Scottish Labour to launch consultation on pub tenant restrictions

LABOUR is to launch a consultation on proposals to relax conditions for Scottish pub tenants and give customers more choice of drinks.

Neil Bibby MSP is proposing a member’s Bill that would give more flexibility to around 1,000 tenanted pubs tied to larger companies, known as “pubcos”.

Under current arrangements, pubs are often required to buy certain beers, ciders, wine and spirits from the pubco, restricting the choice they can offer customers.

A new pubs code which came into effect in May relaxed the rules in England and Wales but Scotland has a voluntary code only.

Mr Bibby said: “This proposal is about fairness, choice and jobs. Fairness for Scotland’s publicans, greater choice for pub customers, and an opportunity to protect and create jobs in Scotland’s licensed trade industry.

“Scottish pub tenants should have the ability to opt out of the tied arrangements if they wish. I know from speaking with tied pub tenants in my own area in the west of Scotland how one-sided these arrangements can be.

“Access to a fair and reasonable market rent for premises, without strings attached, should be a right for Scottish publicans. They will then be free to source and purchase products as they see fit, on the same basis as other pubs in Scotland, and pubs in England and Wales.

“Scottish licensees that choose to opt out should have the flexibility they need in a crowded and competitive market place to react to changes that could affect their business – such as new pubs opening in their area or social and cultural changes. My proposal would give them that flexibility.”

Paul Waterson, chief executive of the Scottish Licensed Trade Association, said: “For us this is an issue of common sense. In order to protect our tenanted pubs and bars we need a statutory Scottish pub code and arbitration system.

“This will give us the same rights and protections as our colleagues in England and Wales. Scottish tied tenants should not be treated any differently to those in other parts of the UK.

“We’re pleased to see that cross-party support for our position continues through Mr Bibby’s member’s Bill, and look forward to continuing to work with him, our industry coalition and the Scottish Government to set up a fair business framework for Scotland’s tied pubs.”

A consultation on the proposed member’s Bill will be launched shortly followed by the lodging of a final proposal at Holyrood.