GRTU wants proposals on commercial rents withdrawn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.