It's time to rock the boat

The future looks dark for pubs — unless the trade combines to decide how to tackle the forces ranged against it, says Phil Dixon

The 12 March 2008 — a date that will live in infamy. The licensed retail sector was suddenly and deliberately attacked by the full force of Her Majesty's Government.

It was obvious that the attack was deliberately planned many days or even weeks before, though Government sought to deceive the sector by statements and expressions of support for a number of initiatives.

Hostilities exist. There is no blinking at the fact that our people, our pubs and our interests are in grave danger. I have to conclude that following the unprovoked and dastardly attack by the Treasury on Wednesday 12 March 2008 a state of war has existed between the Government of Great Britain and all that we believe in (in the words of Franklin D Roosevelt after Pearl Harbour).

When I recently suggested that all the trade organisations should unite to form a single lobbying body I have to confess that I did not anticipate the sheer brutality of the policy that Mr Darling was to unleash upon us. It is clearly time for a rethink on our polite: "What more can we do you for, minister? Let's keep a low profile, this is not the time to rock the boat."

This approach has failed. The boat needs torpedoing. Am I suggesting closing down the Portman Group and the Drinkaware Trust, and affiliating to the French Farmers' Union? Perhaps, but first and foremost there is a need to establish an all-embracing group to determine a clear strategy of how to respond to this determined and calculated assault.

So, after the smoking ban, credit crunch, and the worst summer since Noah felt rain in the air, the duty rise will be for many the extinguishing of any possible light in the dark tunnel of despair. Apparently there have been more keys (from licensees) handed in recently than at a 1983 wife-swapping convention. Will life become any easier for licensees? Can you be over 25 with a full set of teeth and live in Dewsbury?

Many are asking did the great and good of brewing and pubcos not see this downturn in trade coming? Of course they did, but it is not in their psyche to, publically at least, be perceived as purveyors of doom.

An interesting irony is that in previous recessions one avenue for a desperate tenant/lessee was always a spree of buying outside the tie as a quick-fix lifeline. The imposition of flowmeters has closed that opportunity. Am I suggesting that pubcos are ensuring a greater number of business failures by rigidly enforcing the tie? The answer is certainly yes!

One aspect of pubcos and breweries that I am personally pleased about is the improvements many have made in their new codes of practice, some of which have already been accredited by the BII.

When the odd BII fundamentalist member snipes about the relationship with the pubcos I suggest they look at the case of the Eagle Ale House in Battersea. Legally the rent could only go up but, as per their code of practice, Enterprise (credit to them) did not enforce that provision. The result was a 12% reduction — £6,380 less per year on what I presume is a five-year rent cycle. The company also paid them back £9,000 after backdating the rent to the due date.

I was recently asked whether it was me who persuaded the company to adopt this policy around a decade ago. Well "persuade" would be an exaggeration — I recall Enterprise's Peter Grieve CMBII saying they are about setting a fair rent, not hiding behind upwards-only clauses.

I am also delighted that the rest of the industry appears to be following their example of a "cooling off" period, although this recently resulted in a potentially embarrassing moment for me. I was lecturing to new Marston's licensees highlighting their code and complimenting the company on its new three-month cooling-off clause.

A hand went up and a gentleman asked me to explain in more detail. I explained the principle behind the provision, and he proceeded to elaborate that he had only been in the pub for a few days, but was not enjoying it. I advised him to put this in writing and go across the yard, and hand it to the lovely Meryl (MD Stephen Oliver's PA) but added "Could you give me five minutes first?"

"Stephen, I think I have just emptied one of your pubs." I sheepishly explained the details while observing out of the corner of my eye the soon-to-be-ex-licensee making his way into the reception area. Stephen smiled thoughtfully, paused and simply said: "That's what it is there for."

Marston's and other companies' codes of practice (Punch's is a charter) can be found via their websites.