BISC: Enterprise Inns believes code already addresses MPs concerns

21-Sep-2011 - Last updated on 22-Sep-2011 at 07:37 GMT

Enterprise Inns: code already good enough

Enterprise Inns says its code of practice covering its relationship with tenants already addresses the concerns of MPs, and has warned that a statutory code would add prove a burden for the industry.

The tenanted and lease pub company has issued a statement in response to the Business, Innovation & Skills Committee (BISC) report, which said self regulation has not worked and called for a statutory code, overseen by a code adjudicator “armed with a full suite of sanctions”.

Enterprise said: “The Enterprise Inns code of practice already addresses the main issues highlighted in the BISC report on pub companies, and our evidence clearly demonstrates its effectiveness.

“Since the publication of the latest version of the code of practice in October last year, it has been signed by all new publicans and acknowledged by 97% of all existing agreement holders.”

Enterprise said its code “already imposes rigorous pre-entry training and business planning requirements”, such as “enhanced disclosure and due diligence”, and ensures all rental assessments comply Royal Institution of Chartered Surveyors guidelines.

“We already require, and pay for, all business plans to be prepared and approved by an independent, qualified trade accountant, and will continue to develop proposals to make additional formal business advice a pre-requisite of an agreement with Enterprise.

“Over the last few years we have introduced new lease and tenancy agreements with substantially increased discounts and even more flexible options for licensees to choose from. These include free-of-tie options for locally produced cask ales, bottled beers and ciders, wines, spirits and minerals and gaming machines in all of our agreements. Where the business case has been compelling for both parties, we have agreed completely free-of-tie terms.”

It added: “We share widespread concerns that a statutory code of practice will add to the cost and administrative burden for all industry participants, leading to further impacts upon consumers who have already been faced with a 35% increase in beer duty since 2009.

“However we will continue to engage with Government as it consults with the industry on an appropriate framework for efficient and equitable regulation.”