THE SLOW pace of reform in relation to landlord and tenant legislation is reflected in the latest offering from the Department of Justice. A draft Bill on business tenancies, based largely on proposals made by the Law Reform Commission some four years ago, has been circulated for public comment and observations.
The document runs to 168 pages and, because of the complexity of the issues involved, sections of it will be introduced on a staggered basis. The full terms of the Bill are unlikely to become law until next year at the earliest.
Minister for Justice Alan Shatter has made the point that this legislation, which clarifies the rights and responsibilities of landlords and business tenants and gets rid of archaic eviction remedies, will form an essential element in the State’s economic recovery. If it is to play such a role, then speed is of the essence. He has also offered an assurance that the Government’s commitment to end “upwards only” rent reviews for existing leases is being progressed as quickly as possible and will not be delayed by the consultation process involving this legislation.
Mr Shatter appears anxious to make progress and he has acknowledged that the laws in relation to business tenancies are greatly in need of reform. Some of the laws being repealed date back to the mid-19th century. The new measures will clarify issues of landlord and tenant rights and obligations while reducing costly disputes and litigation delays. Even where property law has been recently updated, however, as with residential tenancies in 2004, it takes time and determination to modify unacceptable behaviour and practices.
Up to 50 per cent of apartment lettings in Dublin involve rent supplement schemes. On the other hand, apartment owners are demanding legislation to rein in the behaviour of greedy estate management companies. There is need for change – for vetting, regulation and licensing. Contracts should be clear and binding. The Department of Social Welfare pays more than €400 million annually to tenants entitled to rent supplement. But because payments are not made directly to landlords, the Revenue Commissioners have great difficulty in identifying individuals who are not tax compliant.
This Government has been in office for less than two months. Publication of draft legislation affecting business properties is a welcome development. But changes that promote economic competitiveness and tax compliance are also required.