22nd February 2008

Nationals Senator Barnaby Joyce pursued yesterday, in Senate Estimates, the curbing of the innate monopoly of shopping centres in their exploitation of small retailers.

"Anchor tenants are allowed a discount for the provision of traffic but there is a line where advantage becomes exploitation. Small business is inherently subsidising the rents of the larger retailer, with the blessing of the shopping mall owner.

"Transparency of the discrepancy in rents is essential as a starting point and, at Estimates, this point appeared to be endorsed by the Productivity Commission."

Mr Neil Byron, on questioning by Senator Joyce, agreed the avenue of remedy under 51AC of the Trade Practices Act was near impossible to pursue because of the discrepancy in size and resources between the large shopping mall and the small business tenant.

"Australia must remedy this, not just on the premise of fairness for all but to dampen the inflationary aspects excessive margins on rent have on every product sold."

Ends