Businesses struggle under rent burden
We did it! Scouts from Mitchelstown with their leaders Richie O'Meara, Andrew Dineen, Willie Ahern and John White, enjoying a well earned rest after a day's hiking on the Comeragh Mountains. Scouts from Fermoy, Kilworth, Mitchelstown, Mallow and...
Thursday March 18 2010
CRIPPLING rents are leaving many North Cork business owners struggling to survive. a local Labour TD has warned.
The stark warning from Deputy Sean Sherlock comes just after his party's bill to change 'upward only' rent review clauses was defeated in the Dáil by 75 votes to 72.
Deputy Sherlock said hundreds of business owners in the North Cork region have contacted him complaining about high rents in an uncertain economic climate.
Essentially, the upward only rent review does not allow tenants to negotiate with the landlord for rent reductions. And business owners who decide to leave a leased premises can be pursued by landlords for loss of income for the remainder of the lease.
Last week when Deputy Sherlock called for a change in the upward only rent clause in the Dáil, he outlined how the future of a Mallow business was being jeopardised by the system.
However, since then the owner of Fountain of Angels on Mallow's Main Street has entered negotiations with her landlord to reduce the €8,500 per annum rent that, she said, was putting her business under 'signficant pressure'.
Speaking to The Corkman this week, Carmel O'Callaghan pointed out that she is feels she is 'one of the lucky ones.'
Deputy Sherlock said many business owners are being forced to negotiate outside of the upward only rent clause.
"Some landlords are decent but then there are some who are absolutely refusing to review rents downwards. Small businesses need to be maintained. I am aware of business owners dealing with landlords that are absolutely refusing to budge," said Deputy Sherlock.
Meanwhile, Mallow Chamber president Pat O'Sullivan has said that high rents do not seem to be a major issue for local business owners.
"There are up to 90 business owners who are members of Mallow Chamber and I have not heard of any complaints about rents," said Mr O'Sullivan.
- LOUISE MCCARTHY lmccarthy@corkman.ie
