We have a large number of pubs in Teignbridge, and they play a vital part in our local community, as well as contributing to our tourism economy.
I have been sitting on a committee of MPs which has scrutinised the Small Business, Enterprise and Employment Bill. Some of the measures in the Bill relate to so called “tied pubs”, where a large pub company owns the pub, chooses and supplies the beer, and has a tenant/landlord relationship with the pub landlord, who receives a salary.
While this relationship has been looked at on many occasions over many years, it became obvious to me while sitting on the Bill committee that the relationship between pub company and tenant landlord is, in many cases, unfair. We heard numerous stories from landlords of how they worked every hour God sends, only for the pub company to take most if not all of the profit, with the tenant landlord receiving a very small salary. In many cases the alternative to their predicament was unemployment and homelessness – don’t forget that they rely on the pub company for not just their job, but also their home.
This arrangement does not only disadvantage pub landlords. With large companies dictating the supply of beers on offer, choice and price are inevitably affected. There is strong evidence that a wider choice of beers in turns attracts more customers, as well as keeping down prices.
The ‘tied pub’ relationship requires sensible rebalancing. I am instinctively in favour of free markets, but on occasion free markets require correction. The amendment I supported will require large pub companies (with over 500 pubs in the UK) and their tenant landlords to renegotiate terms on issues like rent and beer prices. Independent adjudication will be provided if agreement cannot be reached. Changes that are agreed will be phased in, so as not to disadvantage the business and give it time to adapt.
I was pleased to see this amendment passed with a majority of 25. I do not like voting against the Government, but my priority is Teignbridge, and I was determined to do the right thing for our pub landlords.