24/11/2011

Raise Glass To Pub Reforms, Says Gov

Ministers have invited everyone to "raise their glass" as a range of reforms are announced to ensure a more sustainable future for Britain’s pubs, the Government claimed on Thursday.

The reforms will secure an industry commitment to end unfair practices through a "tough" and legally binding code, according to the Department for Business' response to the Select Committee’s Report on Pub Companies.

The department said that the reforms will introduce a much needed requirement for increased transparency, improved dispute resolution and legal certainty for licensees.

Consumer Minister Edward Davey said: "This is good news for everyone to raise their glass to. It gives the industry more certainty, which is vital to the success of Britain’s family brewers; and it gives pub-goers the knowledge that they are drinking a fairer pint down their local.

"The advantage of this self-regulatory approach is that it will deliver these reforms much more quickly than could be done through legislation. I would like to thank the Committee for its focused scrutiny on this issue, which has been essential in driving through necessary improvements. I am confident that the industry will lose no time in fulfilling the commitments it has made."

The key elements of this self-regulatory package are strengthening of the current Industry Framework Code, which will be made legally binding, the setting up of a Pub Independent Conciliation Advisory Service (PICAS) and a new Pubs Advisory Service to provide free advice to all prospective and current tenants and lessees.

The department said the code would ensure lessees have the information and professional advice they need to be able to negotiate fair rents with their landlords.

Paul Wells of the Independent Family Brewers of Britain said: "This is good news for smaller brewers because it lifts the recent cloud hanging over the brewery tie and the traditional tenancy agreements which we all operate. During this long enquiry successive Select Committees received no complaints about brewery tenancies and we believe that the current Code of Practice developed by the BBPA, BII and FLVA provides for the resolution of brewery and licensee issues in traditional tenancy agreements.

"In my view many family brewers will now increase investment into their pubs because of the support the Government has announced for the traditional brewery tenancy agreement and the beer tie."

The British Beer and Pub Association (BBPA) is expected to complete the legal processes as soon as possible, with a view to implementing their commitment by the end of 2011. It is expected that PICAS will be set up by the end of February 2012.

(DW)

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