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Legislative Assembly for the ACT: 2001 Week 2 Hansard (1 March) . . Page.. 506 ..

MR STANHOPE (continuing):

We will be proposing to amend various time limits to give the tenant more time to negotiate renewal of their leases and prevent manipulation by the lessors. These amendments should be non-controversial. For example, clause 51 contains a provision that for leases not renewed within three months of their expiring, the lessor can ask for a rental above "market rental". An unscrupulous landlord could drag out negotiations over renewal beyond the three months period to obtain a higher rent. To prevent this, I propose that the time limit in the clause should be increased from three months to 12 months to encourage a more reasonable approach to negotiations.

There is a danger that the lessor may be able to manipulate the provisions relating to the maximum amount of bond and the payment of rent in advance to obtain a higher than permitted bond. I propose an amendment to provide that, if rent is paid for more than three months in advance, the additional rent payment counts as part of the maximum bond.

This clause also governs how the lessor offers to renew the lease, but it does not make it clear that the tenant may accept the offer of renewal subject to the rent being assessed. My amendment will make it clear that if the landlord offers to renew the lease the tenant can accept that offer subject to the market rent being assessed or agreed between them.

Clause 59 deals with the matters that a valuer may take into account in assessing the value. Rent concessions may be given by means other than a direct reduction of the rent by the lessor-for example, subsidised fitout or new carpets. This latter type of concession should also be disclosed to the valuer.

I will be proposing an amendment to ensure that the lessor cannot recover outgoings associated with vacant premises-for example, in respect of a part of a building that is normally rented but is temporarily vacant.

One of the inconsistencies in the bill is its treatment of damaged premises. In some clauses of the bill there are references to leased premises being damaged and therefore unusable. In other clauses there are references to the leased premises or the building containing the leased premises. I propose amendments to clauses 84, 85 and 87 so that a consistent approach is taken.

Clause 98 allows the tenant to appeal to the court if the lessor's mortgagee or head lessor refuses consent to assign, sublease or mortgage the tenant's interest. The mortgagee or head lessor may simply stall by not taking any action to grant or refuse the tenant's request. The clause should be amended to provide that if the mortgagee or head lessor does not act upon the tenant's request within 14 days they will be taken to have consented to the request.

Clause 116 prevents the lessor from releasing the tenant's turnover figures except to nominated persons, but there is nothing to prevent those nominated persons from releasing the information. The clause should be amended to ensure that the nominated persons cannot disclose the information without the tenant's consent.

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