Govt not regulating commercial rents, committee told

The Government does not regulate commercial rental rates despite concerns that sudden rent increases are forcing businesses to close and workers to lose jobs, a parliamentary committee heard.

Opposition Member of Parliament Rinesh Sharma told the Standing Committee on Foreign Affairs and Defence yesterday that businesses struggled when landlords suddenly hiked rents.

"We can't have a rent freeze but at the same time we also need to ensure that they cannot charge ridiculous amounts of rent, increase the cost of goods, boom, the business is closed, people are sent home," Mr Sharma said.

He urged the Ministry of Commerce to address commercial rentals, warning that business closures hurt tax collection and slow economic growth.

Policy Business Advisory Officer Unise Druavesi told the committee that commercial rental rates were currently determined by the market, with the ministry not monitoring or setting prices.

"For businesses, at the moment, it's the market rate. We're not really monitoring or we're not really setting the prices for the rates for the commercial market," Ms Druavesi said.

She clarified that the proposed landlord and tenancy bill only addresses the residential market, where a rental freeze is currently in place, not commercial properties.

Mr Sharma said the ministry should investigate commercial rentals to protect businesses.

"If there's no business, there's no tax collection, economic growth will be very slow," he said.

Ms Druavesi acknowledged the concerns, saying extensive consultation with relevant stakeholders would be needed before any commercial rental regulations could be considered.

"We take note of the comments, sir," she said.

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