Senator Marc Mac Sharry, today (Thursday), commented on a bill which Fianna Fáil has published, to ban clauses within business leases which provide exclusively for upward only rent reviews.
The Sligo/North Leitrim representative said: “Fianna Fáil has sought and received legal advice on banning clauses in business leases providing for upward only rents in a way constitutional law. These leases, most of which were negotiated in very different economic times, are strangling so many small and medium sized businesses. If we are serious about supporting the SME (Small and Medium Enterprises) sector and encouraging growth and job creation, we must free businesses from the strangle-hold of exorbitant rents that no longer resemble market rates.”
MacSharry said that the Bill recognises that upward only rent review clauses are a serious threat to the survival of small businesses. It recognises that the protection and promotion of small businesses is in the public interest to maintain jobs and the viability of the retail sector. It also recognises that leases with upward only rent review clauses were negotiated in a different era. In these circumstances, the Fianna Fáil legislation will overrule any provision in a lease whereby rents can only be increased.
He concluded: “I am encouraging all Fine Gael and Labour TDs and Senators to support this legislation when it comes before the Dáil and Seanad. Businesses need relief from the burden of high rents and we can act to make this a reality.”