APPENDIX 21
Memorandum by Linda Newport and Michael
Parker, Brasenose Arms (Cropredy)
It is with great interest to learn that after
such a long time the Government has decided to investigate the
situation between the large Pubcos and the hard working tenants/lessees.
1. We have an Enterprise Inns lease, which
we renewed last year in February for a new 21year FRI lease. The
property is a Grade II listed which Enterprise brought in 1994.
Over the last eight years, Enterprise have not invested any funds
in the up keep and maintenance of the property. When we brought
the place in January 2001, we refurbished and repaired the building
to the value of £20K. We have since invested £100K in
converting the derelict barn to the rear of the property into
Bed and Breakfast accommodation. Our current rent is now £24,000
per annum. This is on a turnover last year of £206K per annum.
The rent percentage averaging out at 12%. I attach copies of last
years Sage Budget Report for our accounts, together with this
year to date budget report,[33]
with this year showing that the rent against turnover is up 17.62%.
2. We would also like to drawn your attention
to the Beer Tie problems facing many licensees. Many of us do
not mind being tied to our pubco for purchasing our beer, however,
what we do not like is the fact that averaging out the price on
Keg beer alone, we are paying up to 39.4% more for the beer than
we could purchase from elsewhere. I enclose copies of our latest
Enterprise beer invoices, and copies of beer prices from small
independent suppliers. How is it that small companies like these
can supply beer at such a lot less and still make money, whilst
the big pubco, with all there buying power charge so much more.
3. From Enterprise we purchased £61,957.00
in beer and FAB's last year. If you work out the extra cost to
us at 39.4% that equals £2,4411.00 per annum extra money
we could earn. As it is, we work approximately 13-14 hours per
day, seven days a week, and earn £400.00 between us each
week
4. It can be seen from the evidence we have
provided, that whilst the two of us earn £20,800.00 per annum,
Enterprise is earning £24,000 in rent together with up to
£24,411 per annum on beer supplies.
5. Last year, Enterprise also increased
the cellar maintenance charge from £17.42 per month to £44.17
per month, and we still do not now what this increase in cost
covers, as we have never been sent any information concerning
the maintenance contracts, despite having asked on numerous occasions
for this information.
6. This all appears to be one sided. Whilst
we knew when we purchased a public house that it incurred many
hours of hard work and dedication, we expected to earn a living
working as many hours. We have now decided that after all our
hard work, and all the money invested, the rewards have not been
worthwhile. Others are earning more from our hard work, than we
are. We will be selling the business, hopefully, as a going concern
within the next six months, and we will probably be in debt when
we leave.
7. We trust that the Government will investigate
this matter completely, as many rural pubs and business will go
bankrupt and close and the country will lose an essential part
of the community.
8. We look forward to seeing an equitable
outcome to this situation, where both the pubcos and the lessees
can make a decent living, and everything is based on a more open
and even playing ground than it is at present.
Linda Newport BSc(Hons) and
Michael Parker
Directors
11 May 2004
33 Not printed. Back
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