Is Newby conflicted? Key points about the new pubs code adjudicator

Greg Mulholland MP, British Pub Confederation:

• Newby’s background as a director of Fleurets working as a chartered surveyor acting for pubcos will result in a lack of confidence from tenants
• When disputes are brought to Newby, if he had acted for either party in the past it could affect his ability to be impartial and constitute a conflict of interest
• An “overwhelming” majority of Pubs Advisory Service members reject his appointment
• Newby estimated 20% to 23% of turnover at Fleurets came from large pubcos, which campaigners say shows how important they are to the business
• Newby is receiving loan repayments from Fleurets, which gives him vested interests in a company that works for pubcos and creates a conflict of interests
• The Confederation is refusing to meet with Newby and is also considering a judicial review of his appointment

Pubs Code Adjudicator, Paul Newby:

• “I have an all-round view of the pub market. I genuinely believe I have seen it from all angles. I felt that was part of the reason to apply for the job, because of my experience.”
• Of 67 activities he was working on when he left Fleurets, six involved big pub companies and seven involved tenants
• A conflict of interest policy will be established to avoid any problems; having previously worked for either side would be likely to constitute a conflict
• Received support from the Association of Licensed Multiple Retailers and the British Institute of Innkeeping
• Newby supplied Fleurets with a loan in a long-term agreement, which was set up before he applied for the role as PCA — he claims this would not affect his role
• Keen to meet all groups and stakeholders “to hear what they have to say”

What they’ve said:

Greg Mulholland, chair of the British Pub Confederation:​

He clearly has a conflict of interest, and it is clearly a disqualifying conflict of interest. Fleurets is the largest surveying practice operating in the very sector that the pubs code is being introduced to regulate.​

How can he be trusted to be independent given his salary for the past twenty years has been dependent on the companies he must now adjudicate?​

How can have tenants have confidence in this appointment, why has a chartered surveyor been appointed instead of someone from a legal background?​

PCA Paul Newby:​

Perception of conflict of interest is something I need to address. With regards to fairness - I’m not sitting in some all-powerful role. It’s paramount that fairness and transparency goes through the whole thing.​

I’m so keen to meet all the stake holders because I want to hear what they have to say. If there are unfair practices I want to know.​

I’ve thrown my previous hat away and have a new hat with new responsibilities.​

There has undoubtedly been a dysfunctional relationship that has left us where we are now, an imbalance, and the pubs code is here to address that.​

Mr door is always open to all stakeholders. It’s time to get on with it, I’m quite happy to be judged on my record.​

Si Clarke, secretary of BPC and chartered surveyor:​

Rightly or wrongly, the glaring answer for dissatisfied tied tenants will be that the adjudicator has favoured his former employers, the pubcos. For a dissatisfied pubco, they will be suspicious that Mr Newby has leaned too far the tenants way to try and preserve the illusion of independence.​

BII licensee of the year Keith Marsden, Prince of Wales pub in Mosley, Birmingham:​

This is a great appointment for the industry. Paul is somebody with the right sort of experience, he’s a man of fantastic integrity who will be both feared and respected by the pubcos, he has a very good and even-handed view and pubcos and publicans should be pleased.​