This article includes:
- My original draft of the Outgoings Code of Conduct;
- Mr Bruce York, then of Woolworths’ final draft.
Outgoings Code of Conduct: threat or opportunity and how it might work
By DE Gilbert August 2002 ©
The aim of the Code of Conduct is to ensure there are uniform principles for measuring, apportioning, charging, reporting and transparency of outgoings charges & utilities for the Shopping Centre Industry in Australia.
Brief History of the Code of Conduct
The shopping centre industry has “evolved” over the last 30 – 40 years in Australia, largely free from legislation. Only over the last 10 years or so, tenancy legislation has improved and is in the process of “evolving”.
Outgoings are a cost recovery managed by independent professional managers, “related managers” or owners, directly on behalf of the tenant. This places the manager or owner in a fiduciary role; they are therefore fully accountable to Industry Stakeholders for the procurement, measurement, apportionment, management, charging and transparency of their monies.
Retailers believe in many instances, they are not being competitively charged and this has been open to abuse. They are now seeking fairness & equity as to the management of all aspects of outgoings charges.
Noncompetitive outgoings charges, have a major impact on large users of space. This is one area retailers believe affects their ability to distribute goods and services cost efficiently, to Australian consumers at large.