Greene King right to object

The issue of who pays for residents' objections to licence applications is quite straightforward legally - yet anything but straightforward when it comes to company image and reputation. Which is why Greene King is doing the trade a big favour by pushing on to the High Courts in a case that's caused it problems both locally and in the national press - and may yet bring further reputational damage when the judge's verdict is delivered.

Revolving round Greene King's Dog & Partridge pub in its home patch of Bury St Edmunds, the case has become controversial because it's being portrayed in certain quarters as the big bad pub company using its deep pockets to frighten the locals. And the magistrate who heard the case certainly seems to have extended his sympathies to the local objectors. Even though he disagreed with their points, he refused to award Greene King costs on the grounds that they could easily afford the £29,000, whereas the locals could not.

What's incensed Greene King is that the magistrate was in no position legally to waive the objectors' costs. Yet by doing so, he is as good as encouraging residents anywhere to believe they can object and appeal against pub applications with absolutely no concerns if they lose the case or not.

Libertarians believe local democracy will be stiffled if locals fear to object on the grounds they can't afford to suffer the financial penalties if they lose. But, of course, neither Greene King or any other pubco is trying to silence local residents. It makes perfect business sense for any pub to learn what its neighbours think about it - and the current application process, which positively invites locals to object, is robustly democratic.

What no pub company or individual licensee should be asked to tolerate, though, is a system that's stacked in favour of local objectors. Running a pub is always likely to upset someone somewhere in the vicinity, however well managed that pub. If that person knows they can wage war against the pub at the taxpayers' expense, there will be no end of mean-spirited anti-pub objections everywhere.

Worryingly, reports are circulating of some councils encouraging locals to object to a particular pub's application. Add this to the Bury magistrate's sentiments, and we can see why Greene King and others are right to be worried about local trends. The sooner we get a firm ruling from the High Court in Greene King's favour, the better.