Pub Companies

James Gray Excerpts

Thursday 12th January 2012 Commons Chamber

[Mr Adrian Bailey (West Bromwich West) (Lab/Co-op)]

I beg to move,

That this House believes that the Department for Business, Innovation and Skills’ proposals for reform of the pub industry fall short of the undertaking given to the Business, Innovation and Skills Committee in July 2010 and that only a statutory code of practice which includes a free-of-tie option with an open market rent review and an independent adjudicator will resolve the contractual problems between the pub companies and their lessees; and calls on the Government to commission a review of self-regulation of the pub industry in the Autumn of 2012 to be conducted by an independent body approved by the Business, Innovation and Skills Committee.

I thank the Backbench Business Committee for agreeing to allocate time for this very important debate. It might not be immediately obvious, but the motion addresses issues that are vital to some of the poorest people in our community—publicans, many of whom work very long hours and earn less than £15,000 a year. It is hardly surprising that many of them just give up and go elsewhere, and the consequences are visible up and down the country as pubs close day after day. The consequences hit not just publicans but the local communities they serve. Increasingly, rural villages are without a village pub and without the social hub and activity concentrated in that pub. That adds to the sense of alienation.

Even in my local area, where 10 years ago there were four pubs within a mile, only one is left. I know that experience is shared by Members up and down the country. There is obviously something profoundly wrong in the industry. Some of it is about social changes, but, to go to the heart of the problem, a huge volume of evidence now shows that the business model governing the relationship between pub licensees and the pub companies that own the pubs is crucial. The code of practice that governs the relationship between them is heavily weighted in favour of the pub company. I and others will be addressing some of the issues that arise from that.

[Mr James Gray (North Wiltshire) (Con)]

I would be grateful if the hon. Gentleman clarified one small point that is missing from the motion: namely, that he is referring to large pub companies that own large numbers of pubs and that family-owned brewing companies that own fewer than 500 pubs, such as Wadworth and Arkells in my constituency, are specifically excluded from the statutory regulation for which he is calling.

[Mr Bailey]

Yes. Let me make it clear that I am basically speaking about the Select Committee reports, which were about pub companies, but I recognise that there is an issue with breweries and their tenancies that in some cases might be relevant to this discussion. I know that individual Members will draw the necessary distinctions in the debate and I hope to allay any fears they might have.