Trade organisations publish new code of practice for tied public houses

21st January 2010, 11:51am

The new Code implementing comprehensive reforms on how tied agreements operate in the pub trade has been published by three leading industry associations.

The Pub Industry Framework Code of Practice governing the business relationship between companies and publicans operating tied public houses results from a far-reaching agreement reached last October, between the British Beer & Pub Association, British Institute of Innkeeping (BII) and the Federation of Licensed Victuallers Associations (FLVA).

The Code will greatly improve the openness and transparency of tied agreements between pub operators and lessees. It significantly increases the information made available by pub companies to prospective lessees and tenants. It builds on existing good practice and ensures would-be publicans are better informed and better qualified.

For the first time, the new Code will also ensure that people who purchase assigned leases from out-going licensees will receive the same level of detailed information available to those taking on a pub directly with pub companies.

BBPA member companies will implement the industry Framework Code over the coming months, by revising their own company codes, and submitting them to the BII accreditation body BIIBAS (BII Benchmarking and Accreditation Services Ltd), for scrutiny and approval.

In addition to the new and improved Code the pub industry has set up a cost-effective rent review scheme (PIRRS) to which tenants/lessees can appeal in circumstances where there is an unresolved dispute in a rent review.

Neil Robertson, chief executive BII, said: "The British Institute of Innkeeping welcomes the new Code, which, when implemented, will bring changes that will benefit both new and existing tenants/lessees. We look forward to seeing new individual company codes, expecting that some of these will go further, allowing companies to offer retailers distinctive and competitive terms. We have strengthened the BIIBAS monitoring and reporting to make clear how the new codes are being implemented."

Martin Caffrey, operations director of the FLVA, said: "The FLVA welcomes this revised code and its implementation by BBPA members in their codes of practice. The information to be provided by pub operators will enable prospective publicans and their advisors make a better informed decision on the agreement being offered. It gives transparency to both existing retailers and newcomers to the trade alike and alongside the recently introduced PIRRS scheme will have a tangible and immediate effect."

Brigid Simmonds, Chief Executive BBPA added: "The BBPA is delighted to have reached agreement on the detailed content of this much improved Code with the BII and FLVA. We look forward to seeing the revision of company codes in the coming months, to reflect the challenging and robust set of reforms we have all agreed.

"With these reforms well underway, this will help the industry to work together to tackle other challenges, and ensure that pubs prosper as a vital part of our way of life and at the centre of Britain's modern hospitality industry."

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