Page 334 - Week 02 - Tuesday, 20 February 1990

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The committee was told that there were people who were reluctant to appear before it because they believed that such an appearance might adversely affect the nature of their lease. The various matters raised in the submissions are perhaps more properly examples of grievances and complaints than they are issues. They are not issues because the tenants never established that they exist on the scale and intensity that might necessitate measures such as legislation. The committee accepts that there is a requirement for reform however, and found that landlords also accept and want this to happen. The committee concludes that the need for detailed tenancy legislation, while believed essential by some, is not justified on the basis of the evidence received by the inquiry.

To the extent that the problems do occur the committee found that there is a need for a dispute settlement mechanism. This can best be served by the twin processes of mediation and arbitration. The best practical solution appears to be the development of a model based on the NSW code of conduct. That code provides for the existence of clear procedures for the settlement of disputes, and standards for the behaviour of the industry. Among the various options the committee considered the code is unique in that it is acceptable to both parties because it is something that they formulate themselves.

Accordingly, the committee recommends that the relevant Minister invite the principal industry associations acting on behalf of the landlord and tenant groups to enter into negotiations to formulate a code of practice relating to tenancies, including an appropriate disputes settlement mechanism.

The committee also recognised the difficulty in relation to developing a code within a reasonable period of time. It is not only because of the reluctance of some parties, but also because retailers in the ACT do not have an association which covers the majority of tenants. It is the committee's view that the current tenant association, CARTA, should be encouraged to expand its membership to a greater diversity of tenants. However, if general agreement on a code cannot be reached within a period of six months after tabling this report, the Government should itself prepare a code for discussion within the industry.

It is the committee's view that this code should be supported by fair trading legislation. At present no such legislation exists in the ACT. The NSW Act and the Commonwealth Trade Practices Act provide good models for such legislation and I understand this matter is in the Government's legislative program. The Commonwealth Trade Practices Act, for instance, not only prohibits misleading and deceptive and fraudulent commercial conduct but also includes remedies for conduct that is so unfair it is unconscionable. The application of this general term is guided by statutory criteria which relate to the manner in which goods and services are traded.


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