Forum urges government not to miss its chance for a full public consultation into pub sector

2 December 2011

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The Forum of Private Business is calling for a full public consultation on changes to the new, self-policed pub industry framework code of practice, ahead of what could be the final chance to convince the Government its reforms do not go far enough to protect publicans from mistreatment by large pub companies.

The not-for-profit Forum has pushed for an industry-wide consultation on the framework code in a letter to the Business, Innovation and Skills (BIS) Committee, which recently saw ministers dismiss its recommendations for a statutory code of conduct overseeing a free of tie option based on an open market rent review, following last-minute lobbying from the pub company body the British Beer and Pub Association (BBPA).

On Tuesday, 6 December the Employment Minister Edward Davey will appear before the committee to explain the decision to allow even more self-regulation via a ‘strengthened' framework code of practice set to be made legally binding but which has been heavily criticised by the Forum and other bodies representing publicans.

It is the conclusion of the fourth select committee inquiry into the industry in seven years, all of which have all uncovered serious imbalances in the risks and rewards of becoming a publican. The previous two inquiries have been highly critical of the behaviour of pub companies. Yet, despite repeated failures, the Government is again allowing the industry to police itself.

The Forum believes that the consistent failure of pub industry self-regulation in the past means the only way to genuinely protect licensees is via ‘legislation of last resort' – a statutory code that upholds the principle that a tied tenant is no worse off than a free-of-tie one, provides new licensees with a non-tied option and gives tied tenants the right to a guest beer.

The new framework code does not seek to achieve this. The Forum is rejecting assertions that it has been agreed by the pub industry as a whole and believes a full public consultation would allow bodies directly representing publicans to have their say, and encourage the Government to listen to them.

In addition to the revised code, the Government has introduced a three-year reaccreditation process for individual company codes of practice and a pub company-funded conciliation service. The Forum is instead calling for a truly independent adjudicator to oversee the sector.

"Any suggestion that this industry-policed framework code of conduct has been agreed by the industry as a whole is completely wrong," said the Forum's senior policy advisor, Phil McCabe.
"Not even the Independent Pub Confederation (IPC) or the groups that comprise it, which represent more than 25,000 publicans, have had a seat at the negotiating table – despite repeated attempts.

"It is British publicans who are the most important people in this industry. Every day they shed blood, sweat and tears to try to make their businesses work, often in the face of serious, restrictive treatment at the hands of pub companies, and yet their voices have largely gone unheard.

"This is a travesty and the only way to rectify the situation is a full public consultation into the pub industry so they can clearly communicate their wishes to the Government.

"We are calling for a legally binding agreement that upholds the principle that a tied tenant should be no worse off than a free-of-tie one, a free-tie option for new licensees and the right to a guest beer for all tied tenants. There is no point in passing any code of conduct into law unless it is what publicans want and it affords them proper protection."

Other groups have also joined the Forum in condemning the Government's position. The Fair Pint action group said: "It seem incredible that in a dispute between parties only one is consulted.

"The last minute lobbying by the BBPA has ensured the truth is excluded from Government deliberation and yet again they have succeeded in hiding abuse and manipulation of the tied model behind a series of smoke and mirrors.

"Government were always reluctant to legislate, despite their manifesto promises, and have delivered what they had hoped would be a quick fix which delivers little of consequence.

"This could so easily have been resolved by the introduction of a free of tie option with an open market rent forcing tied agreements to be competitive instead of weapons of mass destruction."

Earlier in the week CAMRA were also critical of the Government's position. The group's Chief Executive, Mike Benner, said: "The Government has been cavalier in rejecting the recommendations of the Business Select Committee and instead putting its faith in the ability of the very companies accused of malpractice to finally put their house in order.

"The lack of any formal public consultation on this package of measures is truly remarkable and suggests a failure of Government to listen to all interested parties including the consumer.

The BIS committee's oral evidence session featuring the Employment Minister Edward Davey takes place on Tuesday, 6 December at 10.30am.

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