The Ministry of Trade has indicated that any efforts to regulate commercial rents will necessitate extensive stakeholder consultation. This announcement comes in light of concerns raised during a recent hearing by the Standing Committee on Foreign Affairs and Defence, where member Rinesh Sharma highlighted the detrimental impact of escalating commercial rents on businesses.
Sharma articulated that significant increases in rent burden businesses, compelling them to elevate prices. Such financial pressures often lead to downsizing or closures, resulting in job losses and a slowdown in economic activity.
In response to these concerns, Trade Policy Business Advisory Officer Unise Drauvesi clarified that current regulations, specifically the proposed Landlord and Tenancy Bill, predominantly address residential rentals. “For businesses, at the moment, it’s the market rate. We’re not really monitoring or setting the prices for the rates in the commercial market; we’re just focused on the residential market,” Drauvesi explained. Furthermore, she underscored that any potential regulation of commercial leases would require comprehensive consultations with various stakeholders.
The Ministry of Trade is actively collaborating with the Fijian Competition and Consumer Commission, the Reserve Bank, and the Consumer Council to develop consumer protection legislation that aims to balance the needs of consumers and businesses. The draft bill is currently under review by the Office of the Solicitor-General and will undergo additional stakeholder consultations before it is presented to Cabinet.
As the Ministry navigates this complex issue, the emphasis on careful review highlights its commitment to safeguarding consumer interests, supporting local businesses, and maintaining overall market stability. This collaboration bodes well for a constructive approach to resolving the challenges surrounding commercial rents, ultimately fostering a healthier economic environment.
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