BIS: An Interview with Brigid Simmonds
Last-minute political lobbying by the British Beer & Pub Association brought a deal that has promised a ‘toughened’ self-regulatory regime.
This involves assurances that the Industry Framework Code will be legally binding, creating a new Pub Independent Conciliation and Arbitration Service (PICAS) and strengthening the framework code of practice.
And it has, inevitably, led to some strongly worded outbursts from those fighting the case against the major tenanted pubcos.
In the wake of the government's decision, the PMA spoke to Brigid Simmonds, chief executive of the BBPA, about what happens now with the new agreement.
How did the industry come to this agreement?
We have been talking to officials and to the minister for some weeks. It has been incredibly hard work and we initially produced a report on what the industry was prepared to offer. I worked with with a group of senior members.
One of the absolutely crucial things we had to offer him, with the advice we had from our QC, was that the framework code is legally binding. We are now going to ensure that the framework code will be in every new lease, and will be applied to all existing agreements.
I kept this extremely tight. Only a very few people knew of these discussions. Not even all of the members of the BBPA knew the details of these discussions.
Is this self-regulation due to the Government policy of not wanting to increase legislation for business?
I honestly am not sure I understood why people wanted legislation. Legislation is very inflexible you can’t change things easily. If you wanted to make a change to the framework code going forward, to strengthen it, you could do it tomorrow. If you have legislation it is an extremely long-winded and expensive process. Legislation to my mind would have increased costs for both the companies and for individual publicans.
Why did the BBPA and the pubcos not take this action before?
There was a lot of concentration on process. For example, why didn’t the BBPA get everyone through by the deadline. In fact, the big companies had their codes in on time and this is what this was all about.
In the last report, there seemed to be a blurring, which I think now has been very helpfully defined between the big companies that have FRI leases and between family brewers, who have brewery tenancies.
The big companies that have FRI leases, every single one of those had them in for accreditation before the June deadline. A lot of this is about behaviour, and behaviour is best tackled by having a proper complaints system which is going to be provided through PICAS. PIRRS only really copes with rent arguments.
PICAS will cover absolutely everything and it won’t matter what sort of tenant or lessee is involved. All will be able to complain against a company code. There will be the ability for fines to be levied against a company if they are found in breach. There will also be costs awarded against a pubco if that is where we get to.
PICAS is to be funded by BBPA. This raises concerns about how it remains independent?
The great thing about PIRRS and what will be true of PICAS, is that it is not just made up of BBPA companies it is made up of a whole range of people. It is not about the funding, it is about the people making the decisions and about whether the complaint is upheld.
PIRRS involves a range of people put forward by those who are the signatories to it — which includes the Association of Licensed Multiple Retailers — and PICAS will be the same. We have got recognition from everybody that they are interested in looking at PICAS and we are now involved in negotiations with BII, FLVA and ALMR.
FLVA and BII represent licensees and they are equal partners in this. We said we would get PICAS in place by the end of the year. It will then take us a couple of months to get the right people on to the panel to deal with the issues.
How are you planning to strengthen the Industry Framework Code (IFC)?
The essential thing about the IFC is it creates more transparency. We have looked at a range of issues that can be incorporated fairly, quickly and easily. Waiver policies, timetables for pre-entry training, timetables for providing information — we will say this is the sort of thing company codes must replicate.
We won’t set out what the timetable is in the framework code, but it will be clear that you have to do that. Then it will be things such as insurance and price-matching and clarity on how Amusement with Prizes (AWP) machine income will be distributed.
It will be clear you will have to give clarity to your would-be tenant on how they deal with AWP machines, timetables for complying with complaints, clear guidance on the need to take professional advice, clarity on dilapidations for FRI leases, timetables which have to be set for BDM training, and the publication of a wholesale price list.
And there will be a range of commercially sensitive issues — which we are committed to considering before the end of the year — including the AWP machine tie, the simplification of the rental negotiation process, the enhancement of PIRRS and a common format on P&L statements.
How will the BII accreditation scheme work?
Everyone will have to re-accredit their codes. The spot checks will be for the big pubs companies with the FRI leases, so not everyone will have to have a spot check — I would think that would be totally over the top.
If PICAS comes up with a whole range of complaints about one company then BIIBAS will have the right to say we have got all these complaints against this individual company and we are going to consider its accreditation.
BIIBAS will continue to monitor code compliance, accreditation and the spot checks. PICAS is only about complaints.
How strong will PICAS be as a panel?
We have seen how PIRRS works: you take a complaint to PIRRS about your rent and you get a decision and then the company has to abide by the decision. At the very minimum PICAS will act in the same way.
Exactly what sort of fines or retribution or costs will be up to the panel. There is more discussion to be had with BII and FLVA and these will accelerate.
