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Letter To PM For Fair Deal For Pub Tenants

Tuesday, April 8, 2014

GMB To Join Presenting Letter To Prime Minister In Downing Street On Wednesday 9th April In Last Push For Fair Deal For Tied Pubs

Tied tenants want statutory code offering them an ability to buy products from the open market and pay a fair market rent for the pub building says GMB.

GMB, the union for tied pub tenants, will attend a meeting on Wednesday 9th April in the House of Commons of Save the Pub Group & Fair Deal for Your Local and then go the Downing Street to present a letter to the Prime Minister.

This is a last push by campaigners to the get Government to legislate a new statutory code for tied pubs giving tied tenants the ability to buy products from the open market and pay a fair market rent for the building. An announcement from BIS is imminent.

The details of the events are as follows:

On Wednesday 9th April

1:15pm meet St Stephen's entrance.

1:30pm photo with banners/placards

1:45pm go into House of Commons

2:30pm-3:30pm Save the Pub Group & Fair Deal for Your Local meeting: Beer Orders 25 years on: Why this Government must now back a Fair Deal for Locals

3:35pm walk to Downing Street

4:00pm present letter to Prime Minister at No. 10 Downing Street

In April 2013 Department for Business, Innovations and Skills published a draft statutory code for tied pubs for consultation which closed in June. There was an overwhelming and unprecedented response from tenants and the public supporting statutory regulation for a free market for products and fair rents.

GMB is campaigning for Option 3 the “freedom option” in the statutory code. This offers tied tenants the ability to buy products from the open market and pay a fair market rent for the building. See notes to editors for text of option 3.        

Steve Kemp, GMB lead organizer for tied pub tenants, said “We are expecting an announcement from BIS possibly before Parliament breaks for Easter.

GMB is campaigning for Option 3 in the statutory code. This will offer tied tenants the ability to buy products from the open market and pay a fair market rent for the building.

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 common view that shareholders in the pubcos own a pub business is wrong. In fact the shareholders don’t own a pub business; they own a holding company which invests in and manages incomes from pubs- these are called pub securitizations.

These securitizations are the infernal machine that is closing pubs across the country. It is the same infernal machine that drove Southern Cross care homes to the wall.

GMB and others have campaigned for many years for Parliament to legislate to free pubs from this infernal machine before it destroys them all.

This statutory code is likely to be our one chance to save local pubs. This campaign exposes the Orwellian world where the pubcos say that regulation to ensure a free market is "red tape". What Tosh.”

End

Contact: Dave Mountford GMB representative for tied pub tenants on 07792 198 954 or 07794 021212 or Steve Kemp 07730 898102.  GMB Press Release 07921 289 880 or 07974 251 823

Notes to editors

What option 3 says

 “Option 3: Mandatory free of tie option with open market rent review

All pub owning companies with over 500 pubs would have to offer a free of tie option with open market rent review. This would apply at the next rent review point for current leases and for all new leases. Each licensee would be able to choose to be either tied or free of tie. This is in addition to the statutory code and adjudicator from option 2.

The rent in the free of tie offer would have to be based on Royal Institute of Chartered Surveyors guidance. This would ensure that there was a genuine free of tie option rather than one involving an unrealistically high free of tie rent.”

 

 

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