Press release watergate unsuccessful in supreme court-final(1)

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Press Release - for immediate release22 July 2016RESIDENTS CALL ON STATE GOVERNMENT TO ACT ONTODAY’S SUPREME COURT RULING

HOTEL INDUSTRY AND APARTMENT RESIDENTS UNDERTHREAT UNLESS STATE GOVERNMENT ACTS

Court’s decision finds that Parliament would have to expressits intentions “in clear and unambiguous language”(paragraph 1(c) of decision).In a decision released today at 10am, Supreme Court Justice Riordan invalidated an original rulecreated by the Developer of the Watergate building, meaning that Owners Corporationsthroughout Victoria are unable to prohibit owners from letting out their units to short-termguests.Justice Riordan said (at Paragraph 178) “In my opinion, the prohibition of businesses generallyand specifically businesses related to short-term letting exceeded the scope of what wasintended by the Parliament in enacting the Owners Corporation Act 2006…”Barbara Francis, Chairperson of the Watergate Owners Corporation and adirector of the We Live Here advocacy group said,“At last the State Government has now been provided with definitiveguidance by the Supreme Court about what it needs to do in order toprotect owners, residents and the Hotel industry.“We listened to our owners, 95% of whom supported us to pass a Special Resolution tofile the Supreme Court action. We had a mandate given to us to take on the unregulatedshort-stay accommodation industry, who do not pay their fair share of repairs andmaintenance, and who care nothing for the owners and residents that live in thebuildings where they operate their businesses. We call on the government to listen toowners and residents, and to change the laws before it is too late. “Marshall Delves, Building Manager at Watergate and also a director of We Live Here said, “Theshort-stay accommodation industry is out of control in Melbourne. Unless the Government actsnow, we’ll see less and less owner-occupiers and long-term residents in apartment buildings. In


the future, apartment buildings in the CBD and inner suburbs will be entirely made up ofstudents and short-stay accommodation providers. Why would anyone consider buying anapartment in Melbourne with the intention of living in it as their home? The heart and soul ofthese suburbs will be lost, and the economy will suffer. The Andrews Government has anopportunity to fix this now, they have guidance from the Supreme Court.”On 24 May 2016, the Andrews Government released draft legislation to effectively permit theproliferation of short-term accommodation throughout apartment buildings. The draftlegislation has been widely condemned by lobby groups, lawyers and industry insiders asintroducing no more than ‘light-touch’ enforcement measures against poorly-behaved guests,rather than introducing measures to regulate the short-stay accommodation industry.Jane Garrett, the former Minister for Consumer Affairs was criticised for working directly withAirbnb executives on the draft legislation and ignoring the pleas from the community fortougher regulatory measures, and came after the State Premier Daniel Andrews recently visitedAirbnb’s headquarters on a recent trip to San Francisco to announce a partnership agreementbetween Melbourne and Airbnb.[See attached document from Airbnb PR - Jane Garrett on steps of parliament with Air BnBannouncing partnership]Premier’s Media Release regarding Airbnb partnership- http://www.premier.vic.gov.au/airbnb-deal-to-provide-housing-during-times-of-disaster/This is a disaster for the tourism and hotel industry in Victoria. We foresee that hotel revenuewill decline substantially, and tourism industry jobs will be lost.“It’s too early to say whether there will be a further appeal to the Court of Appeal”, says BarbaraFrancis. “We’ll review the decision, and canvass the support of the Hotel AccommodationIndustry before coming to a final decision.”-ends-

Key Facts about the Building and the Appeal

The Watergate building is located at 2 – 24 Waterview Walk, Docklands; The building comprises 349 residential apartments; The short-stay operator – Docklands Executive Apartments (DEA) operate their short-stay

accommodation business from 14 apartments in the building; The Watergate Owners Corporation filed the Supreme Court appeal after 95% of owners

passed a special resolution to file the appeal; The Watergate Owners Corporation’s legal team was led by Tim Margetts QC, with Dean

Luxton of Counsel instructed by Tom Bacon, Principal of Strata Title Lawyers.Spokespersons available for interview:


Marshall Delves, Director of We Live Here Building Manager of Watergate Apartments –Mobile 0430 401 409 Barbara Francis, Director of We Live Here and Chair of the Watergate OwnersCorporation Committee –Mobile 0400 219 994 Rus Littleson, Director of We Live Here and Deputy Chair of the Watergate OwnersCorporation Committee – 0413 055 401

About We Live HereWe Live Here is an advocacy and lobby group focussing on generating legislative change toprotect owners and long term apartment dwellers in the city of Melbourne and its surrounds.The group aims to give a voice to and protect the rights of owners and long-term residents ofapartments. We Live Here wants to ensure that residential apartment buildings are used for thepurpose for which they were designed—long term residential accommodation.www.welivehere.net