RETAIL TENANCIES BILL Second Reading Speech

Northern Territory Second Reading Speeches

RETAIL TENANCIES BILL

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

It is a great pleasure to introduce this legislation to the House. As the Territory economy grows and broadens, there is a growing recognition that appropriate legislative frameworks to guide business behaviour are needed. This legislation, modelled on that currently operating in New South Wales, addresses a deficiency that has been apparent in the retail sector. All jurisdictions, apart from the Territory currently have similar legislation in place. All jurisdictions, apart from the Territory, I repeat, currently have similar legislation in place. And this government, 2 years ago, put their hand up to being part of uniform national retail legislation, at the same time that they had no legislation of their own.

The retail sector in the Territory is the largest single sector in terms of employment. Providing a framework that outlines the accepted rules of conduct of lessees and lessors, protecting them from unfair practices, and at the same time enhancing the job security of some 15 000 Territorians, the bill is designed to cover leased retail premises both in shopping centres and main street or strip shopping precincts. However, it does exclude large retail premises over 1000 m2 such as your average Woolies and Coles supermarkets or cinema complexes. The bill also excludes short-term leases under 6 months, and ultra-long-term leases in excess of 25 years.

The bill covers 6 main areas. First, the bill provides for disclosure requirements by both the lessor and lessee to ensure that all relevant information is on the table. This means that lessees will not face unexpected charges and bills for outgoings after the lease is signed. Similarly, shop owners can be comforted that their tenants understand all the requirements there are placed on them, increasing the likelihood of having a stable, long-term tenant capable of meeting their liabilities to the landlord.

Secondly, the bill deals with the treatment of rent and rent reviews and prescribes what can and cannot be charged to tenants as legitimate outgoings. Again, this clarifies matters for both parties.

Thirdly, the timing of notices concerning renewal or non-renewal of leases and/or interference in the activities of lessees through major building alterations and the like is specified. This ensures that all parties have adequate time to make alternative arrangements if appropriate. It also spells out procedures by which assignment of leases to third parties can occur.

A fourth aspect of the bill is a separate part on shopping centres. It deals with matters such as centre advertising, the establishment of sinking funds and the like.

The fifth part of the bill deals with unconscionable conduct by either party to a retail tenancy lease. This section, while included in the bill, will only be enacted once the Commonwealth passes complementary amendments to the Trade Practices Act. This they have agreed to do, but in the legislative nightmare that has become the GST, it has not yet been progressed.

The sixth element of the bill is dispute resolution. Dispute resolution is to be handled by the establishment of a registrar for retail tenancies and a retail tenancy tribunal. In the first instance, a dispute between parties is to be handled by the registrar, who will attempt to arbitrate the dispute to the satisfaction of both parties. If the dispute remains unresolved, it will then pass to a retail tenancy tribunal. The tribunal can hear the dispute and issue orders to resolve the dispute. An appeals process is available through the Supreme Court. The dispute resolution process is designed to reach agreement between parties without the need for expensive legal processes through the courts, although the courts remain available as a last resort.
This legislation brings the Territory’s legislative framework into line with other jurisdictions. It is not about imposing a burdensome regulatory regime on business, but rather establishing the parameters of sound business conduct in an open and transparent way, with disputes able to be resolved in ways that contain costs for both parties. As such, it is likely to promote further investment by property developers and retailers in the Territory, thus boosting employment and the level of economic activity generally.

Mr Speaker, I commend this bill to the House.

Debate adjourned.

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