Page 5474 - Week 17 - Wednesday, 4 December 1991
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Let us consider the argument by the landlord sector that this legislation will be bad for Canberra and that it will kill investment. How wrong they are. No, it is worse than that. It is a statement that is made to cover up the more likely impact that this legislation may well be good for Canberra - in fact, will be good for Canberra. It will be good for those who actively use real estate to create activity and employment. It will be good for those who are the users of the system. I am referring, of course, to the consumers, who bear the brunt of excessive rentals and business bankruptcies. Finally, and probably very strangely, it will also be good for business.
It is quite possible that the improved predictable nature of tenancies in Canberra will actually attract business from out of town. It will attract those businesses who want to set up long-term enterprises in Canberra, where they can exercise their speciality, invest heavily in the premises they rent, and build up local goodwill, secure in the knowledge that while doing the right thing they will not be capriciously evicted or ripped off by the greed of a few who would wish to profit from a business without putting in any real contribution. The opportunity for landlords to do this under the existing lack of regulation is available, make no mistake. The opportunity is all too often taken.
The needs of tenants are really very simple: Fairness, reasonable behaviour on the part of the landlord, and an end to the one-way bargain. While we here today are considering the needs of the tenants, the Australian Trade Practices Commission is considering the extension of the harsh and unconscionable behaviour provisions of the Trade Practices Act to commercial tenancy transactions, particularly commercial tenancy arrangements, which were identified in the Beddall report on small business in Australia by a House of Representatives standing committee, chaired by David Beddall, now the Federal Minister responsible for this area.
The problems of shopping centre leases were also identified by Mr Beddall in the same report. We understand that there may well be some reservations within the Trade Practices Commission about the adequacy of these general provisions to deal with the problem in this way.
The better business climate created by this Bill will be likely to attract business to Canberra, with an increasing demand for tenancy space - a boon to landlords. Unfortunately, landlords at the moment hold all the cards in this game, despite the current recession in Australia. A landlord will invariably find a willing tenant to fill the space, particularly in high traffic retail areas. However, the history of such a change is one of initial enthusiasm, followed by the harsh realities of business in a retail market, generally acknowledged as being overshopped in Canberra.
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