The British Beer and Pub Association (BBPA) has revealed it is ‘deeply disappointed’ with a recent report from the Business, Innovation and Skills Committee (BISC).
The report looked into the ‘deep-seated’ problems between tenants and pub companies. It concluded that these problems have not been sufficiently addressed by the pubcos and that the BISC had now lost patients with them.
This was the fourth Select Committee Report in the past seven years. It claimed that the BBPA have been ‘impotent’ to impose any sanctions on code of practice breaches, and that its implementation of codes of practice had been ‘half-hearted’.
“We are deeply disappointed with this report,” said BBPA chief executive Brigid Simmonds. “We believe we have demonstrated to the Select Committee that significant progress has been made by BBPA member companies which operate tied tenancies and leases, and we reject the Committee’s calls for a costly statutory code
“This would pile more costs onto pubs and lead to more closures – something we hope Ministers will consider carefully when they come to look at these recommendations.
Economic pressure
Simmonds went on to point out how the BBPA has in fact supported the leased and tenanted sector throughout the economic crisis.
“BBPA members have invested some £265m into supporting the leased and tenanted sector over the last year at a time of unprecedented economic pressure.
“It is a combination of the smoking ban, economic recession and the 35 per cent increase in beer taxation which the industry has endured since March 2008 which are the real reasons why pubs are closing.
“We look forward to discussing with Government how this is progressing before they respond to the Select Committee Report.”
However, Adrian Bailey, the MP heading the pubco investigation, has subsequently said he can't think why the Government wouldn't support a statutory code governing the pubco/tenant relationship, and predicted legislation could in fact be introduced within one year.