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News Article Comments : The devil will be in the detail
First Punch. And now Enterprise. The two dominant pub companies, who’ve made the weather for the tenanted sector over the past decade, are now both saying they agree with the Bec report and will quickly make what they claim to be significant changes.
We’ve already praised Punch for its commitment to a new era of transparency and fairness. We’ve also pointed out that while the new MD inspires confidence, we’ve yet to see how his refreshing business philosophy translates into a truly better deal for tenants. AWP concessions are a good sign — and other pubcos have quickly followed this lead. But, as usual, the devil will be in the detail of new lease terms and rental calculations. Until we get a better idea of how lessees are to be given a fairer division, through rents that incentivise rather than penalise, we must all reserve judgment.
The same is true of Enterprise’s apparent change of heart. Its letter this week to Lord Mandelson, arguing against an industry review, makes the right
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info man 03/07/2009 11:45:41  |
RE: The devil will be in the detail Well said "Mandelson will also want to know if these promised commitments can deliver help to existing tenants, not purely future tenants. It is, after all, the plight of many current licensees that led to the Bec conclusions. It would be a travesty of justice if reform did nothing to alleviate their position." I havent read one thing from the pubcos stating how they will help current tenants, they have been cast aside ready to churn. This post replies to this thread |
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| J Mark Dodds 03/07/2009 12:27:26 |
RE: The devil will be in the detail The Devil IS in the detail Andrew. That's what lessees have been exposing this last two years. This post replies to this thread |
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| Stephen Docking 03/07/2009 15:59:13 |
The devil will be in the detail Looks like everything is going to be OK then? Just as long as Mandelson's department take into account the number of times the pubcos were not so much 'economical' with the truth in oral evidence and written submission to the BEC - more like 'frugal'. This post replies to this thread |
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| info man 03/07/2009 16:54:10 |
RE: The devil will be in the detail I dont think those who are now informed are fooled by these cynical u turns "First Punch. And now Enterprise. The two dominant pub companies, who’ve made the weather for the tenanted sector over the past decade, are now both saying they agree with the Bec report and will quickly make what they claim to be significant changes." I seem to remember both the pubcos saying that if the report did not have the protection of the law they would have sued! Actions speak louder than words and could and should do not add up to real changes. The only real changes will happen when forced legally as Ted alluded to at the BEC oral evidence session. This post replies to this thread |
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| Karl Harrison 13/07/2009 09:09:37 |
The devil will be in the detail The proposals in the letter from Mr Tuppen fail completely to address the major concerns of the report. - No free of tie option or serious restriction of the tie is proposed. - The rent system is not proposed to be properly reformed or brought within the law. - The machine tie is not proposed to be completely removed. The risk in the tied pub sector lies with the tenant and he reward lies with the pubcos. The rent valuation model is corrupted in its contruction by the invovlement of pubco employee and agents at the RICS. The discounts available to pubcos are achieved from the sweat and hard work of their tenants and are not properly shared as they have attempted to have politicians believe. Only removal or serious restriction of vertical agreements (the 'tie') in the tenanted pub sector will lead to an efficient market in which real pub operators, publicans, can properly realise the benefit of their hard work. Proper reform of the rental valuation system such that it is working within the law will provide relief for all pub tenants, tied or not. This post replies to this thread |
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| Inez Ward 13/07/2009 09:45:13 |
The devil will be in the detail Couldn't agree more Karl! 100% agreement with every word because these ARE the problems with the pubco model. The status quo as enjoyed for years by the pubcos and those that have fed off them have caused the whole shameful debacle that is unfolding before not just this countries eyes. Greed is not nice! The irony is that they have been slowly destroying their own business model over a period of many years! This post replies to Karl Harrison > The devil will be in the detail |
