PHOTO: Eat cafe owner John David is looking to close down his restaurant, Cin Cin, now that he has been presented with a weekly rent rise of $400. File photo Photo: RNZ / Harry Lock
Small business owners are feeling abandoned by the government, over what they call failures to implement proper, effective measures to control rent and lease arrangements.
In early June, the government promised a fund of $40 million which small businesses could apply to, to settle disputes between landlords and tenants over commercial leases.
At the time it was announced, business tenants said it had been a “long time coming”, but they believed it would allow many to be able to progress discussions with their landlord.
However, not a single dollar of that fund has been spent, with no business a beneficiary of it. The Ministry of Justice’s policy general manager, civil and constitutional, Caroline Greaney, said “The Bill has not yet been enacted and as such final decisions about the eligibility for an arbitration subsidy have not yet been made.”
Justice Minister Andrew Little said he understood small business owners’ disappointment in the government, and said he shared the frustration over the delays to being able to start distributing the allocated funds.
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