Sir, – To suggest that upward-only commercial rents are not negatively impacting the Irish economy (Cantillon, November 25th) is fundamentally flawed.
Most retailers are struggling to pay Celtic Tiger rents. They must pay to stay in business. So what gives? The largest variable cost to hand – jobs. I am aware of many retailers who have moved from a full-serve model to a self-serve model to ensure the rent is paid. At what cost? Jobs.
Our previous Government made upward-only rent clauses on new leases illegal. Does this suggest this flawed system is fit for purpose and good for the economy?
Upwardonly rents are costing jobs and are detrimental to the domestic economy. To suggest otherwise is inaccurate and wrong.
This week I met the global managing director of a large retailer who cannot sustain their Irish property cost. Is what they are planning good for the Irish economy? I think not.
What is most disturbing is the fact that many small Irish retailers are stuck with these leases, which in turn are tied to personal guarantees. Don’t pay the rent and you lose your business and your home. Surely this distressing situation contributes nothing to the economy? It also underlines why there is such little appetite or even ability to pay wage increases in the domestic economy.
Both Retail Excellence Ireland and many of our members deal with this matter every day of every week.
Others are more than welcome to keep their heads buried in the sand. – Yours, etc, DAVID FITZSIMONS, Chief Executive, Retail Excellence Ireland, 38-39 Fitzwilliam Square, Dublin 2