Pubcos: a good first step but more to do
A start has been made, but there is still "much more" that needs to be done by the industry to put the relationship between pubcos and tenants on a better footing, according to Independent Pub Confederation (IPC) secretary Kate Nicholls.
The comments came as the results of a survey of 500 licensees commissioned on behalf of the British Beer & Pub Association (BBPA), IPC, Federation of Licensed Victuallers Associations and BII (British Institute of Innkeeping) were unveiled last week.
It showed that communication about companies' codes of practice had improved dramatically, as 76% of existing businesses said they were aware of them and, of these, 89% had received a copy of the code. Of new entrants 92% were aware of the codes.
But, licensees were unsure of where to turn in a dispute with their pubco.
More than three-quarters (87% of existing businesses and 84% of new businesses) were subject to rent reviews, but 56% claimed they were not aware of the BII's Pubs Independent Rent Review Scheme (PIRRS).
Three-quarters of existing businesses were aware of their business support, but 43% of them were not aware of the official procedures for code disputes and 56% did not know where to go if they could not resolve a dispute.
Nicholls said: "The results show that work has started in putting the relationship be-tween lessees and their landlords on a better footing, but they also show just how much more needs to be done.
"It is great news that more prospective lessees are being provided with the crucial information they need on which to base a serious financial and business decision, and that the industry and individual codes of practice are being disseminated.
"There is no reason at all why those figures should not be at 100% and the IPC will continue to work towards this objective."
Making a difference
BII chief Neil Robertson said: "The most important thing is that the code of practice is being understood. There is a lesson for us and we will look at improving our marketing on PIRRS."
The progress was welcomed by BBPA chief Brigid Simmonds. "The new codes of practice have been the right approach and are making a difference for licensees. Awareness of the code is already very high among licensees, and rent is being clearly explained to tenants." But she admitted: "There is no room for complacency."
The survey also revealed that 16% of tenants had been offered a "free-of-tie" agreement. However, Liberal Democrat campaigner Greg Mulholland MP, the chair of the All-Party Parliamentary Save the Pub Group, came out in protest claiming the research was flawed and did not deal with tenant profitability.
He claims that none of the pubco codes offer a genuine free-of-tie option, with an open-market rent review.
Mulholland said the survey misses the point, "which is whether the tied model is fair to tenants and enables them to make a decent living, or whether their pubco continues to take too much in rent and beer prices."
