Pub Companies

Debate between Brian Binley and Andrew Griffiths

Thursday 12th January 2012 Commons Chamber

[Andrew Griffiths]

I agree that we may well wish to consider a review in future, but as for the idea that we should bring in new regulation and new requirements and then, within just a few months, review them again, I worry that companies will be concerned more about the review than about implementing the changes themselves.

[Mr Binley]

Will my hon. Friend give way?

[Andrew Griffiths]

I have given way twice already, so I shall continue, if I may.

We have to be careful what we wish for. More mature Members will be fully aware of the beer orders—well-intentioned regulation to improve the lot of publicans and pubs throughout the country, which, I argue, got us into this situation in the first place. We have to be careful before we reach for the lever of regulation, because once it is imposed, the costs, burdens and unintended consequences are there for everyone to see.

We all recognise that pubcos are drinking at the last chance saloon, but today I heard the accusations made against the BBPA and I am, quite frankly, staggered. Hon. Members have mentioned several small family brewers, but all are members of the BBPA. It is not some sinister organisation, and although it is made up of pubcos, it also includes family brewers from up and down the country, so the idea that it has some sinister hand on the Minister’s shoulder and is influencing him in an underhand way is blatant nonsense, as is the idea that the Minister should develop policies for the brewing and pub industry and not have a proper dialogue with the biggest trade body in the industry.

We have a proposal to bring in a tough industry code. It will provide transparent information as a matter of course to anyone who is thinking about taking on a pub, and provide people with legal redress. The code will now be legally binding, so anybody who finds that their pub company or family brewer has not upheld the code will be able to have their case heard in court. There will be a process of arbitration so that anybody who feels that they are being dealt a bad hand by a pub company or the pub industry can have redress through independent arbitration. Those are the things that any tenant who feels hard done by requires to get the assistance and redress that they need. Most importantly, that will be delivered through self-regulation, which I believe will be cheaper, more cost-effective and speedier in producing remedies. We can all point to Departments that have brought in regulation or arbitration that has not worked. We do not have all the answers in government. It is far better to allow the industry this last chance to get its act in order.

Finally, the idea that the tie is the only thing that is leading to the closure of pubs is blatant nonsense. Yes, it is an issue, but we have to consider the impact of people’s drinking habits, the power of below-cost selling by supermarkets, and the red tape and regulation that we have loaded on to pubs. We should not for one minute think that if the motion were passed and the Government introduced the statutory code, it would solve the industry’s problems. It patently would not.