ALMR: pubcos willing to change

Many of the issues with the tie can be resolved without the interference of the competition authorities, says the ALMR.

Many of the issues with the tie can be resolved without the interference of the competition authorities — that's the view of the Association of Licensed Multiple Retailers (ALMR).

The trade body welcomed some aspects of the report, particularly the challenge to pubcos to offer a choice of free-of-tie leases and the need for greater transparency in rent calculations.

The ALMR, itself, recently proposed implementing major changes to the pubco model to ensure a "fair distribution of the economic benefit between the landlord and the lessee".

It called for a set of set of new conditions to address the balance to be drawn up and inserted into leases — failure to do so would see the ALMR call for a an official investigation into the pubco model.

However, it feels problems can be addressed without reference to the Competition Commission. "The ALMR has seen evidence that the national pubcos are now willing to come to the table to discuss the very important issues of rent calculation models and dispute resolution," said ALMR chief executive Nick Bish.

"We believe this is achievable and would be a pragmatic solution to the current impasse.

"The Committee's report presents the industry with a unique opportunity to reform those relationships for the benefit of all our industry — and the ALMR urges all sides to grasp it with both hands."

Bish said the report reflected the fact that the tied model had been "insufficiently flexible to adapt quickly to the macro-economic downturn".