Campaigner: tie is being abused
The pubco model, run correctly, can be mutually beneficial but in its current state it is an utter and ignominious failure — that was the view expressed by tenant rights campaigner Inez Ward at the pub summit meeting in Paignton, Devon.
Ward, who faces eviction from her Enterprise leased Mavericks pub in Newquay, told the assembled audience at the Justice for Licensees conference it was time for change.
"While many have no problems with the tie per say, they do have a problem with the unfairness of the tie," she said. "The position of the tie has been abused. The pubcos have alleged that there are benefits to the tie, cheaper rents being one of them.
"Also that it is a cheaper entry route and while initially this may be the case, in too many instances the exit cost both financially and emotionally are far greater.
"They are not passing on the huge buying power they have as a company."
Ward, the brains behind the Pubco Protest in January, warned that the trade must unite in order to help itself.
Chartered surveyor David Morgan gave delegates a talk on how to get a fair deal at rent review time. He offered some praise for Enterprise Inns for disregarding existing upward only rent clauses, unlike some others. However, he said: "Rent reviews should always be open and transparent with full explanation as to how the pubco or brewery calculated the rent.
"But very rarely does such openness exist, which is the start of any form of adversarial contact as the lessee often has no comprehension as to why or how the rent has been calculated."
Fair Pint steering group member Steve Corbett said the Business and Enterprise Committee report had given hope to all licensees.
"The recommendations of the select committee will help licensees to believe that parliament may be starting to understand the problems in the sector.
"Whilst we are not yet in sight of an end to the problems caused by the pubco business model, there is certainly light at the end of the tunnel. We may be at the end of the beginning of this campaign."
Seasoned trade campaigner and Swindon UKIP candidate Bob Feal-Martinez warned that licensees must not waste the opportunity to come together and present a united voice to Government.
He also stressed that the big two pubcos were not the only problem facing the industry. "We have to acknowledge that there are other major areas of concern, which we all must embrace together as an industry. These include, licensing inconsistencies, the smoking ban, Sky, and a host of other issues."
