Auckland Business Chamber's Michael Barnett says he personally "begged" the Government to intervene in the commercial rental issues faced by many small to medium businesses.
At today's Covid-19 Select Committee, Mr Barnett told MPs that some landlords were lacking understanding and many were not sharing the costs businesses were facing after weeks of lockdown.
"My ongoing concern has been the failure to acknowledge that after wages, the biggest cost for business, and a significant exposure for them is tenancy costs," he said.
Mr Barnett gave the example of some businesses that were being hit with breach notices and rent increases.
"Many more landlords are offering deferment but insisting on full payment, which again is not a sharing of the pain, which I have to say some good landlords are doing."
He said the wage subsidy had been a "good thing" for employees, but questioned the impact of policies such as the extension of the time landlords could deal with defaulting tenants from 10 to 30 days.
"My request for help is to ask the Government to respond with an immediate moratorium on lease cancellation and recovery action by landlords and to seek a mandatory code of conduct for commercial leasing to be created as soon as possible."
National Party leader Simon Bridges said that businesses "understand the importance of Covid-19, but they don’t want to be the collateral damage".
"I’m hearing from so many businesses who feel that way, who understand Covid-19, but also won’t be here at Budget day (May 14) if they don't get the support they need from the Government."
Prime Minister Jacinda Ardern was asked of the matter during her post-Cabinet press conference today, saying some commercial landlords that do not come to an arrangement with its tenants "may end up a position where you may find yourself with a vacant property (in a) time it will be very, very difficult to lease".
"I will keep them keep continually reminding people, make sure you make the most of the tax provisions that we put up to help with cash flow issues, make sure you use the wage subsidy, talk to your bank and talk to your landlord."
"In the meantime as a Government we will keep looking and assessing what we can do to keep those businesses operating and keep people employed."
It is not the first time the Government has been called on to help with commercial rent , with the select committee hearing the tenancy issues faced by business at the beginning of the month.
Finance Minister Grant Robertson told Q+A he is looking at a range of options to help small businesses struggling to pay the rent while under lockdown. (Source: Other)
As of April 17, according to property software firm Re Leased, it was estimated two thirds of retailers had not paid their rent this month, and almost half of commercial rents overall were still due.
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