Short term solution welcome but long-term reform in commercial tenancy vital. Many landlords are still not passing

Guild Alert

“It has become clear during this Covid period that legislation is required in order for tenants to receive the financial assistance they need to remain viable and survive into next year”, said Guild Director Matt Tweedie.

The Guild welcomes the announcement by the Western Australian Government to extend the emergency period under the Commercial Tenancies (COVID-19 Response) Act 2020, until at least March 28, 2021.

The Pharmacy Guild of Australia WA Branch (the Guild) is calling for additional certainty for community pharmacies facing financial hardship due to the COVID-19 pandemic.

Guild tenancy expert David Halvorsen notes that the measures are common sense and a practical decision given the severe and ongoing economic impact of COVID-19.

“The government should as a matter of urgency conduct its proposed review of the Commercial Tenancy (Retail Shops) Agreement Act 1985. This legislation was not very effective in protecting tenants pre-Covid and is certainly is not fit for purpose in the new economy”, noted Mr Halvorsen.

Throughout the COVID-19 pandemic, community pharmacy has continued to provide patient services. However, this has come at a cost, with seventy (70) per cent of pharmacies in WA reporting a decline in turnover of at least a twenty (20) per cent.

Many of these businesses are unable to access the financial support offered through the JobKeeper program to retain staff, and therefore are not able to access support provided through the Commercial Tenancies (COVID-19 Response) Act 2020.

Community pharmacies that have accessed government support, frequently report that landlords are acting outside the requirement to act reasonably and in good faith, and are instead engaging in difficult, protracted and delayed negotiations.

“That the imbalance between landlord and tenant has required the National Cabinet to develop a Code of Conduct and two dedicated pieces of quickly drafted Western Australian legislation highlights the challenge, Mr Tweedie said. “As a result, very few community pharmacies have been able to access their entitlements, but rather are caught between an offer of ‘take it or leave it’ from landlords and the alternative, which is an expensive and time-consuming dispute resolution service.”

Today’s announcement acknowledges the stresses that commercial leases are placing on the viability of community pharmacy. The Guild believes a review of the Commercial Tenancy (Retail Shops) Agreement Act 1985 is both required and long overdue.

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