Statutory code: Greg Mulholland seeks meeting with George Osborne over consultation delay
The Department for Business, Innovation & Skills (BIS) confirmed to the Publican’s Morning Advertiser that the consultation on the plans has been delayed as it is “still working on it”.
BIS had been expected to release the consultation by last Friday (5 April).
However, the department refused to be drawn on speculation that the delay was due to the intervention of the Chancellor, who is concerned about the level of red tape it will heap on the trade.
Liberal Democrat MP Mulholland told the PMA that the Chancellor needs to decide whether he proposes to support small pub businesses or prop up ‘zombie companies’.
He said: “This issue is a BIS issue and the secretary of state, Vince Cable stuck to the clear commitment made on behalf of the Coalition Government to step in and introduce a statutory code if pubco self regulation failed, which it self evidently had. That now must happen.
“It seems as though the Chancellor has spent a bit much too much time recently with the pubco lobby organisation, the British Beer & Pub Association (BBPA) who continue to defend the endemic overcharging by their pubco members which has been disastrous for thousands of pubs and for the UK economy.
"Far from being anything to do with red tape, as the BBPA ludicrously suggest, reform would simply ensure that licensees were no longer being ripped off, which would free them to succeed and continue to contribute to the economy and to growth.
“The Save the Pub Group will be seeking an urgent meeting with the Chancellor, to explain this issue to ensure he understands the choice the Coalition government have.
“What is most odd here is that the much-needed reform package, of a market rent option and adjudicator, was suggested by the BIS select committee when ably led by the highly respected Conservative MP Peter Luff, and this has the support of many Conservative MPs who know from their own local licensees how the pubcos operate.”
The Independent Pub Confederation’s campaign manager and secretary Simon Clarke was happy the issue had been highlighted to other publicans and the public, but added: “However, it is a bad thing as it looks like this has become political.”
He is also concerned that the code may be diluted if there is intervention from the Chancellor.
British Beer & Pub Association chief executive Brigid Simmonds said: “If there has been any delay, we are not aware of this, or any alleged reasons for it.
“It is vital for our members that the tied-house model works well for both partners, and we are therefore fully prepared for the model to be tested as part of any Government consultation.”
Emily Ryans, CAMRA's campaigns manager said: "CAMRA warmly welcomed the Government's commitment in January to introduce a statutory code of practice for licensees tied to large pub companies, with a fair dealing provision and a new industry watchdog. These reforms are urgently needed to rebalance the relationship between large pub companies and their licensees.
"We call on the business secretary to press ahead with the planned consultation as soon as possible, before yet more valued pubs are forced to close their doors for good."
