Traders to take rent review fight to Europe

TRADERS who revolted earlier this year over controversial upward-only rent reviews are taking their fight to Europe.

Ireland South MEP Alan Kelly met key traders in Wilton Shopping Centre in Cork yesterday and pledged his full support.

He said he has serious concerns about how they are being treated and said he plans to lodge an official complaint with the EU’s director general of competition. The traders are planning to lodge a similar complaint.

“This has to be dealt with quickly because jobs are at risk,” Mr Kelly said.

Earlier this year, four established traders were informed of rent increases of between 40% and 60%, sparking a furious reaction.

The chief executive of the Carphone Warehouse, Stephen Mackarel, became the public face of the revolt and threatened to withhold rent.

The Wilton Shopping Centre’s traders’ association backed Mr Mackarel’s campaign but stopped short of advising its members to withhold rent.

In recent months, the traders’ association has seen several businesses open in the centre under different rental agreements.

The traders claim the new business are operating under more favourable lease arrangements and in direct competition to them.

Some of the businesses, based in the centre since the early 1980s, have seen their turnover plunge by up to 60% as a result.

Mr Kelly said that because all rent from the centre is now being paid to state-owned Anglo Irish Bank, he has concerns about state aid rules and possible anti-competitive practices.

He described the situation as “perverse” and called on the bank, which is owned by the taxpayer, to examine the situation.

“I met with the traders yesterday and many are in fear in relation to where their business is going,” Mr Kelly said. “This kind of situation is becoming increasingly common. And this is a test case which could create a domino effect.

“The established traders in Wilton have paid all their taxes and did everything right. The small business person who did everything right is suffering.”

A spokesperson for Anglo said it couldn’t comment on individual cases for reasons of client confidentially.

A spokesperson for the shopping centre’s owners was unavailable for comment.