Rents should be cut by up to £25,000 says Bell

by John Harrington

The Freedom for Pubs Association (FFPA) has claimed the Trade & Industry Select Committee report into pubco power is a chance for tenants to boost profits and have their rent reduced by up to £25,000 a year.

Dismissing claims that the report is a "whitewash", the FFPA said the recommendations put pressure on pubcos to improve their treatment of tenants or risk Government intervention.

The FFPA said the end of the tie on AWP machines, whichthe report recommends, could save tenants £5,000 per year. Reductions in machine rentals could save tenants an extra £1,000.

And in the long term, the FFPA claimed the call for the abolition of upward-only rent reviews, greater transparencyin the rent review process, and new national guidelines forrent calculation, could savetenants between £5,000 and £25,000 a year.

"Camra [the Campaign for Real Ale] and others are simply wrong and ignorant in calling the report a whitewash," said FFPA founder Mike Bell.

"In tackling the key issue of rent, it has confronted an issue which had confounded the OFT [Office of Fair Trading] for 10 years and more."

Bell added: "Tenants need to act as one, via a vibrant trade association. By so acting, the new standards can be achieved and any obstruction by thepubcos can be centrally controlled."

The FFPA points to a number of "inaccurate" submissions by pubcos to the Trade & Industry Select Committee inquiry.

For example, pubcos said wholesale prices charged to tenants have kept up with the retail price index, but the FFPA said the prices charged had risen 13% more than inflation.

In contrast to claims by pubcos, the FFPA said dry rents charged to tenants do not compensate for the lack of discount on beers; falling sales of beer in pubs are due to pubcos pushing up prices ahead of inflation; and the tie restricts consumer choice.