Page 341 - Week 02 - Tuesday, 20 February 1990
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with the job without any further ado. Enough time has been lost. Failure to reach agreement will result in the Government stepping in to prepare the code - something that I am sure neither party really wants.
Before I close today, Mr Speaker, I would like to thank my colleagues on the committee for their efforts in bringing this report to a satisfactory conclusion, notwithstanding the problems caused by having three committee secretaries. The process has been completed, and I am pleased to commend it to you.
MS MAHER (8.16): Mr Speaker, I would like to thank the other members of the committee, Mrs Nolan and Mr Jensen, for their support during the inquiry. I would also like to thank all those who have been involved in writing and presenting this report.
During the course of our inquiry into tenancy of commercial premises it became evident that, like anything else, there are always two sides to a story. The stories that I heard ranged from where the tenants at one end of the spectrum were considered to be in the wrong to the other end of the spectrum where the landlords were at fault.
I believe that for any code of conduct or legislation to work in this particular instance it must be agreed upon by both parties - that is, the landlords and the tenants. Both groups of people rely heavily on one another and therefore must work closely together. I support the committee's recommendations that a code of practice, backed by fair trading legislation, be put in place. I consider that a code of practice would be fair to both parties, especially if it is they who have negotiated it. A code of practice would be more flexible and would respond to the changes in industry. As it would also be self-regulating and have its own disputes mechanism, it would make commercial good sense by not relying heavily on expensive administration.
The committee considered that total legislation would be cumbersome and expensive to enforce. It would not be flexible to meet the needs of an ever-changing industry nor would it be flexible enough to cater for a wide variety of agreements which is required in the various situations between landlords, tenants and their businesses.
I agree with the Building Owners and Managers Association and other groups that a relationship between landlord and tenant can never be balanced and will always slightly favour the landlord. This is due to the fact that landlords have an ongoing interest in the property that they own whereas tenants have an interest for only the term of their leases. Tenants have the responsibility to ensure that they fully understand what the lease requires of them before signing it and before moving into the premises. Otherwise, it is generally too late, and capital will have already been invested in the business and the premises.
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