Statutory Code For Fair Pub Rents Welcome
4 Jun 2014
GMB welcomes the announcement of a statutory code for fixing pub rents but regrets that a “Free of Tie” option is not included. Key issues will be to stop the pubcos watering down the code and pulling teeth an independent adjudicator has as the legislation goes through Parliament and then to make it work in practice. GMB, the union for tied pub tenants, commented on the announcement by Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable on 3 June 2014 that the government will give publicans new rights under a statutory code, and set up an independent adjudicator with the power to resolve disputes.
Steve Kemp, GMB lead officer for tied pub tenants, said “Self-regulation has been rejected. That is to be welcomed. Any tenant will tell you this self- regulation simply does not exist. We will study what is proposed to see how workable it is. Everything in the proposed code already exists in the voluntary codes but up to now these provisions have been largely ignored by the pubcos. So the key issues will be to stop the pubcos watering down the code and pulling the teeth an independent adjudicator has to enforce the code as the necessary legislation goes through Parliament and then to make it work in practice.
GMB regret that the free of tie option has been ruled out. That would provide a powerful incentive to the pubcos to deal fairly with tied tenants. The new regime has to stop abuses and lead to fair and affordable rents. The system now is that interest payments on the huge pubco debts have to be paid each week before the tenant pours a pint and regardless of whether s/he can make ends meet or not.
To pay these sky high rents a pint of lager is on average 80p per pint higher and ale is 65p per pint higher than justified by inflation and like for like changes in taxes since 1987. This is pricing pubs out of the market and they have closed in droves. The test of the new regime will be if it can stop this.”
Contact Steve Kemp 07730 898102 or Dave Mountford GMB publican who led the campaign for changes on 07792 198 954 or 07794 021212