Draft Pubs Code etc. Regulations 2016

Bill Esterson Excerpts

Wednesday 13th July 2016 General Committees

[Bill Esterson (Sefton Central) (Lab)]

It is always a pleasure to serve under your chairmanship, Mr Hanson. I welcome the Minister introducing the pubs code regulations, in the spirit of cross-party support that has been in evidence for some time. I am pleased that we are where we are. I express my thanks for the cross-party support there has been over the past two years and more, and for the fine work done by the Campaign for Real Ale in support of the code and by others, including the British Pub Confederation, who deserve much credit for getting us to this stage.

The Minister talked about the importance of the code. I completely agree that it is about creating a level playing field, a fair market and the right balance between pub-owning companies and the tied-pub tenants.

I have a number of questions to ask, but first, the Minister was right to apologise for the delay in the implementation of the code, and I thank her for that. We are talking about the right of tied-pub tenants to the MRO option, so that they are no worse off as a tied tenant than if they paid only a market rent. That is a really important step forward in this sector for community pubs, which are at the heart of all of our communities.

The Minister also mentioned the Pubs Code Adjudicator, who has been in post for some time. We have had the rather absurd situation of an adjudicator without a code to adjudicate on. We have debated that a few times. He is in post, however controversial and however many concerns there are about the potential for conflicts of interests because he acted overwhelmingly for the pub-owning companies in the past, and we must wish he is a success now that the code is coming into place.

Will the Minister answer these questions? She said the code would be in place as soon as possible. What does she mean by that? Does she have a date in mind? She mentioned 26 May as the date the code was supposed to come in. According to CAMRA, some 13,000 tied tenants due for rent reviews since 26 May have not had the MRO option available to them. What can she say to those 13,000 tenants and any others who will be delayed until the code is up and running? What support can she give them?

Will the Minister say more about the parallel rent assessment and how the code will ensure that that process happens without the formal element, as requested by so many during our previous deliberations? She rightly talked about the opportunities that we now have. There is a waiver period available as well, in which a tied tenant can waive their right to MRO, on the basis that they are going to receive investment from a pub-owning company. What can she say about guaranteeing to those tied tenants that, if they waive their rights, they will receive that investment? How can she ensure that the adjudicator, if it is his responsibility, will ensure that that investment happens?

I welcome reaching this point today and I look forward to the Minister’s answers. I am sure that this will not be her last appearance on the Front Bench. Somehow, I cannot see that happening— [Interruption.] I have been known to be wrong in the past, and this may well be my last Front-Bench appearance. Who knows what the future will bring? I say no more than that.

The Minister said that the time has come to put bitter arguments behind us, although I do not think that she and I had any bitter arguments over the issue. However, the time has come to enjoy a pint of bitter together.