Pub groups claim conflict of interest over new enforcer

PUB groups are threatening legal action over the appointment of chartered accountant Paul Newby as adjudicator of the newly established Pubs Code, with some saying they will not work with him.

Newby, a director and shareholder of Fleurets, the pub industry’s main property valuer and surveyor, will be responsible for enforcing the statutory code, which regulates the industry and applies to all companies with 500 or more pubs.

But the British Pubs Confederation, which was founded from an alliance of groups including the Fair Pint Campaign, the Federation of Small Businesses and unions Unite and the GMB, has strongly criticised the appointment of Newby over possible conflicts of interest.

He has acted for some of Britain’s biggest pub-owning companies, including Enterprise Inns, Marston’s and Punch Taverns, in recent rent review disputes with tenants.

Simon Clarke, landlord of the Eagle Tavern pub in Battersea, South West London, and secretary of the BPC, said that he was ‘baffled’ by the appointment. He said: ‘Tenants will not feel comfortable in rent review battles with their landlord knowing that the adjudicator has acted for those big companies.’

In a recent debate, BPC chairman Greg Mulholland MP said Newby ‘clearly has a conflict of interest, and it is clearly a disqualifying conflict of interest’. He added: ‘The British Pubs Confederation, licensee groups and their licensee members have made it clear that they will not accept Mr Newby adjudicating on their cases.

‘They have a clear right to do that, which means he will be unable to act in a large proportion of cases, which will need to be dealt with by someone else, presumably a deputy adjudicator. What a farce. What a mess.’

However, Business Minister Anna Soubry has strongly defended the appointment. She said: ‘He has 30 years of experience effectively representing both sides.

‘The fact that he may have repre- sented someone doesn’t mean that he is in their pay.’

The Department for Business, Innovation & Skills said in a response to a written complaint from the BPC: ‘Newby has acted on behalf of both tenants and pub company landlords during his career… his prior experience of the pubs sector and his ability to forge trusted relationships with both tenants and pubowning companies is a real asset in allowing him to successfully carry out this role.’

However, even the large pub companies are understood to have expressed surprise about the decision. One insider said: ‘He clearly has the necessary experience, but after all the effort and battles over the Pubs Code just to get to this point, it does seem odd that they’ve appointed someone who would obviously attract a certain scepticism. He’ll be in for a very difficult time.’

The BPC is now likely to call for a Judicial Review on the decision. Newby will appear at an MPs’ select committee meeting on May 10 discussing his appointment.