Page 2652 - Week 09 - Wednesday, 24 August 1994
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Part of the problem with retail and commercial leases in Canberra is that, as I have indicated, landlords are usually in a vastly superior economic and negotiating position. For some time agreement has been lacking on an approach to handle difficulties between landlords and tenants. The Minister has referred in the past to difficulties in getting a completely voluntary code of practice in place. I, of course, support the approach of a voluntary code of practice ahead of legislation which makes that code mandatory. But I recognise that it is very difficult in some circumstances to achieve that, and therefore it is important to ensure that where that cannot be achieved some other course of action which will achieve those important goals is adopted. This Bill, I think, is an attempt to create a level playing field in which landlords and tenants can resolve their differences.
Voluntary mediation, which obviously has to be part of legislation such as this, is a very sensible approach to sorting out problems between landlords and tenants. With a voluntary mediation approach, solutions should become easier to find at the level before the court or the tribunal needs to be employed. This law should be about allowing considerable discretion to both parties in respect of framing leases, but of course getting the lease right to start with will help avoid disputation.
Madam Speaker, in the last few months we have engaged in the process of talking to individuals in the Canberra community about what they see as the value of the exercise of arranging for a code to be underpinned by legislation such as this. Having spoken to probably a couple of hundred small business operators in the ACT, I must say that it has been my strong impression that there is concern about the ACT's lack of laws in this area. We all recall the problems that were faced by shopkeepers at Campbell shops only six months or so ago. We have all, I am sure, encountered other examples of behaviour which would be considered high-handed or capricious. It is important that we try to foster an environment in which that sort of behaviour does not occur.
We support a fair approach and recognise the right of both landlords and tenants to conduct their businesses and to make profits. We must remember that whatever code of practice we set up and whatever legislation we enact should not prevent individuals from entering into arrangements which are of advantage to themselves. That, after all, is what a profit generating or profit motive economy is based around, together with an ability to achieve those profits in an environment in which there is considerable business stability. One does not expect to have the environment change suddenly around one, but at the same time we expect certain minimum standards of behaviour. I think it is true to say that those standards of fairness have not been part of the scene in some circumstances up to date.
In indicating my support for this legislation, I do not pretend that there are not some concerns about aspects of it.
Mr Moore: The concern is that it does not go far enough.
MR HUMPHRIES: I do not think I would put it quite that way, Mr Moore. I know what your agenda is. I do not know that I would go quite so far.
Mr Moore: What is my agenda? You know what it is. What is it?
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