5 Jun 2020

Struggling business doubts rent arbitration scheme will help

From Nine To Noon, 9:05 am on 5 June 2020
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Photo: Pixabay

The owner of a struggling Auckland inner city backpackers says he doubts government funded arbitration will resolve the impasse over rent with his commercial landlord.

The scheme hammered out between Labour and New Zealand First is for businesses with fewer than 20 workers affected by Covid-19 - and their landlords - who cannot reach agreement on rent costs.

Michael Le Roy-Dyson owns a 100 bed backpackers in downtown Auckland, but currently has only 10 guests.

He says his income is 10 per cent of what it normally is, but he's tied into a five year lease at $360 thousand a year, backed by a personal guarantee, and a landlord threatening legal action.

He's behind a petition to draw attention to the situation of commercial tenants who need urgent help from the government.