Friday, 11th July 2008 - 15:59CET
GRTU wants proposals on commercial rents withdrawn
GRTU’s Executive Council on Wednesday will consider a motion calling on the Prime Minister to withdraw the government proposals for a reform of commercial rents.
The proposals were announced in the White Paper on rent reform.
The GRTU said a survey it had carried out showed that the proposals, if brought into force, would negatively affect an extremely large number of businesses.
"It proves that the government’s strategy to rush through with the Commercial Property Reform piggyback on the reforms of residential properties is ill thought and poorly supported by facts and statistics," the GRTU said.
It said that there were businesses which over the years had paid rents which today appeared small. Those rents had been originally based on rates of return that equated very favourably with the cost of construction or purchase of the same properties. Over the years many of these tenants paid hefty sums of money, most times as large or larger than the value of the property, to obtain particular rights and ensure continuity or succession of their business, the GRTU said.
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Comments
Rent reform is only the pretext.
Not only should the rent law white paper not be withdrawn, it should do away with the absurd 20 year time lapse and give back the property to the rightful owners with immedeate effect.
Then if the tenants want to negotiate , let them negotiate at today's prices.
Let the market regulate the prices!
I propose that all commercial properties not bound by a contract after 1995 should be returned to their rightful owners by jan 1st 2009.!!!
May I suggest that by the same argument clients should pay the same prices for goods as when these commercial outlets negotiated their original rents.
Doesn't the GRTU realise that this situation is also distorting the fair field of trade for a person setting up a new business and paying today's rents has to compete with businesses who have no premise costs to factor into their prices.