Dear Member/Friend,
Yesterday, the Prime Minister, at a press conference, spoke about Commercial Tenancies and theoretical modeling in relation to the impact of coronavirus. The Media Statement can be found at: https://www.pm.gov.au/media/update-coronavirus-measures-070420
Any business operators with concerns about their ability to pay rent as a result of COVID-19 should read the media Statement and attached Code: “SME Commercial Leasing Principles during COVID-19’. The object of the Code is for landlords and tenants to share in a proportionate manner, the cash-flow impact and financial risk during the COVID-19 period.
COMMERCIAL TENANCIES
The Code contains a number of principles including:
Some of the Overarching Principles of the Code, in brief terms, are:
The Code also sets out “Leasing Principles”, some of which are mentioned in a previous newsletter. In brief (but not including all of them) they are:
The wording of the Overarching Principles and Leasing Principles are in broad and complicated terms. What I have set out does not provide the ful detail. If you are having difficulty with your rent, please read the Code and as appropriate contact your agent, accountant or other advisor, . keeping in mind that the principles involve the parties together resolving an economic impact of COVID-19.
MEDIATION
Where landlords and tenants cannot reach agreement on leasing arrangements as a result of COVID-19, the matter should be referred, and subjected to, applicable State and Territory retail/commercial leasing dispute resolution processes for binding mediation.
QANTAS UPDATE
It would seem that flights to Armidale during the next 6 weeks are down, but not out. As you may know, Armidale Council has advised that Qantas Link will cease its services to Armidale from 9 April 2020 until 31 May 2020, subject to changes to current restrictions.
Adam Marshall, though, has been looking at a triangulated service, being a “milk run” to a number of towns to make the flights viable and has been making representations concerning that. Barnaby Joyce has also been making representations to Qantas and to the Federal Minister for Transport. I will keep you posted on this, but in the meantime, for understandable reasons flights will cease after tomorrow until either a 'milk run' is worked out or 31 May 2020 when services are intended to resume. Changes to current restrictions of course may affect that.
CHAMBER MEMBERSHIP FEES
At its monthly meeting last night, the Chamber Committee decided that no membership fees would be charged during the COVID-19 pandemic.
There will be a category: “Special” added to the dropdown menu at the Membership section of the Website for this purpose. It was also decided that the membership fee structure is to be reviewed for the COVID-19 recovery period and beyond.
If I may say so, businesses and the wider community are to be commended for the way in which they observe social distancing. It has come at a heavy economic cost. Recovery will take some time. In the meantime, the more stringently social distancing rules are observed, the quicker we should move towards that recovery.
Best wishes,
Anthony
Anthony Fox
President
Armidale Business Chamber
afox@foxlegal.com.au
m. 0402 838 077
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