John and Jamie Murdoch - spiteful revenge

The Fremantle Markets farce
By Beatrice Thomas, Local Government Reporter

Copy of West Australian Newspaper article Nov 25th 09


The deteriorating state of affairs at the Fremantle Markets is nothing short of farcical.

What started as a dispute over the awarding of a new lease to the Murdoch family, and later rent increases of up to 300 per cent, has now escalated into a vicious stoush where long-time, reputable stallholders are leaving or having leases terminated with little warning and it seems with even less prospect of any recourse.

When a new 18-year head lease was awarded to John and Jamie Murdoch, whose father operated the 112-year-old markets for more than 30 years, the City of Fremantle, which owns the building, said it would guarantee a security of tenure for permanent stallholders.

"From the very start of the new lease process the Stallholders Association wanted their security of tenure (to) be protected," the City's corporate services director Glen Dougall said in November last year.

"The City ensured this by allowing stallholders access to sub-lease or licence agreements of at least five years unless otherwise negotiated by the stallholder."

Not only was this supposed to protect the long-term stallholders who rely on business from the three-day operation for their livelihoods but the addition of the Retail Tenancies Act in the new agreement was supposed to ensure "fair commercial principles" were enforced.

What has emerged over the past year suggests anything but that has transpired with monthly leases, reduced space and little communication all complaints from long-term traders.

And the City's statistics that only 70 per cent of stallholders have signed new lease agreements is proof of the unrest.

The parties are even in dispute over the number of stallholders leaving with the Stallholders Association saying up to 35 traders have left, while Jamie Murdoch says the number is at most 20.

Earlier this year, the Murdochs, trading as Fremantle Markets Pty Ltd, began issuing stallholders with notices outlining rent increases of up to 300 per cent.

At the time they said the head lease with the council demanded "a fair market rent" be established, meaning a big correction because rents had been artificially low.

However, acting on the growing number of complaints from stallholders who said the increases were unjust, the City in April found Fremantle Markets had failed to negotiate with stallholders over rent increases and as a result had breached its lease.

Rejecting legal action, the City opted for "an urgent dispute resolution".

Not only has this failed dismally but the City is now faced with the embarrassing prospect of stallholders setting up a rival market across the road at the South Fremantle Football Club, of all places.

The stallholders can take up the issue with the State Administrative Tribunal and Supreme Court, but as lawyer Rod Hager pointed out they could at most seek damages and at the end of the costly process there are still no guarantees that they get their stall back.

To date the Murdoch brothers have maintained that they have followed the requirements of the head lease and have effectively dismissed most of the criticism as coming from a bunch of disgruntled troublemakers unhappy with having to pay what their stall is worth.

Irrespective of whether this is completely true, the people leaving the markets are more often than not long-time tenants whose quirky, colourful and popular stalls have helped shape the character of the century-old operation.

They may be disposable for the Murdochs, who are more than too happy to point out that they can be replaced, but their loss should be a wake-up call for a council that promised to look after them but has failed to do so.

* My comments.
* Those disgruntled trouble makers would be the ELECTED stallholders association that speaks out ON BEHALF of the others. Needless to say that the spokespeople for the association have been evicted and others who have spoken out have been forced to leave by having shop sizes greatly reduced, rents increased and inappropriate relocations. Most at best, were promised a month to month lease agreement which makes it impossible to trade or sell out. John Murdoch said publicly that some stallholders have chosen to leave!


* The proof of the lack of replacement stalls is now obvious with vacant stalls and rent subsidies being offered to new and casual tenants.