Mulholland: pubcos set to fail 'probation'

By Ewan Turney

- Last updated on GMT

Related tags Common law Law

Mulholland (L) with CAMRA's Jonathan Mail: time for Government backed industry regulation
Mulholland (L) with CAMRA's Jonathan Mail: time for Government backed industry regulation
Pubco probation is at an end and they must now face a legally binding code of practice to rebalance the tenant-pubco relationship for good — that's...

Pubco probation is at an end and they must now face a legally binding code of practice to rebalance the tenant-pubco relationship for good — that's the broadside fired by MP Greg Mulholland as the countdown to the deadline for reform edges closer.

The outspoken pubco critic believes the pubcos have failed to meet the criteria set by the Business, Innovation & Skills Committee (BISC) because they haven't offered a genuine free-of-tie option, accompanied by an open-market rent review and a provision for licensees to offer a guest beer outside the tie.

The BISC set a deadline of June 2011 for reform — and the Publican's Morning Advertiser​ (PMA) understands that an announcement on the next committee review date is due shortly.

"At the moment, the pubcos still seem unable or perhaps unwilling to do what has been specifically asked of them," said the Lib Dem MP. "As Business Secretary Vince Cable has said, the pubcos remain on 'probation'.

"That probation is soon to come to an end. If, at that time, the pubcos are not doing what they have been told they must — and at the moment they are not doing so — the Government must stick to its own promise and at last introduce a legally binding code of practice that rebalances the tenant-pubco relationship for good."

Campaign for Real Ale director of public affairs Jonathan Mail said the precedent for a sector-related statutory code had been set in the estate agency field. "It is not a radical plan — it is the next logical step in this long running dispute."

Psycho-analysed

Industry expert Phil Dixon, who oversees the BII code of practice accreditation scheme, said: "The pubcos have a problem in that there is no genuine free-of-tie option — that is a fact.

"I would suggest anyone who signs the free-of-tie options out there needs to be psycho-analysed."

Dixon added that the guest beer range had "never been so good" and the issue was not the tie, but the prices. "I would say that Greg is a bit premature on judging the voluntary codes. Most have only been in place for six months.

"There has been progress, but it's whether MPs feel it is sufficient."

Relationship building

BBPA chief executive Brigid Simmonds said an independent survey, conducted by CGA, on licensees' views on the codes of practice would reveal more. It is set to be unveiled on 18 May.

"Relationship building is not a quick fix. It takes time to embed and pubcos have spent a lot of effort and money doing so."

She added that a free-of-tie option was not included in its framework code of practice because of the differing effects that would have on its members, ranging from family brewers to the large pubcos.

BII chief executive Neil Robertson said he believed the industry could be "pleased" with what has been achieved so far. "It's a proper piece of self regulation at an industry level. There is more to do, and BII will be reviewing progress at the end of June."

• Read Greg Mulholland's full comment article: Time is running out for pubcos to reform

Related topics Legislation

Property of the week

Follow us

Pub Trade Guides

View more