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List of all the 844 posts by Nigel Wakefield:
The tie's moral dimension > The tie's moral dimension

I liked Paul's comments, there was one slight error at the end. The yardstick of the length of time that people remain with their lease is a reflection of improvement, the fact that it runs at about 18 months at present as opposed to 9 months, as it was some years ago is caused by the inability to find buyers for leases, since they have no value, not business improvement. The BII under Neil Robertson have a mandate to Police the Industry, this should generate one standard Code of Practice across the board for every pub owning company, if the present voluntary system of Pub Co's writing their own COP's continues, there will always be companies breaching the codes on the basis that various companies have different Codes and different interpretations. Also if a standard Code is not applied a number of companies who do not have Codes fall outside the system, at the moment it applies to BBPA members. Which means that the BII have no mandate to ensure that non BBPA members comply since the system is voluntary. This means that the BII's only alternative is to recommend legislation, passing the buck back to the BBPA and all the other bodies to get their acts together, it will only take one Pub owning company to not comply and the BII's mandate is ineffective as a policing authority, if one refuses to comply, they all can and we are back to square one. Dear old Bridget is going to have to get her head round this one, in my opinion.

RE: Warning over 'cowboy' ratings appeals > RE: Warning over 'cowboy' ratings appeals

James, I realised that the whole rating system had been abused years ago and then screwed up even further in later years. Using turnover or barrelage was acceptable when fruitful discussions took place on viability with individual freehouses. Now they have the unsustainable rents linked to an existing turnover on record and naturally since these valuers have no experience or need no experience to read the accounts to establish profitability with no thanks to the learned Mr Tattershall, we have even more over valuation based on comparables. The pub leasing side is in freefall since the majority of leases numbers do not add up, if they did we would not have the BISC making such a critical report. Changing the Valuation Office's direction is easier said than done, but it is high on the list.

BBPA accused of 'obfuscation and hostility' > BBPA accused of 'obfuscation and hostility'

John I have been beating this drum for ages that the rating system has been based on unsustainable rents for years, by using comparables without considering profitability. Having always had freehouses I have always objected to the theoretical rental assessments, it's the next RICS abuse that needs sorting out. The problem is the Government needs the money, we pay for everything and don't even get the dustbins emptied without being charged extra.

Pubs Minister snubs pub trade meet > Pubs Minister snubs pub trade meet

James you have a very short memory the BBPA made a confidential agreement with the BII and the FVLA last year and then pushed the content to the press causing huge embarrassment to the BII and FVLA long before it was scheduled to be released. Duplicity is byeword in certain bodies when the rest of us are trying to get fairnessand transparency.

Minister: pub rateable value levels ‘fair’ > Minister: pub rateable value levels ‘fair’

Yet another flawed system to take to the RICS, where lazy valuers use comparables to assess rates based on turnover, without looking at profitability. The comparables has been established as a misused and flawed methodology and one court case ruled an assumption based on an assumption was not legally acceptable. The comparables have been based on comparables for years without looking at profitability, the commercial yardstick has been for years that rent levels equate to rateable values. With pub rents being pushed to unsustainable levels, the use of turnover would have been acceptable previously when rents were fair and viable, but these valuers have no idea of pub viability and the comparables used do not equate to viability and we have yet another mass over valuation. I did raise this issue with the RICS when I met them, I just hope the representatives on the committee do not let this serious flaw get omitted. I have given three different Valuation Officers a successful ear bending on viability and that comparables were inaccurate and unacceptable.

RE: Video: 'free of tie world would lead to more pub failures' > RE: Video: 'free of tie world would lead to more pub failures'

It used to be normal practice for brewers to sell off their dross or under performing pubs, I have owned several and turned them back into viable pubs. They are viable if the trading conditions are right, but the tunnel vision that I come across with a number of brewery bosses I find staggering. The world is changing and changing fast, rents used to be reasonable with a tie and profits could be made, they have never been able to truly compete with the freetrade, the identification of the abuses of the rental system by the RICS is going to leave a lot of these Brewery Dinosaurs way behind. If one of the major Pub Co's fail the effects will be catastrophy for the industry, not just because of the domino effect on their suppliers, but no bank will loan money to any person or organisation wanting to finance a pub or pubs for years, which could destroy any long or short term development. Having talked to two of my banks in the last week, they are so jittery about anything to do with pubs and a mass failure would be nearly terminal. I and a number of other people would have liked to have seen a number of prominent Pub Co's go to the wall, but I now realise that it could destroy the industry and we have to change the thinking, the major companies have to retract in size and the regional brewers have to think outside their box. The freehouse market long starved of brewery cast offs needs to be increased and an acceptable balance achieved. Certain companies appear to have run very close to a pyramid scheme and the top has been reached without considering viability as with any pyramid scheme, the effects are now obvious, a mass failure has to be avoided at all costs, in my opinion.

