PRACTICAL
PROPOSALS TO GOVERNMENT FOR STATUTORY CODE TO CUT TIED PUB RENTS TO
SLOW CLOSURES ACROSS BRITAIN
FAIR Deal for Your Local
Campaign letter details how "market rent only" option
is a simple, moderate and gradual way to a fair split of pub profits
says GMB
GMB and 9 other organizations in The Fair Deal for Your Local
campaign has set out for Vince Cable, Secretary of State and Jo
Swinson, Minister for Consumer Affairs at the Department of
Business, Innovation and Skills Department (BIS) exactly how the
'market rent only' option in the proposed statutory code to deal
with pubco overcharging would work in practice.
BIS has promised that Parliament will legislate a "market rent
only" option with tenants able to buy products on the open
market and pay a fair rent for the building. The aim is to lower sky
high rents charged by pubcos. The Government's verdict should be
available soon following the widespread consultation on the draft
statutory code over the summer.
The letter explains that it is not only the only clear solution, but
is also a moderate, gradual solution that as well as leading to a
fairer split of pub profits, would also allow the pubcos time to
adjust their model, as it would come in practice over a number of
years.
The letter defines and details the market rent only option in
practice setting out the process and the clauses that would be added
to leases. This has not been done before, including by BIS officials
who it seems may have been misunderstanding how the concept would be
introduced and how it would work.
The letter sets out in detail exactly how the market rent only
option (the solution proposed by the BIS Select Committee) would
work in practice, activated at various 'trigger'
events, including rent review, lease renewal, a significant
alteration to the price of products and the sale of a pub. (The
latter would insure that developers and others cannot exploit tied
terms to evict a licensee, which is something that has proved a
problem; which is why a market rent only option would also protect
more pubs from closure by providing greater protection from
development/change of use as well as increased profit to the pub
business).
What this means is that the provision of a market rent only option,
as well as being the only clear solution to the serious problem of
pub owning companies overcharging tenants through high rents and
beer prices, is also a moderate, gradual solution that would be
brought in over a number of years.
This means that the large pub owning companies will be able to
change their business model; and crucially that they would then have
to offer attractive, fair tied options to persuade their tenants to
carry on buying beer through them; which as well as stamping out the
current overcharging would also allow the large companies to adapt.
Ironically, the market rent only option would also be the only
option that would make 'the tie' work as it should. With the market
rent only option available to licensees at rent review, renewal or
another 'trigger' is the pubcos would offer
attractive, fair tied options where rent really is lower and that
included genuine partnership.
The letter also points out that the market rent only option means
that the Adjudicator is only required to oversee breaches of the
market rent only process, not to try to decide rental levels. So the
market rent only option would be simple, effective and cheap –
unlike expecting the Adjudicator to decide on rent levels without
this being in place.
Steve Kemp, GMB National Office, said:- "GMB members working
in the pub industry are relying on the right decision to be made by
Government. The free of tie 'market rent only' option is a simple,
moderate and gradual way to a fair split of pub profits. A decision
hopefully which ensures that the days of exploiting publicans comes
to an end and that publicans who run pubs can do so without fear of
losing their livelihoods. It is time for true social justice for
British publicans and the pub industry as a whole."
Commenting Simon Clarke, Fair Pint, said:- "The Market Rent
Only option is the most simple solution, it is phased, it is self
policing, the cost would be apportioned to the parties, as already
provided for in the existing leases, saving the industry as a whole
money, and, as referral to the Adjudicator would only be necessary
in the event of failure by the parties to agree, it saves time and
money."
Clive Davenport, FSB Enterprise and Innovation Chairman, said:-
"FSB research shows that nearly 90% of publicans want a market rent
only option, in other words being able to buy product free-of-tie
with an independently assessed fair rent. The letter to the Business
Secretary sets out the practicalities of how this will work,
providing more freedom for publicans and lower prices for consumers.
Our research project also demonstrated the economic boost, new jobs
and training that would ensue, and we hope the Government listens
and comes up with a strong statutory code that includes the market
rent only option."
Commenting Greg Mulholland, Coordinator of Fair Deal for Your Local
and Chair of the All Party Parliamentary Save the Pub Group, said:-
"It is clear that the obvious, simple solution to the
longstanding and ongoing problem of pubco overcharging remains the
BIS Select Committee solution, the market rent only option. What
still does not seem to be grasped by BIS Ministers and officials is
that this is also gradual and market based solution that as well as
actually making the pubco tied model work as it should, would also
be the least disruptive and cheapest. The Government needs to
understand that the Select Committee were right and the market rent
only option is not just the only solution to the pubco problem, but
the only deliverable one. They must not avoid it on the basis on
pubco misinformation and must do the right and commonsensical thing
and introduce the market rent only option to rebalance pub profits
and to make the beer tie work as it should."
