Page 2263 - Week 07 - Thursday, 16 June 1994

THE A.C.T. RETAIL MARKET, HAS COMPOUNDED THE PROBLEMS OF

TERRITORY RETAIL TENANTS. IN OTHER RETAIL MARKETS THERE IS A

GREATER DIVERSITY OF RETAIL SITES, INCLUDING MANY MORE

"STREET FRONT" SITES, GIVING TENANTS SOME ADDITIONAL

BARGAINING POWER AND OPTIONS OTHER THAN LOCATION IN ONE OF

THE LARGE REGIONAL SHOPPING CENTRES.

HOWEVER, THE PROBLEM OF AN IMBALANCE BETWEEN BARGAINING

POWERS OF COMMERCIAL AND RETAIL LANDLORDS AND TENANTS IS BY

NO MEANS UNIQUE TO THE A.C.T. IT IS A PROBLEM WHICH OTHER

AUSTRALIAN JURISDICTIONS, INCLUDING MOST RECENTLY NEW

SOUTH WALES, HAVE ACKNOWLEDGED AND ADDRESSED BY

ENACTING LEGISLATION TO PROHIBIT THE OPERATION OF UNFAIR

PROVISIONS IN RETAIL LEASES AND TO PROVIDE TENANTS WITH

REMEDIES AND PROTECTION FROM THE OPERATION OF

PARTICULARLY HARSH TERMS AND CONDITIONS IN SUCH LEASES.

MEMBERS WOULD BE AWARE THAT THE GOVERNMENT INITIALLY

SOUGHT, RATHER THAN TO LEGISLATE, TO WORK IN CONSULTATION

WITH REPRESENTATIVES OF LANDLORD AND TENANT GROUPS TO

DEVELOP A CODE OF PRACTICE ACCEPTABLE TO ALL PARTIES. IT WAS

INTENDED THAT SUCH A CODE WOULD BE ADOPTED AND COMPLIED

WITH ON A VOLUNTARY BASIS.

UNFORTUNATELY, IN SPITE OF THE CONSIDERABLE TIME AND EFFORT

EXPENDED IN ATTEMPTING TO ARRIVE AT A VOLUNTARY CODE WITH

WHICH ALL THE PARTIES COULD COMPLY, IT HAS NOT BEEN POSSIBLE TO

REACH UNANIMOUS AGREEMENT.

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