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Pub industry adjudicator plans put forward Pub industry adjudicator plans put forward
(35 minutes later)
The government has announced plans for an independent adjudicator in the pub industry to help struggling landlords.The government has announced plans for an independent adjudicator in the pub industry to help struggling landlords.
The Department for Business said the aim was to tackle unfair practices, such as high rents and the prices publicans have to pay for beer.The Department for Business said the aim was to tackle unfair practices, such as high rents and the prices publicans have to pay for beer.
Campaigners have complained for years of being exploited by "pubcos".Campaigners have complained for years of being exploited by "pubcos".
Pubcos are the large companies that own thousands of pubs and bars and control them through agreements with tied landlords.Pubcos are the large companies that own thousands of pubs and bars and control them through agreements with tied landlords.
The GMB union, which has campaigned on behalf of pub landlords, said it was a "welcome step". The Fair Pint campaign, which aims to help publicans get a fair deal, welcomed the announcement.
"For far too long tied pub tenants have been abused by big pub owning companies. Many have lost their livelihoods, savings and have lived in fear of losing their home," said publican and Fair Pint campaigner Simon Clark.
"Today's announcement comes after many years of highlighting this unfairness.
"There is work to be done on the detail and we believe that a free of tie option would be the best way of guaranteeing fairness in tied deals, but this represents genuine progress which will give a boost to publicans and consumers by increasing the viability of local pubs."
The Campaign for Real Ale (Camra) has been calling for urgent action to help landlords against the financial pressures they face.The Campaign for Real Ale (Camra) has been calling for urgent action to help landlords against the financial pressures they face.
Camra said in a report in November that 18 pubs a week were closing in the UK, up from 12 a week a year earlier.Camra said in a report in November that 18 pubs a week were closing in the UK, up from 12 a week a year earlier.
New codeNew code
The proposed adjudicator will have the power to carry out investigations and impose financial penalties.The proposed adjudicator will have the power to carry out investigations and impose financial penalties.
Business Secretary Vince Cable said he also wanted to establish a new statutory code to look at the relationship between pubcos and publicans, and which would be enforced by the adjudicator.Business Secretary Vince Cable said he also wanted to establish a new statutory code to look at the relationship between pubcos and publicans, and which would be enforced by the adjudicator.
"There is some real hardship in the pubs sector, with many pubs going to the wall as publicans struggling to survive on tiny margins," Mr Cable said."There is some real hardship in the pubs sector, with many pubs going to the wall as publicans struggling to survive on tiny margins," Mr Cable said.
"Some of this is due to pubcos exploiting and squeezing their publicans by unfair practices and a focus on short-term profits."Some of this is due to pubcos exploiting and squeezing their publicans by unfair practices and a focus on short-term profits.
"I hope these measures mean publicans are given a fairer chance at running their pub, which in turn will help them grow their businesses instead of losing them.""I hope these measures mean publicans are given a fairer chance at running their pub, which in turn will help them grow their businesses instead of losing them."
He added that he had given the pubcos one last chance to change their behaviour last year, but it was clear that the self-regulatory approach was not enough.He added that he had given the pubcos one last chance to change their behaviour last year, but it was clear that the self-regulatory approach was not enough.
Paul Kenny, general secretary of the GMB union, said: "If Vince Cable sticks to this plan, this is a welcome step forward. It is a tribute to the hard work by GMB-tied tenants who did not give up their demands for a fair deal." Paul Kenny, general secretary of the GMB union, which has campaigned on behalf of pub landlords, said: "If Vince Cable sticks to this plan, this is a welcome step forward. It is a tribute to the hard work by GMB-tied tenants who did not give up their demands for a fair deal."
A formal consultation on the proposed measures will be launched in the spring.A formal consultation on the proposed measures will be launched in the spring.