Paul Murphy MP has called on the Government to take urgent action to support small landlords and ensure they are no longer exploited by large pub companies. During a debate called by the Labour Party, the Torfaen MP said that the longer legislation was delayed, the more damage was being done to local pubs, which are currently closing at a rate of 26 a week.
Large chains of pub companies (PubCos) have been accused of giving landlords a raw deal, charging rental prices well above market value and making licensees pay over the odds for their alcoholic products. Recent figures have shown that 57% of tied licensees earn less than £10,000 a year despite working long hours.
The Labour Party has called for a statutory code, which would include a free-of-tie option, open market rent reviews and an independent pubs adjudicator. This would give every landlord the choice to go free-of-tie, allowing licensees to operate in a more competitive market. Such a code is being supported by a broad coalition including the Campaign for Real Ale (CAMRA), the Federation of Small Businesses and trade unions.
The Government’s consultation into a statutory code of practice finished seven months ago, and their response is now four months overdue.
Speaking during the debate, the Business Secretary claimed that the Government had not yet had time to consider the consultations findings. However Mr Murphy expressed disbelief that one of the largest Government departments, with an army of Civil Servants and Junior Ministers, could claim that the closed consultation was “so enormous, so vast, and so unwieldy, that they simply cannot make up their minds as to what to do”.
Instead, Mr Murphy suggested that the failure to act was due to disagreements within the Government and questioned whether senior Cabinet figures may be blocking legislation to ensure a fair deal for publicans. He called on Vince Cable to “battle on” to persuade his colleagues, and to make sure that the Queen’s Speech contained a Bill which would properly address problems in the industry.
After the debate, Paul Murphy MP said: “Pubs play an important role in our community and make a vital contribution to the local economy. One year ago this Government promised to take action to support small landlords, but today we are still waiting. Because of their inaction more pubs are closing every day with a devastating effect. We have had a lot of fine words, but now it is time for action.”
