Page 3674 - Week 12 - Wednesday, 20 October 1993
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Madam Speaker, I wish to advise the Assembly that the Government has released for public comment a discussion paper and an initial draft code of practice on retail and commercial tenancies. Members will be aware that retail and commercial tenants in the ACT have been seeking a more balanced relationship with landlords for many years. Many States already have regulations in place and others are now looking towards it. This Government is determined to rectify the position for the ACT. In doing so, we want to ensure that the code is a progressive and responsive arrangement which will not only redress the imbalance in bargaining power between landlords and tenants but also provide a clear framework for lease arrangements between the two parties. This should be of advantage to both sides.
The Fair Trading Act 1992, which provides for, amongst other things, the development of codes of practice, is being used to develop codes in respect of retail and commercial tenancies, the fitness industry and the motor vehicle repair industry. The discussion paper and initial draft code released today have been prepared by the Director of Consumer Affairs, recognising the work of a working party comprising the principal business, landlord and tenant organisations in the ACT and the Consumer Affairs Advisory Committee. Both documents reflect issues raised as a result of the first public consultation process commenced by the Director of Consumer Affairs in March this year, under the terms of the Fair Trading Act, and submissions made by individual members of the working party. While the working party has reached agreement on some key issues such as rent determination methods, unconscionable conduct and proposals for dispute resolution, some important issues remain to be resolved. Members will find in the green document the code which represents points which have been agreed between all the interests to these discussions, and in the white paper essentially a summary of issues which remain to be resolved.
The release of the discussion paper and initial draft code will provide a second opportunity for public input before a final code can be prescribed by the Government. The Government's intention is that the outcome of this process will be a progressive and responsive regulatory arrangement for the industry, to meet the needs of both tenants and landlords involved in retail and commercial lease arrangements. It will provide a balance. On the one hand, it will give tenants the opportunity to negotiate on an equitable basis; on the other, it will maintain the ACT's good reputation as a place for investment. What we do not want to do is to stifle initiative, yet at the same time it is clear that increased protection is required for retail and commercial tenants. The proposed regulation will address these issues by, firstly, ensuring that tenants have a clear framework within which to negotiate their leases; secondly, providing for specific conditions to be met in the lease; and, thirdly, providing a fast, simple and low cost method of resolving disputes. Mr Deputy Speaker, I commend the papers to the house.
Debate (on motion by Mr Westende) adjourned.
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