Select Committee on Trade and Industry Written Evidence


Annex

Table 1

PUNCH (VOLUME OF PUB ESTATE)

Punch/Pubmaster7,400
Innspired1,066
Total8,456


  Approximately 70% of the estate is on the new leases (similar to Enterprise) ie 6,000 pubs with similar average density (1.25 gaming machine per pub totalling 7,500 machine).

  Nomination payment or Royalty of £11.00 per week for each sited gaming machine this is less than Enterprise but Punch take a greater share of the net box income per week (50% as opposed to 35% at Enterprise).


  Notes to above:

PUNCH RENT LIST

Gaming machines are banded by age approximately 15 weeks duration in each band


Band
1
£63.98
2
£58.03
3
£52.01
4
£45.99
5
£39.97
6
£34.02
7
£28.00


  The average rent per week is spread across seven bands and is £46.00

Table 2

ENTERPRISE (VOLUME OF PUB ESTATE)


Enterprise
5,050
Unique
4,043
Total
9,093


  Approximately 70% of the estate is on the new leases ie 6,500 pubs with an average density of 1.25 gaming machine per pub totalling 8000 machine).

  Nomination payment or Royalty of £22.50 per week for each sited gaming machine Enterprise take 50% of the net box income


  Notes to above:

ENTERPRISE RENT LIST

Gaming machine are banded by age approximately 8 weeks duration in each band


Band
1
£73.15
2
£69.93
3
£65.87
4
£59.99
5
£58.17
6
£55.72
7
£52.85
8
£47.74
10
*£29.75
11
*£25.00


  *Few suppliers would operate in bands 9 to 11 as after the Royalty payment to Enterprise of £22.50 these rents would not be commercial . Hence the average rent per week is spread across rent bands 1 to 8 .This gives an average rent of approximately £60.00.

Table 3

NORMAL FREE MARKET CONDITIONS



  Therefore total tenants share per week is £90.08 . . . this means the tenant is better off by at least £45.00 per week by not signing a new lease and keeping their machine income.

STATEMENT OF FACT

  The tenant only has one pub so losing half their machine income to Punch or Enterprise affects their business greatly whereas Punch and Enterprise with 8,000 pubs each are making profit out of the tenants labours for just owning the premises and restricting who they may deal with.



  This will give the tenant the right to choose who supplies their business with machines and the freedom to change supplier if their expectations are not met. In the current situation Punch/Enterprise dictate who is able to supply them with machines.The above £20.00 per week per machine nomination payment proposal could be classed as a fee to Punch/Enterprise for each gaming machine on their estate.





 
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