ARA campaigns for leasing changes

NATIONAL: The Australian Retailers Association (ARA) has urged the Federal Government to speed up its investigation into spiralling occupancy costs for retailers. The peak industry body accused the government of being too slow to release the Productivity Commission's report into retail leasing, which was due in March but now pushed back to August.

ARA executive direction Richard Evans said the cost of occupancy was currently "well above" what the retail sector should be paying as a percentage of direct costs to bring goods to market. He said it was difficult for retailer to maintain a good profit margin under current leasing conditions.

"We need to start finding solutions for this over complex and over regulated part of the retail sector on a co-ordinated national front," he said. "In this time of downturn in consumer spending and confidence, we should be looking very hard at improving the situation for retailers."

The ARA has compiled its own list of recommendations on retail leasing including the introduction of a Code of Conduct for leasing negotiations, standardised leasing laws across Australia and the need to bring fair negotiating back to the table. Evans said there also needed to be an end to the disclosure of turnover figures to landlords.

"Over the years, no consensus was reached on certain issues due to the landlords being unwilling to concede any ground. This has to change and this is something very tangible the Rudd Government can do to ease the coast of business for retailers and therefore impact prices."