It’s time for pubcos to reassess their approach

13-Nov-2013 - Last updated on 13-Nov-2013 at 16:34 GMT

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Campaigning activity on pubco reform has intensified as the Government’s decision grows near. The Campaign for Real Ale (CAMRA) is resolutely determined to secure reform of the beer tie as operated by the large pubcos. As a consumer group, we want to see a thriving, healthy and diverse pub sector, writes Mike Benner.

We also want fairness for licensees so pubs are run by motivated people earning a fair living, who can afford to (and are incentivised to) invest in improving their offer.

The way to deliver this is with a statutory code of practice and adjudicator, which must include guest beer and market rent-only options for licensees tied to the big pubcos. Giving licensees this choice would incentivise pubcos to act in a competitive manner and make their tied deals fair and attractive. Greater choice and flexibility for talented licensees is the key to reversing the decline of the pub sector.

Awareness

This year alone 7,500 CAMRA members have contacted their MPs and Vince Cable — securing the support of 198 MPs for these vital reforms. Four-hundred thousand beer mats have been distributed in pubs raising public awareness.

We also took the campaign to the party conferences to make our case direct to decision makers. Just last week I wrote to key ministers demanding their support.

The failure of pubcos to reform voluntarily is having a hugely damaging impact on communities losing their pubs, and on individuals who are losing their livelihoods. Our polling evidence indicates that 57% of licensees tied to big pubcos are earning less than £10,000 a year.

Staunch resistance to effective reform, and a ‘business as usual’ approach from the pubcos has so far meant disaster for their own businesses, which have suffered collapsing share prices and falling profits.

Sustainable

CAMRA’s approach is now, and has always been, about evolution not revolution. Market rent-only and guest beer options would be phased in over five years at rent reviews and lease renewals. We are not out to destroy the pubcos — we simply want a sustainable pub sector where licensees make sufficient profit to enable them to invest in their pub’s future.

After a decade of broken promises, the Government now needs to step in to deliver a legal framework to protect the future of the pub sector.

We are calling on pubcos, at this late stage, to reassess their approach and recognise that a statutory code, market rent-only option and adjudicator is in their best interest, in the interest of the long-term health of the pub sector and of Britain’s millions of pub-goers.

Mike Benner is chief executive at the Campaign for Real Ale