Commenting Val Spenser, Licensees Supporting Licensees, said:-
"On behalf of all our members and tied licensees past, present and
future the Licensees Supporting Licensees group completely endorse
the principle and definition of a Market Rent Only (MRO) option. MRO
presents a huge opportunity available for the current Government,
where previous Governments have failed, to put financial life and
social stability back into the Communities and local economies that
Pubs support on a national scale. LSL implore this Government to
endorse the MRO option as to be absolutely clear anything less would
be seen as a failure of the consultation. Failure would permit the
continuation of the complete betrayal by Pubcos of the many hard
working Licensees that we represent. Licensees have suffered for far
too many years the wholesale Pubco abuses that the present system
has allowed unfettered throughout this industry. It needs to stop." |
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Firearms
conspirators jailed for 32 years
4 men who planned to put
illegal firearms onto the streets of Scotland are now spending the
next 32 years behind bars.
William Dempsey, Barry Kelly, Craig Thomson Colquhoun
and James Martin Ashdown were sentenced at Liverpool Crown Court on
Friday, 25 October 2013, for their part in a plot to move firearms
into Scotland.
The court heard Police were first
alerted to the potential conspiracy on Friday, 17 August 2012,
whilst Dempsey was at Carlisle Rail Station. At the station
Dempsey engaged 2 cleaners in conversation and asked them to look
after 2 bags he was carrying, as he believed he was being followed.
Demspey left the station and, when he failed to return, the cleaners
took the bags to the British Transport Police (BTP) office where the
bags were searched and found to contain an Uzi sub-machine gun with
silencer, a sawn-off shotgun, a hand gun and a variety of
ammunition, together with documentation belonging to Dempsey.
British Transport Police Officers
immediately circulated Demspey's details to colleagues in Cumbria
and a full search of Carlisle was carried out. He was
eventually located on a rail viaduct and was subsequently arrested
by British Transport Police (BTP). While making enquiries into
Dempsey's background, officers discovered he was a serving member of
the army, based in Canterbury. A search at his barracks
uncovered a hand gun-shaped crossbow, several metal tipped arrows
and large military batteries. A further search of his parents' home
in Paisley uncovered a small block of cannabis resin in Demspey's
bedroom.
The Battalion duty officer confirmed to BTP that no
weapons were missing from the armoury and officers began to suspect
that, rather than acting alone, Dempsey was part of a supply chain
moving firearms around the country.
Dempsey's mobile phone was subjected to in-depth forensic analysis
which revealed messages between Dempsey and Ashdown regarding large
cash payments for 'toys'; items believed to be the
firearms seized at Carlisle.
Further investigation revealed links to both Colquhoun and Kelly
and, on 16 August 2012, Colquhoun was captured on CCTV at the Royal
Bank of Scotland, in Paisley, paying £3,500 into Dempsey's account.
Officers subsequently arrested Kelly, Ashdown and Colquhoun and,
during the arrests found £20,000 hidden in Kelly's house. Mobile
phones were also seized and analysis of these cemented the links
between the 4 conspirators. During the investigation, officers
discovered Ashdown had supplied the firearms initially.
Detective Chief Inspector Simon Taylor, who led British Transport
Police's investigation, said:- "These 4 clearly intended to
put illegal firearms on to the streets of Scotland and it is a fair
assumption that they would have been used to commit criminal acts or
to intimidate people. In uncovering and unravelling the complex
conspiracy BTP, in partnership with Kent Police and Police Scotland,
have taken this potential threat out of circulation and ensured the
conviction of four dangerous men. It is rarely that we see any
incidents involving firearms on the railway, but this case clearly
shows we are equipped to deal with the threat and any investigation
which follows and sends a clear message to the criminal fraternity
that weapons have no place on the railway; or in wider society.
Police forces will work together to seize weapons and put all
offenders before the courts. This year long investigation has
provided a stern test for British Transport Police and the Crown
Prosecution Service and I would like to thank all who have dedicated
countless hours to the initial investigation and in building the
strong case which has seen Dempsey, Ashdown, Kelly and Colquhoun
convicted for extremely serious offences."
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