Pub Companies

Debate between Mark Menzies and Justin Tomlinson

Wednesday 9th January 2013 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

It is an honour to be the last Government Back-Bencher to speak—it is a bit like queuing for last orders. As a member of the all-party save the pub and beer groups, I welcome the debate. I have shown my hand at trying to run a pub, not particularly successfully, and like many Members who are present I have been known to frequent a pub.

It is a real credit to the Government that we now have a Minister responsible for pubs, and if he ever wishes to visit our local brewery, Arkell’s, I will certainly make him welcome. I am a little concerned, however, because we have a passionate shadow Minister who supports pubs but has announced that he is teetotal for the month of January, and the shadow Minister in the February 2011 Westminster Hall debate, the hon. Member for Derby North (Chris Williamson), declared not only that he was teetotal but that he did not visit pubs. We need the other team to play their part. However, there is clearly cross-party concern about pubs, which are at the heart of our communities.

Although the number of pub closures has slowed, it is still somewhere in the region of 18 a week, which has to act as a wake-up call for all of us. The Government’s decision is a credit to organisations such as CAMRA and the Federation of Small Businesses, and to the countless local residents who have e-mailed all MPs to raise the issue.

[Mark Menzies (Fylde) (Con)]

My hon. Friend is a champion of pubs in Swindon, but may I urge him also to give some focus to rural pubs, which are under greater pressures than those in towns? I see that every day in Fylde.

[Justin Tomlinson]

I thank my hon. Friend for raising that important issue. That situation arises particularly because of the value of rural pubs if their owners transfer them to other categories of use. It is welcome that the Government are looking to tighten up the relevant planning rules, which will help protect a number of rural pubs. A few in my constituency need that protection.

I welcome yesterday’s announcement in principle. The new code will ensure fair practices on a number of issues, including rents and the price that publicans pay for beer. Crucially, the adjudicator will manage the matter of fairness, because it is often the big guy against the little guy, and just because someone is good at running a pub, that does not mean that they are a legal expert.

We must not forget the absolute need for transparency on costs, particularly when a publican signs up to their deal. It is a bit like having a franchise. Legally the deal says, “You will buy the product at this price,” and as my hon. Friend the Member for High Peak (Andrew Bingham) said, it includes matters such as PAT testing of vending machines and insurance. It is not just about the beer.

I urge caution, and my hon. Friend the Member for Burton (Andrew Griffiths) made a good and sensible speech that brought some realism to the debate. We have to be careful not to throw the baby out with the bathwater. We must be careful about mandating a free-of-tie option with open market rent review, because the pubco tie is a good business model that allows people to become entrepreneurial small business owners without having to have huge savings to buy an expensive building. Just because some have abused the system, that does not mean that we should completely remove it. We just need to ensure that those who abuse it are dealt with and that others are given adequate protections.

We all have good examples of family breweries working with landlords, such as Arkell’s in my constituency, which has just over 100 pubs. It is in breweries’ interests to do so, because if their landlords succeed, they will continue to sell beer, which is what makes their business thrive. We have to look at the wider picture and be careful not to chase a cheap headline. I support the principle of what is proposed, but we must act on the consultation. Those with expertise, knowledge and first-hand experience should feed into it. The hon. Member for Wrexham (Ian Lucas) made that point, and I echo it.

We must also celebrate some of the examples of good news. Wetherspoon’s continues to buck the market trend and expand. When I am having breakfast in a Wetherspoon’s pub, I often admire how much money they probably take before the majority of other pubs open their doors at lunchtime.

The Government are considering the community right to bid, giving communities a fairer chance to bid to take over pubs. Again, that would be particularly useful in rural communities. They are launching a £19 million support programme to help community organisations; ensuring that planning policies provide for the use of pubs and guard against their unnecessary loss; and providing help with business rates. They have scrapped the previous Government’s plan for a 10% rise in cider duties, but they now need to do the same in the case of the beer duty escalator. As we chase increased exports, let us take a moment to rejoice that 1.25 billion pints of beer were exported last year. That is something to which we can all raise a glass.

We are making it easier for pubs to play live music. I have carried out a number of surveys with local pub users, asking what makes a good pub. We know that society has changed and that more often than not, pure straightforward drinking pubs will struggle these days. Pubs need a combination of good food, good entertainment, live music and pub quizzes—going that extra mile to make it a destination for local communities. Moves to exempt pubs from unnecessary health and safety inspections would also be welcome. I urge people to get behind this issue, which has clear cross-party support, and engage with the consultation. Let us hope for a better year for the pub industry in 2013.