Rent Increases

Dáil Éireann Debate, Wednesday - 29 September 2010

Wednesday, 29 September 2010

Ceisteanna (378)

Alan Shatter

Ceist:

466 Deputy Alan Shatter asked the Minister for Finance the reason a rent increase of 100% is being sought from tenants of a commercial scheme (details supplied) which is now under the control of National Asset Management Agency at a time when business has already been negatively affected by the current economic climate and the specific businesses are already struggling; if his attention has been drawn to the fact that such a rent review may result in existing tenants of the scheme ceasing to trade and others being placed under unnecessary financial pressure; and if he will make a statement on the matter. [33057/10]

Freagraí scríofa

Minister for Finance (Deputy Brian Lenihan)

With regard to the commercial scheme in question, NAMA informs me that it has not taken control of the property securing the loan and no loan has been enforced. For reasons of commercial confidentiality, NAMA is not permitted to disclose information on any of the borrowers whose loans have been acquired from participating institutions. Where property remains in the control of the borrower, the setting of rents is entirely a matter for the borrower and tenant.

I would also remind the Deputy that a ban on upward only rent review clauses came into effect on 28 February 2010 under a Ministerial Order signed by my colleague, the Minister for Justice and Law Reform.