Written evidence from the British Beer
& Pub Association |
The British Beer and Pub Association (BBPA) welcomes
this opportunity to comment on the Government's response to the
Select Committee's Report into Pub Companies.
The industry has learned much during the operation
of the Framework Code over the last 18 months and has taken note
of the criticisms made by the Select Committee. We have welcomed
the help and guidance provided by BIS officials to ensure that
the improvements we have identified can be delivered effectively
The BBPA has worked with lawyers to ensure that the
Industry Framework Code is legally binding on all our members
with tied estates. All new lease or tenancy agreements will reference
the Framework Code. For existing agreements the same legal status
will be conferred by way of a supplementary agreement.
The Government has identified the difference between
short tenancies operated mainly by Family owned breweries and
longer Fully Repairing and Insuring leases (FRI). In particular
the BBPA welcomes the Government's support for the principle of
the Tie. We continue to believe that the Tie provides a low cost
entry into running your own business which is unique and in the
vast majority of cases works well.
The BBPA will work with its existing partners (BII
and FLVA) to enhance the Framework Code to create more transparency
and provide new clauses which will mainly apply to these FRI leases.
We have looked at a range of issues to tackle which can be incorporated
quickly and work has already started.
Waiver Policies: certainty on timetables for the
provision of pre-entry training; timetable for providing information;
insurance and price matching; clarity on how AWP machine income
is distributed; timetables for complying with complaints; clearer
guidance on the need to take professional advice; further clarity
on dilapidations; commitment to BDM training or exemption under
a quantified waiver scheme; and the publication of a wholesale
There are a number of other commercially sensitive
issues which we are committed to consider before the end of the
year including the AWP tie; improvements to the rental negotiation
process; the enhancement of PIRRS and a consistent approach on
shadow P & L statements.
The larger members of the BBPA with FRI leases will
be committing to an annual statement of compliance and the accreditation
body will have the ability to conduct spot checks on code compliance.
PIRRS already offers a low cost arbitration service
for rent disputes. The new PICAS (Pub Independent Conciliation
and Arbitration Service) will offer formal arbitration on any
other complaint against the code and company practices. The cost
will be minimal and there will an ability for costs and compensation
to be awarded to the successful complainant if a company is found
in breach. We are working to establish PICAS by the end of the
year and to have appropriate professionals willing to act as independent
arbitrators or mediators in place by the end of February 2012.
The BII is to establish a new Pub Advisory Service
to be funded by corporate members of the BII.
We hope that the Select Committee will acknowledge
the significant additional progress the industry has made and
continues to make in both addressing the concerns raised in their
Report and meeting the Government's challenging commitment to
ensure a self-regulatory framework delivers a more transparent
and effective pub sector.
As ever, the BBPA would be very happy to meet with
the Select Committee to discuss any of the above.
Brigid Simmonds OBE
and signed by the following members of the BBPA:
Chief Executive Officer
Daniel Thwaites plc
Hook Norton Brewery
Charles Wells Ltd
J W Lees & Co
UK Managing Director
Heineken UK Ltd
St Austell Brewery
|Ted Tuppen CBE|
Fuller Smith & Turner
Chief Executive Officer
Shepherd Neame Ltd
Wadworth & Co
1 December 2011