Statutory code: Committee ups pressure on Government to take action

Earlier this week BISC published a report urging the Government to bring forward a Bill on a statutory code at the “earliest opportunity” or risk an “ unacceptable failure”.

Speaking exclusively to the Publican’s Morning Advertiser, Bailey said the committee was concerned about the timing of any legislation.

He added: “We are concerned the Government could delay matters so it is not brought to the house in this Parliamentary session. Then in the next session it  might have an excuse that it can only prioritise urgent legislation, and then it will be left until the next Government. This will effectively be a way of kicking it into the long grass.

“We want to put down a marker that this is an issue that has had so much consultation that there really is no excuse for not moving on this quickly to implement things.

“This is an issue that this committee — and predecessor committees — have worked on for nearly 10 years and, despite foot-dragging, Government inertia and hostility, we are almost there. We do not want to see the fruits of all our labours over the years go, or be quietly sidelined. We want to see this happen and that is why we are upping the ante.”

Positive developments​

In the report the committee came out firmly in support of a range of options for the legislation. It said it agrees the code should have a mandatory free-of-tie option. However, it issued a note of caution, claiming “clarity on how this will be enshrined in law is necessary”.

The report also called for “flexibility” in the proposed statutory code for pubcos, so it could be applied to smaller tenanted pub operators at a later date. Currently the Government proposal covers firms with more than 500 non-managed pubs.

The BISC called for this current threshold to apply to only tenanted and leased operators, and not their free-of-tie counterparts.

It said the enforceability and legal status of the company codes of practice has remained unresolved.

The report praised the work of the Pubs Independent Conciliation and Arbitration Service, and the Pubs Independent Rent Review Scheme as “positive developments” and urged the Government to ensure they are retained in the new statutory framework.  

Response from the industry was swift.

British Beer & Pub Association (BBPA) chief executive Brigid Simmonds said: “Its [BISC’s] proposal for flexibility to amend the threshold would create uncertainty for smaller companies and could be detrimental to future investment.  

“There is a concern from the industry that diluting the buying power of companies by forcing a free-of-tie option will make many more pubs unviable.

“It is clear the select committee is struggling to find solutions to some of the issues it raises, which are not easy to resolve.”

The Campaign for Real Ale chief executive Mike Benner said: “With some large pub companies focused on selling off assets and maximising short-term returns we look forward to the Government bringing forward a Bill this autumn to protect the future of pubs.”