Further supplementary evidence from Nigel
I have just listened to the first phase of the
inquiry and I noticed that they were asking for comments.
One question by one of the Committee was evidence
of hardship, the Welfare Section of the Licensed Trade Charity
would be delighted to give you details on the increase of people
in trouble that they have and that is only a small section.
Reasons for people to go to Pub Co's, they believe
the Web Sites, publicity, agents selling the leases and the Pub
Co's selling their own repossessed leases, with hindsight they
cannot believe that they were so gullible and the fact that these
are big National Companies and they sign because their Business
Plan has been accepted, this is the clincher. I and a Solicitor
colleague have never heard of a business plan being queried or
rejected in five years.
The constant reference to comparables in terms
of rent assessment, this would be fine if the base rental was
correct in terms of viability, but by constant use and misuse
the comparables have enabled there to be very upward spiral, since
every lessee that capitulates under threat raise the level further.