Focus: PICAS and PIRRS publish annual reports

PICA-Service​

PICAS is designed to provide tied tenants and lessees, whose pubcos or breweries and bound by the Industry Framework Code of Practice, with a low-cost formal dispute resolution system.

The number of enquiries made to PICAS over the reporting period (1 March 2014 – 28 February 2015), fell from 63 the previous year to 47 – a 25% decrease.

The service dealt with 11 cases classed as ‘progressed’ – meaning PICAS sent a letter of notification to the landlord company that it was the tenant’s intention to utilise the service in order to resolve the dispute.

Of those 11, three were completed by panel hearing — two cases concerned Punch and one case concerned Marston’s — five were mutually resolved, two are stalled due to tenant inactivity and one case remains active and is due to be heard in the current reporting year.

The report states that the number of applications being concluded by mediation resulting in the complaint being withdrawn supports the notion from previous reports “that parties are using PICAS proactively to resolve disputes”. Almost half of all application received during the year were settled by the mutual resolution of the issue or through external mediation.

A number of procedural amendments have been put in place, including making it mandatory for all parties to be present on the day of panel hearings, and that recordings, or transcripts of recordings, are inadmissible as evidence for the purposes of bringing a grievance.

The board also looked at transparency and the appropriateness of current level of confidentiality. It was agreed an annual statement will be published in the future with the aim of providing “a benchmark” on common breaches.

PIRRS​

PIRRS offers an accessible, low-cost rent review resolution service to the trade.

The number of applications received during the reporting period (1 April 2014 – 31 March 2015) was 22, compared to 30 the previous year.

In total 21 cases were completed over the period by PIRRS — a record number — 18 of which rolled over from the previous year, as well as three new cases. A further eight cases remain ongoing.

For future developments, the PIRRS website is set to be revamped, allowing tenants to submit an application online and track it. Where tenants are not able to pay their PIRRS fees, which range from £1,000-£2,000, the landlord company is invited to pay these but is under no obligation to do so.

Comment​

Peter Luff, chair of the Pub Governing Body​

"The publication of the annual reports points to another promising year for both the PICA-Service and PIRRS. We have seen greater use of the services available for licensees and it is encouraging to see increased engagement with PIRRS and PICA-Service.

Both represent easy, accessible and cost-effective options for dispute resolution with a proven track-record for swift action. We remind licensees that these services exist for them and encourage businesses to take this route rather than investing in costly and time-consuming legal representation.

Not only do PIRRS and PICA-Service settle cases, but they also actively encourage mediation and dispute resolution among both parties. We are constantly exploring methods to improve both schemes and we remain committed to ensuring they remain responsive, practical and economical.

PICA-Service and PIRRS are great assets to the sector providing transparency alongside effective, tangible results. We hope pubs and bars continue to engage with us to ensure they remain as robust and vital as ever."

Download the reports below​