A new and inexpensive form of lessee-friendly rent adjudication is set to be discussed by the BII next week.
The scheme, which could revolutionise relations be-tween licensee and landlord, is called the Independent Expert Determination Service. Pioneered by former BII chief executive John McNamara, the service will allow licensees to use an independent rent expert for around £1,000 and obtain quick and binding results. Most major pubcos are broadly in favour of the scheme. Their costs would be nearer £2,000.
The present system of arbitration or expert witness is too expensive and uncertain for most licensees to use. No more than 20-odd cases of arbitration are heard each year.
Following months of discussions with pubcos and licensee representatives, the BII's Council meets next Thursday to ratify the scheme and decide exactly how it will be run.
BII chief executive Neil Robertson told Morning Advertiser: "We believe this is a very important initiative, and it's a win-win for licensees and pubcos.
"But we're a charity and our council may decide it is not part of our core business, in which case BII will seek alternative ways the scheme can be administered.
"I recently wrote to the Business & Enterprise Committee, which is examining the role of pubcos, and I suggested that our scheme would be a way to help resolve disputes in the trade.
"I said that the scheme would cost about £100,000 a year to administer and that the Government might consider providing that funding as a way of supporting our industry."
The BII estimates that there are potentially about 7,000 rent reviews a year.
It believes perhaps 350 of them might make use of the new service.