Business secretary Vince Cable denies Government is washing its hands of pubco-tenant self-regulation deal

Speaking during the scrutiny of the BIS annual report and accounts 2011-2012 earlier today by the BIS Committee (BISC) Cable admitted he was concerned about the speed of the introduction of the self-regulation agreement and said he was “disappointed” that the code of practice for the pub trade has not been implemented.

The turnaround comes just weeks after BIS told the Publican’s Morning Advertiser (PMA) that all the commitments in the self-regulation agreement “have now been achieved”. The minister in charge of the deal in BIS Jo Swinson MP refused to be interviewed about the issue.

Last year, the Government failed to implement the BISC recommendation of a statutory code, instead saying that a strengthened industry framework code will be made legally binding. It also agreed that a Pubs Independent Conciliation and Arbitration Service and Pubs Advisory Service would be launched.

MP Brian Binley questioned the minister during the committee meeting: “You know of my great interest in pubs we have been talking about it for some time.

“The annual report highlights pub companies as a successful area in which new regulation was unnecessary and stated that BIS worked with pub companies to strengthen the existing code of practice rather than introduce new regulation.

“Unfortunately a letter received by Jo Swinson MP from president of the Federation of Licensed Victuallers Associations expressed his disappointment that the minister considered the Government's role in the regulation of pubcos to be over.

“Can I ask you what evidence you have got that the voluntary code of practice has brought about immediate improvements in rent, insurance, training and dilapidations?”

Cable said he had no evidence and admitted that he had already been approached by a number of concerned MPs. He said he would be writing to those involved in the self-regulation deal as he continuing to get negative feedback.

“We don’t have any evidence because disappointingly the strengthened code of practice had not yet appeared or been agreed and that is considerable disappointment.

"I am in the process in writing to the people involved in the code of practice to ask what on earth is going on,” he told the committee.

"I am as concerned about this as you are. And I continue to get the same complaints particularly about Enterprise.”

Binley said he was “surprised and not a little shocked” and said the committee needed some answers very quickly from BIS.  

Chairman of the BISC Adrian Bailey added: "The whole rationale for taking the self-regulatory approach from the Government after our last report was that it could be implemented more quickly and effectively. Now we have the minister telling us he is not satisfied with the progress.

“It is matter of real concern that your department refused a request from the Publican's Morning Advertiser, the trade magazine in the industry, to an interview with Jo Swinson with the line that this isn’t an area appropriate for a BIS minister to be interviewed on and effectively it was not part of her remit.”

"Can you explain why your department is now washing your hands of this?"

Cable: “We are not washing our hands of this and we recognise this is a problem.”

Cable said he would report back to the committee in a matter of weeks with some more information.