any review carried out in this case, any rent arrears due will be paid on a phased basis; and if he will make a statement on the matter.

Minister for the Marine (Dr. Woods)

The rental valuation for the property in question was provided by the Valuation Office, which advises my Department on such matters. I am advised that the rental sought is fair and reasonable. The rent has not, in fact, been increased for nearly forty years.

On the question of negotiations my Department assumed responsibility for management of Howth Fishery Harbour Centre from 1 January 1990. Negotiations on the issue of a new lease to the company commenced in January 1991, and have continued since then. There have been regular contacts between the company and my Department, and several meetings between the respective valuers, the last being in recent weeks. Negotiations between my Department and the company concerned are continuing in relation to the actual terms of a lease.

I am advised that the company occupies a prime site within the fishery harbour centre, the value of which has been considerably enhanced by the very considerable State investment in the harbours infrastructure over the last ten years.

The Department is obliged to secure a fair market rent for State property, and it has already demonstrated its good will by considering concessions in certain areas and pursuing negotiations over a prolonged period of time. However, having failed to secure agreement on a reasonable rent, the Department has been legally advised that there is no other option open to it but to secure vacant possession of the premises, and relet them at a realistic rent.

I am aware that the company has had a retail outlet at Howth for many years. This was a major factor influencing the decision to offer them a new lease. My Department remains willing to negotiate with the company on a realistic basis. The question of making phased payments of any rent arrars will be considered at the appropriate time.