Pubs minister to act on restrictive covenants

Community pubs minister Bob Neill has given the clearest indication yet that the Government will let councils ban the sale of pubs with restrictive covenants.

Local authorities such as Newcastle upon Tyne have requested powers under the 2007 Sustainable Communities Act to ban the controversial covenants, which force change of use when pubs are sold.

Speaking at the Association of Licensed Multiple Retailers Christmas Luncheon, Neill said: "A number of local councils have raised the issue of restrictive covenants that are sometimes placed on pubs on disposal, and are looking at proposals under the Sustainable Communities Act to see if that can be freed up to some degree, and we are prepared to take that forward."

Last year the Business and Enterprise Committee said the use of covenants on pub sales should be banned, and the Office of Fair Trading has said they "could in certain circumstances restrict competition in a particular area".

Punch and Enterprise have vowed not to use them, although some regional brewers still stand by them.

Below cost​

Elsewhere, Neill said the Government is "determined to press ahead with a workable system" for banning below cost alcohol sales and would make it easier to host live music.

The Government will also "encourage a lot more community finance initiatives" to help local people buy their pub.

He highlighted the Government's "willingness to move" on its licensing reform proposals, saying: "We don't want to get to the stage where we impose restrictions that are onerous on the trade."

And the minister added: "The fact that there is a community pubs minister I hope will be taken by all of you in the trade to be an indication that the Government does take the trade, does take the sector, seriously."

Unity​

Earlier. ALMR chairman Tim Sykes sounded a rallying call for unity in the trade.

"We need to work harder on common issues that effect us all, and in particular we need to have unity on some major issues. One such issue, of course, is licensing."

He pointed out the success of operator-led lobbying on licensing reform so far, with the appeals process and the requirement to have proper evidence set to remain in the new Bill.

"But there's a long way to go and there are many concerns that we need to address."

Sykes added: "What I would not like to see as part of this regulation is that the police are the kind of people who you don't talk to. That would be a hugely retrograde step."

He called on the industry to "get rid of the bad apples by ourselves".

"If there are some rogue outlets, lets sought that out ourselves. If there are rogue customers then lets deal with that.

"In Australia if you get in trouble and drink too much you are in the slammer for the night and have to pay a lot of money to get out. What's wrong with that?"

He also called on the trade to "work on excellence and innovation in retailing" and to improve the image of the industry.