Punch's new lease deals are a step in the right direction

Some will doubtless view Punch's new lease agreements and renewed appeal for entrepreneurial types to run its pubs as a complete waste of time.

Never mind Roger Whiteside's desire to "lay bare" the risk/reward nature of Punch's relationship with its 'partners'; for some the fact that its new lease deals perpetuate the tied pub model will be enough to want to file them in the shredder.

Others see it as the only way forward for the pubco which, according to one experienced industry observer I spoke to last week, should slash the size of its estate to 3,000, never mind Whiteside's goal of 5,000 pubs.

Laden with debt, Punch's critics regard it as the corporate equivalent of a dead man walking. Yet it is still with us, and cannot avoid improving relations with its licensee, a point Whiteside acknowledges.

One can argue it wants to be seen to offer a new deal because it has been dragged kicking and screaming onto a more virtuous path by angry MPs, rather than because it believes there is a 'better way'. Or simply no other alternative.

However you look at it, Whiteside had to implement change, even if it does not go far enough for some. And in setting out a pricing structure which he believes will be the envy of every other operator in the industry Whiteside is also setting out Punch's stall as the best pubco that anyone could wish to deal with.

In coming up with its new leases Punch has acknowledged it must arrive at a better deal for its licensees. Hamstrung by massive debts it can't afford to give out much more in the way of rent concessions, hence the price incentives. Meanwhile more disposals should ease its debt pressures, though even this isn't guaranteed.

The new deals are possibly the only route the group can take, though whether its licensees feel the same way remains to be seen.

Whiteside's proposals are a step in the right direction ­ albeit on a road many would rather not travel.