Supplementary memorandum submitted by
Phil Liddell
I don't feel I am qualified to comment on the
RICS recommendations, not having read the report, however, their
apparent re-alignment of their guidelines for rent calculations
based on divisible profits and their interpretation of FMT is
a step in the right direction. I feel that David Wakefield is
far better qualified than myself to assess these changes, and
puts forward many valid points which I thoroughly agree with.
Your second point, the BBPA's agreement with
the BII and FLVA is a total white elephant—there is no substance
to it, there is no meat on the bones. A voluntary agreement is
useless—the likes of Punch Taverns and Enterprise Inns have
ridden roughshod over similar codes of practice instigated by
the BII, and their breaking of such have only warranted a slap
on the wrists. The major Pub Companies will not voluntarily adhere
to any practice that might erode their profits and give a fairer
share to their tenants. They have demonstrated this in their attitude
of contempt at the findings of the TISC Report and the latest
BEC Report. Unless codes of practice are clearly defined, are
agreeable between all the major players—tenants included,
are mandatory and legally binding, the Pub Cos will continue to
treat tenants unfairly. Don't forget the BBPA membership primarily
consists of Pub Co employees and interested parties, and is funded
by the Pub Cos. They have their paymasters' interest solely at
heart. It's noticeable that the bodies who represent the tenants
such as the FSB, Unite and Fair Pint, have not signed up to the
BBPA allegiance.
An Independent rent review scheme funded by
the bodies involved rather than independent tenants would be the
way forward, with a blueprint for formulating rents, with variables
set according to location, economic climate, footfall, and trading
area.
The formation of the IPC is the only good news
to come out of the breakdown of the mediation process. It is a
true alliance, and one with a spectrum of interested parties.
To have so many diverse bodies agreeing in principal to a basic
manifesto, highlights the pub companies self interested views.
There has certainly been no change of stance
from my Pub Company Admiral, since the publication of the BEC
Report. They still refuse to allow me to source my own Buildings
Insurance, they refuse to supply me with a copy or a schedule
of the policy (if it exists), and they certainly refuse to provide
financial help to their "business partner" in such a
grave economic climate. This is despite irrefutable evidence presented
to them that their rent and tied product charges are too high.
Copies of my correspondence are available on request.
Admiral's most recent proclamation on their
website also makes a mockery of intentions to change—voluntary
codes cut no ice with these ruthless operators:
"We're pleased to announce the successful
completion of a financial restructuring which provides a stable
foundation for the future.
This move marks an end to recent speculation
about Admiral Taverns' future and places us on a firm footing.
There will be no impact on the day-to-day operations of the Group;
business will continue as usual and the current management team
will remain in position.
Our main concern throughout these negotiations
has been to minimise disruption to our staff, partners and suppliers
and we are happy to say that we have achieved this."
Landlords, tenants, suppliers and contractors
should also be unaffected, and will continue to do business with
is as they have previously.
This recent intervention of Lloyds Bank to bail
out Admiral Taverns to the tune of £650 million, having
previously written off debts of £450 million in June
this year, makes a mockery of the OFT's non-intervention in the
super complaint brought about by CAMRA on the basis that the "tied
model" is robust—ie that no major Pub Companies are
in financial difficulties. Intervention is required immediately,
and policies instigated without delay, if the tenanted pub sector
is to survive. It won't survive in the hand of the Pub Companies,
though they will simply re-form, leaving thousands of individual
tenants and lessees bankrupt, homeless with savings and pensions
decimated.
19 November 2009
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