House of Commons Amendments

Session 2014 - 15
Internet Publications
Other Bills before Parliament

803

House of Commons

Notices of Amendments

given on

Friday 7 November 2014

For other Amendment(s) see the following page(s) of Supplement to Votes:

801-02

Consideration of Bill

Small Business, Enterprise and Employment Bill, As Amended

Greg Mulholland

Mr Adrian Bailey

Mr Brian Binley

Caroline Lucas

Peter Aldous

Tim Farron

Grahame M. Morris

Philip Davies

Mike Crockart

Paul Murphy

Mr John Leech

Martin Horwood

Mr Clive Betts

Andrew Bridgen

Mr David Ward

Paul Flynn

Andrew Percy

Dr Julian Huppert

Mrs Mary Glindon

Sir Nick Harvey

Fiona O’Donnell

NC2

To move the following Clause—


“Pubs code: market rent only option for large pub-owning businesses

(1)
The Pubs Code shall include a Market Rent Only Option to be provided by large

pub-owning businesses in respect of their tenants and leaseholders.

(2)
A Market Rent Only Option means the right of the tenant, or leaseholder, of a pub

owned by a large pub-owning business, to be offered such tenancy or lease in

exchange for an independently assessed market rent paid to the pub-owning

business and, for the avoidance of doubt, not thereafter being bound by “a tie”,

meaning an agreement meeting, in whole or in part, Condition D as defined in

section 63(5) of this Act (obligation to buy from the landlord, or from a person

nominated by the landlord, some or all of the alcohol to be sold at the premises).

(3)
For the purposes of this section, the definition of Condition D in subsection (2) is

to be interpreted to include an obligation to buy or contract for goods and services

other than alcohol.

(4)
For the purposes of this section, the definition of a “large pub-owning business”

is a business which, for a period of at least six months in the previous financial

year, was the landlord of—

(a)
500 or more pubs (of any description); and

Notices of Amendments:
804

, continued

(b)
one or more tenanted or leased pub.

(5)
The Pubs Code may include provisions to permit a brewery which qualifies as a

large pub-owning business to continue to require that specified brands produced

by that brewery (required products) are sold within its tenanted or leased pubs—

provided that such tenants and leaseholders are free to purchase such required

products from any supplier.

(6)
The Pubs Code shall contain provisions requiring that the offer of a Market Rent

Only Option to a tenant—

(a)
at the point of lease, tenancy contract or other agreement renewal, or at

rent review or five years from the date of the previous rent review;

(b)
when the large pub-owning business gives notice of, or imposes,

(whichever is the earlier) a significant increase in the price at which it

supplies products, goods or services (falling under subsections (2) or (3))

to the tenant;

(c)
when a large pub-owning business implements, or gives notice of, a

transfer of title;

(d)
when a large pub-owning business goes into administration; or

(e)
upon an event outside of the tenant’s control, and unpredicted at the time

of the previous rent review, that impacts significantly on the tenant’s

ability to trade.

(7)
The terms of an offer under subsection (5) shall include provision for a 21 day

period of negotiation, commencing from the tenant giving notice of an intention

to pursue a Market Rent Only Option, in which the large pub-owning business

and the tenant may seek to negotiate a mutually agreeable Market Rent Only

settlement.

(8)
Following the negotiation period under subsection (7) there shall follow a 90 day

period of assessment. In this period—

(a)
an independent assessor shall be appointed with the agreement of both

parties by joint private instruction and on the basis of an equal

apportionment of costs; and

(b)
under arrangements and criteria that the Adjudicator shall establish, such

an assessor shall be—

(i)
independent of both parties; and

(ii)
competent by virtue of qualification and/or experience.

(c)
if the business and tenant cannot agree on an appointee then a person

shall be appointed, on the application of either party, under arrangements

established by the Adjudicator;

(d)
the appointed assessor shall then assess the market rent for the property

operating as a pub with no “tie” as defined in subsection (2) and submit

to both parties the resulting sum for such a rent; and

(e)
at the time of the three month assessment period, the tenant shall have the

right to pay no more than the sum determined under paragraph (d) to the

pub-owning business and, if previously one party to a “tie” as defined in

subsection (2), shall no longer be bound by it.

(9)
The Pubs Code shall contain such measures as ensure that—

(a)
the Market Rent Only Option is conducted in accordance with timing

provisions and procedures, in accordance with RICS guidance, as

specified in the Pubs Code; and

(b)
large pub-owning businesses are prohibited from acting or discriminating

against any of their tenants who choose the Market Rent Only Option.

(10)
The Secretary of State shall confer on the Adjudicator functions and powers in

relation to the Market Rent Only Option, that include—

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805

, continued

(a)
determining what constitutes a significant increase in price, as mentioned

in subsection (6)(b) in the event of a dispute between tenant and business;

(b)
adjudicating in disputes concerning the process or outcome of the market

rent assessment; including the power to set the market rent if the

Adjudicator deems the process or decision to have been flawed; and

(c)
receiving, investigating and adjudicating in relation to complaints made

under subsection (9)(b).

(11)
The Secretary of State shall make provisions for the implementation of the

following measures in this section by regulations amending the Pubs Code. Such

regulations shall be made under negative resolution procedure. The Secretary of

State may make provisions changing the types of agreement that fall under

subsection (2) by regulations. Such regulations shall be made under negative

resolution procedure.”



© Parliamentary copyright	Revised 10 November 2014