BIS: Mulholland calls for legal advice clarification

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The All-Party Parliamentary Save the Pub Group has written to Business Innovation and Skills (BIS) minister, Ed Davey, asking for more details on where the department sought legal advice on the implementation of the Industry Framework Code (IFC).

Last month, the Government failed to introduce the recommendation of the BIS Committee for a Statutory Code of Practice to manage the pubco/tenant relationship. BIS set out details of a strengthened industry code to improve the relationship between pub companies and their licensees.

The British Beer & Pub Association (BBPA) said the measures were “the result of constructive dialogue between the BBPA, the BIS, industry partners and campaign groups”. The strengthened IFC is due to be published by the BBPA later today.

However, following the publication of the Government response concerns were raised about the departments decision to accept the legal advice of the BBPA rather than seeking its own independent advice.

Minister Ed Davey was scrutinised on this decision in a two hour grilling by the BISC earlier this month. He said his legal advisors scrutinised the legal evidence provided by the BBPA before a decision was taken.

In the letter chair of the Save the Pub Group, MP Greg Mulholland said: "There is clearly a serious problem here. Not only have the BIS not sought independent legal advice on this matter, but they have, in fact, taken at face value the legal advice from the BBPA, who represent the pubcos that were criticised in the Select Committee Report."

Mulholland added: “This is more evidence of how ministers have been sold a pup. They have well and truly been out manoeuvred by the BBPA and the pubcos and will soon have to face the fact that their so called solution does nothing to address the issues currently faced in the pub sector, indeed the awful reality is that it actually makes the situation worse for tenants and lessees, the very people the Government claim to be trying to help .

“It is truly shocking, indeed negligent, that BIS failed to get proper legal advice and instead simply swallowed what the BBPA told them."