Time called in consultation on tied deals for Scottish pub tenants

SCOTTISH pub tenants have until today to make their voices heard over landmark legislation that will end a centuries-old system forcing them to buy supplies from their owners.

More than 1,000 pubs north of the border are under tied agreements, which means they have to buy some or all of their drinks from pub company owners, often at inflated prices in return for promises of lower rent.

But Neil Bibby, a Scottish Labour MSP, has been fighting for the country to establish a Pubs Code, something which was implemented in England and Wales last year, since submitting a proposal for a Bill in February. The outcome will be eagerly watched by the pub industry including Punch Taverns and Heineken’s Star Pubs & Bars division, which both have a presence in Scotland and could see their grip on tied sites loosened.

In England and Wales, the Pubs Code allows tied pub tenants to request the right to go free of tie and agree a market rent only, or MRO, contract.

This means landlords can buy their drinks from any supplier but usually forfeit any operational support or investment from the pub owning company. The consultation, which ends today, has sought the views from all sides about how a Pubs Code could be formed in Scotland. The answers will be analysed by Mr Bibby and other members of the Scottish Parliament to help inform the wording of a formal Bill which could then be voted on by MSPS.

The Pubs Code Adjudicator (PCA) released new data last week showing in the first year of the code it had received 156 cases, of which 131 were related to MRO requests.

Other issues included disputes over rent assessments.

Of the 131 MRO cases, Ei Group, formerly Enterprise Inns, had more than 30 with Greene King facing 21-30 requests. Punch Taverns, Star and Marston’s also had cases with the PCA.