Pub Companies

Alison Seabeck Excerpts

Tuesday 21st January 2014 Commons Chamber

[Toby Perkins]

My hon. Friend’s intervention gives me an excellent opportunity to put on record my gratitude—and that of the whole House and the wider coalition supporting the reform—for his work as Chairman of the Select Committee, which has led the way on this issue. I entirely agree that it is odd that, with such a large body of opinion in favour of the reform, it has been so difficult for the Government to support the recommendation that the previous Government were behind and that this Government said in 2011 that they would support.

[Alison Seabeck (Plymouth, Moor View) (Lab)]

Many people outside the House are clearly taking a great deal of interest in this debate. We have a lot of independent brewers in the south-west, and some fantastic beers are sold in the local pubs. Many publicans there have raised the issue of the way rents are passed on with little independent assessment. Is my hon. Friend going to say something about that?

[Toby Perkins]

My hon. Friend has successfully predicted what I am going to say. I will definitely touch on that issue, because it is one of the key elements of the debate.

I also want to take this opportunity to reflect on some of the other contributions that have been made in the run-up to the debate by Members trying to support pubs in their area. The hon. Member for Leeds North West (Greg Mulholland) has been a determined campaigner on this issue. Among his many valuable contributions to the campaign, his article in the Yorkshire Post on 10 May was on message enough for the Liberal Democrat press office to promote it with the message that

“pubco terms are the biggest reason for pub closures”.

That was his view in May 2013, as I know it remains. Now, eight months later, I am disappointed to see that he has signed the amendment proposing that the Government need more time to come to the conclusion he has so consistently and persuasively argued for.

--- Later in debate ---

[Alison Seabeck (Plymouth, Moor View) (Lab)]

It is interesting for me to follow the hon. Member for Tewkesbury (Mr Robertson), who broadened the debate, yet also provided some technical detail. I am sure that both Front-Bench teams will be interested to consider what he said. There has been broad agreement on this issue. What I think frustrates publicans and people who use pubs the most is the fact that, despite that broad agreement, nothing seems to be happening.

The Secretary of State, who is not in his place, listed all manner of surveys, while my hon. Friend the Member for West Bromwich West (Mr Bailey) talked about the detailed work done by the BIS Select Committee over a number of years. Apart from the hon. Member for Leeds North West (Greg Mulholland), very few Members have that level of detailed knowledge of the history and nature of the problem. The House is privileged to have both those Members contributing to the debate.

Pubs are struggling. As we have heard, many have diversified and are successfully running restaurants, for example. I called into a pub somewhere off the A303 and found that an opera evening was going on, apparently with great success. This and other specialist events are all designed to bring the punters into the pub, and provide a good all-round pub experience. Of course, when pubs are well run—and most are—they provide an opportunity for people to drink responsibly. Some Members touched on concerns about alcohol abuse, with some people just boozing at home. We should encourage people to go and drink sensibly in a pub with a responsible landlord, and we want a thriving network of pubs around the country.

Members have voiced concerns about the level of advice and training of the people who work in and run pubs. The hon. Member for East Hampshire (Damian Hinds) made a good point about that, and it is worth looking at as part of the wider process of change.

I find it extraordinary that the Government and the industry have failed to act on the popular demand for change. The case made by the Fair Deal for Your Local Campaign, the Campaign for Real Ale and its members, the Federation of Small Businesses, the GMB and others is an extremely sound one. My hon. Friend the Member for Chesterfield (Toby Perkins) cited the outcome of consultations, returning resounding support for change, with 96% in favour of the main question and 92% in favour of independent rent reviews. From my experience, Governments seldom issue consultations without having a ballpark idea of the answers they are likely to get. I therefore find it almost inexplicable that, despite receiving full and rounded responses on the subject, the Government are still prevaricating. It is extremely disappointing.

We have some fantastic pubs in Plymouth and the south-west, but in other parts of the country, pubs are struggling and closing. We had some recent closures in Plymouth. My local pub, The Ferry House Inn, is diversifying. It serves fabulous food, and it is surviving, which is great. Other publicans across the city, however, are earning little more than the minimum wage. They sometimes work 364 or 365 days a year, and I think it takes a special type of person to take on the challenge of running a pub. The hon. Member for Leeds North West made it very clear that the tie is a distorting influence, in that tenants can no longer get lower rent in return for higher beer prices.

[Andrew Griffiths]

The hon. Lady says that the tie is distorting. I point her to the Office of Fair Trading investigation, which clearly said that the tie does not distort and that it is not anti-competitive in any way.

[Alison Seabeck]

The hon. Gentleman raises an interesting point, and it would be interesting to hear what the Secretary of State says in response to that finding, which, to be honest, many Members find rather odd.

My hon. Friend the Member for Chesterfield highlighted other areas of business where there is a relationship similar to the one that exists between the pubs and the companies, but where things are much more open and fairer. Clearly, we need to get pubs put on to that type of footing. This motion encourages a move away from the current position. All hon. Members who enjoy visiting their local pub and drinking a good ale or beer should think carefully and support the motion.

With pubs struggling for a range of different reasons, we need to do something about it. We need to introduce independent rent reviews to stop this double rent charging, to put in place the mandatory free-of-tie option and to set up an independent adjudicator, which would make a massive difference. The Government keep telling us that they are not kicking this issue into the long grass—I have lost count of the number of times that has been said—and that everything is being handled in a timely manner. Timely for whom? The Government should tell that to the 26 pubs that are about to close. They are not acting in a timely fashion. How many pubs will have to go to the wall before we finally get legislation? Let us face it: at the moment, the legislative programme is virtually non-existent, and there is no excuse for the Government not to bring legislation forward. I urge the Secretary of State to get his finger out and do something about it.

--- Later in debate ---

[Jenny Willott]

Thank you, Madam Deputy Speaker. I completely agree; I have to say similar things to my children when they are bickering, as some Members appear to be today.

The two core principles at the heart of the code are fundamental. As the consultation made clear, there is a problem in the relationship between pub-owning companies and their tenants, and that was backed up by pretty much every Member who has spoken today.

[Alison Seabeck]

On the consultation and the Government’s work on the adjudicator role, have the Government come up with a figure for the cost of that adjudicator? That question was asked by Government Members.

[Jenny Willott]

As the hon. Lady will know, we are evaluating the responses and we will publish our response as soon as we can. That will give much more information about what we propose to do and the costs and impacts of those proposals.