The government has been defeated in the Seanad. Opposition senators have won a vote which approves a Bill on banning upward-only rent reviews.

The Bill from Senator Feargal Quinn was originally defeated by the government on the casting vote of the Cathaoirleach Paddy Burke.

However a walk-through vote was then called, in which the government parties were defeated 22 to 23.

The Bill will now be sent to the Dáil but the government insists that the Bill would be unconstitutional and cannot be passed.

Last December, the business group ISME called for upward only rents to be reviewed and a reduction in public sector costs.

"The government has dropped the ball by allowing these costs to continuously creep upwards, putting Ireland's economic revival at risk. State imposed costs, such as rates, local charges and energy are unacceptably high and must be reduced" said ISME Chief Executive, Mark Fielding.