BIS: Pubcos and brewers welcome self-regulation
The government today failed to implement the Business, Innovation and Skills Committee (BISC) recommendation of a Statutory Code instead saying the current Industry Framework Code will be strengthened and made legally binding. There are also plans to introduce a Pub Independent Conciliation Advisory Service (PICAS) and Pubs Advisory Service (PAS).
Enterprise Inns chief executive Ted Tuppen, who faced intense scrutiny from members of the committee. said: “We are delighted that having examined the issues raised by the BISC, the Government has concluded that self-regulation in the UK pub industry can provide effective protection for individual publicans, and that the entire industry may now concentrate all of its energy and resources on the real challenges facing UK pubs without further distraction."
Shepherd Neame chief executive Jonathan Neame applauded consumer minister Ed Davey MP for acknowledging the critical difference between an FRI lease and the traditional brewery tenancy.
He said: “The minister has provided us with a substantial boost in confidence by ending the uncertainty surrounding the report’s recommendations and by explicitly supporting the traditional brewery tenancy and family brewers.
“We now repeat our call on the Chancellor to do his duty and cancel the damaging and unsustainable excise duty escalator imposed on one of the UK’s great manufacturing industries. This would provide yet a further boost to jobs and investment in the beer and pubs sector.”
Simon Longbottom, managing director of Greene King Pub Partners, agreed: “I am particularly pleased to note the Minister’s support for the traditional tenancy. This is a strong and enduring business model where the interests of the tenant and the pub owner are aligned providing a platform of certainty on which local entrepreneurs can generate wealth and employment, whilst maintaining a much-loved community asset.”
Paul Wells, chairman of the Independent Family Brewers of Britain said: “The Government has provided a substantial boost in confidence for Family Brewer members, and their tenants, by ending the uncertainty surrounding the report’s recommendations and explicitly supporting the traditional tenancy model, as well as recognising that the brewery tie is vital for regional brewing.”
Simon Emeny, managing director, Fuller's said:“This is the right outcome and a vote of confidence for the tenanted model. It is now up to companies to follow the code of practice laid down stringently.”
