The Rudd Government has welcomed the report of the Productivity Commission's inquiry
into the market for retail tenancies which finds that, overall, the market is operating well.
The Inquiry, called The Market for Retail Tenancy Leases in Australia, stemmed from
differences in retail tenancy laws between states and territories and the difficulties small
businesses face in entering into and re-negotiating commercial leases.
The Commission recommends that the states and territories examine the potential to relax
planning and zoning controls that limit competition and restrict retail space.
This recommendation is consistent with the Australian Competition and Consumer
Commission inquiry into grocery pricing which also recommends that governments examine
ways in which zoning and planning laws adversely affect competition between
supermarkets in a locality.
The Commission's recommendations also include:
• Encouraging the use of simple (plain English) language in all tenancy
documentation;
• Encouraging the inclusion of a one-page summary of all key lease terms and
conditions in retail lease documentation;
• That lease documentation include clear and obvious points for information on lease
negotiation, registration and dispute resolution; and
• Encouraging the development of a national reference lease.
The Rudd Government will now work with state and territory governments through the
Council of Australian Governments' (COAG) Business Competition and Regulation Working
Group on implementation of the Commonwealth's response.
To maintain important protections provided to small retailers through retail tenancy laws,
the Rudd Government has rejected the Commission's recommendation that restrictive
clauses in retail tenancy legislation be removed.
COAG is the natural body for the carriage of the Government's response to the
Commission's report.
The Rudd Government, with the co-operation of the states and territories, is already making
strong headway in 27 areas of reform to reduce administrative red tape for Australian
businesses.
The Productivity Commission's report can be found at www.pc.gov.au while the
Government's response can be seen at www.innovation.gov.au/retailtenancy
Media Contact: Chris Ward 02 6277 7450 or 0418 424 654