Praneeta Prakash 
[File Photo]
The Ministry of Trade says regulating commercial rents will require wide consultation.
This follows concerns raised at a recent Standing Committee hearing.
Standing Committee on Foreign Affairs and Defence Member Rinesh Sharma questioned the impact of rising commercial rents on businesses.
According to Sharma, sharp rent hikes force businesses to raise prices. Some firms scale down or close, causing job losses and slower economic activity.
In response, Trade Policy Business Advisory Officer Unise Drauvesi explained that the proposed Landlord and Tenancy Bill mainly targets residential rentals.
“For businesses, at the moment, it’s the market rate. We don’t, we’re not really monitoring, or we’re not really setting the prices for the rates for the commercial market, we’re just focused on the residential market. Any regulation of commercial leases, Daruvesi states, will involve thorough stakeholder consultation. We take note of the comments, sir, and with that, in terms of ensuring that the price is controlled in the commercial market, it would have to take consultation. We would have to do extensive consultation with the relevant parties and the relevant stakeholders.”
The Ministry is working with the Fijian Competition and Consumer Commission, the Reserve Bank, and the Consumer Council on consumer protection legislation.
The draft bill is now with the Office of the Solicitor-General. It will undergo more stakeholder consultation before going to Cabinet.
The team also said that careful review was needed to protect consumers, support businesses and maintain market stability.
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