IPC: voluntary change won't happen
The Government must intervene to make the pubco/tenant relationship fairer for tenants because real change won't happen voluntarily.
That was the message from members of the newly formed Independent Pub Confederation (IPC) to MPs in a stinging attack on pub companies.
Speaking at the Business, Innovation & Skills Committee hearing, IPC member and licensee Karl Harrison said there had been "little movement" by pubcos, with "heavy-handed evictions", breaches of their own codes and a "denial of problems" still occurring.
He highlighted a court case on 17 November where Punch's barrister said the company's code of practice is not binding
Harrison also said there "hasn't been a rush" to accept the principles of the Brooker case, where the judge called for a larger share of a pub's divisible balance for tenants.
IPC secretary Kate Nicholls said: "We haven't moved forward since 1989 [the Beer Orders]. We have no enforceable code of practice in this industry."
She pointed to the 100 cases of reported breaches of pubco codes of practice, but said in no instance were the companies asked to leave the BBPA.
The BII-led Pub Independent Rent Review Scheme, Nicholls said, "has potential" but is "limited" because it only deals with rents. Simon Clarke, IPC member and Enterprise lessee, questioned its impartiality because employees of Fleurets, which works with major pubcos, are members.
Clarke was also suspicious of how pubcos act when they offered free-of-tie options.
"Nine times out of 10 the opportunity to go free-of-tie is accompanied by rent increases that are determined by the landlord who is offering the opportunity." He said an open market rent review must accompany going free-of-tie.
Brulines came under criticism, with Harrison labelling the systems "inaccurate, possibly unlawful and used for intimidation." Clarke said tests at his pub showed it failed to record five out of 14 pints poured.
The group also disputed claims that the AWP tie benefits tenants, with Nicholls pointing to the recent Office of Fair Trading report on the tie that said it leaves tenants £3,000 worse off.
Nicholls summarised the views of the IPC members when she said change "isn't going to happen on a voluntary basis".
"The Government has to intervene to ensure there's a legal framework and competition issues need to be investigated."
