Pubcos face new Beer Orders
The Government will issue a new set of Beer Orders forcing pubcos to offer free of tie leases and a guest beer option within 15 months if the industry fails to do so voluntarily.
That's the astonishing news from new pubs minister John Healey as he gave his full backing to the Business, Innovation and Skills Committee report, which set a June 2011 deadline for reform ('Pubcos have until June 2011 to change').
Healey unveiled a 12-point plan to help pubs backed by £4m of Government cash but all attention will focus on the Government threat for statutory reform of the pubco model.
The news is a massive victory for anti-beer tie campaigners Fair Pint and the Campaign for Real Ale (CAMRA).
The minister wants the industry's code to go further to include offering a free of tie option and a guest beer right for those who are tied. He also wants all Brulines equipment to be officially calibrated.
"We will endorse the one year deadline (from when the code starts) for the industry to show it is complying with its own Code, making clear that Government will monitor progress for one year and intervene to regulate the market by putting the Code on a statutory basis backed by an industry enforcer if the industry fails to deliver," said Healey.
"We will also make clear that Government will monitor progress for one year and intervene to introduce a non-tie option and legislate for a Beer Order to allow guest beers if these flexibilities are not introduced," he said.
Brulines
It is understood, the Government will consult with the industry on how the guest beer and free of tie option will work but CAMRA will push for the exclusion of family brewers as they have under 1% of market share.
On Brulines, Healey said: "We will push for the industry to regularise equipment which measures beer flow (Brulines).
"Government will make clear our view that the industry should voluntarily ensure that all such measuring equipment is calibrated by the National Weights and Measurement Laboratory with the backstop that failure to do so will result in Government prescribing the equipment to ensure fairness."
Inspired
Fair Pint's Steve Corbett said: "The Government's call for action to give tied tenants the option to go free of tie is a total vindication of Fair Pint's arguments that the operation of tied leases is one of the main causes of the problems being faced buy the pub sector.
"The days of the pubco business model are now clearly numbered. There is now an appetite for intervention which crosses all the main parties."
Campaign for Real Ale chief executive Mike Benner hailed the plans as "inspired". He said: "These plans have the potential to totally transform the UK pubs market leading to a freer, more competitive market where consumers will benefit from greater choice, improved amenity and lower prices.
"It is essential that the industry responds swiftly to reform the beer tie through a free of tie option for tenants and a guest beer. The rewards will be a much more vibrant and sustainable pub market."
Meanwhile, the British Beer and Pub Association, speaking on behalf of the pubcos, said it was "determined" to prove its new industry code would work.
Other measures in the package include:
• The Government has committed £1m to Pub is the Hub scheme to employ seven full-time advisors
• £3.3m towards a three-year pilot programme of 50 community owned pubs through the Plunkett Foundation
• Independent study of the pubs sector and skills plan for pubs sector to establish ownership and management patterns, reporting to Government by end of 2010
• Allow pubs with a capacity of less than 100 to host live music without a licence provision by issuing a legislative reform order to amend the Licensing Act
• Working with the Regional Development Agencies to promote the benefits of community pubs
• Review of the duty on skill with prizes machines to report by July 2010
• Streamlining planning to allow pubs to add shops and other facilities without planning permission
• Allow local authorities to refuse planning permission if people's day to day needs are not safeguarded
• Demolition of pubs to be controlled to allow community intervention
• Ministry of Justice will consult on the removal of restrictive covenants
Tough measures
Healey added: "This package of tough, practical measures aims to put some real support behind our community pubs, giving publicans more support to diversify and punters more choice. We need and can do more to support our pubs which can be at the heart of a local community
"Today's measures are a much needed shot in the arm for publicans in these tough times. They will make it easier to diversify, lower costs and cut red tape when it comes to branching out. It is also a boost for local communities, giving them a greater stake in the future of their local pubs often so important in bringing people together."
All the reaction
• Opinion: pressure on pubcos has intensified dramatically
• Fair Pint: pubco model days are numbered
• BBPA 'determined' to make code work
• Family brewers concerned over Healey beer tie proposals
• CAMRA to forge ahead with beer tie super-complaint
• GMB: pubco-tenant relationship is 'Dickensian'
• Mulholland: game is up for pubcos
• Unite & Justice for Licensees welcome 'new dawn'
• Pub is the Hub to roll out nationally
