One breach since codes of practice updated

Just one minor breach by a pubco of its code of practice with tenants has taken place since the codes were updated, according to the BII.

Punch committed a "minor breach on a technicality", according to BIIBAS, the BII arm that accredits and scrutinises the codes. However, two major and two minor breaches of the previous codes have also taken place by pubcos, the BII has said.

The BII has today revealed the levels of complaints against alleged breaches of the new pubco codes, which have been updated over the past year on the request of MPs on the Business, Innovation and Skills Committee.

The BII said Punch's breach "concerned the following of BIIBAS processes for updating codes".

"BIIBAS agreed that the changes made by Punch Taverns improved the transparency of their agreement but should have been notified to BIIBAS prior to their implementation. BIIBAS are satisfied no licensee has been disadvantaged materially by this."

The two major and two minor breaches of the old codes related to topics such as information given at the start of an agreement, rent reviews, discretionary financial support and termination.

BIIBAS declined to reveal details but said 86% of cases have been resolved.

Complaints​

Overall, in the period after October 2010, BIIBAS received 20 "serious" complaints about codes of practice breaches from a "variety of different sized companies".

Of the 20 cases, four related to old codes of practice, and six that were recorded as "no breach". Nine cases are on-going.

The BII also revealed that British Beer & Pub Association (BBPA) members Harveys, Camerons, Gray & Sons, Holden's and Felinfoel have yet to submit their codes of practice, despite the deadline of summer 2010.

In total, 82.1% of BBPA member companies have recevied accrediation for their updated codes.

The BII said BIIBAS "has seen an increase in the number of enquiries from licensees who feel that they are not receiving the level of service expected by the codes".

Mediations​

Meanwhile, the BII said its Business Support Helpline received 195 calls in 2010 — the majority of which related to rent.

The BII has also undertaken a number of informal mediations this year, which have proved very successful, the group said. "Mediation not only saves time and the expense of going to court, but is proven to be a better way to maintain or establish an ongoing business relationship," it revealed.

The BII is due to launch its new mediation service to members in the coming weeks.