FSB slams pubcos over TISC progress

Trade body calls on MPs to review help for hosts

The Federation of Small Businesses (FSB) has accused pubcos of dragging their feet on the recommendations of the Trade & Industry Select Committee (TISC) on pubco power.

The trade body, whose complaints led to the setting-up of the inquiry, has claimed it is concerned about the lack of progress on rent and lease transparency, the information available for incoming tenants - and, in particular, the fruit-machine tie.

Progress reviewIt is now planning to write to MP Peter Luff, the new TISC chairman, to urge a review of progress.

Spokesman Stephen Alambritis said: "We have been very sorely disappointed by the reaction of the pubcos. Things like an end to upward-only rent review clauses and transparency on information could easily be put in place.

"Members have claimed that the reaction from pubcos has been a botch-up and not properly followed up. One area we're going to look at closely is the fruit-machine tie."

The pubco inquiry published its report in December 2004 and the British Beer & Pub Association published a code of practice on leases a year later.

Accountant Brian Jacobs, who gave evidence to the inquiry, called the code "vague" and "heralding a dark day for tenants".

He claims it "avoids transparency and supports disingenuous profit assessments and rent computations... to the detriment of the tenant and consumer".

SurveyBut major pub companies

surveyed by the MA have insisted that they have made a number of moves to fall in line with the TISC recommendations.

However, all the major pubcos have set their faces against ending the fruit-machine tie.

Greene King Pub Partners managing director David Elliott said: "We are committed to

managing machines to the best commercial basis on behalf of Greene King and the tenant."

For more on this story and to see the results of the TISC survey see this week's Morning Advertiser.