MPs lose patience with pubcos and call for Government to consult on statutory code
The prospect of statutory codes of practice for pub companies has moved a step closer after a Government select committee slammed the industry's slow approach to reform.
In its 10th report on pub companies, published today, the Business Innovation and Skills Committee said it was now time for Government to act.
"The purpose of this inquiry into pub companies was to assess whether or not the industry had delivered on its promise of meaningful reform. As with previous inquiries, modest improvements have been made. However, the fact that it has taken a number of select committee inquiries to prompt these improvements demonstrates the deep-seated problems which lie at the heart of the industry," the report said.
"While the new codes of practice are a step in the right direction, they only address a limited number of areas. In many areas we do not believe that there has been a genuine commitment to reform. Many of the potential benefits of the new code, which were identified by our predecessor committees, have been undermined by a process of implementation which can only be described as half-hearted."
The report criticised the British Beer and Pub Association (BBPA) for being "impotent" in enforcing its own timetable for reform. It also claimed that the threat of removing BBPA membership for those who did not deliver voluntary codes of practice on time was "hollow" because firms like Greene King had voluntarily pulled out and suffered no reputational loss.
It offered some praise to the British Institute of Innkeeping (BII) for doing an "adequate job" in accrediting the new codes of practice, but said sanctions for non-compliance were not sufficient. "Given the high number of breaches allowed before sanctions would be applied we believe that "naming and shaming" and subsequent withdrawal of BII accreditation is insufficient."
The report concluded: "The position of the previous Government - endorsed by the current Government - was that if we so recommended, it would consult on how to put the code on a statutory footing. It is now time for the Government to act on that undertaking. In its response to our report, the Government has to set out the timetable for that consultation and begin the process as a matter of urgency. We further recommend that the consultation includes proposals for a statutory code adjudicator armed with a full suite of sanctions.
"We have not come to this decision lightly and we are firmly of the view that statutory regulation should only be used as a last resort. However, our hand has been forced and we see no other alternative for an industry which has for too long failed to put its own house in order."
Independent Pub Confederation Chairman, Bill Sharp, welcomed the report's findings. "The pub industry has been under almost continuous and unprecedented scrutiny for the past decade and this is the fourth major report into the sector. It is not surprising, therefore, that this is a detailed, well-informed and thorough examination of the key issues affecting our sector and industry efforts to address them. MPs have clearly listened to all sides of the argument and the report is a balanced and fair assessment," he said.
"As always, the devil will be in the detail and, over the coming days, we will be absorbing this and stand ready to work with all industry stakeholders and government to translate the Committee's recommendations into meaningful reform and deliver the free, fair and flexible competitive market place the IPC has been striving for and which the sector desperately needs."
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By Neil Gerrard
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