Pubco clarity scheme is strengthened

Major pubcos will lose their 'kitemark' status for the clarity of their lease codes of practice for more than 20 or 25 major breaches per year.

That's under the "strengthened" BIIBAS scheme, launched today. Having the BIIBAS stamp will be a condition of British Beer & Pub Association (BBPA) membership from the end of June — so losing the status could have serious repercussions on pubcos.

Under the scheme, the BIIBAS Benchmarking Committee will investigate alleged breaches and either dismiss them or categorise them as minor or major; major breaches would involve a material affect on the tenant's business.

The BII has spelt out how many unresolved major breaches would lead to a sanction and loss their BIIBAS status:

Pubcos with more than 2,000 pubs: 25 cases

1,001 - 2,000 pubs: 20

501 - 1,000 pubs: 15

251 - 500 pubs: 10

101 - 250 pubs: five

Pubcos can reapply for BIIBAS status but must include an "action plan" of planned changes. Operators could appeal the decision within 10 working days via the new Appeal Standards Committee.

In addition, the Benchmarking Committee has been restructured.

Pubcos are now re-submitting their new codes to be re-examined under BIIBAS since changes were made following the release of the BBPA's Framework Code of Practice last year.

The strengthened BIIBAS scheme is seen as an important response to the criticisms of pubcos in the Business & Enterprise Committee Report last summer.

Independent pub operator Johnny Johnston, who heads the Steering Committee, said: "I welcome the more robust terms of the BBPA Framework Code of Practice and look forward to the end of June when all BBPA pub companies will have a code which has been accredited and is subject to the rules and regulation of BIIBAS.

"This is a great opportunity for pub companies to set their stall out and to be accountable for abiding by their own terms and undertakings."

The cost of accreditation for the pubco varies on the size of the estate, from £1,000 (up to 100 pubs) to £7,500 (above 2,000 pubs). Re-accreditation where "substantial changes" have been made to codes costs from £250 to £750.

BIIBAS can also charge pubcos up to £1,000 for investigating alleged major breaches.