BISC chair warns pubcos to accept statutory code or face 'big bang approach'
Business, Innovation & Skills Committee (BISC) chairman Adrian Bailey told last week’s Tenanted Pub Company Summit that the Government is showing “great faith” in the tenanted pub industry to reform without introducing a mandatory free-of-tie option, which he favours.
He described the Government’s approach as “evolution” because it assumes that the statutory code will encourage over time the better treatment of tenants.
“I have to say I think the Government is showing a great faith in the industry to do that,” said the Labour MP, who has been a vocal critic of parts of the tenanted sector. “I cannot help but fear that they may be coming to address these issues at some time in the future.
“If it succeeds then there’s going to be a reduction in the balance of reward for the pub company. On the other hand, if the level of reward to the pub company is sustained at the current level… then I can see the same problem being sustained.”
Bailey said he’s “not convinced” that the evolutionary approach will be successful.
Evolution not revolution
“We need to make it work if it does go through in its present form. The options are between, on the one hand, an evolutionary approach, or on the other hand, a big bang approach that will involve a mandatory free of tie option.
“I think there’s a very real need for a change in culture within the industry to try to work together to ensure the mechanisms outlined in this legislation do work.”
Bailey rejected the idea that he’s instinctively in favour of legislation in the sector.
“I don’t think any politician wanted it to come before Parliament, to introduce legislation. It was the desire of the select committee report in 2004 that the industry should sort itself out. It’s only the failure of the industry to do this that has resulted in legislation coming forward.”
He concluded: “I really do want to see this issue put to bed. I vehemently hope that the legislative proposals that have been put forward will resolve the problem.”
