Dáil Éireann Debate, Tuesday - 23 April 2013
329. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which upward only rent reviews continue to remain a reason for closure or job losses in the retail or commercial sectors; and if he will make a statement on the matter. [19009/13]
Amharc ar fhreagraIn the current economic climate, a range of factors are impacting on job losses in the retail and commercial sectors, including, for example, changing patterns of consumer behaviour through on-line trading. I am aware that many retail and commercial companies are concerned about the impact which upward only rent reviews are having on their cost base. When the Government came into office, it gave extensive consideration to abolishing upward-only rent reviews in leases signed before 28 February 2010. The advice received by the Government was that it was not possible to develop a scheme to tackle this issue that would not be vulnerable to a Constitutional challenge or compensation claims from landlords. On the basis of this advice, the Government concluded that it was not feasible to legislate to abolish upward only rent reviews. However, the Government has taken steps to address the issue where possible. In the Action Plan for Jobs 2012, the Government undertook to place downward pressure on commercial rents where the National Asset Management Agency (NAMA) had acquired the loan on the underlying property. I understand that by the end of 2012, NAMA had received 276 eligible applications for rent abatement and had granted 212 applications with an aggregate annual value of €13.5 million. A further 56 applications were under review. Of the 276 eligible applications received, only 8 were refused. In addition, the Property Services (Regulation) Act, 2011, provides for the establishment and maintenance of a Commercial Leases Database by the Property Services Regulatory Authority. The database will enhance transparency in the commercial property market when it becomes operational. Through the Action Plan for Jobs process, the Government is working to ensure that a range of factors which impact on the competitiveness of enterprises across the economy are addressed. The 2013 Action Plan also includes a number of specific projects to support the retail sector, including an initiative to increase the number of businesses trading on-line and an initiative to develop a single business licence application portal for the sector.
The Government has also committed, in the Action Plan for Jobs, to establishing an Interdepartmental Group to undertake a short examination of further possible measures to assist the retail sector, which could, for example, be considered in the context of the Budget or the 2014 Action Plan for Jobs. The Group will comprise key Government Departments and will consult with relevant stakeholders across the retail sector as part of its work. The Group will hold its first meeting in the coming weeks.
