Licensees slammed by PPL chief

Licensees have come under fire for "avoidance, evasion and sheer deceit" when it comes to paying the fee for background music.​ Fran Nevrkla, chairman and chief executive of Phonographic Performance Ltd (PPL), said many licensees "left an awful lot to be desired" in their dealings with the company.

He told this week's PPL AGM: "If PPL is subject to stringent requirements and expectations, what about the licensees? Is it not logical and appropriate that licensees, too, must be subject to the same business criteria?"

Last November The Publican revealed that PPL licences - which allow pubs to play music from jukeboxes and hi-fi systems - are being increased by as much 500 per cent, due to changes in the copyright law.

PPL generated an income of £80.6m from licence fees in the UK last year, according to the company's financial report.

Mr Nevrkla said he believed other authorities would be "shocked by the degree of avoidance, evasion and sheer deceit we have to face on a regular basis" from licensees.

Despite his criticisms, Mr Nevrkla added: "Many of our licensees behave honourably and are a pleasure to deal with, both in the broadcasting and public performance sectors."

Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said that he always tried to make licensees aware of the PPL requirements.

In responding to Mr Nevrkla's criticisms, he said: "What he has to take into account is that licensees have to be passed fit and proper people by magistrates and police, and go through stringent checks, no doubt more than Mr Nevrkla's own employees.

"Licensees just aren't the type of people that he is describing."

John Appleton, director of electronic leisure at Mitchells & Butlers, who is leading the protest over the licence fees price hike, said in the case of his company the comments were "inaccurate".

He added: "We deal with paying the PPL licence fee very meticulously. What remains is the fact that the rise in fees is far too high."

Christine Milburn, communications manager at the British Beer & Pub Association, said: "Our members are fully aware of their responsibilities.

"We do not condone or support any illegal action and come November anyone without the proper copyright licence will be in violation of their alcohol licence."