Mulholland: tenant survey 'misses the point'
Greg Mulholland MP, the chair of the All-Party Parliamentary Save the Pub Group, claims the new survey on pubco codes of practice "misses the point" and does not deal with the "fundamental issue" of tenant profitability.
The survey of 500 licensees — 440 existing businesses and 60 new entrants — was conducted on behalf of the British Beer & Pub Association (BBPA), Independent Pub Confederation (IPC), Federation of Licensed Victuallers Associations and BII.
It asked licensees about their views on the new pub industry codes of practice on tied agreements.
Mulholland has expressed concerns that some in the pub trade are presenting the survey as something it isn't and are suggesting that it shows that the fundamental issues identified in select committee reports have been dealt with.
He said the specific question asking tenants if they have been made aware of "free-of-tie arrangements", is factually wrong. He claims that none of the pubco codes offer a genuine free-of-tie option, with an open market rent review.
Key issues
Mulholland said: "Whilst this survey is of some use in assessing how the codes of practice have been implemented, it actually misses the point, which is whether the pubco tied model is fair to tenants and enables them to make a decent living or whether their pubco continues to take too much in rent and beer prices.
"Inevitably the pub companies are trying to suggest that this limited survey shows that all is now well in the pubco model, but the reality is that the survey hasn't addressed the key issues, precisely because the new codes of practice haven't done so.
"The fact of the matter is that the implementation of the codes of practices have not dealt with the key issue of tenant profitability and none of them include a genuine free-of-tie option, a guest beer right or a fair and transparent approach to rent.
"The Select Committee and the Government have laid out clear and explicit things that the codes of practice must include, to avoid the imposition of a statutory code of practice.
"Those things are what the pub companies will be judged on and nothing else.
"So whilst this survey may show that the pubcos are communicating better with their tenants, it doesn't change what they have been told they must do to finally make their business model a fair one and no amount of window dressing can cover that up".
