Shopping centre to pass on rates savings to tenants

South Hedland Square shopping centre owner Charter Hall says it will pass on any savings it receives in its rates bill to tenants.

The property fund's comments come after the Town proposed in last month's draft rating strategy to reduce rates at Hedland's two shopping centres by 20 per cent over four years.

If successful, the reductions would lead to shopping centres paying equivalent rates to those paid by high street retailers and commercial outlets.

A Charter Hall spokesman said the rates cuts would help the centre and its tenants continue to service the community.

"South Hedland Square is an important economic contributor to the region, delivering retail activity (and) employment opportunities, as well as providing an enjoyable and convenient shopping experience," he said.

"Subject to individual lease provisions, savings in council rates otherwise payable by tenants would be passed on to them."

Charter Hall's comments comes as businesses of all sizes have recently battled the effects of widespread job losses brought about by the Pilbara mining sector's downturn.

It also comes as other rates categories, including those for residential and commercial property owners and fly-in, fly-out workers camps, have either been held at current levels by the Town of Port Hedland or raised by 3 per cent.

Hedland Mayor Kelly Howlett said her local government had proposed the reduction for shopping centres because they were paying higher rates than other retailers.

Charter Hall claimed in a submission to the Town its occupancy costs were increasing for tenants in part because rates charges accounted for 25 per cent of the bill.

"If rates were maintained, retailers within South Hedland Square would (have been) placed at commercial disadvantage compared with other retailers across town," Ms Howlett said.

"It is anticipated that this will provide tenants … with the opportunity to conduct business on a level-playing field."

Labor Mining and Pastoral MLC Stephen Dawson, who also has an office in the shopping centre, paid for by the State Government, welcomed the news.

"We all have to do as much as we can to foster business and ensure we are reminding people (that) Port and South Hedland are open for growth," he said.