Fair Pint founding member Steve Corbett gives MATV his views on what progress has been made since the BEC Report of the summer ahead of today's hearing.
He said the progress made so far was "window dressing" and urged the Business, Innovation and Skills Committee to refer the matter to the Competition Commission.
However, the British Beer and Pub Association will today tell MPs that its new Framework Code of Practice on Tenancies and Leases will give tenants a better deal.
The code calls for members to:
• Establish standards of competence for BDMs and set out a procedure to deal with complaints and resolve disputes.
• Describe the various rental and purchase obligations offered by the company.
• Demonstrate transparency with regard to prices charged for beer, eligibility for discounts and whether they will allow guest beers supplied outside the tie.
• Make clear the pub company's policy in respect of rent setting and review including full transparency in regard to how the Fair Maintainable Trade (FMT) has been calculated with a breakdown of costs and detailed information on the assumptions made on turnover. The BBPA Code will also incorporate a checklist of information to be requested by the tenant or lessee from the pub company.
• Provide shadow P&Ls which must provide sufficient detail to enable tenants to take proper professional advice.
• Draw attention to the availability of ALMR and other benchmarking reports.
• Ensure Upward Only Rent Review clauses are not included in new leases and offer existing lessees the opportunity to convert to new leases subject to agreement.
• Remove AWP machine income from the divisible balance and make clear how machine income is considered.
• Supply lessees with full details about insurance cover and excess payable and price-match where lessees are able to find a cheaper like-for-like policy.
• Set out a clear policy for the operation of flow monitoring equipment in accordance with minimum standards be set out in the BBPA Code.
• Make clear the company policy with regard to restrictive covenants.
• Require lessees to undertake pre-entry training, produce a business plan and take qualified professional advice prior to taking on a lease.
• On assignment the lessor must also give any assignee the same financial information disclosed by the pub company.
