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REVIEW of TRADING HOURS in the ACT, December 1995

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REVIEW of TRADING HOURS in the ACT, December 1995 REVIEW OF TRADING HOURS IN THE AUSTRALIAN CAPITAL TERRITORY This Report was prepared for the ACT Government by Mr John Hyndes, a consultant engaged by the Government to undertake a review of trading hours in the ACT. The views expressed herein are not necessarily those of the ACT Government. This Report was prepared for the ACT Government by Mr John Hyndes, a consultant engaged by the Government to undertake a review of trading hours in the ACT. The views expressed herein are not necessarily those of the ACT Government. Copyright in this publication is waived. It may be copied and used with out the need for permission being sought. However, acknowledgment of the source should be made. Additional copies of the report mat be obtained from: The Business and Regional Development Bureau Department of Business, the Arts, Sport and Tourism GPO Box 158 Canberra ACT 2601 Tel: (06) 205 0591 Fax: (06) 205 0594 © Australian Capital Territory, Canberra 1996 Published by Publications and Public Communication tor the Business, Bmployment and Tourism Bureau and printed by the Authority of Peter Bell, ACT Government Printer. 500- 2/96 A4 (96/3021) Australian Capital Territory REVIEW OF TRADING HOURS JOHN HYNDES John Hyndes Level 9, CBS Tower Telephone: (06) 205 0229 Cnr. Akuna & Bunda Streets Facsimile: (06) 205 0594 GPO Box 158 CANBERRA ACT 2601 Angelo Zorbas (Secretary) Telephone: (06) 205 0604 15 December 1995 Mr Tony De Domenico Deputy Chief Minister Minister for Business, Employment & Tourism ACT Legislative Assembly CANBERRA ACT 2601 Dear Deputy Chief Minister I am pleased to present you with my report on the Review of Trading Hours in the Australian Capital Territory. The report seeks to address as much of the Terms of Reference as possible based on the material available at this time. Yours sincerely John Hyndes EXECUTIVE SUMMARY RECOMMENDA TIONS ACT Trading Hours Review - John Hyndes REVIEW OF TRADING HOURS EXECUTIVE SUMMARY This review was approached on the basis of visiting over 100 retail centres in the ACT and making direct observations as to retail activity, holding discussions with upwards of 500 people involved in those areas, consideration of 167 written submissions, discussions with 23 groups associated with retail and business activities, co-operation with 6 sections of ACT government activity, meetings with Queensland and Victorian government and industry officials, plus the holding of a public meeting attended by 200 persons. The reviewer reached an early conclusion that the problem being encountered in Neighbourhood Shopping Centres revolved around lack of viability of the supermarket as the anchor of the centre which was due to a combination of the defacto deregulation of trading hours and intense product and price competition prevailing in the ACT in the supermarket industries, particular in the Town Centres and Group Centres. The accelerating lack of viability of Neighbourhood Shopping Centres, particularly since 1992 when deregulation began in earnest, has seen 12 supermarkets close over the past two years with over 20 neighbourhood supermarkets under threat. In relation to the Trading Hours Act, selling of non-exempt goods on Sundays is having little tangible effect on the decline of business being directed to the Neighbourhood Shopping Centres and while some shoppers, particularly in the major malls located in Town Centres, do take advantage of the availability of the supermarkets when shopping for apparel etc, the incidence of this activity is not strong. The Neighbourhood Centres are no longer enjoying the after-hours business, late in the evening, Saturday afternoons and Sundays that used to be the norm. In some cases the neighbourhood supermarkets are not even being used for convenience shopping, and they are there for emergency shopping only. This means that the supermarkets are operating in excess of 12 hours per day, for little return. Some of these supermarkets are badly run down and provide little attraction to customers. It is not only the national chains located in the major malls in Town Centres that are causing the problem to Neighbourhood Centres. Major ACT based supermarkets located in Group Centres and in some Neighbourhood Centres present well in terms of merchandise at the right price and are also placing competitive pressure on neighbourhood supermarkets. It is therefore incorrect to Executive Summary say that national chains are the sole source of the problems being encountered by Neighbourhood Centres. The reviewer reached a conclusion that the only way that the poorer performing Neighbourhood Centres will return to viability is through once again having a trading period available where they are not facing competition from the Town and Group Centres. Therefore the reviewer recommends a redrafting of the Trading Hours Act to reintroduce regulation, details of which appear in the Recommendations following this Executive Summary. In reaching the decision to regulate the trading hours the reviewer was