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GMB Welcome Vote In Parliament For Tied Tenants

Tuesday, November 18, 2014

GMB Welcomes Parliament Vote For Market Rent Only Clause In Small Business Bill Giving Pubco Pub Tenants A Fair Deal

MPs have done the right thing and we welcome this and Government must accept this vote and move to properly implement it to save 25,000 tied pubs says GMB.

GMB, the union for tied pub tenants, welcome the vote by 284 to 259 ( majority 25) in Parliament today ( Tuesday 18th November) for a new Clause 2 in the Small Business Bill which puts a ‘market rent only’ (MRO) option for tied pub tenants on to the statute book.

The Government is committed to introducing a statutory code of practice for the large pub companies in the Small Business Bill that reached the Report stage today in Parliament. That Bill will enshrine in law the long accepted but largely ignored principle: that the tied licensee should not be worse off than a free of tie licensee.

This new clause introduces the market rent only option for tenants of the large pubcos, who own more than 500 pubs, with this applying only to companies that own 500 or more pubs, applying to their leased, tenanted and franchised pubs only.

A cross party new clause was tabled by Greg Mulholland, Chair of the Parliamentary Save the Pub Group, Adrian Bailey, Chair of the BIS Select Committee and Brian Binley, a member of the Select Committee and President of the Save the Pub Group with support from MPs across the house.

The New Clause was supported by the national campaign for reform of the unfair pubco model, the Fair Deal for Your Local campaign coalition backed by 10 organisations. See list in notes to editors below. 

Paul Kenny GMB General Secretary said “MPs have done the right thing and GMB welcome this. Government must accept this vote and move to properly implement it to save 25,000 tied pubs.

MPs have voted for a clause that shows that the market rent only option is a simple, cheap to administer and market based solution that at certain trigger points would simply give licensees the choice as to whether to pay a fair rent only or stick with a tied agreement. This choice will force the large pub companies to ensure that their tied agreements – where tenants pay marked up prices for beer and other products and services - are competitive, fair and attractive to tenants.”

End

Contact: Steve Kemp GMB Organiser on 07730 898102 or Dave Mountford, GMB publican part of the campaign for changes on 07792 198 954 or GMB press office 07921 289880.

Notes to editors

The organisations behind the Fair Deal for Your Local campaign are:

The Federation of Small Businesses

CAMRA

The Guild of Master Victuallers

Fair Pint

Pubs Advisory Service

GMB

Forum for Private Business

Licensees Supporting Licensees

Justice for Licensees

Licensees Unite the Union

The Fair Deal for Your Local campaign website is www.fairdealforyourlocal.com

and on Twitter use @fairdeal4yourlocal and #fairdeal4yourlocal.

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