Bill to remove upward only rent reviews passed in Seanad

Senator Feargal Quinn with ShelfLife publisher John McDonald. ShelfLife C-Store Champion of the Year Feargal Quinn has managed to pass his Private Members Bill entitled Upward Only (Clauses and Reviews) Bill 2013, through the Seanad

Senator Feargal Quinn's bill to eradicate upward-only rent reviews receives positive reception from retail and business groups

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A Private Members Bill proposed by Senator Feargal Quinn, which seeks to ban upward only rent reviews in leases, has received a favourable vote in the Seanad and will now go to the Dail for consideration.

A number of groups have welcomed the Seanad’s vote, including ISME, the Irish Small and Medium Enterprises Association, which said it had been lobbying on this issue since the government reneged on its pre-election promise to change the law, based on advice from the Attorney General.

ISME chief executive Mark Fielding said: "The bill proposed by Senator Quinn is very fair and balanced and provides for a temporary reduction in commercial rent to a market level. An alternative proposed by ISME, which gives a tax break to tenants under these leases could also be examined when the bill gets into the Dail."

The association called on the government parties to take this vote seriously and examine how the spirit of the bill can be enacted into law. This will assist SME businesses who are suffering under unfair and uneconomic lease conditions.

Retail Excellence Ireland (REI) also welcomed the results of the vote. David Fitzsimons, chief executive, REI said: "This is a significant decision taken by members of the Seanad who are very aware of the untold damage being done to family businesses and jobs because of the continued existence of upward only rent review clauses.

"The government will quote constitutional issues however our Senior Council advice is clear that the bill in no way undermines constitutional property rights. It is a fact that many large private landlords and pension funds have refused to grant tenants any rent relief and have overseen a significant level of business failure and job loss. The last six years have proven that a cohort of landlords are unwilling to work in partnership with their tenants. NAMA has provided some relief to tenants but only when that tenant business is on its last legs. Furthermore NAMA cannot compel landlords whose loans are in NAMA to grant rent relief to struggling tenants."

The CSNA has likewise welcomed the news, stating: "The association has congratulated and offered further assistance to Senator Fergal Quinn in his successful attempt to bring into political debate the whole matter of upward only rent reviews."

Senator Feargal Quinn previously stated: "In the past, the government has cited constitutional obstacles to the enactment of legislation of this kind. However, I do not agree with this view, nor indeed did the State’s leading constitutional lawyer – Dr Gerard Hogan SC (now a judge of the High Court)."

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