The Government today announced plans to establish a working group to look at the issue of commercial rent reviews.
The move comes after complaints from retailers across the country over the cost of rents.
Representatives of the retail industry met with the Tánaiste last month to discuss the crisis facing retailers who have seen rents skyrocket at a time when consumer spending has plunged.
New leases containing upward-only rent reviews were outlawed at the beginning of this month. However, retailers have called on the Government to extend the ban to existing leases.
The new working group, which was announced by Minister for Justice, Equality and Law Reform Dermot Ahern this morning, will be asked to consider the operation of the current system for determining rent payable on foot of a rent review clause.
“Having already banned upwards only rent reviews in new leases, I am now moving to bring all the relevant parties together with the relevant Government departments to see how we can deal further with other aspects of concern in existing leases," said Mr Ahern.
"Concerns have been expressed about the adequacy of the information which is available to parties in the context of commercial rent reviews. I believe that this is a matter which merits examination. It is in the public interest that there is confidence in the system whereby rent reviews are determined in the commercial sector," he added.
The group has been asked to report back to the Minister by the end of June.
Lobby group Retail Ireland today welcomed the establishment of the working group, saying lease reform was urgently needed to save jobs and respond to the unprecedented economic crisis affecting retailers.
“Many tenants face rent increases of anything between a third and double at a time when their sales have suffered a huge drop. Retailers have been forced to make staff redundant and use the payroll savings to pay rent increases," said Retail Ireland director Torlach Denihan.
