New petition to curb pubco power
MPs table motion to benefit tenants
A new petition calling for action to curb pubco power for the benefit of tenants has been launched by two MPs.
As the MA revealed earlier this year, Liberal Democrats Tim Farron and Greg Mulholland have joined forces with the Freedom for Pubs Association (FFPA) to campaign against pubcos.
This week they tabled an Early Day Motion (EDM) calling for the Government to refer pubcos to the Competition Commission. The EDM number 1328 says pubcos have "failed to adopt the recommendations of the Trade & Industry Select Committee (TISC), namely that rents should be sustainable".
It calls for "utmost transparency in all rent and reviews" and an end to the gaming-machine tie and upward-only rent reviews.
Farron, MP for Westmorland and Lonsdale, said bankruptcies in the pub trade have increased seven-fold since 2006, and pubcos have "completely failed" to adopt the recommendations of TISC.
"It is high time the Competition Commission took a long hard look at the situation and began to redress the balance."
FFPA founder Mike Bell said: "The pub trade has been through world wars and full-blown recessions and yet today even excellent, well-run pubs are closing in unprecedented numbers.
"It is good to see that a handful of politicians are aware of the deep-rooted problems caused by the pub companies' abuse of corporate power and their financially unworkable tied/leased business model, and giving us all a chance to get the message across to Government."