persuaded from three main perspectives. These are: the accepted policy of supporting Neighbourhood Shopping Centres as elements of the small business community, the economic policy of taking action to support an asset which is capable of earning revenue for the ACT government as well as generating economic benefits to the community at large, the generally accepted benefit in having the centres continue in order to provide social and economic support to the suburban residents particularly the less mobile, the aged, and the disadvantaged. The reviewer believes that regulation alone will not bring custom back to some neighbourhood supermarkets and there needs to be intensive effort to upgrade the appearance and stock level of these establishments. The reviewer also believes that in some cases the supermarket will fail and the centre will struggle to survive from that point on. The Government will need to address candidates for re-structure, alternative uses, and relocation. Concepts of application of betterment, and other options will need to be considered as part of that exercise. Executive Summary RECOMMENDATIONS 1. The reviewer recommends that the Government announce that the following regulation to trading hours will apply. Town Centres (Major Malls') The trading hours for Major Malls to be: Monday to Thursday 8 am to 7 pm; Friday 8 am to 9 pm; Saturday 8 am to 6 pm; Sunday 8 am to 6 pm. Restaurants, fast food, newsagents, service stations and pharmacies, amongst others, to be deregulated. Cinemas, video outlets, leisure centres, and retailers associated with cinemas and leisure centres to be deregulated (retailing nexus with cinemas and leisure to be established). Above hours to be considered as the maximum. Core hours during which time retailers are obliged to open to be settled between owners, management and tenants. (Retailers should not be subject to undue pressure to trade to maximum hours unless the lease agreement provides for this on the basis of precise hours stipulated.) Retailing conducted outside major malls to follow above hours with similar deregulation exceptions. Group Centres The trading hours for Group Centres to be: Monday to Thursday 7 am to 8 pm; Friday 7 am to 10 pm; Saturday 7 am to 7 pm; Sunday 7 am to 7 pm. Restaurants, fast food, newsagents, service stations and pharmacies, amongst others, video outlets and leisure related activities to be deregulated. Neighbourhood Centres The trading hours for Neighbourhood Centres to be deregulated. Stand Alone Supermarkets Stand alone supermarkets below 1000 square metres to be deregulated. Recommendations Stand alone supermarkets above 1000 square metres (if any) to be subject to Group Centre trading hours. Fruit and Vegetable Markets The trading hours for Fruit and Vegetable Markets to be deregulated. Extended Trading Prior to Christmas Extended trading to 9 pm for up to five trading nights prior to Christmas Day to be allowed. Public Holidays Government to consider the position of Christmas Day, Boxing Day, New Year's Day, Australia Day, Good Friday, ANZAC Day, Canberra Day and Trades and Labour Picnic Day for special consideration. Whilst public holiday trading is very much a matter for government directive, the reviewer believes that trading days for Christmas Day, Good Friday, and Anzac Day up to midday, should be confined to Neighbourhood Centres and other deregulated retail shops. Trading on the other days should be subject to normal union- management arrangements. Special Trading Days All retailers in locations other than Neighbourhood Centres be allowed, on application, up to 20 nights of deregulated trading each year to accommodate community events as well as special sales days Possibility of Extended Hours for CBD and Other Areas If Afforded Tourism Zone Status Possibility of some form of extended trading for CBD retailers in the event of Civic being afforded tourism status to be noted. Retailing Outside Hierarchy Retailing conducted outside Town, Group and Neighbourhood Centres to be subject to same hours as Group Centres. Special position of some retailing e.g. liquor, entertainment, leisure, fruit and vegetable markets etc. to be noted. Non - Fuel Retailing (Service Stations) Non-fuel retailing from service stations to be deregulated subject to maintenance of current space restrictions for non-fiiel outlets. Recommendations 2. Penalties for Breaches Penalties for breaches - Maximum fine $20,000 for corporations, $2,000 for individuals. 3. Act to be amended Trading Hours Act to be completely re-drafted. Transition Period Prior to Regulation If the above recommendations are accepted by the Government a policy announcement should be made outlining the Government's direction in this matter and in order to allow for any adjustment of stock ordering/levels and to enable appropriate negotiations to take place with the relevant unions, a start date of, say, 1 April could be indicated. In the absence of any over-riding agreement there will be an adjustment of penalty rates for employees rostered for Sunday work and advance notice should be given to enable arrangements between employers and employees to be made.
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