Page 2197 - Week 08 - Wednesday, 6 June 1990
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .
problems encountered by commercial tenants and offer a solution to create an environment where both tenants and landlords can operate harmoniously. The Alliance Government recognises that to provide a stable and secure environment this solution should reflect the preservation of fairness and equity for both sides.
The Government is committed to responsible and sustainable economic growth by fostering private sector development and diversification. In this context, I consider the contribution that both landlords and tenants make towards the development of Canberra's economy to be equally important. In order to have a prosperous retail industry in Canberra, it is crucial that both parties cooperate towards maximising each other's returns. To achieve this goal, it is important that both parties are aware of and appreciate each other's concerns.
My response to the select committee report will reflect the Alliance Government's dual commitments to regulate the lease agreement between commercial landlords and tenants by some form of legislation; and, at the same time, to ensure that the Government's intrusion into business dealings is kept to a minimum.
The select committee was established in July 1989 to consider difficulties encountered by commercial tenants of privately subleased commercial premises. The committee was asked to consider difficulties encountered by tenants so far as they arose out of contractual difficulties and whether regulatory legislation should be introduced. The committee was also asked to consider whether a review board should be introduced along the lines of a draft 1984 ordinance.
The committee concluded that the occurrence of disputes is mainly confined to small retail tenancies in local or group centres. The disputes broadly related to two categories: namely, alleged mismanagement by landlords and inadequacies in the lease agreement resulting in unfair practices by landlords. The committee considered that only the latter category could be addressed by some form of legislation.
It also concluded that much of the information volunteered to the inquiry comprised examples of individual grievances and complaints and did not exist on a scale and intensity that necessitated legislative measures. However, to the extent that problems did occur, the committee accepted that there was a need for a dispute resolution mechanism which is best achieved by mediation and arbitration. The committee considered the best solution to the problem would be the development of a code of practice backed by fair trading legislation which would set standards of behaviour for the industry and provide for the settlement of disputes.
Based on these conclusions, the committee has made three recommendations. These are: firstly, that the relevant
Next page . . . . Previous page . . . . Contents . . . . Debates(HTML) . . . . PDF . . . .