GMB ramps up activity > GMB ramps up activity

I am involved with two charities in the industry and some of the restraints put on by the so called Charitable Status I find totally confusing, in some respects I wonder whether the Charity is a tax advantage which omits acting totally charitably for its members. For years I have seen decisions and actions taken by companies which any opposition by the Charity was beyond their brief according to the interpretation of the Charitable Status. I may be wrong but I am sure the Unions must operate under the similar Charitable Status, if they do it would be useful to consult their status rules. Certainly Neil Robertson and I, successfully went to the RICS on rental issues, when previously I had always been told that it was beyond the Charitable brief. I think the small print should be examined and put to the test, what is a Charity if it can't save people from destitution and family hardship, I had a heartbreaking short email last night, I have pulled every string in the Pub Co and hope that they will act quickly to resolve the problem.

GMB ramps up activity > GMB ramps up activity

I find it very bizarre, Guy Arnold is spoken of as a relatively knowledgeable voice in the industry, yet to my mind he appears to be totally out of touch with the realities in the industry. I was involved in raising issues to the RICS exposing the abuses and misuse of their Guidelines, the effect on thousands of people being totally shattering to them. Possibly as many as 11,000 people in one company in two and a half years, which I submitted details to the Select Committee. The ex accountant of the BII told me that one company had an average churn of nine months four year ago. Since then leases can barely be given away, all these people cannot be idiots, certainly most of the ones that I met were honest hard working people, who were struggling with impossible trading conditions. I have three in the last week that defy belief and I and others are doing our best to help them. If the GMB can do anything to help them all well and good, the greater the voice for fairness and transparency the better. Guy if you really want to help get out there and start helping these people, there are far too many that have gone beyond help, even for the LTC. Licensees are reluctant to accept that they are failing or have impossible trading conditions where their BDM or whatever's only answer is, "Get out." Sadly they leave it past the point of redemption and nothing can be done.

Alistair Darby replies to readers’ questions > Alistair Darby replies to readers’ questions

I find it amazing that so many heads of Regional Brewers would appear to be so out of touch with what is happening in the industry. They trot the same cliched statements out, if the tie is removed the rents will go up to market rent. First of all the demand for leases is questionable because of the failure rate so the market could be classed as limited, secondly informed people now realise that rents have been hiked to extreme levels, not on viability but for enhancing estate values. Most Pub owning companies have been infected with this to a greater or lesser degree. If sensible calculations are used for rental valuations based on profitability, the Brooker case must have sent shudders through every Pub Co Surveyor, we could end up with substantial rent reductions across the board. In the event of a vast number of pubs becoming free of tie all brewers would have to compete competitively price wise. Having had freehouses since the early seventies, these brewers etc who appear to hold the whip hand become very respectful in a free market. I have nothing against the tie with small brewers, but they do supply almost every brewers beers and should discount sensibly for the tenant to become profitable.

Licensees 'humiliated' over BII NITAs > Licensees 'humiliated' over BII NITAs

Continuing from my previous post. When you see the amount of trainers who only do the very basic qualifications it is staggering, and then consider that they have equipped someone to run a pub I find an embarrassment, it is not a meal ticket it should be a commitment to ensure people can do the job. Maybe this is a wake up call to trainers to ensure that they do equip the people that they train. I set up www.buyingapub.com to help people with information and the more people and companies that supply me with information on their services, products and experiences the greater the help for people in the industry. The NITA awards have for years in my opinion been mutual back slapping awards for a number of companies, lets make it really tough and make sure these people doing courses get the best information from all sources and an award is well earned. Lets see some serious innovation, I make my information free to everyone, how about the Pub Co's making free in house training a prerequiste for the first two years, rather than deterring people by extortionate training charges.

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