Noonan and Shatter 'have lied to every retailer'

Retail Excellence Ireland has slammed the "scandalous Government u-turn" on its commitment to reform upward-only rents on commercial properties.

The body said that it would cost thousands of retail jobs

The Minister for Finance Michael Noonan today announced that it will not publish draft legislation reforming upward only rents for commercial property.

Retail Excellence Ireland said the commitment to reform the upward only rents was in both Government parties' election manifestos and in the current Programme for Government.

David Fitzsimons, REI Chief Executive Officer said: "Ministers Alan Shatter and Michael Noonan have shown utter contempt for Irish retailers and Irish retail jobs by abandoning their reform of upward only rent reviews.

"The retail industry has lost 50,000 jobs in the past four years. The continuance of upward only rent reviews will greatly increase this number."

"The Government has lied to every commercial tenant and retail employee in the country."

The body said that Minister Brian Hayes, the Junior Minister at the Department of Finance, had confirmed, at a meeting last Wednesday that the Minister for Justice would publish the legislation early in the new year.

They called this "a further lie".

Mr Fitzsimons said: "The evidence is clear, landlords have no interest in reducing rents. The last three years have seen average rent reductions of only 3.83% while sales levels fell by 30%.

"Every other cost faced by retailers has decreased over the past three year with the exception of rents."

He said that Minister Shatter's suggestion that NAMA guidelines on commercial rents reductions will improve the lot of retailers is "nonsense".

Mr Fitzsimons said: "If NAMA had any intention of engaging with retailers, why are guidelines only being published now. More significantly, the Minister is effectively leaving all tenants in non-NAMA properties to the wolves.

"Additionally private landlord companies and pension funds will be left to sit on their hands and maintain Celtic tiger rents. Minister Shatter buried this u-turn on Budget day - he has lost the respect of Ireland’s largest industry - retail. "

"REI was made aware of the constitutional issues pertaining to the Landlord and Tenant (Business Leases Review) Bill and we worked hard to construct commercial solutions to these issues. These solutions were ignored."