Fresh State CEO Jason Cooper today released the following statement in response to Melbourne Market Authority (MMA) claims that a fair arrangement was reached between the MMA and fruit and vegetable trader tenants based at the Epping Market, Melbourne:
"Whilst the rent review process between the MMA and tenants at the Epping market may have come to an end, unfortunately it has not brought stability to the market.
"Ultimately, tenants signed the leases to protect their businesses. They did not sign because they thought the proposed rents were correct or commercially viable.
"The tenants didn't choose to sign the leases. Sadly, they were forced to sign, or risk walking away from generational family businesses or end up fighting it out in Court.
"Disappointingly, the rent review process, including the valuation by the Valuer General, was neither transparent nor fair. In fact, the valuation was only provided by the MMA after an FOI request was suggested.
"The MMA say they made amendments to support tenants, including reduced bond and electricity savings. Whilst this is welcomed by the tenants, the MMA neglected to mention tenants were charged a 4 per cent 'holding-over' penalty.
"We're left with an industry that is no longer financially stable. Costs have significantly increased since moving to the Epping site. The facility was built too big and is simply too costly to run.
"The three-year lease holders may have signed, but this doesn't mean the 100 tenants holding five-year leases will sign in August. The two processes are independent and any uncommercial lease terms offered will be robustly defended.
"At the end of the day, the rent charged by the State Government run MMA is excessive and uncommercial. At a time when the cost-of-living crisis is at its peak, we hope this doesn't put even more pressure on Victorian families.
"This is a slap in the face to wholesalers at the Melbourne Market who will struggle to cope with the rent increases."
