Pubs code review considered for early 2019
The pubs code has been criticised as containing loopholes that leave larger pub chains able to pressure tied tenants into poorer terms, most recently by Rachel Reeves, chair of the BEIS committee.
Harrington said the timetable set by parliament requires the review to cover a period from the July 2016 introduction of the code to 31 March 2019, in response to Reeves's claim.
However, he said: “I note the committee's suggestion that the review should begin at the start of 2019 and I will take that into consideration when finalising the timetable for the review, consistent with the legislative requirements.”
Need for transparency
He said progress on the issues of confidentiality waivers, information gathering and legal challenges – identified by the pubs code adjudicator (PCA) in a June evidence session – would be looked at.
Pubcos outlined the conditions they would accept waiving confidentiality on the publication of arbitration decisions through a British Beer & Pub Association letter to Harrington last month.
“I am grateful to the British Beer & Pub Association and the pub-owning businesses for accepting the need for transparency about arbitration decisions and welcome their agreement in principle for this to happen,” added Harrington.
The PCA will maintain a dialogue with tenant representatives, the minister said.
He added: “I am optimistic that real headway can be made in publishing arbitrations and pulling out the key messages from them and I have made it clear to the pub-owning businesses that I expect to see progress in this area.”
Evidence of activities
Harrington continued: “Should that not occur we will, of course, look at this matter again to understand what those barriers are before committing to further action.”
The minister will speak to the PCA to “better understand the practicability of the proposed framework”.
The letter also addressed unfair business practices as referenced in the Small Business Enterprise and Employment Act 2015.
Harrington said section 71A of the act allows the PCA to recommendations about unfair practices designed to avoid, rather than directly breach, the pubs code.
He said: “It is for the PCA to consider whether he has sufficient evidence of activities amounting to unfair business practices and then to report these to the secretary of state.”
