A group representing some 200 local retailers appealed to the government to help them reduce rental fees amid SARS losses yesterday.
"We are in urgent need of rent cuts, as our members pay NT$10.5 billion in rent per month ... but saw revenues drop more than 24.19 percent since SARS hit," said Huang Shu-li (黃淑麗), secretary general of Taiwan Chain Stores and Franchise Association (台灣連鎖暨加盟協會).
In response, a government official sympathized but said private rents are beyond the government's control.
"It's impossible for the government to force landlords to reduce rentals for SARS-hit businesses since it's a matter of breaking contracts," said Ho Jui-fang (何瑞芳), a director at the Ministry of Finance's Department of Taxation. "But we'll propose cutting rents for renters of state-own properties to the MOF's Bureau of National Properties."
A Bureau of National Properties' official said they have no statistics on how many public properties have been rented to retail or service businesses.
Nevertheless, expectations at the association run high.
An association survey released late last month showed that up to 82.98 percent of chain store operators hope the government can coordinate rental cuts with their landlords, Huang said.
The poll was conducted by the association from May 15 to May 20 on all 200 members.
Businesses in the association say they are desperate, and the cuts may be vital for their survival.
"Many of my branches are edging close to shutting down with weak revenue and huge store rent," said Lai Hsiao-yi (
Fitness related businesses cannot escape SARS, either.
"I don't know how we can survive without a rental discount, as my company spends on average NT$4 million renting each branch per month," said Candy Tang (
Acknowledging difficulties among chain stores, Ho said he will suggest reducing rents from March to June on public-run properties contracting to retail or service business as an example for private-sector landlords.
Boosting consumer confidence, rather than crying for help from the government may work better to rescue various industries, said Huang Ching-tan (黃慶堂), deputy director of Ministry of Economic Affairs' Department of Commerce.
"The MOEA recently planned to issue SARS-free signs to stores," Huang said. "Businessmen should also come up with measures to attract customers."
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