Industry given 23 November deadline to prove self-regulation deal on pubco-tenant relationship is working
That was the announcement from minister Jo Swinson who was questioned on the issue in the House of Commons yesterday.
She assured the house that Secretary of State Vince Cable has written to all the organisations involved in the deal and will make a decision based on their responses.
Last year, the Government failed to implement the Business Innovation and Skills Committee recommendation of a statutory code, instead saying the current industry framework code will be strengthened and made legally binding. It also agreed that a Pubs Independent Conciliation and Arbitration Service and Pubs Advisory Service would be launched.
Swinson said any action taken would be “evidence based” but confirmed that she expected further discussions would be required with the industry.
She said: “The Secretary of State has written to the industry asking for evidence on how the self-regulatory approach announced last November is working and we will make our decision after considering the response from the industry.”
Swinson was questioned on whether she would support an independent review of the self-regulation deal.
Andrew Gwynne, Labour MP for Denton & Reddish and a shadow health minister, said: “On 12 January this House supported unanimously that the Government commission a review into the self-regulation of the pub industry to be conducted by an independent body by the Autumn of this year. It is now November, there’s no action. Why does the minister hold the decision of this House of commons in such contempt.”
While, shadow small business minister Toby Perkins said the Government response in November last year had been “too weak”.
“Why doesn’t she (Swinson) just listen to the view of this House, the view of the industry and set up the independent review of whether the self-regulation deal is working. Let's save some jobs and some pubs before it is too late.”
However, Swinson refused to be commit to an independent review but said she is “listening” and said the Government is “open-minded”.
This is a marked U-turn by the Government as last month it refused the Publican’s Morning Advertiser an interview with Swinson claiming that all the commitments in the agreement “have now been achieved”.
During the debate Swinson added that there has been “some positive signs” such as the setting up of the Pubs Independent Conciliation and Arbitration Service. She also stated that a Pubs Advisory Service (PAS) had been set up - despite the Federation of Licensed Victuallers Associations and the BII still working to introduce it. In May, some trade experts set up their own Pubs Advisory Service. They did not consult the trade organisations involved in the self-regulation agreement and it was thought there was likely to be confusion.
Swinson added that the figures show that three-quarters of new pub openings are freeholds. She added: " I think that says a lot about the business models and how people who are looking to set up pubs feel about it.”
