Clause 25 - Temporary restriction on initiating arbitration proceedings

Commercial Rent (Coronavirus) Bill – in a Public Bill Committee am 10:00 am ar 14 Rhagfyr 2021.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Question proposed, That the clause stand part of the Bill.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

The clause prevents either party from invoking alternative measures that have not been designed specifically for debts related to the pandemic.

Photo of Ruth Cadbury Ruth Cadbury Shadow Minister (International Trade)

We heard in testimony last week that the vast majority of landlords and tenants have been able to reach agreements on rent arrears, and it has generally been a productive and straightforward process. The clause ensures that the tenant or landlord cannot unilaterally start arbitration proceedings and must go through the referral process, requiring the other party also to make submissions in writing. I am interested to hear what steps are in place for businesses, and especially small businesses, when a larger landlord or tenant refuses to enter arbitration fairly.

Photo of Paul Scully Paul Scully Parliamentary Under-Secretary (Department for Business, Energy and Industrial Strategy), Minister of State (London)

If both parties wish to resolve their unpaid protected rent debt by an alternative form of arbitration, they may agree to do so. In terms of the arbitration itself, the businesses—either the landlord or tenant—can act unilaterally.

Question put and agreed to.

Clause 25 accordingly ordered to stand part of the Bill.