Pub Companies - Business, Innovation and Skills Committee Contents


Supplementary written evidence submitted by The Fair Pint Campaign

SUPPLEMENTARY EVIDENCE RELATING TO TENANT COMPLAINTS AND DISTRESS

INTRODUCTION

In the absence of a tenant representation body that has any credibility amongst tenants and whose remit is to effectively address tenants complaints. Fair Pint Campaign members have been fire fighting tenant problems, between running pubs and in many cases fulfilling the obligations of second jobs. We have been doing our best but have a number of hurdles in coordinating and presenting these problems for the committees consideration.

Sadly, many of these cases are in the early stages or are still active and very sensitive. The tenants have typically experienced "over muscular" approaches by the pubco or brewer and are extremely concerned about "raising their heads above the parapet".

1.0  SUMMARY

1.1  Fair Pint are extremely concerned with the increase in reports of intimidation and complaints in respect of pubco or brewer behaviour over the past 12 months.

1.2  We are receiving on average around five calls a day, both direct to Fair Pint steering group members, Simon Clarke, David Morgan (through his helpline) and Steve Corbett and our associates Dave Mountford and Chris Wright who are trying to assist tenants facing intimidation bullying and uncooperative responses from their pubcos.

1.3  For many these calls are too late and the damage is already done, reporting the pubco behaviour to the BII will not save their business, even if it were a justified code breach, which given the content of the codes is rare. As has repeatedly been submitted, the primary issues, which led to the inquiry, such as tenant profitability, due to over inflated rents and tied product prices, and intimidation and domineering are not covered in the codes.

1.4  Simon Clarke is seeking to assist where possible on the issues relating to accusations of buying out, based solely on Brulines data, rent reviews and lease renewals. Steve Corbett has the unenviable task of addressing the calls from severely distraught tenants with accounts of unfair treatment, an over muscular approach, breaches of codes of practice, threats of bankruptcy and many more.

1.5  Even the BII have been referring cases to Fair Pint in the knowledge that the codes are unable to adequately address the issues at stake.

1.6  Over the eight months 30 of the complaints have been about Enterprise, 25 about Punch, 18 others and seven about family brewers.

1.7  These figures have not shown up in the BII data for a number of reasons, some were in the complaint pipeline, other's because they have been resolved, most because the codes do not cover the tenant issues.

1.8  More has to be done to protect pubco lessees.

1.9  SUGGESTED RECOMMENDATIONS

1.  We ask the Government to act now to bring in a new statutory code and a code adjudicator. Pub companies have failed to take up the opportunity offered to them of one last chance of self regulation.

2.  The code should include a free of tie option, with open market rent, capable of third party referral if the parties cannot agree.

If the Committee require any further information or our presence to discuss the contents of this submission we would be pleased to assist.

Simon Clarke

Steve Corbett

For and on behalf of Fair Pint Campaign

18 August 2011



 
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Prepared 6 October 2011