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Legislative Assembly for the ACT: 2000 Week 6 Hansard (24 May) . . Page.. 1627 ..


LEASES (COMMERCIAL AND RETAIL) BILL 2000

MR RUGENDYKE (10.53): I ask for leave to amend my notice of motion by omitting "Commercial Tenancy Tribunal" and substituting "Tenancy Tribunal".

Leave granted.

MR RUGENDYKE: I present the Leases (Commercial and Retail) Bill 2000, together with its explanatory memorandum.

Title read by Clerk.

MR RUGENDYKE: I move:

That this bill be agreed to in principle.

The purpose of this bill is to implement a workable process to enhance the relationship between commercial tenants and their landlords in the ACT. In summary, the bill will ensure that the parties to retail and commercial leases and to negotiations for those leases are able to make fully informed decisions; ensure that there is an appropriate balance between the bargaining power of lessors and tenants, particularly during negotiations in relation to retail and commercial leases; encourage equitable conduct between parties to commercial and retail leases; provide an effective dispute resolution process in relation to commercial and retail leases or negotiations for such leases.

This bill has been close to a year in the making and stems from inadequacies in the Tenancy Tribunal Act that have been consistently raised with my office since I came to this place. The clear message that I have received is that the dispute process for commercial tenants and landlords in the ACT is not an efficient or effective mechanism.

The aim of this bill is to streamline and enhance this process. It promotes direct access to the Tenancy Tribunal and prompt resolution of disputes. Unfortunately, we have seen too many cases in the ACT where disputes have been in process for excessive periods, with the only result being a financial burden, particularly on small business.

The other common complaint that this bill aims to address is that the playing field for small business in its dealings with landlords has not been level. Under the present regime, landlords hold the upper hand, particularly in the instance of lease negotiations with large shopping malls. This bill proposes to put small business on an equal footing by implementing security of tenure rights.

Presently there is no requirement for landlords to negotiate with tenants on the renewal of their lease. We have all heard stories about the landlord delaying negotiations for as long as possible. Often the tenant is put off until the lease runs out and they are forced to live in limbo. They do not know what their future holds or whether the landlord truly intends to renew the lease or not.


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