Pubco bosses face grilling by MPs
The bosses of Britain's two biggest pubcos, Punch Taverns and Enterprise Inns, will be grilled by MPs on how they treat their tenants today.
Punch chief executive Giles Thorley and Enterprise boss Ted Tuppen will both give evidence at the second session of the Business & Enterprise Committee inquiry into pubco power this morning.
The pair will be set for some tough questioning following a strong first showing from the anti-beer tie brigade at the opening session.
In the first session, the Fair Pint campaign group told MPs the pubco model was "outdated" and that the beer tie must be broken.
Association of Licensed Multiple Retailers (ALMR) chief executive Nick Bish, British Beer and Pub Association (BBPA) chief executive Rob Hayward and BII boss John McNamara will also give evidence today.
Here us our guide to the main players at today's session:
Rob Hayward, chief executive, BBPA: Hayward is likely to face questioning on who he actually represents — ie the pubcos or the tenants — as well as questions on pub closures. The BBPA has so far maintained that more freehouses than tied pubs are shutting and this claim is likely to come under scrutiny by MPs.
John McNamara, chief executive, BII: McNamara will be grilled by MPs over the BII's accreditation scheme for lease codes of practice. Hopefully, evidence will be forthcoming on how many breaches of the codes there have been and how these have been dealt with. MPs may also wish to explore how a BII run expert rent referral scheme at a set cost may work in practice.
Nick Bish, chief executive, ALMR: More than a few of Bish's members have complained about high rents over the past year. Many have pubco leases and some have laid the blame for their current struggles at the door of high rents. But on the other hand, Bish has members who are making the system work for them.
Giles Thorley, chief executive, Punch Taverns & regional director Giles Kendall: The boss of Britain's biggest pubco will no doubt be expecting a tough line of questioning and no doubt he will be prepared. Likely to face questions over a range of topics from BDMs to rent calculations to upward only clauses, the AWP tie and tenant support. His performance will probably go a long way to determining the outcome of the inquiry.
Ted Tuppen, chief executive, Enterprise Inns, & chief operating officer Simon Townsend: The pair will face similar questions as Punch but Tuppen is also likely to come under fire from MPs over comments he made following the announcement of the inquiry. The pair will probably start on the back foot as a result but will seek to show how the pubco model offers a low cost entry to the trade and demonstrate examples of its successful tenants as well as the progress made since the 2004 Trade and Industry Select Committee inquiry.
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Pubco Inquiry: first session
