Government faces new pubco-tenant showdown
In a political twist to the ongoing saga, Business, Innovation & Skills Committee (BISC) chairman Adrian Bailey won backing for his parliamentary motion last week calling for the establishment of an independent panel, approved by BISC, to monitor the self-regulation deal with the BBPA.
The motion also stated that only a statutory code of practice that includes a free-of-tie option with an open-market rent review and an independent adjudicator will resolve the contractual problems between the pub companies and their lessees.
The motion, carried by a unanimous vote, means the BBPA, pubcos and the Government will be put under increased pressure to prove the self-regulation approach is working.
In an exclusive interview with the PMA after the vote, Bailey said: “It was a good day for Parliament and it showed Parliament as a whole backed the BISC recommendations. It did not accept the current approach to introducing voluntary regulation and has insisted that an independent panel be set up to monitor its implementation, with the obvious implication that if it doesn’t deliver on what Parliament wants, further action will be taken to insist on a statutory code.
“The significant thing is the Government obviously didn’t want to pick a fight and Governments only do that if they think they are not going to win. I think the body of support indicated that.
“I worked with representatives on all sides of the house to agree a mutually-acceptable approach,” he said. “The great thing is there is more pressure on the Government and pubcos to show they are going to deliver. If they don’t, they know what is waiting for them. I will bring it before the BISC as soon as we have a picture emerging and we will be writing at a suitable time to ask the Government about the panel, membership and terms of reference.”
Despite the vote, the Department for Business, Innovation & Skills is not legally-bound to take action. A spokesman said: “At this stage the Government notes the outcome of the vote only.”
The BISC believes the Government has to act as this was a vote with overwhelming support from MPs and to ignore such a motion would leave the Government in a difficult position.
However, BBPA chief executive Brigid Simmonds expressed disappointment. “Further Government red tape for pubs risks choking off recovery — stifling growth and hitting jobs,” she said.
“If Parliament could concentrate on reducing beer taxation, it will help publicans far more than any calls for a statutory code.”
Bailey added: “I am gratified by the level of support but I have to give credit to publicans up and down the country who have been very good at communicating with their MPs to demonstrate the sheer scale of the problem.
“The Government has got some sort of timetable for implementation. We will follow that closely and welcome any information from publicans on how this is being implemented.”
Bailey was set to meet BISC to discuss the way forward following the vote.
