Staging Dram Scotland

Tag: pubcos

Pubs Code for Scotland given thumbs down by Holyrood Committee

A Pubs Code Bill for Scotland whose own author admitted could result in pub closures has been voted against by MSPs on Holyrood’s Economy, Energy and Fair Work Committee.

Labour MSP Neil Bibby said in the consultation document for his Tied Pubs (Code and Adjudicator) (Scotland) Bill that pubs could close as an indirect consequence of the legislation that seeks to strengthen the position of Scotland’s tied tenants in their dealings with pub owning companies.

He has called the vote a ‘slap in the face for Scotland’s tied publicans. ‘

A similar code was introduced in England and Wales in 2015 and its Scottish counterpart will now be debated in the main chamber at the Scottish parliament in the coming weeks.

If it is voted down it will be thrown out for good.

Emma McClarkin, Chief Executive of the Scottish Beer & Pub Association, has welcomed the decision of the committee and has called for the Scottish parliament to agree and reject the Bill at stage 1.

She said, “We are pleased that after reviewing the proposal and all the evidence, the committee has reached this conclusion. The proposal was an attempt to replicate Westminster legislation, despite the huge differences in the Scottish pub market. It simply wouldn’t have worked and would have seen Scottish pubs lose out on millions of pounds of investment at a time when the industry needs it most.

“Scotland’s pubs are struggling at the moment. They need all the support they can get from both Holyrood and Westminster. Adding extremely costly and burdensome regulations is the exact opposite of what should be done to support our sector through this crisis.  Indeed, the current crisis has served to highlight the strength of the tied pub model in terms of the crucial additional support provided by pub companies to their tenants through this period.

“We now call on the Scottish Parliament to agree with the Committee’s recommendation and reject the Bill at Stage 1.”

But not all trade bodies are in agreement on this, with Scottish Licensed Trade Association (SLTA) spokesperson Paul Waterson calling the vote “unforgivable”.

He said, “The SLTA are bitterly disappointed by the Economy Committee’s report. We don’t see how anyone can justify opposing legislation in Scotland when there was cross-party support from the SNP, Conservatives, Labour and others in Westminster for legislation to protect tied licensees in England and Wales.

“Failure to support Scottish tenants at a time when the whole industry is in crisis is unforgivable and Scottish tenants are very much the poor relations.”

Six members of the Economy, Energy and Fair Work Committee voted for a recommendation to reject the principles of the bill, including four SNP members and two from the Scottish Conservative and Unionist Party. Two MSPs, one Labour, one from the Scottish Greens, voted against the recommendations. One Conservative MSP abstained.

 

 

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Scottish Government to investigate tied pubs

A number of Scottish organisations and brewers have formed a coalition to fight against tied pubs and pubcos and the matter was discussed in parliament yesterday. Following this, the Scottish Government has announced that it will undertake a study on tied pub tenancies following a debate in parliament yesterday.The study will determine whether tied wet pubs are at an unfair disadvantage compared to other pub tenanted models. After the debate in parliament, the Minister for Business, Energy and Tourism, Fergus Ewing said, “For the last two years the Scottish Government has sought evidence that demonstrates that the ‘tied wet’ sector is much worse off than other forms of contractual arrangements. During this time we have met with representatives from across the industry.”

A tied wet pub is a public house that is contractually required to buy at least some of their beer for a certain pub company or brewery. This is often at a steeper price compared to the market rate. Mr Ewing commented, “This is a complex issue, which needs to be carefully examined to determine whether there is robust evidence to any support change. Evidence provided so far has failed to look at the comparative benefits and any negative impact of the ‘tied’ contract as a package.” Paul Waterson from the Scottish Licensed Trade Association was pleased with the outcome of the meeting, “This is a step in the right direction. The very many reasons why tied pubs are bad for Scotland’s industry and economy are being listened to and so we are encouraged by the decision to analyse the evidence, which is already overwhelmingly strong. One note of caution however is the pace at which we see discussion and change take place. Scotland’s publicans will suffer if England and Wales move forward, whilst we lag behind.”

Ewing also added that for the study to be successful, it will require co-operation from everyone involved in the pub sector from tenants to Pub Co’s. Mr Ewing also added that the research is key before taking any action, “We will then be in a better position to consider whether legislation should be introduced and who it should apply to – which may be different to that identified in England and Wales where the make-up of the sector is very different to Scotland.”

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