Pubco code details set to be revealed
Further details of the British Beer and Pub Association's Pub Industry Framework Code of Practice are due to be published this week.
The code, agreed with the Federation of Licensed Victuallers Associations and the BII, will attempt to breathe greater transparency into the relationship between pubcos and tenants (Pubcos set out 'fundamental reform' plans).
The code is now mandatory for all BBPA members and member companies will have until 30 June 2010 to incorporate the new code in their own code of practice and seek BII accreditation.
The full details of the code were due to be published in December prior to the Business, Skills and Innovation Committee hearing but will now be published this week.
In an opinion piece in the Times, BBPA chief executive Brigid Simmonds, said: "I am pleased that this week, after months of discussion, the British Beer & Pub Association, the Federation of Licensed Victuallers Associations and the BII, the industry standards body, are to publish far-reaching changes to improve significantly the operation of tied agreements.
"The Pub Industry Framework Code of Practice, to be implemented over the coming months, will increase the information made available by pub companies to prospective lessees and tenants.
"It will also ensure that would-be publicans have the knowledge and the professional advice they need and that those who purchase assigned leases from outgoing licensees will receive the same level of information available to those taking on a pub directly with pub companies."
Simmonds also defended the beer tie. "So why is the tie so important? The most important reason is the ability of local or regional brewers to sell British beers.
"If the tie did not exist, many breweries would close. Yet less understood is that the support offered by the pub company or brewery, particularly in the present economic climate, is keeping many pubs in business. This level of support is unique to the pub sector.
"Pubs are an essential part of the British national character and, with more than 50 closing every week, it has never been more important for all parts of the industry to unite.
"I hope that the changes we are making this week to improve the operation of the tie will help to ensure that we can."
Critics of the BBPA's new code have criticised it as "window dressing" and claim it does not go far enough.
• Read the full article in the Times: Pub tenants and lessees should raise a glass to new code
