The government has launched the
Pubs Code, a new set of legislation in England and Wales which ensures fair and
lawful dealings between tied pub tenants and large pub companies.
Licensees that are tied to their
pub companies could only buy their supplies through the pub company; a practice
which has greatly harmed the pub sector; affecting pub prices and the
livelihood of hard-working licensees. The new guidelines allow licensees to
trigger a ‘Market Rent Only’ option (MRO); which will allow them to buy their
products on the open market rather than the pub company. This process can be
triggered during the tenant’s rent assessment (which must take place no more
than every five years); an increase in cost of their current supplies; or an
event which has an effect on the trading conditions of the pub. In addition to
this, a Pubs Code Adjudicator has been appointed by the government which pubs
tenants can apply to if disputes occur between licensees and their pub company.
This news is welcomed by CAMRA;
who have campaigned for many years to give tied licensees a fair deal. However,
the British Pub Confederation; which represents the majority of tied pub tenants;
has called for the Pubs Code Adjudicator to be replaced following a conflict of
interest. Paul Newby who took up the role in May has been cited as a shareholder
of Fleurets; a company that specialises in leasing Hotel, Pub and Leisure
properties.
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