Pub Companies

Debate between Barry Sheerman and Jenny Willott

Tuesday 21st January 2014 Commons Chamber

[Mr Sheerman]

As my pub is soon to be crowdsourced, the hon. Lady can become a member.

[Jenny Willott]

I congratulate the hon. Gentleman on giving probably the best plug to his business, which has been mentioned four or five times in today’s debate—crowdsourcing will clearly not be a problem from now on.

A number of Members who have spoken have previously worked in the licensed trade, so they have been speaking from knowledge not only as constituency Members but as former licensees and so on, which has lent weight to the debate. My thanks go to the members of the Business, Innovation and Skills Committee and their Chair, the hon. Member for West Bromwich West (Mr Bailey). He and his predecessor, my hon. Friend the Member for Mid Worcestershire (Sir Peter Luff), have done crucial work over the years to raise awareness of this issue. I congratulate my hon. Friends the Members for Northampton South (Mr Binley) and for Leeds North West (Greg Mulholland) on their tireless work over a number of years.

Finally, I thank the wide range of people who responded to the Government’s consultation, including tenants, brewers, pub companies and their employees, interest groups, trade bodies, supply chain companies and consumers. Indeed, a number of Members from all parts of the House also submitted their views.

We have heard a number of stories from Members whose constituents are facing real hardship and adversity, which is clearly worrying. In his opening remarks, the hon. Member for Chesterfield (Toby Perkins) name-checked a large number of pubs that have been mentioned in previous debates, so I will not do the same. I would, however, like to highlight some of the Members who have given a passionate defence of pubs: my hon. Friends the Members for Leeds North West, for East Hampshire (Damian Hinds) and for Norwich North (Chloe Smith), the hon. Member for Huddersfield, my right hon. Friend the Member for Hazel Grove (Sir Andrew Stunell), the hon. Member for Clwyd South (Susan Elan Jones), my hon. Friend the Member for Tewkesbury (Mr Robertson), the hon. Member for Plymouth, Moor View (Alison Seabeck) and my hon. Friends the Members for Romsey and Southampton North (Caroline Nokes) and for Burton (Andrew Griffiths). That illustrates how important pubs are to a diverse range of communities across the UK. The constituencies about which Members have spoken today range from the urban to the rural and have very different issues, and that shows just how important pubs are.

As many Members have mentioned, over the course of a decade there have been four Select Committee investigations into the relationship between pub companies and their tenants and into whether a tied model causes an imbalance in bargaining power. The Government have received a large amount of correspondence from tenants about problems in their relationship with their pub company as well as from many hon. Members writing on behalf of constituents.

Although many pub companies behave well and some tenants have written in support of the tie, many others tell us that the tie arrangements with their pub companies are unfair and that a lack of transparency in particular causes a severe imbalance in negotiating power. Another issue that has been highlighted during today’s debate is the research commissioned by CAMRA based on self-reported income, showing that more than half of tied tenants earn less than £10,000 a year compared with only a quarter of those who are free of tie. The problems faced by tenants are real and clearly something needs to be done.

The Government consulted on the creation of a statutory code of practice to govern the relationship between large pub companies and their tenants and of an independent adjudicator to enforce the code. As a number of Members have highlighted, the proposals would represent a real step change for the industry, offering tenants the protection of a code of practice enshrined in statute and an independent and reliable body to which they could turn for assistance—[Interruption.]

The proposed code has at its core two important principles: the principle of fair dealing and the principle that a tied tenant should be no worse off—[Interruption.]