FLVA defends position on pub mediation

The Federation Licensed Victuallers Associations has defended its decision to back the British Beer and Pub Association's (BBPA) moves to compel pubcos to offer a better deal for tenants rather than give full support to more wide-ranging reform.

FLVA chief Tony Payne said it was important to "bank the benefits" of the BBPA's proposal, which compels members to a series of measures by 1 January 2010.

These include greater transparency over beer prices and rents, removing AWP income from divisible balance and establishing standards of competence for business development managers.

The FLVA has not signed up to be a member of the new Independent Pub Confederation (IPC), which urges more radical action such as an end to the AWP tie from all long leases and an offering all licensees the option to go free-of-tie.

However, Payne stressed that he does support some of the IPC's proposals.

Payne said: "The FLVA always made their intention known that it was important to bank the benefits that are available, not only to our members but to all licensees in the trade.

"The new BBPA code of practice will ensure that for prospective licensees coming to the trade and those due for rent review will be provided with full transparent information on how the proposed rent was arrived at.

"Those working relationships will not stop the FLVA pursuing other avenues in the interests of members. Failure to come to an agreement could have delayed full implementation of what's available."

The two sides emerged after the end of mediation talks last week.