Small Business, Enterprise and Employment Bill

Mike Kane Excerpts

Wednesday 16th July 2014 Commons Chamber

[Mr Binley]

President Brian Binley. [Laughter.] I apologise, Madam Deputy Speaker.

The Bill proposes a mechanism called a parallel rent assessment. From a tenant’s point of view, such a mechanism is time consuming, and it will allow a pubco to run a tied tenant into financial collapse long before they receive an adjudication determination. It is potentially expensive for tenants, requiring them to employ professionals to represent their case, and it is complex. It is also totally unsupported: no organisation, pubco, brewer, tenant or consumer supports the parallel rent assessment mechanism. I am therefore surprised that the Government have recommended a mechanism with so little backing.

I appeal to the Minister to reconsider the proposals on pubcos, especially as they relate to the tie, and to consider the opportunity for a fair rent option without a tie. I am happy that the breweries are excluded from that particular element—the Select Committee in fact asked for that—but pubcos should be willing to face up to their responsibility in relation to encouraging tenants to take their pubs on false pretences. If hon. Members have, like me, seen a woman in their office in tears because she owes £94,000, having taken on a pub on a false premise, or seen a husband trying to comfort his wife because they know they are going bust, having sold their house to invest in a pub—there are many examples of that kind—they would recognise that reality.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

Will the hon. Gentleman join me in congratulating all those organisations and individuals in constituencies up and down the country, such as Paul Naylor of the Legh Arms in my constituency, who campaign tirelessly for community pubs?

[Mr Binley]

I am delighted to help the hon. Gentleman with his press release. I of course congratulate the gentleman concerned.

Pubs are a social institution of massive worth: their value to our community is as great as almost any other institution that we might name. The pub landlord often acts as an adviser to people on everything from legal matters right through to how to get their car repaired. His wife often helps with the charity work undertaken in pubs, including by creating refreshments for pub teams when they return from playing a game. The whole institution of pubs cannot be overestimated for our local communities.

I want to emphasise that pubs are, however, under serious threat, especially from the large pubcos. I want to ensure that our local and regional breweries, which have brave defenders, are also protected, because they also play an important role.