Tags: Ciarán Lynch, commercial sector, Cork, Financial Emergency Measures in the Public Interest (Review of Commercial Rents) Bill, Ireland, politics, retail sales

INDICATIONS that some 25,000 jobs in the commercial sector are at risk as retail figures continue to plunge, highlight the need for urgent action according to Cork TD Ciarán Lynch.

The Labour Deputy said, “Unfortunately many shops are going to the wall as a result of the economic downturn, and the pressure is being piled on to shop owners who have to meet rental costs that were agreed when economy was in much better health and when property prices were much higher.

“Now, property prices have plummeted and sales are down but retailers are finding it impossible to have those changes reflected in rental agreements with landlords.

“Half-price sales are great for the consumer, and in terms of cash flow, serve a purpose for the retailer, but they are not sustainable in the longer term.

“Last month, Labour published The Financial Emergency Measures in the Public Interest (Review of Commercial Rents) Bill, to address the serious burden placed on businesses arising from the current decline in the economy, when faced with ‘upwards only’ commercial rent reviews.

“Our Bill would have granted temporary relief, during what can only be described as an economic situation, from the operation of upwards only rent reviews by providing that such reviews cannot result in a rent higher than the current market rent.

“Justice Minister Dermot Ahern’s effort to address this, by last week amending the Conveyancing Bill, falls far short of what is required.”

He concluded, “His proposal would have no retrospective impact whatsoever, and in reality, it will take twenty years or so to have any effect. That will be of no comfort whatsoever to companies who, as we speak are facing the prospect of having to close down, under the pressure of high rents.”