Dáil Éireann Debate, Tuesday - 11 May 2010
212 Deputy Pádraic McCormack asked the Minister for Justice, Equality and Law Reform his plans to abolish the upward only rent review clauses in existing leases; if this will be done retrospectively and the periods for same; and if he will make a statement on the matter. [18712/10]
Amharc ar fhreagraThe Deputy will be aware that I have introduced legislation which ensures that, for business leases entered into on or after 28 February of this year, the inclusion of upward only rent review clauses is effectively prohibited. Similar action in relation to existing leases was not possible for legal and constitutional reasons. I am conscious of the difficulties which are being faced by those who are parties to existing leases where the traditional arrangement applies. The arrangement which has evolved over the years in relation to commercial rent reviews is that such reviews take place every five years on an upwards only basis. It is important to note that these arrangements are not mandated by any legislative requirement. Rather, they represent well settled practice in this area. I am strongly of the view that a flexible and pragmatic approach should be taken to rent reviews which arise in relation to existing leases. It is not in anyone's interest that vacancy rates increase to an unacceptable level because of a reluctance to offer sensible concessions to traders who are in difficulty.
