Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .

Legislative Assembly for the ACT: 2001 Week 3 Hansard (6 March) . . Page.. 643 ..

MS TUCKER (continuing):

The bill as it stands cuts down on the rights of tenants vis-a-vis the existing code. The code has been interpreted to mean that successive leases must be for a period of five years each, but 104 (8) (c) carelessly includes a period immediately before a lease as part of the total term to be considered in applying for an extension.

If, for example, you complete a four-year lease and then enter into a new lease of one year, you will be deemed to have enjoyed a total term of five years. You will have no entitlement to an extension, and everything will be up for grabs again. In other words, where a tenant has been in possession for a total of five years, in whatever way, there are no further rights to successive five-year periods.

It may not be the intention of paragraph (8) (c) to so emphatically undermine the rights of tenants in regard to security of tenure, but that is its effect. So this amendment deletes it.

MR STANHOPE (Leader of the Opposition) (6.19): The Labor Party accepts the wisdom of this amendment and will support it.

MR STEFANIAK (Minister for Education and Attorney-General) (6.19): The government supports the amendment too.

Amendment agreed to.

Clause 104, as amended, agreed to.

Clause 105 agreed to.

Proposed new clause 105A.

MR RUGENDYKE (6.20): I move amendment No 5 on the green sheet circulated in my name [see schedule 3 part 2 at page 711], which proposes a new clause 105A.

This amendment picks up key provisions from my leases bill relating to preference being given to the existing tenant. This is consistent with enhancing appropriate continuity of leases and security of tenure for small businesses. This would require a landlord to give preference to an existing tenant over other possible tenants if the existing tenant wanted to renew or extend the term of the lease.

The owner must assume the existing tenant wishes to renew or extend the term of the lease unless otherwise advised by the tenant during the 12 months prior to the expiration of the lease. The owner must also begin negotiations in good faith with the existing tenant for renewal or extension of the lease between six and 12 months before the end of the term of the lease. This will prevent landlords from stringing out tenants or leaving tenants in limbo as the end of the lease approaches.

This amendment removes the ambiguity and sets out a clear process that brings certainty and balance to both landlords and tenants.

Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . .