'Pub restrictive covenants could be outlawed'
Restrictive covenants that prevent pubs being operated as pubs when they are sold could be outlawed within a few months, according to the Campaign for Real Ale (Camra).
Mulholland (L) and Mail (R): in favour of outlawing restrictive covenants
Camra public affairs director Jonathan Mail said a piece of secondary legislation, the Land Agreements Exclusion and Revocation Order of 2004, could be easily amended by Government so that use of restrictive covenants on pubs would no longer be lawful.
“Camra thinks this practice is entirely unacceptable,” said Mail. “It should be for the market to decide”.
The legislation is due for review and a consultation set to be published late summer. Since it is secondary legislation, the Government can move quickly and a change could be implemented in a matter of months rather than years.
Mail was confident that “it could be done this side of a General Election”.
He said: “It would be a small but positive way that Government could show they care about pubs and recognise the importance of pubs to the community.”
The issue was covered in Camra's "super complaint" to the Office of Fair Trading on Friday, which triggered a new investigation into the beer tie. Camra said it wants regulation to prevent pubs being sold with restrictive covenants.
Campaigning MP Greg Mulholland, chair of the Parliamentary Save the Pub Group, said the group would be making a strong submission to the consultation. He called the practice “an absolute scandal”.
“Without a shadow of a doubt, changing planning legislation to prevent demolishing pubs and outlaw restrictive covenants is the quickest way to protect pubs.
“This Government has about nine months left. Having done so little for pubs it could actually choose, in its remaining time, to protect them by changing planning legislation and giving communities a say over their future, something which is currently being denied to them.”
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