Statutory code: Consultation receives 'remarkable' 6,000 responses

Cable was pressed on the proposals by MPs in Parliament last Thursday (13 June), the day before the consultation on the plans closed.

Salisbury MP John Glen highlighted two Enterprise Inns publicans in his constituency, Peter and Sara Strawson of the White Horse in Quidhampton, and said the pub company “signed them up to a lease on a false prospectus and then, with a combined wet and dry rent footing, made their business completely uneconomic and unsustainable”.

Cable said: “I think we all have such examples of publicans in our constituencies and it was that kind of experience that led to the select committee producing four reports on the subject. It also led to our seeking a voluntary code.

“In view of the lack of progress, we recommended a statutory code, on which we are now consulting. We have had about 6,000 replies, which is a remarkable response. I cannot yet assess the conclusions, but [Glen’s] example is fairly typical of many.”

He later added: “I cannot pre-judge the outcome of the consultation and we have not yet studied the responses. The Government’s overriding objective is to achieve fair treatment for publicans in respect of rent and beer prices. I think that the mechanism that we have proposed will survive scrutiny.”

Labour’s shadow business minister Toby Perkins asked if the Government’s aim was to provide a fairer distribution of risk and reward between the pubco and tenants.

“It is an objective of our regulation to achieve a fair distribution of risk and reward. As I have said, the precise mechanism and whether we proceed with the adjudicator in the way that we have suggested very much depend on how we analyse the consultation,” Cable responded.